Securitization Of Non-performing Asset For The Assets Management Companies Of China

As we all know, the AMC in China has ten-year life, and now there are near their deadlines. There still leave quite a lot problems for AMC to solve, one of which is the securitization.At the first of article, the author introduced some basic theoretical knowledge about AMC and the non-performing loans.Followed it, the article focused on analyzing the meaning of securitization for AMC in China and the existing problems of it. Based on it, the article pointed out that it was the right time for AMC to find the most suitable model of securitization.The author compared the two model of securitization, which are named "True sale" and "Participation sale", in the aspects of construction comparison, risk comparison and cost comparison.Then under current institutional background of China, the author analyzed the likelihood of both models and took the case for instance. Based on this case, the author concludes that in the short term the model of "Participation Sale" is inevitable because of the government's latent assurance. However, in the long-term, with the mature of the Chinese securitization market and the relevant low system, the Model of True Sale will be the terminal choice.