China's Housing Mortgage-backed Securities Of The Construction And Analysis

In the last several decades, with the reform of housing system in our country, the individual housing mortgage loan has become a major way of purchasing houses for residents. The scale of housing mortgage loan has been increasing quickly and consistently since China Construction Bank provided the first housing mortgage loan to the employees of Lenovo. In 2007, the housing mortgage loan has reached more than 4000 billion RMB. At the same time, due to the high saving rate from the residents, the capital available of the four biggest commercial banks is sufficient enough. However, the risks of the housing mortgage loan also appear because of the active speculation of the real estate market and the enhancement of the state macro-control restrictions. Therefore the commercial banks impel the securitization of housing mortgage loan accordingly. At the end of 2005, after relative rules and laws were issued, the first MBS product—"Jian Yuan2005-1" was finally put on sale and asked to purchase. The target of this paper is to analyze the problems arising in the process of issuing MBS on the basis of the actual cases and furthermore to give some recommendations to the securitization of housing mortgage loan in the future.In the first chapter, the author briefly introduces the general situation of the securitization of housing mortgage loan. The second and the third chapters focus on the theories of the securitization of the assets and the housing mortgage loan. The fourth chapter is mainly on the situation of the MBS market in our country, with the analysis of structure design and some shortcomings of the "Jian Yuan2005-1" in detail. In the fifth chapter, from the perspectives of measuring and financial analysis, the author analyses such factors as the pricing and the financial index of the "Jian Yuan2005-1"and also chooses a relatively suitable model from some frequently used pricing models to give some suggestions about the pricing of the "Jian Yuan2005-1" in order to provide some reference for the designing and issuing of future MBS products...