China Asset Securitization Product Research

Securitization as a financial innovation, provides convenience for investors and raisers, and is one of the greatest financial innovations in the 20th century's. Asset securitization can solve the financing problem for financial institutions, improve capital turnover, and make profits increase. Through Securitization, commercial banks can solve the mismatch of assets and liabilities, the problem of insufficient capital adequacy ratio while transferring part of the systematic risk. But investment banks, and other financial institutions can amplify earnings via leverage, meanwhile have more risk. Securitization can promote the development of Chinese bond market, accelerate capital flows, and hence reduce monetary pressure.Based on the above for domestic and foreign Securitization, according to the situation of our research for our country Securitization developments and innovations, suggestions are as follows:first, according to Chinese economic growth speed, high savings rates, development of Securitization is feasible with low risk and necessary. Secondly, with current Securitization products, to meet various aspects of financing requirements, we should launch home equity loan ABS, credit card ABS, car loan ABS etc. At the same time can launch Covered Bond to control risk and reduce speculation. Again, perfect our country's credit rating system and improve the rating agencies quality, create credit rating requirements, through credit rating distinguish different yields, strengthen the rating agencies moral risk management. Broaden market participant range, realize the target of transforming risk broadly. Finally, implementation of appropriate monetary policy and accounting principles promote Securitization development. Prudence regulation about the policy still applies in Securitization market.