Understanding of China's Listed Company's External Guaranty

At present, China's listed company's external guaranty is very popular. There are three styles of this guaranty: for great shareholder, for each other and for subsidiary company. As a normal economic phenomenon, a suitable guaranty can bring a convenience to company financing, but an unsuitable guaranty can bring some great risks to the listed company, the banks, the investors and so on. In this paper, suitable guaranty and unsuitable guranty are defined, and some incorrect understandings of present guaranty are pointed.