The Status Quo and Prospect of Chinese Credit Asset Securitization Market

Chinese credit asset securitization is still during the preliminary stage, characterized by scattering and small-scale pilot projects.Although the development path, with emphasis on prudential and regulatory operation, pushes forward the practice of credit asset securitization, it has to face various negative effects, such as non-uniformity to higher-level laws, power mismatch on formulating rules, the increase of issuance difficulty and costs, frustrated sales performance on the pri-mary market and severe lack of liquidity on the secondary market.These problems seriously constrain the further develop-ment of credit asset securitization.Since 2008, affected by the financial crisis originated from U.S.and the change of domes-tic macro-control, asset securitization has been facing a hard issuance environment and looking forward to sustained policy encouragement and support.Domestic commercial banks should focus on the key point, actively innovate product lines and make sufficient preparation for the asset reserve and issuance of asset securitization products.