Research On Commercial Real Estate Mortgage Backed Securitization In China

Since 2014,due to the transformation of the government's economic structure,the asset securitization has experienced rapid development.However,The process of commercial real estate mortgage backed securitization(CMBS)is relatively slow.The CMBS has important implications for adjusting the financing structure of real estate companies.Therefore,actively exploring the product structure and the transaction model of commercial real estate mortgage backed securitization can provide valuable reference value for the healthy development of commercial real estate mortgage asset securitization business in China.This article starts with the relevant theory of CMBS,and analyzes the application of asset securitization in commercial real estate with Jin Maokai's case.The uniqueness of this case lies in that it is the first CMBS listed on the exchange in China,and it is also a rare domestic case of introducing third-party asset service agencies and adopting dual-SPV structure.The case is thoroughly analyzed from aspects of major participants,credit enhancement,risk control and SPV structure.It not only finds some of the highlights of the case that are worth referring to,but also finds some worthy issues and risks.Finally,the paper draws concludes that the main advantages of CMBS are: to revitalize stock assets and to meet the huge financial needs of the commercial real estate industry;CMBS products are priced hierarchically,with the advantages of cost and risk control;and to broaden the financing channels and shorten the circulation of funds.There are also some deficiencies: the rental income of underlying assets of CMBS is not stable;the laws for CMBS still need to be supplemented.In response to these problems,this article tentatively puts forward several suggestions: encourag the entry of third-party service providers and professional investment institutions;try to introduce the dual SPV product innovation structure;actively promote CMBS breaks from the credit of the entity;strictly controls the quality of the underlying basic assets;unifies assessment criteria and strengthens market access;gradually forms industry associations,promotes investor education,and agglomerates industry consensus.