Opportunities, Challenges And Countermeasure Of International Factoring In Our Country In The Environment Of Global Financial Crisis

It is impossible to estimate how much China's economy influenced by the global financial crisis caused by sub-loan which firstly came from United States. With the spread of the global financial tsunami and the deepening impact, factoring in China has ushered in a rare historical opportunity of developing. The main reasons are the problems, such as, exporters facing the increasing credit risk of the buyers, the delay of the receivable accounts, the increasing cost of account management, the increasing cost of the collection of the receivable accounts, and the increasing risk of the rates exchange, within the global financial crisis. At the same time, importers also should pay more attention on avoiding the risk of cheating of credit certificate. And make full use of international factoring, you can effectively prevent the above-mentioned risks and guarantee the realization of risk assurance, financing, accounts collection, accounts management, avoiding the risk of the rates exchange, landscaping the features in statements. So, in the background of global financial crisis, with the mutual catering of the increasing demand of international factoring businessmen and the powerful function of international factoring, international factoring in our country meets the new and rare opportunities. And international factoring businessmen are also decisive and brave to innovate and develop methods of international factoring, and interrelated financial service. The data show that the quantity of international factoring business in China in 2008 is 24,000 million euros, it is number one in the world. And the quantity of the exporting double factoring of Bank of China is also number one in the world. Before the end of October of 2008, the quantity of international factoring clients of Shenzhen Development Bank is increased 120%, compared to the beginning of 2008, the quantity of the financing balance surpasses 10,000 million dollars. At the same time, many banks in our country pay more attention on the international factoring business in succession, various kinds of items have been done, China Minsheng Bank which is in the very front of the leading echelon employed the factoring team of Taiwan in the first half of last year, it set up second-degree department, since then, the quantity of international factoring business has increased in a large scale, exceeded 200 million dollars. TFG is the only one independent factoring businessman which is not belong to banking, it raises a new and advanced international factoring method which is different from normal modes, they called it reverse direction international factoring. Although we got satisfactory achievement, stand by the good trend and wide vista, we also should keep clear-headed and foresighted, we should completely notice that there are big challenges besides opportunities. In the intricate and multivariant environment of international economy, how to seize all opportunities to make the most of the advantage to be the first one hand in hand is urgent and worth thinking. As the leading power of Asia rising economy, we are big trading country, focused by the world, we sure we will have a nice future. This paper is unfolded along the above train of thought.This study focus on the new opportunities and challenges which China's international factoring industry is facing on the background of the global financial crisis .The study was designed to explore and discover the external environment and internal factors which restricted the development of China's international factoring when facing the new situation, and hope to form improving and practical valuable recommendations which were directed against the questions, and ultimately be used to promote China's international factoring to get a rapid and health progress.In order to better analyze, understand, and solve the problems, in the first chapter the paper briefly introduced some basic conceptual issues, such as, the concept of international factoring, the origin, the species, the main modes of operation, functions, the substance of the legal nature on which a comprehensive law environment China's international factoring business based;In the second chapter we introduced that our country facing the new opportunities and the challenge in the development of international factoring in the environment of the global financial crisis, it introduced the opportunities from different views of importers, exporters, and the mutual relationships between them, we explained the actual reasons about the increased demands of our international factoring business in the global financial crisis, the status in quo of factors in our country seized the opportunities to work together to highly develop China's international factoring, and the dual interest rewards upon the choices between foreign enterprises and our international factors. Then it introduced the challenges from five different aspects of the note, first of all, the development of China's international factoring is short of a sound legal system as a protection, our country hasn't special factoring legislation, and we still did not formally join the relevant convention on international factoring neither, there are significant deficiencies in our factoring law; then we noticed that the development of China's international factoring business is also restricted by the concept update and the low acceptance of foreign trade enterprises in our country, those enterprises'awareness and understanding on factoring business is still far from enough, and even when there are discrepancies sometimes; Again, with the rapid expansion of the China's international factoring business, a serious challenge is raised on the level of the self-related business of factoring; In addition, at the same time, the lack of the law of social credit also blocked the development of China's international factoring; Finally, the relative imbalance word rights of China's factors in the international discourse adversely influenced China's factoring business.In the third chapter, we discuss with an emphasis on the perfect proposals of the development of China's international factoring business in the new situation of the global financial crisis, it includes four aspects, firstly, improving proposals on laws and regulations of China's factoring, we introduced concretely both entity law construction and procedure law construction; secondly, under the necessary policies support and guidance by government, factors actively promote factoring business and strengthen the build of their own quality, it includes that factors should enlarge and enhance their propagation and marketing, strengthen the training and expanding, at the same time, government should provide some necessary and beneficial policies as a support; thirdly, improve the credit legislation and develop social credit system, it includes proposals and urges such as, establishment of a unified central database, a comprehensive database of credit information, unified legislation of credit system and so on.. fourthly, actively involved in the promotion of the legislation of international factoring, to raise China's factors'voice in the international talk and cooperation, specific reference to the necessary and importance of developing self-discipline organizations of industry association in our country, as well as the practical significance that our country joining the relevant convention on international factoring as soon as possible.In the conclusion, on the basis of the summary of the entire contents, we give good expectations on the development of China's international factoring business in future.