Asset - Backed Securitization and the Innovation of Financial Channels of Small and Medium - sized Corporations in China

Thanks to the financial predicaments, the development of small and medium - sized corporations in China are seriously restricted. As a direct way of finance, asset ?backed securitization provides a new channel for these corporations to get more capital which they need. This paper analyzes the current financial problems the benefit and the necessity of asset - backed securitization, and the difficulty of ABS of these companies. It suggests that the construction and improvement of three systems: institution system, finance market system and credit assurance system, which can ensure the successful operating of ABS. The small and medium - sized companies can get more capital and the economy of our country will get further improved.