A Study On The Toxic Assets Securitization In China

The asset securitization is the most important finance innovation in theinternational financial realm of 20 centuries, which means that the property whichlack mobility, but can produce stable cash flow through some certain structurearrangement, carry on separating and reorganizing to the insurance and the incomemain factors of the property, then are converted to the portfolios that can be selled onthe financial market.The proportion of nonperforming assets in commercial banks in our country ishigh and the number of them is great, which contain great financial risks and hinderedthe development of the banking of our country and the operation of national economyseriously. We have obtained some achievement through the efforts in recent years, butthe pressure is still great. The problem of using new method to handle the bad assetsbecome the focus more and more. The theories of nonperforming assets securitization(NPAS) have already been perfected gradually, also, good results have been made inpractice abroad. Our country has begun to try handling nonperforming assets byNPAS and has made certain progress.This article tends to conduct qualitative research of the utilization ofnon-performing-loans backed securitization .I will employ comparative analysis of thepresent status of the NPAS disposal in domestic and major methods of NPL disposalin order to emphasize the necessity of the securitization of NPAS in China: I willlaunch from the present developing situation and trends of the international NPLsecuritization and key cases of NPL securitization, point out the inspiration of theNPL securitization in China.The innovation of this article involves two points: first of all, the article conductin-depth and delicate analysis of the development progress and cases of the NPLsecuritization in China, also contains characteristics summary, which providereference for further development of the securitization in China. Second of all, thearticle demonstrate the evolution of NPAS in our country, and puts forward someviews in order to promote its domestic development, including some policyrecommendations are proposed, including the perfection of the law, development ofsecurity market and support of the government.