The Research Of Asset Securitization Risk And Prevention Of China Based On The Grey System Theory

Asset securitization is a product of economic development at a speed. As an important and innovative financial derivatives, which are very common in the western countries, has a huge role in the promotion of economic development. Of course, asset securitization has two sides just like many other things. It can promote economic development, but at the same time, it has risk. In particular, the2007financial crisis in the United States makes it very important to control asset securitization risk. Chinese have studied asset securitization for nearly20years, mainly in the area of theoretical study, and there were few studies in the practice area. In2005, the State Development Bank and China Construction Bank issued credit asset securitization and mortgage securitization products, which means that China has officially entered the pilot phase of asset securitization. However, for the subprime mortgage crisis in American, China had to stop the pilot of asset securitization. Until2012, China’s restart asset securitization. The regulatory agencies are very careful Because of the risk of asset securitization, the agencies cannot allow this market development with freedom.Asset-backed securities are the product with low financing costs, abundant financial market products, a high level of credit and optimize the allocation of resources. In the long run, the development of asset securitization in China is inevitable. In the development of asset securitization process, we must pay attention to China’s economic entities, at the same time do a good job on the control and prevention of the risk of asset securitization.The main risks of asset securitization process:First, there are many subjects in the asset securitization, so we should establish an effective market access mechanism to prevent the occurrence of credit risk. Second, in order to realize the statement of the issuer of the underlying asset, and the remove of the underlying asset from the balance sheet of the issuer. And this requires China to establish the relevant laws and regulations to ensure the "true sale". Third, the rating agencies should conscientiously do a good rating work to avoid participation in asset securitization transactions, which causes losses of other participating subjects. Fourth, pay attention to the asymmetric information risk in asset securitization transactions, the risk of adverse selection and moral hazard. This requires the relevant regulatory bodies to develop appropriate information disclosure system, to ensure the openness, fairness and impartiality of the securitization market.Because of the in the securitization process, the author puts forward some countermeasures and suggestions. The paper is divided into six parts. The first part introduces the topics in accordance with the purpose and significance of research and the study’s principal contents and methods. The second part of the definition of risk and asset securitization, and then represent of underlying asset cash flow analysis theory, the theory of asset restructuring, risk isolation theory, the theory of credit enhancement, the principal-agent theory and gray system theory six asset securitization risk assessment theory. All these provide a theoretical basis of the paper. The third part has divide the asset securitization risk into two parts, that is systematic risk and unsystematic risk, and then analysis the constituent elements of the system risk and non-systematic risks. This third part has provided the basis for the establishment of asset securitization risk index system. The fourth part describes the procedures for risk evaluations of gray system theory, asset securitization risk index system of measurement and analysis, and the risk of asset securitization. The fifth part provides some suggestion about the risk of asset securitization from the micro and macro aspects. The sixth section summarizes the conclusions of this study, also pointed out the limitations of this study.