Research On The Development Of Domestic Securities Securitization Business

Essentially, asset securitization is a process that the cash flow generated by the underlying assets packaged into easy-to-sell securities, and cash flow will be expected realizable. From the development experience of the United States and the European securitization market point of view, investment banks play the most important role in promoting the development of the asset securitization market in the process, it can participate in the asset securitization operation through sponsors, service providers, investors, and other multiple identities. At present, domestic asset securitization market is not mature, subject to market conditions and their own, domestic securities companies mainly as underwriters involved in asset securitization operations, the level of business and profitability are relatively low. In 2014, domestic asset securitization market has achieved rapid development, the issuance of asset-backed securities products in quantity and amount are far more than in 2013. At the policy level, the China Securities Regulatory Commission promulgated a number of laws and regulations related securities companies to participate in asset securitization business, gradually clear legal obstacles for securities companies to carry out asset securitization business. The domestic securities companies in the asset securitization business more actively, there are obvious improvement in the depth and breadth of participation. Asset securitization business of securities companies are entering the outbreak period. Therefore, carrying out asset securitization business of domestic securities companies from the theory and the practice operation level has a very important significance.This paper focus on the domestic securities company’s asset securitization business. Firstly, this paper summarizes the theoretical research about asset securitization. then, introduces the origin and development of Asset Securitization. Moreover, this paper puts forward comparison analysis of the domestic and foreign development status of asset securitization market. Secondly, this paper clearly defines the domestic brokerage asset securitization in the role, benefits and risks. Citing abundant industry data, this paper detailed analysis the market conditions and their own conditions for asset securitization business of securities companies, and, reasonable estimates the contribution of the asset securitization business of domestic securities companies in Main Business Income, Net Profit and ROE in the next five years. Thirdly, from the macroscopic and the broker’s own factors levels,this paper detailed analysis of the bottleneck on the development of asset securitization business of domestic securities companies. Because foreign investment banks suffered heavy losses in the subprime crisis that are closely linked with the excessive development of the asset securitization business. This paper also summarizes the lessons of foreign investment banks that suffered heavy losses in the subprime crisis. Based on the above research, this paper finally puts forward some suggestions for the development of domestic securities company asset securitization business,including speeding up the construction of the "counter cyclical risk control system", preventing overly dispersed ownership structure, optimizing the organization, reforming single sided salary incentive system,accelerating the construction of talents etc.This paper uses literature research, survey, case studies and other research methods, providing detailed analysis of domestic securities company’s asset securitization business. Hoping this article will help newcomers research, as well as contribute to the development about asset securitization business of domestic securities companies.