Asset Securitization Feasibility Study In China

Asset securitization is called the most important financial innovation since 1970's. It originated from the supporting securities for housing mortgage in USA. After its swift and violent development in the past thirty years,it has already expanded into numerous fields,such as automobiles,vessels,accounts receivables of loan and fee collection for basic facilities. It entered the European market in 1980's and experienced a vigorous development. It entered the Asian market in 1990's and it is regarded as a very attractive new financial instrument. All these facts have demonstrated that the securitization of assets has become an irrevocable big trend on the international capital market. It is considered as one of the newest financial techniques. It is predicted as the highlight of financial development in future.The so-called securitization of assets to a process in which the original rights and interests holders' (the sellers) of non-circulating stocked assets or foreseeable incomes in the future are structured and transformed into marketable and circulating financial products on the capital market. Although the securitization of assets as a kind of non-debt financing has been developed and utilized in many countries,it is just started in our country and needs further understanding and study.This thesis gives the definitions and fundamentals of securitization briefly and puts emphasis on the discussion of function and possibility and difficulties of conducting such business in China. By the end,we will share the views and make some proposals on securitization in China.At present,there are many difficulties in Chinese securitization. The policy suggestions for implementing the securitization of assets in our country are put forward,including those suggestions as to how to overcome and reduce regulatory obstacles,technical obstacles and environmental obstacles.As one of the financial instruments in financial innovation,securitization is regarded as the highlight of financial development in future. It will promote the development of Chinese economy and solve some existing economic problems to some extend.