Abstract: In China, commercial prepaid cards have become a form of social corruption, which results in the increase of trade credit financing of retail industry. Based on the empirical analysis of panel data, which comes from the listed companies of retail industry from 2006 to 2013, the article studies not only the relationship between the social corruption and the trade credit financing of the companies, but the relationship between the operating conditions of the companies and their trade credit financing as well. Research shows in Mainland Area the social corruption and the trade credit financing levels positively correlated, and verifies the existence of social corruption is closely related to the prepaid card. Meanwhile, the operating conditions are not entirely related to its commercial credit financing. By contrast, based on the comparison and analysis of data for the same period in Hong Kong 14 companies of the retail industry, the trade credit financing level is more dependent on their operating conditions, but no significant relationship with social corruption.