Analysis of the Asset Securitization Status in China

As the current US sub-prime mortgage crisis becomes financial crisis,it is important to study the risk diffusion process of asset securitization.The rapid development of asset securitization makes it to be one of the most important financial innovations of financial markets in recent several decades.Asset securitization can help the banks to achieve the purpose of improving capital adequacy ratio.Through asset securitization,banks can achieve capital release;banks can meet the regulatory requirements when they expand the risk which results in the lower regulatory efficiency.After investigating the significance of developing asset securitization in China and its present status,the obstacles in current legal system are analyzed together with the proposals to solve them.Based on the status of asset securitization in China,the paper makes suggestion about market development,products design and regulatory system.