Study On The Legal Matters Of Risk-remote Mechanism Of Securities Company Asset Securitization

In November 2014,<Management Regulations for Securities Companies and Subsidiary fund Management Company>, the legal basis for Securities Company asset securitization, was published. It brings asset securitization that origins from 1970s as one of structured finance styles to public focus again. Securities companies also view it as a major opportunity for innovative development.Under the pressure of activating stock assets, asset securitization can create a major boost for broadening financing channels for small and medium-sized enterprises and increase asset’s liquidity. However, as one of financial derivatives, asset securitization product is a double-edged sword. The outbreak of financial crisis in USA in 2008 also makes people realize the importance of risk management. The risk-remote mechanism as guarantee of asset securitization is designed for lowering market risks and protecting investors’ profit.Based on legal level, this paper makes analysis and research on the risk-remote mechanism of asset securitization of Securities companies in China from four parts.Chapter One gives a legal explanation for the concept of "Asset Securitization" and an introduction from general operation process, all subjects of financial deal and basic deal structure perspective.Then, in Chapter Two, it sorts the development process of asset securitization,then gives main interpretation from subjects, basic asset, SPV (Special purpose vehicle), credit enhancement, supervision mechanism and information disclosure in accordance with the status of legislation in China.Chapter Three is the major discussion on the two keys of risk-remote mechanism: bankruptcy remoteness and true sale. Besides, it focuses on legal orientation of asset support plan, relations between Securities Company and investors, general reference standard of true sale to discuss and research.In the last chapter, in order to promote the healthy and harmonious development of Chinese enterprises, Chapter Four proposes three ways to perfect risk-remote mechanism of Securities Company asset securitization:the improvement of law of SPV, the establishment of true sale standards and reform and innovation of supervision mechanism.