An Analysis of Security Financing of Assets
Our enterprises make use of foreign capital usually in two ways: attracting foreign tradesman to invest directlly and borrowing large sums of money from foreign powers. We adopt the direct investment of foreign tradesman at the cost of losing our ownership and the power of operation; While borrowing large sums of money from foreign powers it must be guaranteed with the credit of state sovereignty, and this will bring great responsibility to our country, also it will add to the nation's foreign debt. Security financing of assets is an advanced financing technique and a financing means in capital market. It sheds a new idea of improving and changing the ways of using foreign capital currently used in our enterprises.