The Design Of China Huarong Non-performing Assets Securitization Business Plan

Digestion and disposal of non-performing financial assets has always been an important part of financial market risk prevention and control, poor financial market scale is closely related to the macro economic situation and policy environment. Under the condition of slow recovery of current external economies and domestic economic slowdown, Chinese commercial Banks’non-performing loan balance and non-performing loan ratio rose up. As professional institutions disposing of non-performing assets of financial assets, financial assets management companies, compared with traditional financial institutions, have more flexible disposal methods and corresponding policy support, but their disposal efficiency is relatively low due to their own capital scale and regulatory requirements, priority of dealing with better-performed and larger scale of non-performing assets. Financial assets management companies can find new way of financing channels and large-scale processing of bad assets related to the timely and efficient resolve social bad assets of high risk. For financial asset management companies, comprehensive intervention that business has a double meaning of strategic and tactical level, actualizing the management transformation, improving bad business competitive advantage.This paper discusses the expansion of trials to fully fund asset securitization and the development trend of normalized, by analyzing history and current situation of the development of asset securitization practice both at home and abroad. China Huarong, for example, points out that the non-performing assets securitization can help resolve the mismatch of capital,dissolve and promote the standardization of non-standard business assets, and asset securitization to the bad assets of the company involved in specific areas of business. Some business models were discussed, pointing out that at present there are laws and regulations in the securitization of non-performing assets, accounting, taxes and market restrictions, and corresponding suggestion to circumvent. In addition, combining with service characteristics of China huarong group, this paper designs a series of financial and non-financial enterprise asset securitization comprehensive service framework.This paper argues that, despite adequate securitization of supply and demand for the domestic from a macro level, the market remains to be further perfect at present. Especially, the company form of SPV set up facing the dual constraints, the company law and securities information technology plan is facing the possibility of conflict of law, leading to the form of the trust plan has a major model, and greatly limits the securitization design choice space. Bad assets as underlying assets, need appropriate support from the government, and a certain amount of preferential tax policy, to improve liquidity in the market and promoting the development of the market. At the same time, in the process of securitization of steady progress, we should also strengthen the rigid payment financing conditions improve. From the microscopic level, financial institutions in the early part of the asset securitization, China huarong shall be on the bad assets of the stock selection, built into the underlying asset pool, according to the requirements of investors gradually digesting the stock boost investor confidence. By gradually increasing the proportion of new non-performing assets securitization and changing bad business deal from on-balance sheet business primarily to off-balance sheet business, China huarong do big off-balance-sheet assets under management quickly. At the same time, the company can also make full use of diversified financial services platform and provide customers with trust, effectiveness, hosting and custody of assets in the financial services, to build China huarong asset securitization comprehensive service system, according to the securitization of credit assets and enterprise asset securitization.