Asset Securitization Related Issues

A wave of financial innovation was whipped up in 1970's all over the world and many financial instruments have been invented. Asset securitization is one of the greatest innovations of the past few decades in financial field of the world.The paper states the basic concept, character, and background of the asset securitization. Based on the analysis of the differences between China and West counties, the paper demonstrates the problem of the asset securitization's operating in China. On the same time, it shows the prospect of the asset securitization.The paper consists of three chapters:Chapter One is "Basic theory of the asset securitization". It introduces the asset securitization's concept, basic model and operating procedure. It also has the background and theory base of the asset securitization and the importance and significance of it.Chapter Two is "Practice problem in China". It is the core of the whole paper. At the beginning, it shows the asset securitization's feasibility in China before the differences between our country and America have been found out. Then, the paper analyzes the cost and the risk of the financing. At last, it provides the solutions of accounting problem.Chapter Three is "Prospect of the asset securitization hi China". It points out the way of striving to overcome the obstacle in the process of operating the asset securitization and how to get a great prospect.