Chinese Credit Asset Securitization: Development Status, Problems and Suggestions

Credit asset securitization refers to banking institutions as originating institution, trust the credit assets to the trustee, and issue a beneficiary security to investment institutions in the form of asset backed securities by the trustee, then pay the proceeds of asset-backed securities structured finance business in cash generated by the property. In recent years, Chinese commercial banks to force the credit asset securitization issuance scale growth, achieved rapid development in previous years. However, China’s credit asset securitization problems still exist, the legal system, supervision, accounting standards, tax regulations, and credit rating system for the financial markets infrastructure, and so on behalf of the still incomplete. In the current Chinese regulatory authorities to encourage the favorable opportunity to speed up the development of asset securitization, the securitization of credit assets to achieve breakthrough development, we must strive to break the constraints of the development of securitization for credit assets multifaceted problem, and clear objective for the business development environment obstacle.