A Research On The Forfaiting Financing Strategy Of China’s Export Enterprises

As an international trade finance instrument in the long-term trade finance, Forfaiting was introduced to China in1995and has achieved some certain development. But by the financial crisis, its development has appeared to slow down in China since2009. Neither the export enterprises nor commercial banks did show enough enthusiasm to carry out this business. Exploring the reason for "cool" phenomenon, Direct cause:the financial crisis has caused serious impact on the export of China’s electromechanical products; Root cause:the development of Forfaiting business in China exists congenital deficiency on the aspects of national financial policies, corporate, banking and legal, so there is still more gap between developed countries and China.In fact, the financial crisis had a double impact on the development of Forfaiting business—opportunities and challenges co-existed:To export enterprises, a more secure way of financing on the exchange earnings can ensure the smooth trade of bulk commodities, and because of the non-recourse risk buyout, Forfaiting business will undoubtedly meet the needs to avoid foreign exchange risks which the export enterprises are seeking to. In addition, Forfaiting can also provide financial intermediation to the export business, so can improve the enterprises’capital liquidity; To domestic commercial banks, if they can meet the export enterprises’demand for new financing, expand the types of trade financing, they can accelerate the process of internationalization in the fierce competition and cooperation with the foreign banks, and also can open up a new channel of using foreign exchange funds to promote the foreign trade development.Therefore, We should develop Forfaiting business in accordance with the following aspects:on the one hand, We should learn mature experience, advanced theory and practical practices from developed countries. On the other hand, we should be based on the practice of the opportunities and challenges which the domestic export enterprises and commercial bank facing, lower the financing cost of export enterprises and enhance its awareness of using Forfaiting business; make efforts to control the risk of China’s bank, and improve the Chinese norm of Forfaiting business, and thus innovate its operation mode. This thesis consists of six parts. Firstly, introduce the background of the topic. Secondly, introduce the basic theory of Forfaiting business. Thirdly, By comparing the development of Forfaiting with the developed countries to discovery the problems of Forfeiting in our country. Fourthly, construct the co-structured trade finance model, try to found a new way to develop Forfaiting business. Lastly, draw conclusion and bring about some suggestions on improving the deepened development of Forfaiting business in China.In this thesis, I used the methods which combined with theoretical analysis, comparative study and case analysis, give support on the corresponding steps. I hope this thesis can provide some modest power for the further development of Forfeiting business in China.