Receipt Pledging Business Risk Management Of The Central Metal Logistics Parks

The warehouse receipt pledging business provides an effective solution for financing difficulty of small and medium enterprises and brings new profit worth points through combination of logistics and finance. As a new logistics service business, it stands for the advancement trend of traditional logistics to modern logistics. Meanwhile, warehouse receipt pledging business is also deemed as a financial product. In order to avoid financial risks, the logistics enterprises act as the third party guarantors thus the risk for banks and loan enterprises is reduced. Therefore, in a long time in the future, it can effectively solve the problem of imperfection of Chinese credit system. As such, this business has received wide attention from banks, manufacturing enterprises, trading enterprises and logistics enterprises. While high risks of warehouse receipt pledging business gradually comes into being because participation of three parties and even more business subjects is required during the implementation of the business, each of whom cares different profit and is in different circumstances and tries to avoid their own risks. Thus, it is an urgently to be addressed problem that how to identify the risk during the process of warehouse receipt pledging and establish effective risk control measures to ensure no damage is caused to any business subject.This paper firstly introduces the meaning of warehouse receipt pledging and information asymmetry theory, self-liquidating trade finance theory and credit union theory and analyzes the current status and development prospects of warehouse receipt pledging business in China. Secondly, the paper gives and analysis of internal and external environment of the implementation of warehouse receipt pledging business for Central Metal Logistics Parks and introduces the static, dynamic, buyer’s credit and seller’s credit pledging process of warehouse receipt pledging process and points out every risk of each process. And then, another analysis of prevalent risks of implementation of warehouse receipt pledging business in China is provided, and a summary and analysis of the causes for risk in the credit, market and operation of Central Metal Logistics Parks is given.Finally, specific correspondent prevention measures are given for the risks mentioned and correspondent preventive measures are provided for risks which are easily to be met during the warehouse receipt pledging business process of metal logistics parks the central region. In a word, I hope that this study may harbor referential meaning for risk control of warehouse receipt pledging business for similar enterprises in our country.