Bankruptcy-remote mechanism as a core of asset securitization, which includes two aspects: First, the basis of assets and sponsor(originator) is isolated from the risk of bankruptcy, the second is special purpose vehicle(SPV) itself bankruptcy risk isolation.This requires the transfer of the underlying assets to achieve the "true sale" special purpose vehicle transferee underlying assets shall be a legal entity away from the risk of bankruptcy. However, in our country there is no "true sale" of legal standards, the underlying asset transfer process, the initiator(originator) often continues to enjoy basic asset management and control of risk on the underlying assets; and, as a special purpose vector(SPV) special asset management plan is not legally subject qualification, it is difficult to achieve the requirements of the bankruptcy isolation mechanism. China should develop standards "true sale" of the underlying assets in the legal level, changes in asset securitization cession take effect manner, establishing a special purpose trust(SPT) legal entity eligible to build special purpose company(SPC) system. |