Most people's impression of pawnshops is limited to films and TV series depicting ancient China. But since their reappearance in the 1980s, the old industry is gradually reviving and has developed as a "helping hand" for many people and small companies plagued by financial difficulties.
In urgent need of money, Mr. Zhao in Beijing is pawning his Audi car in a pawnshop. After a check of his car, he pays the pawnbroker 3,000 yuan as a monthly charge and receives 230,000 yuan in cash immediately.
One morning sees over 30 customers visiting this pawnshop in downtown Beijing. Some get their valuable items pawned for cash; some redeem their items and others come here to look for bargain buys.
Chen Tao, the manager of the pawnshop, confirms that during the New Year period business picks up, with many coming in especially to buy their quality second-hand goods.
"With the festival drawing near, 40 percent more people come to our pawnshop to buy items. More put their items on hock during the season, an increase of about 30 percent." Chen said.
Many people have found pawnshops to be more convenient and efficient than banks. The procedures for pawnbroking are simple; no credit survey or guarantors are needed. A client only has to show his identity card and related documents to pledge ownership. But most pawnshop visitors feel shy in pawnshops, as it reveals their position of financial difficulty. But there are some who don't think so.
Hu Bo, a pawnbroking insider, says his shop was frequented by many foreign customers last year.
"During the past year, over 100 foreigners have come to our shop. They feel it's quite natural. They simply think it's a good way to get short-term funds." Hu said.
These foreign customers are mostly overseas students who get financial headaches when they haven't received their remittances from home or are in urgent need of money.
Chen Jinhua is a student from Thailand.
"I was introduced here by my classmates. They told me I can get short-term funds and good buys here. There are similar pawnshops in my home country." Chen said.
Chen says he is particularly interested in buying "dead pawns", or items given up by their owners and sold at low prices. In Thailand, people can't purchase things in pawnshops.
Pawnbroking, which has existed in the country for more than 1,500 years, is getting revived.
(CRI January 17, 2006)
