Subprime Crisis Enligtenment To China Residential Assets Backed Debit Securitization

In July, 20007, Subprime Mortgage Crisis is happened eventually. Its scope, influence and effect is far larger than our image. In the recent two years, not only USA real economy is lag down, but also European Union and Japanese economy is worse, even if the new economy like China and India cannot keep themselves good.The crisis is from the end of 2006, when the rate of violation remained high in Home Mortgage Loan in USA. It has driven the large violation on the Subprime MBS, and in the end , the bubble in the real estate market was broken. The worldwide known investment banks was either broken or merged. The turmoil of financial system has leaden the decline on the real economy, for example, the tycoons in USA motor industry has to seek help from the government.The Crisis has drawn attention of all the governments, who have poured capital into the stock markets, banks and motor industry. All the central banks have emptied liquidity into the market, implemented the positive financial and monetary policy, especially for USA, who has issued large amount of national debt. The measures above aim to boost the market confidence and stimulate its economy.The mains reason of the Crisis is Residential Assets Backed Debit Securitizaiton, which is planed to promote in China. We have consider seriously that how to develop MBS and maximize the usage of bank assets on the ground of Residential Assets Backed Debit Securitizaiton health, reasonable price, transparent process and stakeholder protection.This paper just wants to raise some suggestions on Residential Assets Backed Debit Securitizaiton avoiding the fault on Crisis. Mainly study on Crisis reasons, Residential Assets Backed Debit Securitizaiton theory, China Residential Assets Backed Debit Securitizaiton and put suggestion in the last.