China pawn industry is in the process of developing in a fast and healthy way. Since the implementation of "Measures on Administration of Pawn Industry" in April of 2005, the transactions of pawn totaled CNY80 billion in 2005 and it reached CNY96 billion in 2006. By the end of June of 2007, the total assets of the pawn industry have reached CNY86.20 billion, up 12.7% year on year.

Changing Trend of the Number of Pawnshops, 1997-H1 2007

From the perspective of business, medium- and small-sized enterprises and private companies are the target clients of the pawn industry. In the first half of 2007, the pawn industry provided 38,000 transactions for the medium and small-sized enterprises, up 18% year on year, with the value of pawnages reaching CNY22.2 billion, and provided 99,000 transactions for the residents, up 8% year on year, with the value standing at CNY19.9 billion.

Transactions Provided for Enterprises & Residents, 2006-2007
 (unit: 10,000)
 

Taking Beijing as an example, in the first half of 2007, the combined value of 75 pawnshops totaled CNY1.86 billion, up 50.4% year on year and the accumulated balance of the 75 pawnshops reached CNY850 million, up 66.4% year on year, among which, CNY76.48 million went to the interest and the comprehensive expenses and CNY141 million was for tax payment. And the combined profits after tax were CNY12.13 million in the 75 pawnshops with a total 800 employees.

Value of pawnages and Balance of Pawnshops in Beijing, 2006-2007
(unit: CNY 100 million)
 

Due to a tighter monetary policy to be carried out by the government in 2008, the medium- and small-sized enterprises will be further inclined to pawnbrokers for fundraising. With the launch of more innovations in pawn business and gradual relaxation of state policies, pawn industry will play a bigger role in solving the financing problems for medium- and small-sized enterprises. However, while focusing on the expansion of business, pawn industry should raise the self-awareness of risk control and tighten the control over risks in the process of operation, circulation and assessment.

2 Analysis of Pawn Business in China Pawn Industry
2.1 Pawn of civilian goods
2.1.1 Scope of business 
2.1.2 Operation flow
2.2. Pawn of house property
2.2.1 Scope of business
2.2.2 Operation flow
2.3 Pawn of motor vehicles
2.3.1 Scope of Business
2.3.2 Operation flow
2.4 Rights pledge
2.4.1 Definition and scope
2.4.2 Operation flow
2.4.3 Development
2.5 Risks in pawn industry
2.5.1 Operation risk
2.5.2 Circulation risk
2.5.3 Price risk
2.5.4 Inner risk assessment and risk of disposal
2.5.5 Disorder risk

3 Regional Competitive Structure in Pawn Industry
3.1 Development of pawn industry in Beijing
3.1.1 Operation
3.2 Development of pawn industry in Shanghai
3.2.1 Operation 
3.2.2 Main problems
3.3 Development of pawn industry in Zhejiang
3.3.1Operation
3.3.2 Features of pawn
3.4 Development of pawn industry in Wuhan
3.4.1 Analysis of pawn business
3.4.2 Financial analysis of pawn industry in Wuhan
3.4.3 Analysis of practitioners
3.5 Development of pawn industry in Hohhot
3.5.1 Pawn business
3.5.2 Operation
3.5.3 Main problems
3.6 Development of pawn industry in Urumqi
3.6.1 The number of pawnshops increases rapidly
3.6.2 Volume of pawn business increases
3.7 Development of pawn industry in Sichuan
3.7.1 Small operation scale
3.7.2 Rapid development
3.7.3 Main problems
3.8 Development of pawn industry in Jilin 
3.8.1 Operation
3.8.2 Main problems 

4 Operation of Key Pawn Companies in China
4.1 Beijing Huaxia Pawnshop Co., Ltd.
4.1.1Company profile
4.1.2 Primary business
4.2 Bao Rui Tong Pawn Shop
4.2.1Company profile
4.2.2 Primary business
4.2.3 Operation
4.3 Oriental Pawn Co., Ltd.
4.3.1 Company profile
4.3.2 Scope of business
4.3.3 Operation
4.4 Ningbo Dahongying Industry & Investment Co., Ltd.
4.4.1 Company profile
4.4.2 Operation
4.5 Jiangsu Jinteng Pawn Co., Ltd.
4.6 Beijing Ruiyuan Pawn Co., Ltd,
4.7 Shenyang Xinke Pawn Co., Ltd.
4.8 Shenyang Jintong Pawn Co., Ltd. 
4.9 Anhui Huasheng Pawn Co., Ltd.
4.10 Wuhan Huatai Pawn Co., Ltd.

5 Summary
5.1 Macro-economy
5.2 Business
5.3 Opportunities
5.3 Risks