European Experience Of Securitization And Its Implication For China

The essence of asset securitization is to create a pool of assets made of various categories of assets which are illiquid but can produce perceivable and steady future cash flow, meanwhile, to securitize the pool of assets to create profit. As an innovative financial product, asset securitization makes itself a better choice for investors and sponsors. Although asset securitization has positive economic effects, it is still regarded as highly risky with many parties involved, with various risk factors, with mainly market-orientation. So, in the first beginning of our Chinese asset securitization market, we should establish related laws and regulations make it risk-controlled and put it under supervision.The dissertation starts with the definition of asset securitization, makes conclusion of its essential parts. After analyzing the development mode, sorts of product and risk management of asset securitization in European market, the dissertation finds that Spain is an comparable case by certain standards with Chinese market. Through studying various aspects of Spanish’s asset securitization market, the dissertation makes the realistic research on the development of Chinese asset securitization, which is of practical significance.It is obvious that government is a key part in the development of asset securitization. Meanwhile, laws and regulations, sound credit system and accounting system, comparatively relaxed tax environment are all fundamental to the perfection of asset securitization. These experience concluded by European countries are essential to our Chinese market to process our own asset securitization.The dissertation consists of 5 chapters. Chapter One is an introduction. Chapter Two introduces the definition of asset securitization. Chapter Three and Chapter Four are the most important parts of this dissertation which are focus on the development and typical aspects of asset securitization in European markets, along with a case study in Spanish’s asset securitization. Chapter Five bases on the former two chapters and tells how European asset securitization affects its development in Chinese market. Finally, this article makes a review on future development of asset securitization in Chinese market.