China's Housing Mortgage Loans, Security Research

Finance is the core of modern economy.In the summer of 2007 the sub-prime crisis broke out in a special form to show the world the far-reaching impact on real economy by the accumulation,infection and release of risks in the financial sector.Though the direct impact on China is limited,we should learn something from it and treat the real estate financial risks prudently.At present,China's real estate financial risks mainly concentrated in the banks.Although the quality of China's housing mortgage loans is relatively high,thins are getting more and more serious with the rapid growth and accumulation of risks in recent years.Statistics shows that the amount of China's non performing housing loans is ascending year after year,and in some regions it even developed a little bit quickly.For this reason,this article analyzed the current situations and risks characteristics of China's housing mortgage loans,based on the study of the formation mechanism of the U.S.sub-prime crisis,seeking to put forward some practical measurements to prevent and solve the risks in China's housing mortgage loans.Through the study of China's full history and developing status quo of housing mortgage loans,the thesis analyzed the credit risk,operational risk,market risk and system risk issues of individual housing mortgage loans,on basis of analysis of the fundamental reason and transmission mechanisms of the United States"Sub-Prime Mortgage Crisis".Models such as KMV model,JP Morgan's credit metrics model and Credit Suisse' additional credit risk model were introduced into the paper to analyze the credit risk in the housing mortgage market of China.Measures suitable for China's concrete situations were promoted,such as further improving the credit system,regulating banking operations,step by step financial innovations,rational treatment on opportunity and challenge of international management,strengthening financial supervisions and forecast of the real estate market.Particularly the idea of establishing the basic personal Account will be of definite value to the construction and raising efficiency of China's credit system.