An Empirical Analysis Of The Guarantee System In China

In 2015, Chinese economy has transformed from the outrageous boom to the steady development. The aggregation of capitals in the private market and the difficult situation of the micro enterprises will eventually intrigues the society to concern the financing accesses in private sector. With diversifying of the financial approaches among enterprises and private investment, the corresponding warrants are developing and derivate more innovative ways. Additionally, majority if enterprises and investors prefer to mortgage their own real estates, movable properties and other ownerships as their main option to get their loans. Nevertheless, the general debtor could not afford the extremely high interests rate, which broadly exits in the private capital market. Meanwhile, those debtor are incapable to be protected sufficiently and effectively during the worsen economy. Undoubtedly, the creditor will require the debtor or the underwriter to transfer their ownership of the corresponding subjects to them. Usually, the creditors choose to sign the sale contract of the corresponding subject. This bilateral sale contract serves as the warrant of their previous loan contract. Through the process, the debtor could get back their ownership of corresponding subject when they completely pay back their loans. To same extend, RANGLI warrant is worship for protecting the right of creditors. But this kind of warrant still exist plenty of drawbacks and problems. Specifically, transferring guarantee will probably increase the financial burden and cost of creditor and debtor. Apparently, this will violate the equal principal. Those questions contribute to the delay in the process of legitimizing the warrant.This article roots in the empirical cases of juridical practices. By thoroughly analyzing those cases and the attitudes of courts, this article is trying to reflect the condition of warrant in the judgments of juridical system. Even through transferring guarantee has been discussed theoretically for many years and it does not officially include in the juridical system, its adaption in the reality should be concerned prudently. Basically this article divides into four parts. The first part introduces the logical sequence of this article, the data source and basic approaches of empirical analysis. The second part concentrates on the empirical analysis. By categorizing the court cases into different groups(according to the time, districts, layers and subjects),this article will generalize the various attitudes of courts and illustrate the reasons behind those different attitudes. The third part will be theoretical and practical analysis. In this part, this article will illustrate the problem of transferring guarantee in the practice. Furthermore, the plausible solution to the corresponding problems establish in this part. The final part will be the analysis and suggestion about whether transferring guarantee should be legitimated.