Asset Securitization Financing Study

Asset Securitization is one of the most important financial innovations in the international finance field in recent decades. Centered on this issue, the dissertation makes thorough study on theoretical research, institutional construction and pattern design while exercising Asset Securitization Financing in China. The whole thesis consists of three parts.Part one: This part concentrates on the theoretical research. First of all, the author gives the accurate definition of Asset Securitization. The principles of construction and operation of the financial innovation are introduced in the following section. The nature of Asset Securitization is a structural financing instrument applying for the main purpose of realize, transfer and ensure the future cash flow of the original asserts. Building and operating of the Special Purpose Vehical (SPV) share those risks accompanying returns produced in the course of financing within all the participants. Such result is achieved by three-core technology named as "real sell", "bankrupt protect", and "credit increase". What stimulate the unprecedented fast development of Asset Securitization throughout the world? The third section gives the answer. Originated from the evolution in the realm of economic epistemology and methodology, the author provides with several main incentives to explain the phenomenon.Part Two: This part is mainly about the institutional research. Centered on the essence of Asset Securitization, the author analyses why this financing method should be introduced into China and how it can be operated smoothly. For the purpose of enhancing financial efficiency, improving international competitiveness, satisfying "Non-Balance Sheet" financing demand, exploring new growth space for foreign investment, meeting the capital needs oninfrastructure during the "Tenth Five" period, China needs Asset Securitization. However, the restrains on technological, environmental and institutional sectors make great difficulties in applying and operating Asset Securitization Financing in China in the short run.Part Three: This part presents the design of preliminary patterns of Asset Securitization Financing in China and put forward several proposals for regulation based on practical background. Firstly, the author lists the principles while choosing the suitable original asserts and determining the subsequent patterns. Then evaluation is given to those suggested patterns in recent discussion especially the "Bad Asserts in Banking System" pattern. Following with the cases, the fundamental structure of preliminary patterns for Account Receive and Infrastructure Asset Securitization is designed by deductive method. Moreover, the author creatively organizes the investment structure of Project Financing with the financing structure of Asset Securitization in order to partition the "completion risks" in Infrastructure construction. At last, the author points out that China should greatly cultivate the institutional investors and harmonize capital market operating mechanism as well as promote the construction of regulation system. Only by such move can Asset Securitization Financing develop quickly and healthily in China in the long run.