Trust Hierarchical Disposal Mode

Asset Backed Securitization is an effective structured financing method, which isimplemented by complicated and precise trade structure. With the internationalization of thedomestic capital market, it is extremely promising for the development of Asset BackedSecuritization in China. By applying methodologies of comparative analysis andinvestigational researches, the article suggests new ways for Asset Backed Securitization,i.e. Layered Trust management.By applying the comparative analysis of different kinds of Special Purpose Vehicles,the article proves firstly that under the current legal system, compared with the SpecialPurpose Company, Special Purpose Trust is much more suitable to China, in terms of assetisolation system, broad range of business, independence protection and effectiveadministration and operation to the securitized asset.On the basis of Special Purpose Trust, the article suggests a new method of AssetBacked Securitization - Layered Trust management, which could establish a bankruptisolation protection system between securitized asset and promoter, guarantee the right ofinvestors, satisfy the legal and administrative requirement, and meet the demands of capitalmarket.