The Research For Mortgage-backed Securitization In China

The subprime mortgage crisis broke out in the United States in2007, bringing the global economic recession.The financial industry has been seriously shocked, and some of the problems in the U.S. mortgage-backed securities exposure to subprime mortgage crisis. China suffered from the severe impacts of the global economic crisis. As a new means of financing, mortgage-backed securities are an important methods to solve the liquidity and reduce financial risks.The stability and development of the real estate market and the capital market will influence China economic,and it is one of the much-needed work to promote development.However, how to achieve the mortgage-backed securitization become another key issue of discussion.In this context, China has carried out this work. In December2005, China Construction Bank issued mortgage-backed securities. This move opened up the market of mortgage-backed securities in China.In December2007, China Construction Bank secondary offer the mortgage-backed securities Although compared with the foreign products,the maturity of the mortgage-backed securities have a great gap.It is still a big step in the practice of housing mortgage loan. Nowdays, China is expected to start the third pilot project of the mortgage-backed securitization.This program is of great significance for China’s economic development.This article uses the means of case studies and comparative analysis.First of all, illustrate research background, research status and the thesis framework. Secondly, elaborated the status quo of mortgage-backed securities based on the products of China Construction Bank. Thirdly, through the experience of the subprime mortgage crisis, contrast the mortgage-backed securitization between China and U.S., and then sum up the lessons learned. Finally, based on the above analysis, give suggestions and countermeasures of the mortgage-backed securities in China.