Legal Elements of “Securitization” and “Special Purpose Vehicles”, and how HK lawyer can fit legal service demands in HK and Global Finance Market.

Course Valid period: 60 days after success payment

Hong Kong is an active and established financial hub, providing investors with various investment opportunities in structured financial products backed by securitized assets, including bank loans, mortgage and trade receivable. The establishment of the Hong Kong Mortgage Corporation Limited has done much to help develop the securitization market in Hong Kong by buying residential mortgage loans in order to release and recycle liquidity back to the banking system.  All these financial products can be classified as “securitization products”.

Prosperous securitization not only benefits investors and banks, with the Belt and Road Initiative, and the Greater Bay Area development plan, securitization becomes more and more important financial tool to channel international capital to satisfy the funding needs created by infrastructure projects and SME business expansion.

Big demand in professional legal services is expected from different involving parties, from HK Govt, the originator of the securitization project, to the ultimate investors, they want to achieve the following:

• enjoying legal certainty for special purpose vehicles and cross-border transactions, which are vital to improving the environment of designing new securitization products;
• enjoying tax relief and off-balance sheet benefit from legal perspective
• leveling Hong Kong’s financial engineering platform with other asset management centres, like Luxembourg and Ireland
• building Hong Kong as the centre of dispute resolution for financial matters

We would like to give solicitor peers unfamiliar with financing topics an elementary overview of the securitization process, and the key structure and terms.