Asset Securitization Issues Related To Research

Asset securitization is to gather the assets to form an assets pool, which must have stable, calculable and foreseeable cash flow but lack of mobility. Then through the structural reorganization and under the guarantee of expected stable income stream, change it into securities that can be sold and circulated on the financial market. Asset securitization is an important financial innovation beginning in America from the 70s of the 20th century, which got the unprecedented development in the nearly thirty years. Then this kind of financing style is applied widely in Europe, Asian and other regions. Asset securitization is one of the mainstream financing technologies appeared in the trends of worldwide financing innovation. It has not only drastically changed the economic and social life of many countries, but also brought about a series of institutional innovation. With the further development of the financial reform and financial market, our country begins to propose the objective demand for asset securitization. From the perspective of national conditions, it is obvious that the asset securitization will exert positive effects on financial structure, infusing financial markets of different terms, evading and alleviating financial crisis and promote level of macro control. Meanwhile various participants including original borrower, originator, SPV, servicing and security investors will benefit from engaging in such a business. Therefore, all positive effects determine that asset securitization is an irresistible general trend.China development bank has been developing the business of asset securitization since 1998. In 2000 an asset securitization working team was established specially to explore the operation process and the plan that is suitable to national conditions.The true asset securitization in China is publicly offered by China Development Bank and China Construction Bank in 2005. It symbolizes the first batch credit asset securitization was offered officially. Asset securitization of our country begins to move towards the practice from the theory.However, at the same time, we should realize asset securitization is still in its infancy and at the stage of pilots in China, though the financial innovative project shows us its potential in China as it did in the developed countries, however, special current conditions warn us to take prudent and careful steps in the process. There are obstacles and risks in this business against the background of non-perfect market economy in China. The development of asset securitization is directly related to continuous reform in systems and effective control over its potential risks. Systematic reform needs to be implemented in various aspects such as law, accounting, taxation, security and trusts; risk evasion should find its way in line with China's national conditions based on drawing international success experience.This thesis is divided into four parts. It explains not only the background but also the definition and operation process and of asset securitization. And it analyses the obstacles of asset securitization in our country. Finally it puts forward personal idea on carrying on reform to control the risk of asset securitization.