The Research Of Securitization And Its Apllicaion In Infrastructure

This article first provides an overview of asset securitization, includingasset securitization basic definition, classification, transaction structure andoperational processes, as well as basic pricing principle. The article thendescribes the development of asset securitization in European and Americancountries, and learned that asset securitization for the economic developmentof countries has played a huge role. The rapid development in theinternational asset securitization introduced asset securitization in China’sdevelopment, and asset securitization in China is still in the primary stage ofdevelopment, so the development of the capital market has referencesignificance. Next article analyzes the current situation and the financingdifficulties of basic infrastructure, and thus leads to asset securitizationfinancing model.In the aim to solve the local government debt, the article then analyzes thenecessity and feasibility of the application of asset securitization ininfrastructure financing. And combined with real cases presented in the assetsecuritization practice, the article proposed a creative financial productdesigning, and analyzed a series of key problems that cannot be ignored. Inthe practice, we need to do financial analysis for the securitization of underlying assets, the transaction structure and design workable modelcontract from the technical aspects, and also need to essentially solve theasset securitization legal compliance issues according to our law, accountingand taxation systems. Only in this way, we can make the transaction structureboth legal compliance but also give full play to the unique advantages of thisasset securitization financing methods.Based on the above issues, the article concludes with recommendations. Inorder to make asset securitization develop more smoothly in China, and fullyapply to the construction of infrastructure, we also need to make perfect insome areas, including sound accounting system, as well as regulatory andother laws and regulations, market operation. By improving marketenvironment and proper guidance, asset securitization financing will be betterin our country’s economic development by promoting financial advantage ofit.