An Study On The Models Of Residential Mortgage-Backed Securitization In China

After the rising of the securitization of residential mortgage loan in the United States, the Residential Mortgage-Backed Securitization (MBS ) has become one of the three major financial development trends. As one important financial technology and instrument, MBS has received much concern at present in China. The implementation of MBS has many practical meanings: to innovate residential mortgage financing and to achieve public policy goal; to introduce the concept of Structured Finance and to improve the innovation of financial system; to increase the variety of financial products and to develop capital market.In December of 2005, China Construction Bank launched the first domestic MBS product, 'JIAN YUAN 2005-1 Individual Residential Mortgage-Backed Securities', which was issued and circulated in national inter-bank bond market. It implyed that MBS had enter into the practising phase in China.This dissertation firstly analyzes both the MBS's economic meaning and practical meaning in the current Chinese context, which provide the theoretical and practical basis of the necessity of MBS's implementation. Then a series of models concerning setting up Special Purpose Vehicle (SPV), which is the core issue of the whole MBS mechanism, are summarized. After the difference of the operation characteristics of these models analyzed and compared, a critical conclusion of this text is given out that within the constraints of financial market basis, law condition and system arrangement, the rational choice of SPV is Special Purpose Trust (SPT) in the short-term and Special Purpose Company (SPC) under government background in the long-term. As for the short-term model, case analytical method is utilized to prove out the advantage of Sub-Participation choice under the SPT mode. As for the long-term mode, according to foreign successful experience, two particular model, HKMC model in Hongkong and CMHC model in Canada, is put forward.