Theory And Practice Of Asset Securitization In The Development Of Our Country

Since 1970's, it is the trend that all kinds of financial innovative instruments have been created all over the world. Among them, Asset Securitization catches the attention of the world for its subtle engineering and unique function, and it has become the most important financial instrument of these three decades in financial area. As the innovative institution of circulating funds, Asset Securitization focuses on restructuring asset and creates new financial institution, which improves the liquidity of asset. As the problem of asset liquidity gets serious and the society thirsty for the funds in our country, Asset Securitization is widely discussed and initially practiced, which is thought to be the key to solve the problem of asset liquidity and to pioneer the new way of circulating funds. This article will start from the economic explanation, focus on the necessity and possibility of practicing Asset Securitization, and find the breakthrough in China. This article emphasizes on how to adapt the institution of Asset Securitizaition to economic environment of China.