The Research On Mortgage-backed Security In China

Mortgage-backed security (MBS), as one of the major forms of financial innovations, was originated from American in 1970s, which was used to solve the asset problem of lacking liquidation and achieved great success. After that, this financial innovation was spread to other countries and areas and achieved great success . And MBS gave great contribution to the real estate development of USA and Japan etc.In recent years, with the rapid development of economic and real estate of our country, it has been the new hotspot. MBS can not only meet the needs of the economic development of China, but also have realistic and economic significance. The operating MBS in China is an inevitable trend, which has been widely approved by national and overseas experts. But, which pattern of MBS is fit to our country's situation has been in debate. After many years of study and discusses , experimental unit of MBS started from 2005. This article will analyze the necessary and feasibility of building MBS in China, compare different typical patterns of MBS of other countries and area, and make suggestions and advices of building MBS on the basic analysis of the practice of experimental unit.This article consists of five parts. First part generally introduces the principal of MBS, including the participants and operating process and three basic principals. Second part analyzes the status of Chinese economic and real estate development and address precisely the necessary and feasibility of building MBS in China. Third part compares the MBS practices of America, EU, Japan, and Hong Kong in detail, and got some good advices of developing MBS in China. Fourth part gives analysis of the practice of experimental unit, and expounds disadvantages of developing MBS in China. Fifth part is based on above analysis, and make suggestions on developing MBS in China.