The Research Of Floating Charge System

With the continuous development of market economy, market players arebecoming increasingly diverse, and business activities are becoming increasinglyfrequent. In order to achieve their own development, they require continuousfinancing, but our traditional way of security can not meet the development needs oftoday’s society. Also with the accession to WTO, the exchanges betweeninternational has become more and more frequently,floating mortgage system is thefirst in a common law distinctive way of security in the world,many countries areused. This guarantee mortgage need to break the traditional pattern of the actualcontrol of the collateral, to better achieve the optimal allocation and use of resources,promoting the development of SMEs,it has a great advantage.In order to adapt to the new economic situation in our country," Property Law"was introduced in the system, hoping to solve the problem of SME financingdifficulties because of floating charges after setting a mortgagor still be able to freelydispose of collateral, so will be able to maintain the normal operation of enterprisesin order to solve temporary financial problems, so has great advantages in financing,but floating mortgage with the traditional way of security compared to an increase ofthe risk of mortgagee needs related systems complement each other. Since theintroduction of floating charge system not long after the development of practice wehave found in practice for banks and other financial institutions floating chargeapplies not enthusiastic. Plus the "Property Law" only three provisions of theregulations made this system, there are significant flaws and imperfections, in orderto achieve a positive role in financing floating charge system, the need for its furtherimprovement. This paper is divided into four parts, the first part, the authorintroduces the background and significance of the topic, introducing the currentresearch, based on the proposed re-writing this article in difficulty and innovation;the second part of the author the method analyzes the origins and development offloating charge system, in order to fully understand the background knowledge of thesystem and the causes of problems in order to better understand the floatingmortgage system, then the author uses comparative study analyzes the floatingcharge regime problems during operation; the third part, the author of the practice ofthe application of the overall analysis of the floating charge system in China’s generaloperation; part IV, the author mainly analyzes floating mortgage system in ourcountry in order to put forward their own problems of the perfect proposal, Westerncountries need to learn from the advanced experience of floating mortgage system in use, while floating mortgage system is a very complex system, it also needs a goodrun in conjunction with other related systems, but also improve the relevantprocedural system the only way to better take advantage of the floating chargesystem to achieve greater development of SMEs and contribute to China’s marketeconomy.