Analysis On The Legal Supervision Of Asset Securitization In China

Since 1970,the United States Government National Mortgage Association issued the first mortgage portfolio,which is based on the assets of mortgage-backed securities,asset securitization as a new financial tool in the international market has developed rapidly.The asset securitization in China began in 2005,paused in the US subprime mortgage crisis,restart in 2011.Then with the gradual development and improvement of supervision and the expansion of market demand,the asset securitization market in the second half of 2014 began to enter a period of rapid development.Because of the specialization and complexity of asset securitization,it is very difficult to regulate.The current regulatory issues of asset securitization in China is mainly reflected in the following aspects: first,the divided operation and supervision of the financial system in the credit asset securitization,asset securitization,asset backed notes by different regulators,the asset securitization in China is lack of overall concept from the beginning.Secondly,from the current legislation in China,one-sided dependence on the supervision of regulatory authorities,the industry self-regulation is clearly not enough.Thirdly,the domestic credit rating agencies regulatory framework currently does not have a unified qualification,only when the rating firms do business,according to the type of bond need to access the corresponding regulatory approval.The unclear definition of function may be one of the biggest problems in China's credit rating agencies.Finally,the information disclosure regulation is extensive,regulators lack of independence,and the China Securities Regulatory Commission and the stock exchange for the regulation of information disclosure to the punishment afterwards,this regulatory approach cannot truly protect the interests of investors.From the above understanding and experience based on,put forward the following suggestions.First,reorganize its function under maintaining the existing regulatory landscape.Through the coordination of legalization,improve the efficiency of financial regulatory coordination system.Second,divide government and self-regulatory organizations regulatory authority reasonably.Third,supervise the credit rating agencies,strengthen the supervision of the practice of rating agencies,establish credit rating industry associations and strengthen the industry self-discipline.Last,establish the information sharing platform mechanism,and actively build the asset securitization information disclosure legal system.