Analysis, Asset Securitization Spv Set Up Mode

As one of the most significant innovations in the international finance since the 1970s, asset securitization has shifted from the stage of introduction of international experience and theory research into the actual operation stage thanks to the efforts of our country's academic circle and finance circle. In recent years, although no actual asset securitization operation is available in China's capital market, all sectors are keeping their close eyes on this extensive market, and asset securitization solutions and product concepts are successively launched into this market. The most remarkable is the form for SPV incorporation in an asset securitization solution. SPV is an organization with a higher credit level specially incorporated for asset securitization. As an agent of the sponsor and the investor, it is the core of the trading structure of asset securitization. Therefore, it is vital to choose the form for incorporation of SPV in asset securitization process. Based on the practice of foreign asset securitizatio, SPV is mostly incorporated in the form of trust, company and limited partner. Under our country's existing legal environment, SPV faces various problems regardless of whether it is in the form of trust, company or limited partner. If SPV is incorporated in the form of a company, it is necessary to make major amendment of our country's existing Company Law, or formulate specific regulations on asset securitization; while there is still no legal basis available for the incorporation of SPV in the form of a limited partner. In this sense, the author holds that according to our country's existing legal systems, a trust company is the pragmatic form the development of our country's asset securitization. This paper also analyzes the factors restricting application of trust in asset securitization and put forwards counter measure proposals.