Non-performing Assets Securitization In China Case Study

Asset Securitization, as the most important and improvement innovation of finance during the last 30 years, can be traced to 70s of twentieth century, and it develop quickly in all of the world. Compared with the development countries and some market economy countries, such as USA, Japan, Korea, asset securitization just start to research in China. This situation not only keep distance with international level, but also not match for the huge potential demands of securitization market in China. So, it is the need of society to develop securitization in China.Handling nonperforming loan with securitization has accepted by lots of countries of the world. Also, securitization has become one of the most important way to deal with nonperforming loan. There are huge benefits and special characteristics with NPL securitization(NPLS). But it's structure is somewhat complex and professional. In China, some bank and AMC(asset management company) have tried to use NPLS to deal with nonperforming loan for several times, therefore, to sum up the situation of NPLS in China and explore the suitable mode of securitization are very meaningful to separate finance risk, resolve the problem of banking nonperforming loan in China. Also, it can promote the development of economy and society.