The Research On Non-performing Asset Securitization Of China Cinda Asset Management Corporation

Since the1970s, asset securitization has been developing rapidly all over theworld. Asset securitization is a new way of financing and brings innovation on creditsystem, which opens up the channel between the indirect financing and the directfinancing. Asset securitization can also improve illiquidity problems of specific assetand improve the efficiency of the allocation of funds in financial markets.Non-performing loans have bad influence on liquidity and stability of the commercialbanking system, which becomes a threat to the country’s financial security and harmsthe normal operation of the national economy.In order to defuse financial risks andsolve the financial non-performing assets problem, China has set up four state-ownedasset management companies which work on the acquisition and disposal ofnon-performing loans from the state-owned commercial banks. Asset securitization canimprove the liquidity and profitability of assets and is an important way to dispose thenon-performing assets. This method has been used widely in international financialmarkets, which has achieved good economic benefits, therefore, the state-owned assetmanagement companies can take the way of asset securitization to disposenon-performing assets, which help improve the company’s operational efficiency andpromote the development of the financial industry.In this paper, the writer takes Cinda Asset Management Corporation for exampleand study on asset securitization. This paper gives an overview of asset securitizationand the development process of asset securitization abroad. The writer describes thedevelopment process of Cinda Asset Management Corporation and think that assetsecuritization is necessary for the disposal of non-performing loans.This paper designsthe asset securitization scheme of Cinda Asset Management Corporation. Besides, thispaper also analyzes the achievement of non-performing assets securitization with thehelp of the project of Xinyuan2006-1non-performing assets securitization deals. Atlast, this paper summary the barriers to the development of asset securitization ofCinda Asset management Corporation and puts forward the measures of resolving theobstacles to the development of asset securitization.This paper study on the non-performing asset securitization of Cinda AssetManagement Corporation.These beneficial explorations can not only improve theefficiency of the disposal of bad assets of the Asset Management Co and speed up the pace of reform of Asset Management Co business, promoting the development of thenon-performing assets securitization, Besides, it is of great significance to promotesustainable and stable development of the financial industry.