Study On The Legal Issues Of Enterprise Asset-backed Securitization In China

The Enterprise ABS(Asset-back Securitization)is an efficient and low-cost financing process based on asset credit.By means of structured arrangement,the underlying assets are independent of the original equity owner's other assets.Enhance the assets self-credit through Credit Enhancement and True Sale.To isolate the risk of ABS and the operation and financial risks of the original owner.As to the purchase process,the attractiveness of securitized products to investors depends entirely on the quality of the underlying asset.The repayment of the principal and the income of the ABS purchased by the investor is strictly dependent on the cash flow recovery of the assets in the asset pool.Therefore,asset credit and risk-remote are the most important two core characteristics of Enterprise ABS in China.2016 was called "the year of Asset-back Securitization outbreak".According to the statistics,this year the scale of Enterprise ABS market was 438.521 billion yuan,the Enterprise ABS has become the largest circulation of ABS products instead of Credit ABS.The basic asset type made innovation,transaction structure,such as excess cash flow coverage and other internal measures to increase credit also emerged in an endless stream.The outbreak of the Enterprise ABS has brought great vitality to China's capital market.In particular,since the implementation of the filing system,various types of enterprise assets packaged as enterprise backed securities appeared in the financial market.However,the equivocal nature of the special asset management plan as the special purpose vehicle of Enterprise ABS,bring difficulties to identifying the credit relationship nature of Enterprise ABS.Otherwise,there is a close relationship between ABS and financing guarantee.The ambiguity of legal recognition of Chinese Enterprise ABS bring great resistance to the supervision of the ABS and the circulation of the parallel market.Firstly,this paper reviews the origin of ABS,introduces the types of ABS in China,and explains the connotation and core features of Enterprise ABS business from two aspects of asset credit and risk-remove.Then,this paper studies the problems involving the essential relation of enterprise ABSand the legal standard of "true sale",analyzing the nature of problems.Finally,comprehensive legal identification of the Enterprise ABS was made,drawing lessons of experience,to provide the legal basis for the settlement of disputes arising from the enterprise ABS in the future.