Research On The Expansion Path Of Asset Securitization And Commercial Real Estate Financing Methods

Commercial real estate in our country has entered the high speed development period in the 21st century.Commercial real estate is a capital-intensive industry and features in long-term investment period and high risk,therefore,acquisition of stable financial support is the basic condition for healthy development of commercial real estate.At present,the circulation mode of capital of commercial real estate in our country is simple and financing capability is limited,and thus this affected the development of commercial real estate in our country.Since 1970s,in consideration that the Asset Securitization has played an active part in aspects such as diversifying credit risk,lowering financing costs and expanding financing channels,it has rapidly developed in Europe,United States and other major economies.By piloting step-by-step,it is now transitioning from Bank Credit Asset Securitization to Corporate Asset Securitization and receives strong support from national policy.This paper followed the research method of practical measures proposition after general theoretical analysis.First,it introduced the basic theories of Asset Securitization and mainly analyzed related key technology of Asset Securitization;then it moved on to the introduction of successful Asset Securitization cases at home and abroad;next,it started to compare between Asset Securitization and traditional financing methods;then,it discussed the internal and external causes of financing by Asset Securitization of commercial real estate;finally,it combined with the actual situation of CSLAND commercial real estate and proposed to Asset Securitization financing solutions.Research has found that Asset Securitization combined and enhanced credit of commercial real estate assets that lack of liquidity but had predictable and stable future cash flow;by issuing transferable securities in the financial market that relied on future cash flow of underlying assets,the purpose of financing was herein achieved.The financing mode fitted in with the characteristics of business of commercial real estate in our country and it expanded financing channels of commercial real estate.The significance of research on the application of Asset Securitization in the financing process of commercial real estate is:1.It can provide diversified financing methods for the business development of commercial real estate;improves liquidity of total assets of enterprises;expands financing channels of enterprises;improves capital structure of enterprises;lowers financing costs of enterprises;promotes operation of asset-light strategy of enterprises.2.In terms of the financial market,the development of Asset Securitization would further drive financial innovation;lowers financial risks attracts cash flow from sophisticated institutions to enter into the industry of commercial real estate;changes the former situation that financing of commercial real estate depended largely on bank loans and traditional debt financing.3.As for the investors,it better serves the investor's diversified investment demands;provides more investment options for mid-and long-term capital such as insurance and social security fund;allows the investors to share operating profit of commercial real estate.