Finance News

Asset Securitization in China: On-going Progress in Theory and Practice

An Exclusive Interview with Mr. Liu Borong, Pioneer in China's Burgeoning Asset Securitization Space.

In this exclusive interview, Mr. LiuBorong, Executive Committee Chairman and Secretary-General of the China Securitization Forum (the "Forum"), describesthe recent restructuringof the Forum and the annual China Securitization Forum conference which will be hosted by the Forum on March 24-25, 2015. This inaugural annual conference will set the stage for subsequent annual meetings of the Forum and facilitate the formation of a robust communications and services platform for the securitization and structured finance sector in China.

The Forum is organizing this annual conference in order to facilitate and enhancecommunication between American and Chinese securitization industry participants. In organizing this annual conference the Forum will benefit from the extensive experience that Mr. Liu and other Forum members have garnered from participating inrelated U. S. securitization industry annual conferences.There will be participants from almost all of the regulatory departments,professional associations and other institutions relating to the Chinese securitization industry, includingthe large banks, leasing companies, securities companies, fund company subsidiaries, law firms, rating agencies, accounting firms, asset management companies and other financial services organizations.

Moreover, the Forum has arranged with IMN, the organizer of many financial industry conferences and conventions around the globe, including ABS Vegas, a securitization industry conference held in Las Vegas, Nevada with more than 5,000 attendees annually, as a co-organizer of this conference, to contribute its extensiveexperience. IMN will cooperate with SFIG (the Structured Finance Industry Group, based in Washington D.C) to arrange international resources and invite overseas experts and business leaders to participate in the 2015 Annual Conference. Stable development of securitization and structured finance in China through innovation and cooperation will be the touchstone for much of the discussion at this conference. The annual conference will provide opportunities forparticipants in the Chinese securitization industry to learn from international experience and to gain exposure to innovative modes of development, and will provide international business leaders with opportunities to learn about the latest policy and regulatory initiatives as well as trends in the market for securitization in China.Based on its project-oriented concept, the annual conference will also provide a vibrant communication platform for Chinese and international business leaders collaborating on specific projects. The Forum will continue in subsequent years to host thisannual conferenceat appropriate times after the Spring Festival.

In September 2014, the Forum elected its first Executive Committee, with Mr. Liu elected Committee Chairman. With over 20 years of continuous research and practical innovation since his first involvement in the field in the early 1990s, Mr. Liuishighly regarded as one of the leading expertson asset securitization in China. Well versed in both finance and the law, he is at the vanguard of asset securitization practice and theory in China.

Mr. Liu's stature as a venerated pioneer and respected leader at the vanguard of the asset securitization space in China is in large part attributable to the consistent success of his ongoing efforts to crystallize the jurisprudential under pinnings for asset securitization in China, from both a theoretical and a practical perspective, and then to develop and propound practical business solutions within the applicable legal framework.

Mr. Liu is particularlycommitted topromoting education and research with the objective ofdeveloping a dynamic and clearly drawn conceptual framework for China's burgeoning asset securitization industry. He routinely shares transaction models and case precedents with his peersin the asset securitizationspace; he frequently participates in domestic and overseas seminars on topics relating to asset securitization; he is a prolific author of numerous articles published in various mainstream core periodicals; and he has on many occasions proposedpioneering ideasthathave guided numerousfinancial institutions through the implementation of variouspractical innovations. His progressive attitudeand tireless spirit and dedication have garnered for him much respect and a high reputation in the field.

Part and parcel with his recognized experience and expertise, Mr. Liu has served as the leadingexpert for the first asset securitization transactions of their kind,as engaged in by over 40 financial institutions including China Development Bank, Industrial and Commercial Bank of China, Bank of China, China Construction Bank, Bank of Communications, Postal Savings Bank of China, Shanghai Pudong Development Bank, Industrial Bank Co., Ltd., Ping An Bank, China Merchants Bank, China CITIC Bank, Evergrowing Bank, China Bohai Bank, Bank of Hebei, Bank of Jiangsu, Bank of Nanjing, Huishang Bank, Huarong Xiangjiang Bank, Jinshang Bank, Jiangnan Rural Commercial Bank, Jilin Jiutai Rural Commercial Bank, Ford Automotive Finance (China) Ltd., GMAC-SAIC Automotive Finance Co., Ltd., Toyota Motor Finance (China) Co., Ltd.,GAC-Sofinco Auto Finance Co., Ltd., China Orient Asset Management Corporation, China Great Wall Asset Management Corporation, ICBC Financial Leasing Co., Ltd., Minsheng Financial Leasing Co., Ltd., CDB Financial Leasing Co., Ltd. and CMB Financial Leasing Co., Ltd. He has provided legal services and designed transaction and product structuresthat have been instrumental in filling critical gaps in China's financial landscape.Mr. Liu has also made outstanding achievementsin such related fields as offshore asset securitization, asset backed notes, real estate investment trusts and innovative private placement projects in the structured finance space.

Another aspect of Mr. Liu'sstature as a leading figure in asset securitization in China is his impressive array of professional credentials and his track record of honorific achievements. During the six successive years from 2008 to 2013, he was rated in Band 1 by Chambers & Partners in Chambers Asia for securitization business in China and Asia. In each of 2003, 2004 and 2005 he was named by Asian Law & Practice as a Leading Business Lawyer. Numerous leading international institutions speak highly of the contributions that Mr. Liu has made in the field of asset securitization, and he is undoubtedly akey figure when it comes to promoting sound development of the asset securitization industry in China.

Mr. Liu explainsthathe initially organized the Forum in 2006 with 15 founding members, including a number of leading financial institutionssuch as Morgan Stanley, Standard Chartered Bank, The Royal Bank of Scotland, China Development Bank, Bank of China, China Construction Bank, China International Capital Corporation Limited, Moody's and Standard & Poor's. Therecent restructuring of the Forum is intended to further enhance exchange and cross-pollination amongasset securitization stakeholders from China, Asia at large, the U.S. and Europe.

In addition to participating in the organization of the Forum's annual conference, SFIG has also invited Mr. Liu to speak atthe ABS Vegas 2015 conference to be held February 8-11, 2015 in Las Vegas, Nevada. SFIG has indicated to Mr. Liu that it highly values the opportunity to engage in comprehensive and in-depth cooperation with the Forum. SFIG and the Forum are working together to forge a long-term strategiccooperative relationship, andMr. Liu is confident that the Forum and SFIG will successfully implement thisall-round cooperative relationship to build a bridge for Sino-US collaboration in the area of asset securitization.

The Forum has already learned much from SFIG's experiences, relating principally to SFIG's basicorganizational tenets and principles as set out in its organizational documents. The Forum has adopted many of these ideas from SFIG,as applicable under the law and policy of China and the development and practice of China’s asset securitization industry. By including features such as the overseas co-chairman system,a system for electing directors in staggered rotation, a procedure for including overseas consultants as participants in the work of the Nominating Committee, an email-based electronic voting system and project-oriented annual conferences, the Forum willprovide an efficient and pragmatic platform for the exchange of information and know-how, with the ultimate goal of applying reasonably balanced and neutralasset securitization techniques for stable development of the real economies of both China and the U.S.

Mr. Liu never misses an opportunity to point out that membership in the Forum is widelyopen to a broad range of domestic and overseas institutions, organizations, entities and individuals participating or interestedin securitization, structured finance or related capital markets.He invites those who would likemore information about joiningthe Forum to refer to the "Membership Application" link under the "Members" tab on the Forum website. Application instructions and a downloadable application form are all conveniently available there.

Source: X-wisdom
Date: 03.02.2015 [ID: 340]

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