The Legal Analysis On The Asset Securitization By Local Financial Assets Exchange

Since 2009,Beijing,Tianjin,Zhejiang and other local governments actively promoted the establishment of local financial assets Exchange,hoped that by establishing specialized trading platform for financial assets,achieve the transferring of non-performing bank assets and state-owned assets.In March 2013,the CBRC issued "The notice on regulating commercial bank financing business investment operations and relative issue ",required commercial banks to reasonable control the ratio of non-standardized debt assets relative to total assets.This file forced commercial banks transferred of non-standardized debt assets through various methods.In addition to issuing asset management products(such as collective trust,security accounts,fund accounts,etc.)by financial institutions,through local financial assets exchange platform,the non-standardized debt assets transferred to a number of individual customers,both to achieve the transferring of the non-standardized debt assets,and release the limit on the number of customers and sales threshold,greatly reduced the transaction costs.Therefore,achieving non-standardized assets "one to many" transfer out by financial assets exchange,that is a special form of asset securitization model.And this form is the trading pattern that commercial banks keen to use.This paper is divided into four chapters.The first chapter analyzes the legal nature of local financial assets exchange.Local financial assets exchange has developed since 2009.Though the time is short,but as the professional markets of transferring financial assets,it has unique legal characteristics and business models.While considering the local regulatory body and regulatory power,there are still some legal regulatory loopholes.The second chapter discusses the motivation of asset securitization through local financial assets exchange,as well as the two common business models,namely transfer and split pattern and directed delegate investment pattern.Finally,there is a brief comparison for legal risk between asset securitization mode by local financial assets exchange and traditional norms.The third chapter analyzes from a legal perspective to realize the asset securitization by local financial exchanges.From the point of existing two business models,namely transfer and split pattern and directed delegate investment pattern,illegal fund-raising identified,the nature of property or debt,and investor protection have some flaws and legal risks due to the lack of the national level constraint.Chapter ?,as the last chapter,for improving financial asset securitization mode through local financial exchange,recommends regulator to definite the nature of the business,establish clear operational norms and standards,and protect the interest of investors practically by strengthening investor education.