Discussion On The Securitization Of Housing Mortgage Loan In China

Mortgage-backed securitization (MBS) is one of the most important innovations in the financial field in the last 30 years. Now it is spreading fast in the developed world and becomes a global trend. Under the present circumstances of housing finance,it is necessary for our country to implement mortgage-backed securitization. Because with the development of urbanization, housing system reform and upgrade of residential consuming structure in China, the housing demand will rise constantly and more mortgage loan will be required. The present market can't satisfy the large gap of demand for capital. The mortgage-backed securitization can pump plenty capital from the capital market to the first market continuously and it will help solve the problem effectively. In addition, with the enlargement of mortgage loan scale, the fluidity risk of bankers will be exposed, and it also asks for the implementation of mortgage-backed securitization. MBS also helps to develop capital market and market structure.MBS requires a special system and market circumstances. At present, we will face some obstacles to implement MBS. How to overcome these obstacles is the subject I will discuss.Chapter 1 initially sets forth the conception of asset securitization and its innovative significance, compared to traditional finance. Secondly it states the trade structure of MBS and its operating principle.Chapter 2 mainly investigates the concrete operation of the model of MBS in American,Canada and UK,and concludes some valuable experiences and percepts as reference of introducing MBS in China smoothly.Chapter 3 analyzes the significances of the implementation of MBS in China. It will help to boost real estate industry; it will bring new instruments to manage fluidity risk; it will help to develop capital market. Chapter 4 analyzes the feasibility of MBS in China. There are primary conditions to implement MBS in China. But there are still some obstacles such as accounting treatment, tax benefits policy and limitations for implementation of MBS in law. We should take positive measures to improve the related economic environments, such as setting up new rules and amending the present law and regulations to create environment for MBS...