Discussion Of Establishing Mode Of SPV In Asset Securitization Of China

Special Purpose Vehicle (SPV) is the core of the process of asset securitization, the most important function of which is to isolate risk. SPV guarantees the safety of cash flow by means of isolation of bankruptcy risk of itself , originator, servicer, obligors.This paper focuses on the establishing mode of SPV in China and uses normative research method. Based on the introduction of the principle and procedure of asset securitization and SPV, The detailed operation of SPT(Special Purpose Trust), SPC(Special Purpose Company), Special Purpose Partnership and off-shore mode are discussed. Also, obstacles of systems and environment in China are discussed. Combined with the principles of securitization, this paper proposes three principles and concludes SPT and off-shore mode should be adopted now. SPC should be established gradually after the construction of systems and environment and AMC subsidiary as SPV can be adopted as a test. Finally, strategies and suggestions are proposed.