Ministry of Commerce and the Ministry of Public Security jointly promulgated Pawn Administration Rules on Feb. 9, 2005, to be taken into effect on April 1. Currently, relative Competent officials of Department of Market System Development and Department of Treaty and Law of MOFCOM briefed the newly released Pawn Administration Rules.

Competent officials said that in recent years pawn industry in Cailhina developed rapidly and played an active role in meeting the urgent financing request, facilitating life of masses and promoting development of medium-seized and big enterprises etc. Nevertheless, a few number of pawnshops operated illegally, which resulted in unpleasing effects on financial and social orders. To draft and promulgate new Pawn Administration Rules was to further regulate the industrial operation, to enhance and improve supervision and to promote the healthy development of pawn industry.

According to the briefing, new Pawn Administration Rules was drafted and to be implemented by Ministry of Commerce and Ministry of Public Security on the basis of Pawnshop Administration Rules and Security Administration Rules for Pawn Industry, absorbing the historical experiences of Pawn industry in China, learning the successful practice of foreign countries and combining the current development status of Chinese paw. New Rules have the following characters:
1, Increasing transparency and specifying procedures.
2, Considering suggestions of all relative departments, manifesting the advantage of coordination of policies.
3, Stressing to enhance supervision and punishment for illegal behaviors.
4, Paying attention to protect interests of various parties and thinking of social equality.

New Pawn Administration Rules comprised 9 chapters and 73 articles, consisting of General principle, chapter of establishment, modification and termination, business scope, pawn ticket, operation rules, supervision, punishment and supplementary. New Pawn Administration Rules revised and adjusted the original in the following 5 aspects:

1, Reasonably raised the requirement of market access. According to features of various types of pawn and corresponding requests of business scale, the Rules further specified and increased the minimum registration capital, meanwhile, made regulations for shareholders and their capital contributions on the principle of effective inspection.

2, Enhanced the monitoring of proportion of assets. Strengthened the prevention from financial and market risks.

3, Lowered the maximum of comprehensive rate.

4, Simplified approval procedures beforehand.

5, Intensified inspection and administration afterwards.

Competent officials of MOFCOM said that the promulgation and implementation of new Pawn Administration Rules provided clear law bases to departments concerned to supervise legally, and would must make functions on regulating pawn behaviors, struggling against illegal business, upgrading social status and pushing forward the sustainable and healthy development of the industry.

(Source: Network Center of MOFCOM)

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