The Research On Legal Issue Of Financing Paper System

As an important trading tool in the field of commercial transactions,negotiable instruments play an important role.With the continuous changes in trading mode,means and scale,traditional negotiable instruments’ functions have been unable to meet market demand.The emergence of financing paper is actually an extension of bill credit and financing functions.The functional evolution of financing paper from payment and settlement tools to credit tools and to financing tools is to coordinate the increasingly complex and diverse trading scenarios.Throughout the development of the world negotiable instruments market,the financing attributes of negotiable instruments have gradually replaced their payment and settlement functions as one of the most important functions,and financing paper has also become the most crucial direct financing tool for enterprises and institutions except for stocks.Although China’s laws prohibit the issuance of financing paper,similar businesses are conducted around it at both the national and market levels.Nevertheless,technical processing of the basic transaction relationships,rights carriers,and business structures of financing business can skirt the obstacles existing in China’s current law system,it can also lead to irreconcilable contradictions between the negotiable instruments law system and the financial law system.Through the technical treatment of the basic transaction relationship,right carrier and business form of financing business,although it can put on the cloak of legalization for financing bills and bypass the obstacles existing in China’s current bill law system,it will also lead to irreconcilable contradictions between the financing paper law system and the financial law system.In addition,financing paper require issuers to solely use financing as the purpose of issuance,and existing negotiable instruments transactions still require commercial transaction relationships as the basis.The requirements of negotiable instruments law for real transaction relationships have been misinterpreted in long-term practice,resulting in a lag in the existing market environment in understanding and applying the abstraction of bill and Article 10 of the negotiable instruments law resulting doubts about the compliance of financing papers practices,and the circulation of negotiable instruments assets unobstructed.The practice of negotiable instruments financing faces a legitimacy dilemma.The lack of commercial promissory note system in China has fundamentally hindered the application of commercial credit value in the field of negotiable instruments financing.In addition,the development of financing paper cannot be separated from the wave of electronic negotiable instruments.The electronic negotiable instruments system in China is not coordinated with the existing negotiable instruments law system.The development of financing paper business puts forward higher requirements for the construction of digital negotiable instruments.However,there are differences in the underlying transaction logic and rights realization path between paper negotiable instruments and electronic negotiable instruments.The development of financing paper business has put forward higher requirements for the construction of digital bills.Although China currently lacks a legal system for financing negotiable instruments,financing paper business has already entered the market through other forms.The rise of financing negotiable instruments represents the combination of negotiable instruments system and financial system.The development of financing papers business not only derives more financial business forms to accelerate resource circulation and utilization efficiency,but also requires a more advanced legal system architecture.The negotiable instruments market with financing as its core requires existing legislation to adhere to the principle of inclusiveness in order to build a diversified negotiable instruments financing market.Throughout the current development of the negotiable instruments market,China’s financing papers system faces many obstacles.From the perspective of law,reconstructing the connotation of the abstraction of negotiable instruments and real transaction relationships,expanding the types and transaction modes of negotiable instruments,is a prerequisite for conducting financing paper business.From the perspective of financial law,the market access system,credit management,and risk control system for are still incomplete.Based on the analysis of the financing papers system in the United States and Taiwan district,and the existing problems in China’s existing financing papers practice,this paper provides suggestions on the development path of China’s financing papers legal system.This article believes that the principle of non causation in the Negotiable Instruments Law and Article 10 of the Negotiable Instruments Law should be reinterpreted.On the basis of adhering to the principle of no cause for negotiable instruments,expand the types of negotiable instruments to include commercial promissory notes,and integrate digital technology to transform the logical rules of negotiable instruments transactions.On the basis of adhering to the abstraction of bill,the types of it should be expanded to include commercial promissory notes,while integrating digital technology to recognize the legitimacy of electronic commercial negotiable instruments.Distinguish between trading bills and financing papers,and conduct independent financial legislation based on the bill law in combination with the attribute characteristics,transaction mode,and regulatory requirements of financing papers.Establish market access standards for issuers,investors,and intermediaries of financing papers,establish a sound risk control and credit flow mechanism for financing papers,and strengthen the construction of basic market institutions in order to form a high-quality development financing papers market in the new era.