Mode Research Of Assts Securitization Of Accounts Receivable In China Companies

Asset securitization came into being in America in the end of 1970's, and spreadto the rest of the world in 1990's, and it is now one of the three most popularfinancing tools while the other two are equity financing and debt financing.Afterthe 1997 Asia financial crisis, it developed rapidly in Hong Kong, Japan, Koreaand Singapore. And China are participating in the asset securitizationdevelopment with initial success.Accounts receivable management in companies in China, even the listedcompanies, is a big problem, because huge volumn of accounts receivable notonly affects the company normal running, but also threten its profitability. As akind of asset securitization, accounts receivable has been developed in Americaand many European countries. Till now, China has carried out some accountsreceivable securitization practices, which are comparatively successful. But thepractices are limited and can not bring paradigmatic effects. Besides, dpmesticresearch on securitization mostly focuses on the bank loan, mortgage andinfrastructure revenue securitization, while accounts receivable securitizationrelated research is less. So, the paper chooses accounts receivable securitizationas the research objective and discusses the feasible mode of accounts receivablesecuritization in China using the experience of other country for referenceThe paper aims to find modes for the development of accounts receivablesecuritization in our country referring to the comparison of practice and regime environment in other countries, theory on asset securitization and the realenvironment in our country and of ordinary asset and accounts receivable. Themode will provide a new investment tool that brings advantages to partiesinvolved, has less conflict with our regimes or has the chances to break throughthe regime barriers. The mode will bring paradigmatic effects to the developmentof accounts receivable securitization in China.To be more meaningful, the paper shapes the accounts receivable into domesticones. After the introduction of asset securitization theory, the fitness of theaccounts receivable securitization is proved in four aspects: the attributes of theaccounts receivable, the quality and quantitity of the accounts receivable in China,the supply and demand the initial enviornment. Then comparing the differentmodes in America and Japan, the paper gives an initial outline. After that, fourmodes are suggested according to the five aspects discussion in the process ofaccounts receivable securitization. At last, problems are pointed out in creditestablishment, policy development, accounting & tax, agency, and advices arealso put up in these aspects.