Asset securitization key to avoiding financial crisis, China urged to act.
Asset securitization, like mortgage-backed securities, played a big role in the sub-prime mortgage crisis. It helped increase liquidity and spread risks. To develop asset securitization in China, it's suggested to start with on-balance-sheet patterns, establish credit rating agencies, closely check asset quality, strengthen supervision, and create a legal system to prevent risks. These steps can help asset securitization support China's financial reform and growth.