The Research On Asset Securitization And Its Development In China

Asset securitization is a financing method.It uses some assets as back,which are lack of liquidity,but have foreseeable and stable cash flow and held by finance recombination and credit strengthening,some convertible securities are issued.Asset securitization is a innovation of credit system.It makes indirect financing and direct financing combining and has advantages of these two traditional credit system.What's more,asset securitization is the perfect integration of modern economics and law.It separates the bankrupt risk of financer from the whole credit and supply a wonderful trading structure and legal design to investors.Asset securitization contributed a lot to the economic development of the United State.And now,economic development and wealth accumulation are accelerating the evolution of asset securitization.In the United States,securitization market has become the largest market and it's also the most important financing tool in USA capital market.From the perspective of China's national conditions, it is obvious that the asset securitization will exert positive effects on financial structure, infusing financial markets of different terms, evading and alleviating financial crisis and promote level of macro control. At the same time, various participants including original borrower, originator, SPV, servicing and security investors will benefit from engaging in such a business. Therefore, all positive effects determine that asset securitization is an irresistible general trend.However, at the same time, we cannot ignore the obstacles and risks in this business against the background of non-perfect market economy in China. The development of asset securitization is directly related to continuous reform in systems and effective control over its potential risks. Systematic reform needs to be implemented in various aspects such as law, accounting, taxation, security and trusts; risk evasion should find its way in line with China's national conditions based on drawing international success experience.Asset securitization is still in its infancy and at the stage of pilots in China, though the financial innovative project shows us its potential prosperity in China as it did in the developed countries, however, special current conditions warn us to take prudent and careful steps in the process. When it is specified to the choice of basic asset, the author holds the opinion that not all assets in China are ready to securitization, but those with the features: with foreseeable stable cash flow,...