A Study On The Small And Medium Sized Enterprises' Loan Securitization In China

The development of China's SMSEs(Small and Medium Sized Enterprises)is playing a very important roll in the growth of national economy with steady steps. But the difficulty of SMSEs's financing is the biggest obstacle of the healthy development of SMSEs. This is difficult problems of all countries in the world and it is more serious in china. Because the size, the capital and the credit of SMSEs are limited, and there are the rigid conditions of admittance of capital market in china, the financing from the banks is the primary mode of gaining fund to SMSEs.However, the commercial banks are very cautious when they face the application of loan of SMSEs at present. Although a series of policies for developing SMSEs have been established, the status of funding difficulty isn't changed. The reason is complex and is relative to many aspects. The commercial banks'cautious manner to loan of SMSEs, to a great extent, makes the funding difficult of SMSEs more serious.As the one of the most important innovations in 20 century, the asset securitization is an effective way for settling the problem of funding difficulty of SMSEs. It assemble some loans of SMSEs that is lack of mobility,but will have stable cash flow. Through the asset structure ,it convert the loans into the securities with more mobile and higher level of credit and put them into financial market for purchase and exchange of the investors. Through the course, the banks can reduce risks of the loans, complement the liquidity, decrease the cost of the loans and increase the profit so that the bank's worry of the loans of SMSEs can be eliminated.The article is compartmentalized three parts. The first part includes the first chapter and the second chapter. The first chapter is an introduction, which introduce the meaning of choosing the subject, the research methods and logic structure. The second chapter introduces the theories relative to asset securitization, including fundamental principle, traits, operative mechanism, general process. The second part is composed of the third chapter and the fourth chapter, in which the author analyzes the feasibility and the necessity of the SMSEs' loan securitization through mathematic model and actual datum in china and concludes the conclusion which it is feasible and necessary to promote SMSEs' loan securitization in china. The third part is the core of the article, which include the last two chapters. In the fifth chapter, author refers to the experience of asset securitization in home and abroad, bases the characteristic and mostly obstacle of SMSEs' loan securitization in china and combines with the China's national conditions in order that analyses and seeks after the effective and feasible approaches and suggestions for SMSEs' loan securitization from the six phases of asset securitization, which includes choice of original assets, sale of loans, credit rating and enhancement, design of securities, issuance of securities and management of assets. Finally, the sixth chapter is conclusion and prospect.Nowadays, The asset securitization has become a prevalent intermediary system in some of the developed countries, but it is a new thing in china , especially SMSEs'loan securitization, which is, on the whole, blank in practice of asset securitization in china. Up to the present, there only is the securities backed SMSEs' loans issued by China ZheShang Bank whose size is only 6.96 million Yuan. So, the author hopes that through the article, some helpful reference and operational guidance that can promote the development of SMSEs'loan securitization can be given.On the side of the whole financial market, The SMSEs'loan securitization not only solves the financing problem of SMSEs, but also provides the benefits for all relative participators including commercial banks, SMSEs and investor and optimizes the resource in the our financial market.