Non-performing Assets Securitization In China

The paper mainly concerns the meaning and feasibility of bad assets securitization, describes the status quo of bad assets in China, analyses the processes and tactics about the bad assets securitization, and then suggests appropriate bad assets securitization models for China.The paper includes four parts:The first part is about the definition of assets securitization. In this part the paper mainly discusses the definition and theory of assets securitization; describes the development process and meanings of assets securitization; classifies the assets securitization by different criterions; and analyses the operating steps.The second part mainly concerns the status quo of bad assets in China. Firstly the paper analyses bad assets from two aspects: causes and harmfulness. Secondly, it introduces the experience of bad assets disposal in other countries especially in America, Japan and Poland. Finally it discusses the methods of disposal including sale, debt restructuring and debt-to-equity swap.The third part discusses the feasibility and practice of bad assets disposal in China. Firstly the paper analyses the necessary conditions for asset securitization in theory. Secondly it discusses theses conditions in China. By these two parts we get the conclusion that bad asset securitization is feasible in China. Furthermore it describes the practice of (quasi) bad assets securitization in China. Finally it depicts the obstacles and restricts for bad asset securitization in China.The last part suggests suitable models of bad asset securitization in China. Firstly the paper concretely discusses the steps of bad asset securitization, analyses the crux points in every step. Secondly it put forward the two suggested models for China and analyses advantages of each model.From this analysis the paper get the conclusion that bad asset securitization is feasible in China. Although there are some obstacles in law conditions and technical support, yet it is not impossible to overcome. We only need to do something to improve these conditions. At the same time the author point that bad asset disposal in China has its characteristics, so we should develop the China's model for bad asset disposal.