Asset Securitization - China's Legislative Mode Selection

The difficulties of implementing asset securitization in our country are objective, including those at the technical and system levels. Technical difficulties mainly refer to China's market environment, such as social credit situation, the banking system security, the amount of wealth in the hands of populace and so on. Difficulties on the system level mainly concentrate in the policies, the laws and regulations. The key is to discover a cutting -spot, namely a breakthrough pattern.But to implement asset securitization in our country also has its necessity and feasibility. Beginning with the analysis of the elementary operation procedures, I summarize a broad basic theory of asset securitization: a core principle -- the principle of cash-flow analysis; three basic principles -- the assets-reorganization principle,the risk-isolation principle and the credit-level-increasement principle. Taking into account the three fundamentals that the breakthrough pattern of asset securitization of China should follow: basic assets must meet the "asset reorganization principle"; the breakthrough pattern can provide demonstration effect and experience to further asset securitization in China; in the system and the environment aspects, we can only choose the transaction forms which have the smallest conflicts with the existing system and the environment and are most probable to break through the restrictions of the existing system and environment, I analyze deeply the feasibility of a number of recommended transactions forms as our asset securitization breakthrough pattern, and conclude that in our country the three kinds of assets (housing mortgages , infrastructure charges, intellectual property royalties) should be given the priority to be assetsecuritized,and that property trust is the best form of the transaction structure in reality. Therefore, I think that China's breakthrough pattern for asset securitization should be the unification of one of the three basic assets (housing mortgages, infrastructure charges, intellectual property...