Research On Asset Securitization Of Automobile Consumption Credit

Asset securitization, as a breakthrough and milestone in finance innovation history, has had profound impact on the international finance market since the end of 1960' s. It does not only create liquidity for certain assets, but also collocates asset incomes between future and present, while providing new financing and invest tools. Asset securitization shows a bridge towards capital market for practical assets, finance assets and others, and a connection between capital market and other markets.Asset securitization of automobile consumption credit plays an important role in the securitization market. It helps financing institutions to transform long-term credit assets into liquid securities, while separating the risks gathered in financing institutions to public investors, which optimizes the market efficiency. The paper firstly introduces the basic theory of asset securitization, especially on automobile consumption credit, then its necessary conditions and operation methods.Comparing with other technologies , asset securitization of automobile consumption credit has its unique operation. The USA enjoys the most developed securitization market, where asset securitization of automobile consumption credit has accumulated rich theories and practical experiences through a long history of more than thirty years. On such a base of international securitization experiences and American mode, the paper analyses the operation merchanism detailedly.As an innovation technology, asset securitization of automobile consumption credit is worthy of deep research for China' s relative scholars. But the development of China' s practice always shows a lag. In 2005, China launched the first case of asset securitization, after which the capital market limit on the automobile finance reduced. But the attempt on asset securitization of automobile consumption credit is still in the base step. In Jan, 2008, the first case of asset securitization of automobile consumption credit in China, "Tongyuan 2008-1 ABS" , was lauched. So in the forth part of this paper is a case analyse on "Tongyuan 2008-1 ABS" . Referring to American mode, the paper expatiates on China' s asset securitization of automobile consumption credit, especially on the basic assets, policy and relative laws, technology an, invest environment. Finally, there are some suggestions on marketing, legal system and technology for China' s better implement of asset securitization of automobile consumption credit.