Analysis Of Legal Issues Of Risk Prevention In Chinese Pawn Financing

Pawn can be used as a new financing approach for small and medium-sized enterprises and individuals in China. The pawn industry is also undergoing improvement and innovation, such as the financing ways and operation modes of pawn shops. It should be noted that our pawn business are faced with internal and external dilemma, because of the unclear position of pawn and hysteresis of pawn legal system. We need to pay attention to the potential risks through the entire procedures of pawn. The thesis tries to discuss the legal nature of pawn and the development status of pawn industry, and probe into the institutional limitation of the development of pawn business. The theme is to dissect the existing risks of pawn from the legal issues and disputes of pawn cases.This thesis consists of five Chapters, and the text structure and main ideas are organized as follows:Chapter Ⅰ analyzes the concept, legal nature, legal relationship of pawn and other basic theoretical issues, and also explains the financial functions and unique advantages of pawn business. This part tries to provide necessary conceptual and technical supports for overall framework and specific details of discussing the pawn legal system.Chapter Ⅱ describes the current situation and dilemma of pawn business through organizing the development history of Chinese pawn industry. From the comparison with foreign countries about the operation modes and supervision mechanism of pawn, this chapter tries to explore the institutional limitation of the development of pawn business, and reveals the internal and external risks of pawn business. The external risks are composed with legal risks, policy risks, market risks and also the risks resulted from industry competition.Chapter Ⅲ focuses on exploring the internal risks of pawn industry through research on pawn cases. The first part enumerates the controversy and legal issues by qualitative and quantitative analysis on pawn cases. And the second part concludes the internal risks founded in the pawn cases, which are business ethics risk, financial risk, operational risk and financial crime risk.Chapter Ⅳ puts forward appropriate legal advices on how to control and prevent against the risks of inside and outside of the pawn business, which are on the perspective of legislative level, supervision mechanism, internal control of pawn shops, as well as daily operation.Chapter Ⅴ is the conclusion and outlook of the thesis. This part summarizes the overview of author’s ideas on how to prevent the financing risks from pawn business. The author also provides some issues to make further research on theoretical and practical aspects of pawn business.