The Analysis Of Plight And Resolusion On Future Interest Asset Securitization

So far,future interest is still not a legal concept under Real Rights Law of the People’s Republic of China and other regulations relating to traditional civil law.But digging down into the natures of future interest,it’s not difficult to find out that it is a complicated concept which owns the nature of property as well as the nature of real right.Accordingly,comparing to the ordinary property rights,some special measures are needed in order to achieve the goal of the deconstruction of current ownership of future interest.It has been common practice in the international market,especially in America,Britain and Japan.However,there is no or less such kind of safeguard measures for the future interest asset securitization at the legal level in our countrry.Some companies take advantage of the legal loophole to raise monery with the enterprise guarantee but in the name of securitization.At the same time,according to the first judicial case of beneficial right trust in China,the judicial system was more inclined to follow the old routine bry confirming the guaranty liabilitry of the enterprises to the investors in stead of squaring up the problem of asset independence in securitization,though the judicial srystem had the consciousness to protect financial innovation.As a result,the distinction between the future interest asset securitization and finance withenterprise s guarantee become vaguer,which would do harm to investors’legal rights,and even the capital market in China.The idea of securitization originated from America,and after the global economic crisis happened in the ryear of 2008,the core elements of securitization had become clearer and clearer.But in China,with all these ryears experimental work,we are still facing the problem of the future interest asset securitization mixing up with finance with enterprise s guarantee.Looking back to the development historry of securitization in China,we could figure out the reasons.At the beginning of introducing the idea of securitization into China,the legislators just regarded it as a convenient wary for enterprises to finance.What our lawmakers did at that time was to copy the model of securitization and open the green channel for the enterprises,but not to fullry understand the innovation of securitization.Naturally,the mechanisms of asset,special purpose vehicle and asset-backed securities are backward.Under the circumstance of future interest asset securitization,the available legal resources appear scared and inadequate,not even to mention the protection of investors’legal rights.This essary aims at promoting the protection mechanism of investors’legal rights.Based on the asset securitization products which have issued and the judicial precedents,this essary is trying to illustrate the current plight of future interest asset securitization and to reveal the impact to the investors’legal rights as well as the capital market.Afterward,this essary will analryze the reason to the plight through comparing the practices and theories at home and abroad.At last,combining the situation of our country,this essary tries to find out the resolution to the plight.