China's International Factoring Business Risk Measurement And Control

China's international trade volume steadily year after year, exports have become a major economic development driving force. However, the subsequent trade frictions are also emerging, trade competition between countries has moved from product quality, price competitiveness evolved into a settlement of the competition. The emergence of international factoring, is to meet the recent trend of the prevalence of credit transaction. Therefore, vigorously promote the international factoring, for improving the Chinese enterprises in international trade competitiveness and the promotion of international trade trading rules into line with international transactions, lower Chinese enterprises in international trade transactions have a great effect in the risk.In order to circumvent international factoring such trading risks, this article is divided into six chapters to be explained. The first chapter of the factoring business concept, origin, classification and typical factoring business processes are described, and research background and possible solutions described. Chapter for the factoring business in our country's development situation, combined with the characteristics of Chinese enterprises and banks in China are analyzed to carry out factoring business advantages and problems. Subsequent chapters stand point of export factoring business factoring business transactions on the risks of the key research. Chapter III deals with factoring importers, exporters and import factor there is the risk of default. Chapter IV from the perspective of information economics, risk of default exists on the causes and solutions for qualitative analysis. Chapter V presents a risk to the factoring business of quantitative measurement methods-KMV model analysis, the method is the traditional option theory, shares of listed companies by entering the data, calculate the company's default rates to assess the companies factoring in the risk of default. This chapter also conducted an empirical study of the method obtained its application to the bank to carry out factoring operations to assess their client's credit risk. The final chapter is a summary of the full text, from the policy environment, to carry out factoring operations of banks and export enterprises face three factoring business development in China put forward countermeasures and suggestions.Innovation of this paper and on factoring in the risk for both qualitative and quantitative research, reveals a risk to the factoring business is due to asymmetric information, and presents a risk measure Factoring practical approach-KMV model method.