Research On Asset Securitization And Its Risks In China

In China, formal securitization practice strarted from 2005. As a complex financial technique and a new comer for China, the asset securitization meets several obstacles during its application in China. Since subprime crisis happened, the asset securitization got a number of criticisms, coupled with the "mortality" of Kaiyuan credit asset-backed securities in 2007, the asset securitization in China has also been questioned on its risks, and the problems of the asset securitization have also become more concerned about. So, to research on asset securitization and its risks in China is a very urgent task.This paper firstly starts with an overview about the latest development of asset securitization in both international and domestic markets. Then the paper mainly focuses on the following three aspects about asset securitization: the basic assets, the SPV (special purpose vehicle), and the credit rating. Based on the latest development of asset securitization in China and related legal and financial environment, the paper deeply analyzes the present status of asset securitization in China and main risks of these three aspects in practice. Then it gives the author's suggestion and proposal to solve these problems.After there years' development in China, although there are many obstacles during its application, the asset securitization has an optimistic prospect in the future.