Research On Assets Securitization Of Auto Finance In China

As a huge driving force and the automotive industry's largest profitable offering in foreign country, we noted that the auto finance industry in China is developing a lot recent years. But compared to the huge boom in China's auto industry, auto finance industry's 6 years development in China is still in its infancy, can not adapt to and effectively promote the thrilling auto industry. With clue as to why, financing has become a bottleneck in its development. A look at international experience in mature, asset securitization which is a important tool to strengthen asset mobility and avoid financial crisis has become a key to auto financing problem. Now, the research on asset securitization of auto finance means a lot.This paper is logical to start with the following. First, It describes the background and literature review, the second part analyzes the mode of operation, the next focuses on auto finance asset-backed securities pricing; followed, empirical studying to the first auto finance asset-backed securities (Tong Yuan 2008-1). The last chapter is to conclude the problems and recommendations.Comprehensive the theoretical analysis and the empirical analysis, finally we can draw the following conclusions:the current issue mode can be used in China, but basis our condition, SPV should be entrustment basis and credit update should be internal. About pricing fixing methods, static cash flow yield and static spread are both applicable, but the latter is a little bit precise for it considers the term structure of interest rate.