In November 18th, a total of 8000000000 yuan of "in 2013 the first Kaiyuan railway special credit asset-backed securities" bond market bidding in the inter - bank, which is in August this year the State Council decided to issue to further expand the pilot securitization of credit assets after the first single product, is also the banking industry in the "decision" of the CPC Central Committee on deepening the reform of the publishing later, an important step in financial product innovation. In this regard, the central bank said, encourage the banking financial institutions to meet the conditions of the active participation in the pilot securitization of credit assets.

China's credit asset securitization pilot situation and achievement

The securitization of credit assets, is owed liquidity but have the credit assets of future cash flows (such as bank loans, corporate receivables etc.) after restructuring asset pool, and on the basis of the issuance of securities. Broadly speaking, the credit asset securitization refers to the credit assets operation foundation of asset securitization, including housing mortgage loans, car loans, consumer credit, credit card accounts, business loans and other credit assets securitization; narrow the securitization of credit assets, is the enterprise loan securitization.

2005 March, approved by the State Council, the people's Bank of Chinese jointly with the national development and Reform Commission, Ministry of finance, the Ministry of labor and social security, the Ministry of construction, the State Administration of Taxation, legal office, the CBRC, CSRC and the China Insurance Regulatory Commission and other ten departments, set up a coordination group of pilot credit asset securitization work, officially launched the credit asset securitization pilot. From 2005 to the end of 2008, a total of 11 domestic financial institutions in the inter-bank bond market successfully issued 17 single, a total of 66780000000 yuan of credit asset-backed securities. The American subprime mortgage crisis and the international financial crisis, after 2009, the pilot was almost at a standstill. 2011, approved by the State Council agreed to continue the pilot, has been the State Development Bank, the industrial and Commercial Bank of China (601398, shares) and 7 financial institutions issued 7 single, a total of 24130000000 yuan of credit asset-backed securities. As of 9 at the end of 2013, the credit asset backed securities issued a total of 24, a total of 90910000000 yuan.

Has the issuance of credit asset securitization products well run. Credit asset securitization products issuance and trading market operation is steady, has issued 24 single credit assets backed securities, there are 14 single to complete the payment of principal and interest, other products are in accordance with the contract servicing. Foundation assets steadily expanding, now covering the general long-term loans, personal housing mortgage loans, mortgage loans, car loans to small and medium-sized enterprises. Originators and investors tend to be more diversified, the originator range of policy banks, state-owned commercial banks, joint-stock commercial banks, Asset Management Co, auto finance companies and finance companies have included, investors include policy banks, state-owned commercial banks, joint-stock commercial banks, city commercial banks, credit cooperatives, financial companies, securities company, foreign banks, securities investment funds, social security funds, insurance (safe protection) mechanism.

Although the reform of asset securitization formally in 2008 after the stalled, but has Chinese characteristics of "asset securitization" innovation has been surging undercurrent. Especially after 2010, with the tightening of macroeconomic regulation and control to gradually increase the intensity and the tightening of bank capital constraints, different types of organizations for regulatory arbitrage through cooperation, the credit assets from bank balance sheets, thereby avoiding credit control, and to the development of a scale. That triggered the regulatory authorities worry Chinese version of "shadow banking", and a comprehensive clean-up and rectification. No matter how the qualitative, changes in the internal and external environment, credit asset securitization has its solid market foundation, is an irreversible trend in the development of the financial market. In this context, accelerate the pilot securitization of credit assets once again become an important part of financial reform.

In June 19, 2013, the State Council executive meeting to study the deployment of financial policies and measures to support the economy structure adjustment and transformation and upgrading, put forward to optimize the allocation of financial resources, making full use of incremental, invigorated the stock, better service to the entity economy development. In July 2nd, the State Council issued the "guiding opinions on" financial support for economic restructuring and upgrading, gradually promote the securitization of credit assets routinization, dish vivid capital support Small and micro businesses development and economic structure adjustment.

In August 28th, the State Council executive meeting held, decisions based on strict control of risk, to further expand the pilot securitization of credit assets. The State Council determined to expand the pilot securitization of credit assets mainly has three points: first, in the implementation of the premise of total amount control, expand credit asset securitization pilot scale. The quality of credit assets securitization products can be traded on an exchange, accelerate the turnover of capital in the bank at the same time, provide more choices for investors. Secondly, on the base of asset securitization, tilt the effective credit to the economic development of the weak links and key areas, especially for the "three rural", Small and micro businesses, shanty towns, infrastructure construction. Thirdly, to give full play to the role of coordination mechanism of financial supervision, improve relevant laws and regulations, unified product standards and regulations, strengthen the prudential supervision of the securities business, to eliminate all kinds of hidden risks. Riskier assets not included in the scope, not to engage in re securitization, to ensure that no system of regional financial risk.

The main problems of credit asset securitization in our country

First, the smaller the size of the market, the product type is single.

In eight years, the stock of credit assets in China is developing rapidly, the main issue from the commercial banks extended to Asset Management Co, automobile financial company; diversification also gradually diversified, at present has covered the enterprise credit assets, personal housing mortgage loans, non-performing loans and car loans. But, overall, the current market scale is still very small, relatively simple transaction varieties.

With the development of asset securitization is the most mature American as an example, since twentieth Century 70's first asset securitization products available, American process of asset securitization and overall stability, especially in the past 20 years, American asset securitization market scale rapid expansion, product types are continuously enriched, product structure is becoming more and more complicated.

From the types of products, American asset securitization development stage in the early stages, only the real estate mortgage loan securitization, is now included in any form of commercial bank assets securitization. According to the basic assets, can be divided into mortgage backed securities (MBS), asset backed securities (ABS) certificate and collateralized debt obligations (CDO) three categories. Among them, MBS is divided into mortgage-backed securities (RMBS) and commercial real estate mortgage securities (CMBS) two; ABS based assets into consumer loans, auto loans, trade receivables, leases and student loans and other types of.

In terms of market size, from 1980 to 2010, America asset securitization products stock size increased from $110800000000 to $10 over the same period, the proportion USA credit asset balances also increased from 5% to 62%. In 2012 USA new issue of asset securitization products $2.26, accounting for 14.5% of the total stock of GDP; the scale of up to $9.86, accounting for the total size of the bond market in 25%, second only to the national debt scale.

Compared with the developed market USA, asset securitization in China is still in the initial stage, in the future market size and type of product has a larger space for development.

Second, two market light trading, liquidity is weak.

The pilot phase, the Credit Asset Securitization Product investors mainly in the held to maturity, the amount of the transaction occurred during only 2760000000 yuan, accounting for 4% of the circulation of the asset securitization, this and "the poor mobility assets into securities" better liquidity target Shang Youyi gap. At the same time, the lack of liquidity premium increases have sponsors financing costs, is not conducive to the expansion of the scale of asset securitization products.

In America, the asset securitization market can get rapid development, closely related with stable circulation, the investor base, deep developed in two levels of markets. America MBS and ABS products are mainly in the over-the-counter market (OTC) to complete the transaction, through the issuance of bidding, price match, brokers and centralized trading modes such as, improve the liquidity of asset securitization products. The first half of 2013, America MBS turnover rate is about 20%, far higher than the company credit bonds.

Third, commercial banks to implement the power shortage of securitization.

From the development experience of foreign asset securitization, credit asset because it can peel pricing characteristics, is the best securitization underlying. In theory, the power of commercial banks has a strong distribution of Assets Securitization: one is with the regulatory capital requirements increase, the bank has a strong power of the risk assets table, reduce capital pressure; two is the bank has strong through asset securitization to adjust structure of risk assets will be risk weighted return power, lower asset securitization transfer, replacement into higher return assets; three is through asset securitization will spread income into the middle income, improve turnover rate of capital and return on capital.

However, from a practical point of view, China's commercial banks to carry out securitization will is not strong. The current credit assets especially personal housing mortgage bank asset quality, the default rate is very low, banks lack of will power the securities sold. Before 2008, ample liquidity, loan to deposit ratio and capital adequacy ratio less pressure, the pilot securitization of credit assets is mainly carries on the supervision departments under the promotion; and after 2009, with the "silver letter" "silver card" and other channels, the bank directly through this kind of concealment stronger, transfer process a more flexible, lower cost of financing channel cooperation mode, can realize the transfer table domestic production to sheet, asset securitization are less competitive.

Fourth, investors are more concentrated distribution.

Financial institutions will be different risk rating asset-backed securities sold to one of the premise of the market, is the market exists in a number of different risk preferences of investors. At present, clearly our investment products securitization institutional investors including banks, insurance (Fang Xinbao) companies, financial companies, trust companies, rural credit cooperatives, the social security fund, enterprise annuity, securities investment fund and general enterprises. However, the commercial banks are major holders of asset-backed securities, holding ratio of about 70%. Commercial banks are holding the asset backed securities, limits the effective play to the product differentiation, reduce the management risk in bank capital pressure function, is not conducive to the expansion of market scale...... (full text read "financial" Chinese print edition in 2013 twenty-first period

The development direction of the securitization of credit assets

Experience from abroad, asset securitization is a very big market. In 2012 USA asset-backed securities issuance of $2254500000000. If we do not consider the new credit factors, enlarge credit loan securitization help mortgages part table, a conservative estimate, China operational, practical motivation of securitization of credit assets size of about $2.

Current asset securitization in China is still in its infancy, credit assets support bond balance of 36000000000, the bank credit asset backed bonds accounted for 78%. The bank credit asset securitization seriously by the institutional constraints. Considering the risk weighted assets of coefficient of secondary part of super high and the lowest Holdings Limited, the bank needs to weigh whether to initiate the establishment of asset securitization product revenue to achieve risk return true isolation, and a higher rate of return on capital. Although the endogenous power is not enough, but the entire banking system, improved system of asset securitization can bring capital efficiency.

Bank credit asset securitization before June next year or will usher in a larger "issue of tide". It is reported, the central bank requirements as of 2014 6 at the end of the month, the approval issued for the amount of 425000000000 yuan, the net amount of 400000000000 yuan of credit asset securitization products. Types of loans to Small and micro businesses, agriculture, shanty towns, infrastructure construction and railway loan inclination. The central bank is to encourage commercial banks, trust companies, auto finance companies to make reasonable securities issuance plans and business plan, and will be in accordance with the plan quality institutions reported to distribution lines.

The stroke of real capital that, in view of the problems above, enlarge the future the state will promote the pilot securitization of credit assets and routine, to control the risk, improve the relevant laws, regulations, established regulatory framework, market structure, expand credit enhancement mode, improve the external credit rating continues to strengthen. Regulators actively promoting the further expansion of the pilot securitization of credit assets, do not rule out at the start of "reducing leverage" background "hedge" measures. According to reports, the relevant departments of the drafting of the "commercial bank financing management approach" has been formed, and is expected to be approved, and in 2014 started in February. The domestic first bank financing business guidance, to encourage commercial banks business to leverage, completely cut off credit business bank expansion impulse. Once the regulation "boots landing", will be "encirclement and suppression" on more than 10% of total bank assets business, breakthrough weapon and will tend to the normal development of the securitization of credit assets business of commercial banks "".