Research On Subprime Crisis And The Risk Mechanism Of China

In early2007, several major financial companies in the United States in succession to the court for bankruptcy protection, the signs of the subprime mortgage crisis is gradually emerging. In order to curb the further spread of the U.S. subprime mortgage crisis, the Fed and Treasury have taken a series of capital injection, cut interest rates and other measures, the subprime mortgage crisis has not only been brought under control, but intensified and spread to European financial markets and even the world’s financial markets. As of early September, the two largest U.S. mortgage companies by the U.S. government to take over; mid-September bankruptcy of Lehman Brothers, JP Morgan Chase acquisition of Bear Stearns, Merrill Lynch sold to Bank of America; the end of September, Goldman Sachs and Morgan Stanley become bank holding companies. At this point, the form of an origin in the subprime mortgage crisis, asset securitization, packaging, transfer gradually the crisis to expand and spread, eventually becoming the most serious since the1929U.S. financial crisis, financial crisis. In this paper, the reasons for the outbreak of the U.S. subprime mortgage crisis, combined with the actual situation, of China’s asset securitization of asset securitization risks isolation mechanism put forward a sound proposal. China’s asset securitization is still in its infancy.Hainan launch asset securitization project of Kelantan district in1992, opened the prelude to the practice of asset securitization. After a few years, China has carried out the exploration of several asset securitizations. March2005of the pilot units given the contents of the CDB and CCB, the pilot securitization of credit assets and mortgage-backed securities of, since then, China’s asset securitization pilot ground-breaking trip.With the expansion of the scale of China’s housing mortgage loans, based on the securitization of housing mortgages in the next few years will have a lot of room for growth, and is an important part of the country’s financial market development, has made an indelible contribution to China’s economic development. U.S. subprime mortgage crisis another warning that we must attach great importance to the securities of the operating mechanism and legal system construction, asset securitization risk isolation and must increase the risk of isolation mechanism is the core content of the asset securitization, research and risk isolation mechanism have far-reaching significance for China’s economic construction and development of asset securitization. The risk of asset securitization through the process of asset securitization, the sponsor not only with the risk of bankruptcy, and debtor there is breach of contract, the risk of asset securitization in order to ensure the smooth conduct of normal trading, must be comprehensive and systematic understanding of risk and the legal system on the specifications, therefore, should further improve the risk control mechanism of asset securitization.Construction of China’s asset securitization risk isolation mechanism has three main problems to be solved:First, China’s asset securitization SPV to take what form of organization, our law how to lift barriers to asset securitization; how to build the asset securitization. Risk isolation mechanism in order to avoid the U.S. subprime mortgage crisis-like situation. In this paper, by analyzing the status of the U.S. subprime mortgage crisis and China’s asset securitization, asset securitization risk isolation mechanism discussed.