Study Of Legal System On Debt And Asset Securitization In China’s Local Government

Along with the advancement of reform and opening up, China has tremendous economic and social development of the social construction is more and more perfect, people’s living standard is increasing day by day, also the whole country. However, with the rapid development of economy, more and more problems are inevitably appear one by one. Existing among them, the local construction funding gap is more and more obvious, the local government in order to deal with more and more heavy financial burden, new financing means constantly, lead to accumulation of local government debt scale in our country is more and more big, has been threatening the functions of the government, which blocks the development of the economic stability, solve the problem of local government debt has been imminent.As asset securitization is introduced into our country after successful use in various fields, the use of asset securitization to solve the problem of local government debt for more and more is also high. Asset securitization is for lack of liquidity but can produce in the future stable cash flow of assets, local government related finance company established by local government investment in debt just is in line with the above characteristics, which is formed by the use of asset securitization, can ease the debt crisis of local government, reduces the risk of instability due to the huge debt, this is beneficial to the prosperity and stability of financial market in China, is conducive to the healthy development of social economy of the correct choice. In our country, the local government financing investment company has related assets for asset securitization, is just an idea at present, in our country has not officially began to practice, to a completely new things, about local government debt securitization system design is in grope.Want to make use of asset securitization effectively solve the problem of local government debt, should first understand the meaning of asset securitization, know how asset securitization is a financial tool, assets securitisation and apart from the traditional financing means before, clear the process of asset securitization and the final effect. Second, should understand the present situation of local government debt in China, and know what are the components of the local government debt is. how it has the characteristics of. Not all local government debt to asset securitization. In figuring out the present situation of China’s local government debt and part, combined with the particularity of asset securitization the financing, judgment, asset securitization can be applied to solve the problem of local government debt. Finally, this paper discusses if the asset securitization to address China’s local government debt problem, Law for the SPV’s definition is not clear, can be securitized assets also not clear, for the assets transfer there is lack of the law. to protect the interests of the investors and the regulation of information disclosure system. Smoothly to use this new type of financial instruments, asset securitization to solve the problem of the local government debts accumulated for a long time, it should be possible problems for the above to respond one by one, first of all to do with the legal protection, to complete the really effective in asset securitization idea for government to resolve the debt problems.