The Research On Legal Mechanism Of Cross-border Asset Securitization Risks

In the context of financial globalization and liberalization, the cross-border assetsecuritization movement flourishes. Cross-border asset securitization is a combination of theglobal financial and legal resources, which optimize the structure of the transaction forinternational finance. However, benefits and risks coexist. Cross-border asset securitization,complex and flexible, presenting diverse risks in the entire course of it. And that promptedcountries to control the risk of cross-border asset securitization and supervise the cross-borderasset securitization activities. However, due to the presence of various factors, relying solely onone country’s domestic law is not enough, for it can not take the risk of cross-border assetsecuritization effectively controlled, and thus avoiding the outbreak of the global financial risks.Therefore, in order to maintain the international financial security, there is need buildinginternational cooperation of legal mechanisms in cross-border asset securitization riskcontrolling issues, to prevent the risks from an international angle and in a regulatory level, aswell as guiding relevant national’s coordination of prevention. This Paper is divided into fourchapters, the first chapter gives a basic overview of cross-border asset securitization from aspectsof the operating framework、motivation and so on. The second chapter analyses the conductionmechanism of cross-border asset securitization risk and the impact of the outbreak of the globalfinancial risk in the context of the U.S. Sub-prime mortgage crisis which consequently triggeredthe global financial risks, Chapter III describes the main types of cross-border assetsecuritization risk and gives analysis of their specificity, and finally the fourth chapter discussesthe necessity、principles and pathways of building legal mechanisms in international cooperationof cross-border asset securitization risk controlling, in order to control the various types of riskbetter and to ensure the stability of the international capital markets, avoiding the outbreak of theglobal financial risks, and promoting the integration of the global economy’s healthydevelopment.