Study On The Operation Mode Of Mortgage-Backed Securitization In China

As an important form of the securitization of assets, Mortgage-Backed Securities (MBS) has been proven to be one of the greatest financial innovations in the 20th century after decades of practice in many countries. Due to the prominent role of resolving the liquidity of bank's loans, MBS led to a large-scale study in China. As the first securitization of MBS experimental unit, China Construction Bank had issued "Jianyuan 2005-1 individual housing mortgage-backed securities" by the end of 2005. Since then, MBS began to actually operate from the theoretical study, and appeared in Chinese capital market.During the first MBS's submission and implementation, however, the authorities and theorists as well as commercial banks have different voices, especially in the mode of operation and choice of SPV. Therefore, this article embarks from the point of controversy, through literature research, case studies and comparative analysis, to sum up different characteristics and conditions in foreign mode of operation, research the problems in domestic practice, and analysis rationality and obstacles in different operating modes by domestic scholars. Finally, on the basis of the views, this paper puts forward new operating mode and ways.This article holds the points that balance-in mode is not our choice, while the balance-out mode, with unique advantages, should and must be the first choice for the long-term development of MBS. And on the issue of SPV, this paper argues that we should take different approaches in short-term, medium and long-term stages according to Chinese actual conditions and different goals. SPT should be taken in the short term, and then with some experience and conditions, we should take the government-leading, state-owned SPV. Finally, in the mature future, we would reduce appropriately government's intervention and introduce some private competitors in order to establish a fair, opening and sound financial capital market.