The Comparative Study Of Asset Securitization Products In China

In the 1970 s,asset-backed securitization(ABS)was initially used in the area of housing mortgage loans in the U.S.The huge popularization of ABS in the U.S.has been accompanied by the development of the financial market.The concept of ABS was introduced to China in the early 1990 s.In 2005,a pilot program of ABS was implemented in China.Later,the ABS business gained gradual growth in China and a range of asset securitization products were introduced by drawing on experiences of the American and European markets.Based on the domestic and foreign researches about ABS research findings and reviewing,the article makes a comparative study of various asset securitization products in China is conducting from aspects of their applicability,security,liquidity and profitability.In terms of applicability,this paper makes a comparative study between RMBS,factorage financing and other twelve major ABS products which from different aspects,such as development history,development motivation,factors restricting development.Through the comparison of ABS products between foreign countries and China,this paper analyzes applicability and development prospect of different ABS products in China.This paper evaluates the applicability of asset securitization products by using marking methods.The applicability part is more of a qualitative examination.In terms of security,this paper uses “default rate” to measure security in different asset securitization products.What's more,this paper compares the security in three major classification of ABS products.And also compare the asset securitization of personal and corporate debts.This paper utilizes the “annual default rate of securities” as the indicator,that is,the dependent variable,measuring the security(the risk level)of asset securitized products,and uses the “conditional prepayment rate,interest rate on assets,interest rate on securities,percentage of subprime securities,downgrading and term of securities” as independent variables.Through massive data analysis in combination with calculations carried out on the Statistical Product and Service Solutions(SPSS)software,an econometric model for the security of asset securitization products is obtained,and security-related results of various asset securitization products are projected.Further,a comparison between the real security data and those obtained from model calculations is carried out to test the accuracy of the model.With respect to liquidity,this paper uses the “ratio of securities that enter the secondary markets after issuance” as an indicator to measure security in different asset securitization products.This paper quantitatively compares the liquidity of securitized personal and corporate debts.This paper also adopts the “ratio of securities that enter the secondary markets after issuance” as an indicator measuring the liquidity of asset securitization products,that is,the dependent variable,and uses “annual growth value,securities issue amount and transactional amount after entering the secondary market” as dependent variables.Through massive data analysis in combination with calculations carried out on the SPSS software,an econometric model for the liquidity of asset securitization products is obtained,and liquidity-related results of various asset securitization products are projected.Further,a comparison between the real liquidity data and those obtained from model calculations is carried out to test the accuracy of the model.In terms of profitability,this paper uses the “spread of securities products” as an indicator measuring the profitability of asset securitization products.The profitability of various asset securitization products in China is obtained and a quantitative comparison is conducted.Using spread as an indicator,a quantitative comparison of profitability between asset securitized personal and corporate debts.Differing from the previous two segments,this section uses “profit of securities”,instead of the “spread of securitized products”,as a dependent variable and the “spread of securitized products,issue amounts and various fees and charges” as independent variables.Based on accounting standard,a model used to measure the profitability of asset securitization products in China.Based on comparative study,this paper establishes the “ASLP” standard which guided by applicability and supported by security,liquidity and profitability to evaluate asset securitization products.Further,its points out the development direction and strategies of asset securitization in China.To facilitate the development of asset securitization in China,development paths are suggested for the four major asset securitization products.These include asset securitization of automobile loans,real estate investment trusts(REITs),indemnificatory housing and public-private partnership(PPP)projects.The contributions of this paper are as follows:(1)Through the comparative study of ABS products,this paper builds a standard to measure asset securitization products by applicability,security,liquidity,and profitability.(2)This research points out the applicability of various asset securitization products in China's financial market,and put forward the standards to measure applicability.An empirical examination of the security(risk level)of various asset securitization products in China is conducted in a quantitative manner,and a model used to measure the security of these products is proposed.The liquidity of various asset securitization products in China is empirically studied and a model used to measure such a liquidity is proposed.The profitability of various securitized products in China is empirically studied and a model used to measure such a profitability is proposed.(3)Based on the comparative study of asset securitization products,this paper built the “ASLP” standard.