Research In Guarantee Of Chinese Public Companies Through "hops"

In November 4th 2003, the board chairman of Xinjiang Hops Co. Ltd. disappeared abruptly; as a result the price of the company's stock fell sharply. This damaged the interest of the shareholders of Xinjiang Hops Co. Ltd. After the superintendent has investigated, it has been disclosed that the company had hidden almost one billion Yuan guarantee. This let people pay attention to guarantee of public company again.At first , we want to analyze the financial condition of the company by capacity to earn profit, debt paying ability, operational efficiency and the sustainable growth ability , so as to pursue the motivation and know the disserves from this event.Second, we lay out the major problem and the modality of the public company's guarantee in China, expatiate the major problem of public company supervising because of the guarantee.At last, we discuss how to prevent from overmuch guarantee by improving public corporation supervising, and point out only if we differentiate accounting equity and partition decision-making and set up inspiriting and restricting system and perfect system of the board of directors, we can decrease overmuch guarantee.