Research On Legal Issues Of Forfaiting Financing Business In China

As the economic globalization has brought rapid development of internationaltrade, the traditional trade patterns can not meet the financing needs of enterprises. Itis under this circumstance that Forfaiting financing business came into being. In theearly1990s, the Export-Import Bank of China began to engage in Forfaiting financingand established the first management of the business practices and operatingprocedures of China Forfaiting financing.But Forfaiting financing business in China is still at the initial stage, a number ofsystemic issues are still in dispute, such as the nature of the transference of receivableaccounts and the effect of non-recourse endorsement, which may bring the confusionof obligations among relative parties; and leads to a certain degree of legal risk.According to the present situation in China, this paper intends to explore theForfaiting financing business. After introducing some basic concepts of Forfaiting andthe new development trends, this paper will elaborate the risk-prevention of Forfaitingbusiness, as well as its legal nature, focusing on the legal issues of Forfaitingfinancing business and the development and improvement of its legal regulations inChina.This article is mainly divided into four chapters. The first chapter is an overviewof Forfeiting financing business and the current developing trend. The second chapterwill deal with the risk-prevention and legal regulation of Forfeiting financing business,introducing some of the risks faced by Forfeiting and the correspondingrisk-prevention measures, as well as the international legal regulations on Forfeitingfinancing business. Chapter Three will be an intensive study on the present regulationon Forfeiting in china and its short-comings. The fourth chapter will try to putforward a way to perfect laws on Forfeiting in China and make some soundrecommendations on "the contract law","the Negotiable Instruments Law” and "thesecurity law"; finally, this chapter will discuss the measures of formulating directForfaiting legal norms.