A FEASIBLE SPECIAL PURPOSE VEHICLE MODEL IN CHINA: DESIGN AND IMPLEMENTATIONDownload This Article
Jinxin Zhao, Chongsheng Yang
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
In China’s current capital market, the assets securitization is not acclimatized to the economy and legal system, and thus not being widely implemented. This paper discusses two possible models’ feasibilities of special purpose vehicle in China’s market. We found that the special purpose trust is likely to be the optimum choice for the assets securitization in China. We suggest that employing existing trust companies or establishing SPT based on the cooperation between the government and trust companies should be firstly considered for a better and healthier development of the capital market, as well as to avoid dramatically changing and challenging to the current operating economical and political system.
Keywords: Asset Securitisation, Special Purpose Vehicle, Special Purpose Trust
How to cite this paper: Zhao, J., & Yang, C. (2016). A feasible special purpose vehicle model in China: Design and implementation. Risk governance & control: financial markets & institutions, 6(4), 66-71. https://doi.org/10.22495/rcgv6i4art9