Research On The Legal System Of Pawn Financing In China

Pawning is a traditional way of financing in China,with a history of more than 1,600 years,and has its own practical significance.Since the mid-1990 s,China's pawn business has entered a new phase and has developed rapidly.Especially in recent years,as the economic development has accelerated,pawn financing,which is highly efficient,simple and fast,has been small and medium-sized enterprises(SMEs)and consumers' preference,because it eases the financing difficulties of SMEs to a certain extent.However,there are some problems in regard to develop the business: for instance,the relatively underdeveloped relevant legislation of the current pawn financing system in China unclear perception of the nature of pawning and other basic concepts,low level of legislation level,unreasonable design structure of institution,and lack of judicial norms.Such problems hinder the development of the pawn business instead of enhancing the further development.The article first introduces the background and significance of the topic,literature review,ideas and research methods.Secondly,study the legal basis of pawn financing,discuss the four theories about the nature of pawning in the current academic community,and compare the concept of pawning with its similar concepts,such as pawning rights,pledges,mortgages,etc.It is an independent security right,and defines the legal relationship of pawns from the subject,object and content,and analyzes the legislative and judicial status of China's pawn financing legal system.Thirdly,by analyzing the relevant judgments collected,it is concluded that there are four problems in the current judicial practice of pawn financing disputes in China,including the nature of the pawn contract,the issue of validity determination,redemption,the dead pawnage,the application of rules,the calculation of interest charges and the application of resettlement of invoices received in good faith.Then,by analyzing the legal systems of pawn financing in the United States,the United Kingdom,Singapore,Taiwan,Hong Kong,and other countries or regions,and comparing them with the relevant systems and rules of the pawn financing legal system in China,we summarize the characteristics of relevant overseas pawn financing legislation experience.Finally,by drawing on relevant overseas legislation and judicial experience,we respond to the existing legislative and judicial difficulties in China's current pawn financing legal system,and put forward relevant suggestions for improvement in light of the practice of our modern pawn industry.