China's Legal System Of Asset Securitization Research

Asset securitization begins in U.S.A in 1970s and gets rapid development during recent 30 years. Asset securitization virtually is a kind of financing method that the original creditor (sponsor) sales the financial claim of those cash flow we just mentioned to special carrier and get the gains and risks of that financial claim deconstructed and reconstructed as to convert the financial claim of present or certainly will be into some kinds of securities could be free traded and guaranteed by the cash flow comes from the assets. Securitization set a safe and reliable bridge between investors and those need the money. Securitization trading needs the support and regulated of laws. Therefore the design of legal system will affect the cost and efficiency of securitization, insure and encourage the healthy development.There are no special laws about Asset securitization, the existing laws and regulations have conflicts with securitization system. So there are strong demands of reconstruct the law of asset securitization. There are great deal of problems with the complicated asset securitization running mechanism. The benefits and risks of asset securitization will finally taken by investors. So the chief purpose of securitization is protecting the investors. All the laws and regulations related with securitization is about how to ensure investment benefits and reduce the investment risks. This thesis takes the legal system of our country as research object, on the basis of formulation of securitization's intension and extension. Through comparing legal and economic analyzing and demonstration analyzing, incorporating China's capital market and the reality of legal environment, and standing on the set up of legal system, this thesis will bring up some advices of deduction of related laws system from the point view of shift of existing laws or set up new legal system and risks guards and safety value.This thesis has five parts. The first part is about research and analysis of asset securitization's intension and features and the strictly law definition of those core words so as to have the correct and suitable point of view of the functions of asset securitization. There are still introductions about law system of asset securitization which mainly covers Transfer system of credit claim which is mostly about true sale of assets and financing guarantee. It has relations with the cost effectiveness of securitization and the fate of the bankruptcy segregation system. It mainly concern about asset support, bankruptcy protect of promoter, SPV bankruptcy protect, assets issuing and trading system, and credit classification system. Tax laws, accounting laws, exchange control regulations and laws run through it. The second part mainly about the evaluation of the asset securitization law system. Firstly it focuses on the extension affects .From aspects of economic costs and achievements, and entrap the participants making their self-interest behaviors legally and have good results to the society. Promoting the credit classification of investors may cause information risks and the costs up of monitoring. And risks apart system becomes tool of weaseling from obligations. Laws of asset securitization find the balance point between legislation and justice, and really is the reflection of market demands of asset securitization, then sociology satisfies. All parties' requirements in credit claim transferring, risks bankruptcy, promotion of credit classification during the process of asset securitization. It represents the human theory of people foremost and sustainable development of society and economy and establishment of harmony society with Chinese characters. Finally complete analysis from angles of philosophy such as mind of matter, relations and developments, cognition and practice to get the inner philosophy of laws system of asset securitization and prove the necessity of existing of such system. Part three researches asset securitization laws' implement premise, legislation structure, operation mechanism of foreign countries which .Have important enlightenment significance to the improvement of technologies and theories of our asset securitization law system. We should heed the functions of government in this procedure which will help to build fair competing market, fully developed society credit system. And we should reconstruct laws system of tax, accounting, and foreign exchange. We look for theory support for the development of asset securitization laws system from angle of comparison for the purpose of encouraging securities market's development. Part four puts forward the problems about the conditions of asset securitization laws system. The problems are limit over market, asset securitization not fully developed, lag of laws system, lack of supervision, and things like that. In this part we make efforts to find the reason of those problems and expound the necessity of set up our asset securitization laws system. Part five take the conclusions we get in the above four parts into China's practice and try to give some useful advice from aspects of legislation, system arrangement, and supporting mechanism on the basis of existing problems and reasons of our laws system. It points out that our asset securitization must improve the laws and regulations conflict with asset securitization. We have to. Choose the special laws model, and fix the legal position of SPY, pay great attention to reconstruction of credit system, build supervision and supporting mechanism to avoid financial risks and running models leaded by government. Part five comes up with the suggestion. Of the improving asset securitization laws system and hope it will make what little contribution it can to the development of China's asset securitization laws system.