Watching out for the Risk of "Entrusted Financial Management"

DOI

10.2991/icemse-19.2019.158How to use a DOI?

Keywords

entrusted financial management, bottom guaranteed income, balancing of interests, principle of overall consideration, crime of illegally absorbing public deposits

Abstract

In recent years, as a lagging response to the deep adjustment of the stock market in China, a large number of entrusted financing cases have emerged. The main risk factors in entrusted financing are as follows: entrusted financing becomes "entrusted stock speculation". Most entrusted financing agreements adopt the method of guaranteed return rate, and the quality of entrusted companies is uneven, which easily leads to company losses and chain effects. This has done great harm to the whole stock market and the national economy. They should strengthen the management of such phenomena to prevent systemic risks. In dealing with such entrusted financial cases, attention should be paid to the principles of balancing rights and interests, stabilizing financial order, giving overall consideration and focusing on resolving contradictions. They should strengthen propaganda and raise investors' awareness of prevention, and report criminal acts as soon as they are found. When dealing with such contracts with fixed income and guaranteed terms, the court shall, in accordance with its substantive legal relationship, determine that the two parties have established a loan contract relationship. If a company without qualifications absorbs funds from the unspecified public in the name of entrusting financial management, and if the relevant circumstances are achieved, it may be investigated for criminal responsibility for the crime of illegally absorbing public deposits according to law. Subjectively, if it has the purpose of illegal possession, it may also be recognized as the crime of fund-raising fraud.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Zhen Shao
PY  - 2019/09
DA  - 2019/09
TI  - Watching out for the Risk of "Entrusted Financial Management"
BT  - Proceedings of the 2019 3rd International Conference on Education, Management Science and Economics  (ICEMSE 2019)
PB  - Atlantis Press
SP  - 684
EP  - 687
SN  - 2352-5428
UR  - https://doi.org/10.2991/icemse-19.2019.158
DO  - 10.2991/icemse-19.2019.158
ID  - Shao2019/09
ER  -