Credit Logic in Recent Chinese Company Financing and Contemporary Inspiration
Historically,credit is the key to insight into the complexities of corporate finance.In the case of insufficient social credit,modem China has been faced with the problem of easy subscription and difficult payment of shares since the introduction of the company system.Although the company law provides two formal financial methods,equity and debt,early Chinese companies still habitually relied on traditional credit mechanisms to raise funds through informal financial methods such as private lending.With the help of modem"social capital"theory,the credit logic behind modem Chinese company financing is revealed.The introduction of article 47 of the current Company Law aims to solve the problem of shareholders'abuse of term benefits since the implementation of the subscribed capital system in China.It can be regarded as an institutional remedy for the trust crisis in the capital field.To solve the problem of corporate financing,we must go beyond the scope of interpersonal trust and build and optimize a universal social credit system.Enhancing the credit system in contemporary China requires establishing a comprehensive social credit framework rooted in traditional values while elevating institutional trust with the help of modern legal system.
Company LawCorporate FinancingSocial CreditSocial Capital
万方数据
维普
