Current Situation and Research of the Asset Securitization of China

Since China began the pilot asset securitization from 2005, its development has been slow and fluctuating.The most serious crisis affected by the U.S. subprime mortgage crisis forced the pilot breakdown for a long period.How to develop China's asset securitization is the core issue of China's finance.This paper discusses the current situation and problems of asset securitization in China, and gives the corresponding countermeasures and suggestions to provide some references for the related researchers. Current Situation of Asset Securitization of ChinaModern asset securitization originated from the mortgage-backed securities in the end of 1960s in the United States.Asset securitization refers to the originator will produce the expected cash flow of specific assets or portfolios, sold to a particular issuer, or the underlying asset trust to specific trustee, which generate cash flow to pay support through structured arrangement of credit the basic level, the asset securitization packaging, a financial instrument or document of title and form issued to investors, and provide the open place for investors, such as the inter-bank bond market and stock exchange.Credit enhancement may be provided by internal credit enhancement and external credit enhancement, internal credit enhancement including but not limited to the excess mortgage hierarchy of asset-backed securities and cash collateral accounts spread account etc., external credit enhancement including but not limited to the standby letter of credit guarantees and insurance, commercial banks to provide credit enhancement for credit asset securitization transactions.Most of the credit asset securitization products adopt asset-backed securities in the form of hierarchical structure.This is intended to encourage the implementation of the bank asset securitization, the new regulations significantly reduces the minimum grade retention rate, the real implementation of the bank's capital saving, capital consumption will be significantly improved, will promote the asset securitization enthusiasm, revitalize the stock, accelerate the credit asset turnover.The commission canceled the administrative examination and approval procedures of the special asset management plan. Existing Problems of the Development of Asset Securitization of ChinaImperfection of Law System.I In order to ensure the standardization and healthy development of China's asset securitization, it is necessary to develop a scientific judicial framework and create a suitable legal environment.One of the biggest obstacles in the developing countries is that the legal framework of the state judiciary is not suitable for all kinds of legal relations needed for asset securitization.Asset securitization is an important financial innovation, is produced in the framework of the legal system under the specific, but the development of asset securitization in turn to form the new legal system needs, promote the transition of the legal system.The asset securitization development, standardize and safeguard function cannot do without the legal system: