Securitization Of Housing Mortgage Loan In China And Enlightenment To Our Country The US Subprime Mortgage Crisis

Asset securitization, which began from mortgage-backed securitization (MBS), is the most dynamic financial tool and innovation in the world's capital market since the 1970s. In the developing history of more than 30 years, asset securitization takes a very important role in the areas of the innovation of investment system, the improvement of liquidity and the risk diversification. And it is also very useful for the supply of new kinds of investment tools and optimizing the allocation of resources.In order to adapt to the trends of international financial securitization and the requirement of developing China's own financial and securities market, we should take reference to and apply the financial innovation tool. Today, MBS in our country is developing gradually. We should study the relevant theories about MBS and the practical experiences of western countries, and we can discuss the existing problems and dealing policies considering about the nowadays' crisis of American subprime mortgage market. There are a lot of important meanings to do those for the improvement of the launching of MBS in China. This paper studies the theory of asset securitization systematically. Then it studies the steps of MBS and introduces the main participants and their roles in the process of MBS. And then this paper gives an introduction and analyses of the initial publication of MBS by China Construction Bank consigned CITIC Trust & Investment Co., Ltd (JianYuan security as short) in inter-bank bond market. Then this paper takes a reference to the resent crisis of American subprime mortgage market and gets some enlightenment for the China's MBS market. At last this paper gives many suggestions on policy.This paper is composed of six chapters. Chapter one is an introduction, which introduces the background, objects, meanings and the structure of the paper. Chapter two gives a general overview of asset securitization theory, including the definition, characters and two methods of classification of asset securitization, and then analyzes the three basic theories about asset securitization. Chapter three analyzes the significances to apply MBS in China, and then gives a reference to the roles of participants in the process of MBS which is a comparatively complicate project. It also introduces the steps of MBS. Chapter four makes an introduction about the issue of JianYuan security, on the base of which, it points out the main problems in the process of the JianYuan security issuing. Chapter five makes a clear definition about several concepts firstly, then introduces the process of the crisis of American subprime mortgage, and then analyzes the reasons for this crisis. Chapter six analyzes our country's current situation on the basis of the crisis of American subprime mortgage, and gets some enlightenment, it also gives some suggestions on policy in the hope that those suggestions would be useful for the development of our country's mortgage loan market and for the application of MBS.