Research On Floating Charge In China

In recent years, Floating Charge is playing more and more important role in finacing market for Corporations. The main difference between Floating Charge and traditional guarantee is that the debtor can use all of his property as collateral for the loan. His property can be real estate, but more often than not, it takes the form of intellectual property, movable belongings, goods ect which fluid more frequently. With regard to the importance of Floating Charge in financing market, the Property Law of China started to legalize Floating Charge. However without the support of related rules and regulations, the implementation of Floating Charge is facing great risks.As an important financing method, Floating Charge has gained more and more popularity in western countries. The application of Floating Charge is analyzed comprehensively both in statutory law and case-law. The legislations in foreign countries has always been trying to weakening its disadvantages to creditors and showing its advantages to corporations which are broadening their financing channels.As an "exotica", Floating Charge has to be revised to be in conformity with our law systems. The credit environment and legal system environment for Floating Charge are still in deficiency in China, such as the deficiency in the extent of protection of creditors, which is very important because the main aim of setting an collateral for the loan is to ensure the realization of the debt.The construction of any system is based on theory research. So for the perfection of our credit system and theoretical studies of Floating Charge, it is very important to do a comprehensive research on Floating Charge.This paper will focus on the necessity of the introduction of Floating Charge,and make some recommendations for the perfection of Floating Charge in China.