China's Housing Mortgage Loans Securitization Model Is Discussed

ABS(Assets backed securitization) and MBS(Mortgage backed securitization) have been hotly debated recently in China. In the author's opinion, both should be approached more systemically and thoroughtly. The thesis has two main parts.The first part includes two chapters, summarizing the basic priciples and ways on MBS and ABS.The second part include one chapter, introducing MBS into China and bringing up new ideas on important and difficult issues and how to test MBS on a realistic and sound basis in China. The overall objective is to propose a working strategy for policy-makers and to offer fresh perspectives for researchers on theory and practice of MBS in China.Firstly, in the foreword, the thesis gives the background of the ABS and showes us the difficulty of doing MBS in China.So in chapter one, the definition and classification of ABS was introduced, together with the similarity and difference between ABS and other kinds of financing tool, such as forfeiting,factoring and project financing. About the definition of ABS,there are various meanings,macro,median and micro economically.Because it's not the focus of our discussion, so the thesis just gives a simple but polished introduction of the definition, from the macro-aspect to the micro-aspect, from the theoratical meaning to the practical meaning. Since there are so many different understanding about the ABS, the paper classifies the ABS in a multi-dimention manner, so that readers can have a thorough knowledgement about ABS. As to the compare between ABS and other structual financing tool, the author's point of view is that although there is essential difference between them,we can't exclude the possibility of the apperance a new kind of financing tool as the intergration of them , which is more suitable to the need of mordern financial market.After the discussion of ABS, we turn into the concernful point of the thesis, MBS.Chapter 2 emphasize the process and endogenetic risk in the implementation of MBS.In addition,the history of MBS around other nations, such as USA, Canada ,Japan and so on , was also discussed in chapter 2.As to the operation of MBS, the author first introduce it in a temporal order.Legal regulation, institutional obstacle in the practice of MBS in different counties are also probed into during the discussion of it's process,such as the "real selling" of the backing assets from issuer to SPV. The author tries to find the motivation and practical significance of MBS to the development of one nation's mortgage market and financial markets.Then various ralated risk was concerned. There are system's and non-system's risks in MBS structures. The author deals with four main risks.They are prepayment risk , interest fluctuating risk, credit risk and redemption risk. This part also analyzes these risks' causes, types, measurement and management.Chap. 3 is the key part of the thesis, which discusses the securitization mode of Chinese housing mortgage. First of all, it investigates the present situation of Chinese mortgage market, including lending institution, guaranty mode, and repayment mode. Then, the motivations of both supply and demand parties are put forward based on the previous analysis. The possibility and urgency of developing mortgage market is discussed from the perspectives of investors and launching parties, i.e. lending institutions. Finally, the securitization mode of Chinese housing mortgage is discussed. Worthy of mention is that the author gives alternative models in different phase of MBS, but not a staid one.And the whole pattern is built and centered upon the government organizations and supplemented by the private enterprises. The ultimate goal can be achieved through the gradual steps of experimentation, standardization and perfection.