Research On Risk Isolation System China Asset Securitization

Asset securitization originated in the United States. in seventy’s of the last century as a new structure of financing tools. Thanks to the innovation it made on financing and credit aspect, asset securities viewed as a new financing tool spread worldwide rapidly, meanwhile it has become one of the important financial products in the financial market of developed countries. This thesis is focus on the problem of risk isolation system of asset securitization, and researching on how to construct the asset securitization risk isolation system under the current legal environment for asset securitization in China. As risk isolation system includes Underlying assets,SPV and True sale identification, this thesis will discuss on these three aspects respectively by analyzing through a variety of research methods, thereby to put forward a sound risk isolation system improvement suggestions accordingly.The thesis consists of five parts, the main contents can be listed as follows:The first part describes the concept of asset securitization risk isolation system. By reference to the relevant definitions, this part aims to define the legal connotation of the risk isolation system for asset securitization, which paves the way for the following discussion.The second part discusses the legal nature of the underlying assets, and focuses on the feasibility of the future creditors’ right as one of the underlying assets. The author believes that as the future creditor’s right in the legal uncertainty is very high, which does not necessarily be acknowledged by the domestic law so far, more attention should be paid to the legal risks of the underlying assets. To determine the legal nature of the rights by means of legislation, so as to ensure the improvement of asset securitization risk isolation system.The third part analyses the legal connotation of the SPV and its own risk, providing basisand support of how to construct the risk isolation system via SPV in China.The fourth part analyses how to identify the legal standards of true sale. By discussing the origin and legal nature of true sale identification, then referring to foreign experience and China’s judicial practice, to summarize the standard of true sale identifications from the perspectives of underlying asset transfer behavior and validity respectively.The fifth part is based on the previous full analysis and demonstration. Firstly, giving proposal to how to regulate future creditors’ right to become the ideal underlying assets; secondly, according to the system of SPV construction features, putting forward suggestions of new system construction; last but not least, to sum up the cognizance standard of true sale identification, how to ensure the underlying assets transfer to be true sale is proposed.