Asset Securitization Investors' Rights Protection System

The asset securitization is the process to frame the asset being short of liquidity but having steady expected cash flow income, separate and reform the risk and proceeds and then convert them into the salable and current securities in the financial market. As one of most important financial innovation during recent over ten years in international financial field, the asset securitization has its ingenious design and special function as a bright pearl. The asset securitization is both a innovation of financial product and a innovation of financing and law system with different financial characters. The essence of the asset securitization is to transfer those assets short of liquidity but having steady expected income to those with well currency. The asset securitization is popular both in well-developed countries and in those countries with less-health market. We have many reasons for this situation. However the most appealing point of the law structure of asset securitization is to have some special regulation to protect their investors.There are 6 chapters excluding the preface and epilogue.Chapter 1 is the summary of general theory of asset securitization. The author will introduce the concept, history, the operation theory and function of the asset securitization and so on in a brief.Chapter 2 is the comprehensive description of the whole article. The author will explain the general theory of rights and benefits protection for the investors both in legal value and regulation contents.Chapter 3 is the point of the article. The author talks about SPV which have some functions of asset division, liability division and risk insulation. The functions of SPV can protect the securities investors. There are two types of SPV. One is SPT and the other is SPC. This chapter explains the operation theory and system design and other related contents of those two types.Chapter 4 is also the point of the article. And the author has comparative research on the general theory and other related system of asset transfer. The asset transfer is one of the most important steps in the structure of securitization trading and it determines the success of the securitization.Chapter 5 is to introduce the information disclosure of system of rights and benefits protection for the investors. The obligation party, the related matter of information disclosure and relieve manner have been described here in more detail.Chapter 6 is about related legislation system and regulation suggestions to protect the rights and benefits of investors during our asset securitization. When we plan our system of protection of rights and benefits of investors, we have to choose our legislation system, the American system or the Japan system—special law system. The author argues that we should choose Japan system. In the end of this article, the author also put forward some suggestions about legislation contents.