What does pawn mean?

Pawning is a barter transaction, which refers to mortgaging valuable items to pawn shops in exchange for certain funds. When the borrower repays the loan principal and interest, the pawnshop will return the collateral to the borrower. If the borrower fails to repay the loan on time, the pawnshop has the right to sell the collateral to recover the debt. Therefore, pawn shops play a very important role in this trading mode to ensure the fairness and security of transactions.

The history of pawn in China can be traced back to ancient times. It is a credit system. As early as 3,000 years ago in Shang Dynasty, pawning was already a common way of trading. In the traditional culture of China, pawning is regarded as a legal economic means with high moral and legal responsibilities. The pawnbroker's behavior is strictly restricted and supervised, which ensures the fairness and reliability of the transaction.

In today's modern economic society, pawnbroking has developed into an independent industry. Pawnshops provide services such as pawning, inspection, identification, purchase and exchange of various valuables. Pawnbroking is not only a profitable business, but also an institution that provides services for the urgent need for funds, and it is also a social welfare undertaking, which plays an important role in social and economic development.