Real Estate Asset Securitization And The Selection Of China's Banking

Asset Securitization refers to assets that lack of liquidity but with expected stable cash flow. This process is guaranteed by the original assets, through the structural reorganization in the capital market then issue securities by this. So that it will provide a certain degree of mobility and obtain money by this process. Asset securitization began in the seventies of the United States, it is one of the most significant financial innovation in the world's financial sector at the recent past three decades. Real estate asset securitization is one of the most important asset securitization products. Because of asset securitization itself can enhance the mobility which the financial institutions'assets lacked and spread the risks, since the 20th century 70s many developed countries have adopted and perfected the development of this important financial innovation.In 2007, the United States occurred a serious crisis in the sub-loan market. This crisis hits United States badly and gives a serious negative impact to the world economy. Therefore, people begin to re-examine the asset securitization itself and the whole issue process. Although our country has conducted a number of real estate asset securitization pilot since 2005, but only to the extent of inter-bank market, up to the true kind of promotion we still have a long way to go.Since 2002, China's real estate market continued to heat up, prices rose rapidly, and the corresponding vacancy rate remains high. In some regions there also form a bubble in the real estate market. Under such a situation, this paper begins from the research of the development and the principle of real estate asset securitization and based on many scholars study at home and abroad, uses the recent development of the real estate market in our country as the starting point. Through the research of the real estate market indicators and liquidity risk and credit risk in the bank, this paper explores why it does not fit to promote the real estate asset securitization in the current situation in our country. In the last, this paper tries to analyze the timing selection of promoting and the corresponding systems that should be completed before.This paper is divided into five parts:The first part is introduction. In this section it introduces the background and why to choose this topic. It also gives a brief explanation of what this paper will discuss then points out the deficiencies and innovation.The second part is the summary of theories. First, it does a summary of domestic and foreign scholars'research in the development of asset securitization and the related theoretical results. Second, it introduces the characteristics of the real estate securitization, financial support and the relationship between the real estate bubbles. Finally, it discusses the liquidity risk and credit risk banks will be faced.The third part of this paper discusses the reasons why the United States sub-prime crisis occurred from the view of over financial support. The reasons why the sub-prime crisis occurred are grouped into six points, and discussed one by one in this part.The fourth part shows a data analysis of the real estate market in recent years in China at first. Than discusses two relationships: the high vacancy rate and insufficient of funds in the real estate companies with the risk of bank.The fifth part is the final chapter, and also the most important part of this paper. This chapter summarized the above four parts'analysis, and explains why it is not suitable for our country to promote the real estate asset securitization under the current situations from seven aspects. Finally, when is the appropriate time to promote the real estate asset securitization in our country is discussed in this paper. This paper also gives some suggestions about what should be done before the promotion.