Basic Theory Of Asset Securitization And Practical Application In China

Asset Securitization, as one of the most important and significance financial market innovations since the1930s,have changed the entire market. Asset Securitization will form a asset pool by collecting the assets which lack the fluidity and has anticipated future stable cash, through the constitutive reorganization, will transform it to the securities that can be sold and negotiated in the money market, and realizing financial procession. The essence of Asset Securitization is to transfer the incoming property rights of assets to the investor. Asset Securitization has been born in US and has developed rapidly in developed countries and developing countries such as Europe, America, Japan, Korea and Hong Kong. For example, In US, to the end of 2005, the sum of assets securities has amounted to 7900 billion.In this thesis the first part briefly sums up the basic knowledge of Asset Securitization, such as the definition, characteristics and key steps of Asset Securitization. And then comparing with the development of Asset Securitization in foreign countries, we focus on its development in China. With the understanding of the meaning and feasibility of developing Asset Securitization in China, we introduce a example of developing Asset Securitization in China. Combining the cases we suppose the innovation of Asset Securitization, in order to deal with some problems in China. Last but not least, we put forward some suggestions for developing Asset Securitization in China. With our deep and systematic analysis, we can see clearly that it is significant top promoting the development of Asset Securitization in China. Because it will certainly benefit the growth of the economy in China, we should greatly encourage Asset Securitization in China.