TSINGHUA CHINA LAW REVIEW
New Regulations on Receivables Financing in the Context of Supply Chain Finance
Created on:2024-02-07 11:07 PV:516
By Feng Shun | China Law Update | 16 Tsinghua China L. Rev. 157 (2023)   |   Download Full Article PDF

In the past, due to the lack of specialized legislation for the supply chain finance industry and the fact that receivables financing is a new type of financing model, there may be a lack of clear and reasonable solutions for receivables financing disputes. The Civil Code, which takes note of this situation and focuses on responding to the relevant issues, is the latest development in the civil legal regulation of supply chain finance. The Supreme People's Court issued the Interpretation of the Relevant Guarantee System and the Interpretation of the General Provisions of Book Contracts. On the basis of summarizing the trial practice experience in recent years, the Supreme People's Court issued the Conference Minutes (draft) of the National Courts’ Financial Trial Work. These legal updates, as the basis for trials in judicial practice, set new norms for receivables financing transactions and refined the relevant rules. These legal updates have responded well to the problems of multiple transfers of accounts receivable and fictitious accounts receivable in receivables financing, which are conducive to the settlement of disputes and the promotion of the healthy development of supply chain finance.