The Development Of China's International Factoring Industry Research

My research focused on the analysis of the current status of China's international factoring industry. My aim is to explore the internal and external factors that restrict China's development in international factoring industry so as to support China's trade and financial practice and to give suggestive guidelines and references for government financial supervision.Since the Nanjing Ericson event in 2002, remarkable achievements have been made in international factoring through persistent efforts made by most of Chinese banks. Bank of China has the honor to receive "2004 year FCI the best export factor nomination prize" and"2004 year FCI the best import factor progressive prize". Its business volume in international factoring has amounted to 6.321 billion US dollars, ranking fourth in FCI members; China Merchant Bank won the 2005 year best marketing prize. But because of the inherent risk of the industry as well as the restrictions existed in operating process, there is still a long way to go for the prosperity of China's international factoring industry.Currently, from the international perspective, to win in the gradually formed world buyer markets, many Chinese enterprises sell products or render services on credit sales, together with preferential payment terms. Consequently international factoring came into being as a necessity. From the domestic perspective ,since China entered into WTO, Chinese banks have been confronted with a huge challenge from foreign banks in this industry. Additionally, at the end of this year, our domestic finance market will open to the world. A more fierce competition in this industry is impending. In the face of all the opportunities and challenge, how to develop China's international factoring has become an issue which is worth much pondering.This article briefly elaborates the fundamental knowledge of international factoring in the first chapter. The second chapter introduces the recent development and summarizes the valuable experience in the worldwide for reference. To begin with the necessity and the analysis of the current situation, the third chapter divides the restrictions in international factoring into two parts-supply and demand and lists the problems respectively. The fourth chapter makes the strategic propositions from three angles, the banks, the enterprises, and the government, according to the problems mentioned in Chapter 3.