An Analysis On The Status Of Enterprise Asset Backed Securitization

Asset Backed Securitization(ABS) is defined as the process in which packaging illiquid individual loans and other debt instruments into liquid securities with credit enhancements to further their sale in the capital markets. The asset securitization market was first developed in the US In 1970 which is a great innovation of the financial derivative market.The asset securitization market has expanded rapidly to become a very important sector of the financial market. The asset securitization is divided into two parts in China. One is Credit Asset Securitization which under the regulation of China Banking Regulatory Commission(CBRC) and the People`s Bank of China(PBC). The other part is Enterprise Asset backed Securitization which under the regulation of China Securities Regulatory Commission(CSRC) and Asset Management Association of China(AMAC). In 2004, CSRC Started to demonstration and Research on Enterprise ABS. In Aug.2005, China Unicom Online rental fees of CDMA Benefit plan issued as the first Enterprise ABS product in China. In Nov.2014, the CSRC published a new document about the regulatory rules of Enterprise ABS,The way to issue new enterprise ABS changed from examined and approved in advance to record after issue. This paper discusses the operation mechanism about the enterprise ABS and the status of the development of enterprise ABS. In the final of the paper, discusses the future prospect and some policy suggestions.