Research On The Legal System Construction Of Financing Paper In China

Financing bills came from the United States, its role changed from the initial payment or settlement tool to an instrument specifically for financing, which experienced a relatively long process of evolution. In developed countries, the major function of commercial paper is financing, and commercial paper financing has become an important channel of enterprise financing. Most of the paper in China is transacted in the real trading. However, commercial financing paper must be issued with the purpose of financing. This makes the function of the financing paper cannot be fully displayed.Therefore, the financing paper system in China is still in a state of imperfection.With the social and economic development in China, the construction of financing bill system appears to be increasingly important. The issue of short-term financing bills provided a blueprint for it, and folk bill financing has played a role in alleviating the problem of folk financing. These facts illustrate a growing need for financing paper in paper market. The current Negotiable Instruments Law has been enacted for score years.With the further development of market economy, the legislation environment has changed, and theoretic scholars attach more and more importance to the non-causality principle of bill, laying the legal foundation for the construction of financing paper system.Financing paper already has plentiful alternative forms in the markets, contributing to the alleviation of the financing problem, the improvement of paper system, and the full play of the paper’s financing function. However, there are still numerous defects in paper market. On the one hand, existing laws impose restrictions on the non-causality and types of bill. Besides, e-bills require confirming the legitimacy. On the other hand,problems such as the uncertainties of market access system, the imperfection of the Clearing House, as well as the incompleteness of the credit rating system and information disclosure system still remain. By drawing on the strong points of American financing commercial promissory notes system and German commercial paper system, this paper will put forward corresponding suggestions on the construction of financing paper system in China. It intuitively proposes that the current Negotiable Instruments Law be revised and amended, including the establishment of the foundation for non-causality principle of bill and the additional regulations on commercial paper and electronic bills. At the same time, it is suggested that transaction paper andfinancing paper be legally regulated through strict rules on the paper issuer, and that seems be included in the issuing entity. In addition, Bill Institutions are supposed to be improved to better serve bill business. The credit rating system and information disclosure system are expected to be perfected, thereby ensuring a sound development of financing paper system.