Research On Small-medium Enterprise Collective Bonds’ Financing Mechanism And Its Efficiecy

As an important part of the national economy, small-medium enterprises (SME)play a significant role in promoting the technological innovation, increasing emloymentand prospering the economy. On account of the imperfect of government regulation,immature of the bond market development and the defecient of SME, financingdifficulties have become a bottleneck of SME development. Since2007, the globalfinancial crisis outbreak one after another,40%of domestic SME have closed downbecause of financing difficulty, the problem of financing difficulty become more andmore outstanding. In this situation, the government adopts a series of measures tosupport and help SME. The detrusion of SME collective bonds trigger extensiveconcern from all sectors of society, which is known as the “timely help for alleviatingthe SME’s capital hungry”.Due to the related legal system of SME collective bonds is imperfect, creditguarantee system is not sound and high barriers to entry, the SME collective bonds’smooth promotion is seriously hindered. In order to promote the development of thebond market and solve the financing difficulty problems of SME, it is of greatsignificance to study the SME collective bonds financing intensively.In terms of theory analysis, this dissertation illustrates the basic situation of SMEfinancing, the research basis of the SME collective bonds financing and SME collectivebonds financing mechanism. Firstly, this dissertation discusses the development of SMEand its financing situation as well as its financing characteristic. Then SME collectivebonds’ connotation is defined, the characteristics, significance and relate theory of SMEcollective bonds financing are slso discussed. Lastly, the meaning and feasibility ofSME collective bonds’ financing mechanism are studied to lay a theoretical basis.In empirical research, this dissertation starts the analysis of SME mechanism fromthe aspects of SME collective bonds’ issuance subject structure optimization, creditenhancement mode and collective bonds pricing, then evaluates its financing efficiencyto study the problem of SME collective bonds financing systematically andcomprehensively. First of all, this dissertation builds the bond issuance structureoptimization model of SMEe collective bonds by combining KMV model andmultivariate t-Copula model, and selects10SMEs issued a collective bond virtually,named “Xin SME Bond”, then applies the optimization model to determine the optimal debt ratio of each bond issuance enterprise. Results show that the collective number ofbond issuers should be sufficient to reduce the overall risk of default and issuance costs.Secondly, this dissertation investigates the situation of SME bonds credit enhancementmode and explores the problems it existing. Through analyzing the reason why Korea,Germany and other countries’ credit enhancement mode carried out smoothly, thedissertation improves the existing SME collective bonds’s credit enhancement modefrom strengthening SME’s credit rating, innovating internal enhancement instrumentand promoting the combination of internal and external credit enhancement mode.What’s more, it designs a credit enhancement mode for virtual collective bond-“XinSME Bond”. Thirdly, by improving the existing collective bonds pricing model andassuming that enterprise defaults accord with the poisson process, and the results showthat most of the collective bonds pricing by Mento Carlo simulation are agree with theactual price. It illustrates the effectiveness of the improved pricing model. So thisdissertation uses Mento Carlo simulation to pricing the virtual collective bond-“XinSME Bond” on the base of the enterprise’s default intensity with different credit ratingwhich is computed by enterprise credit rating migration matrix. Finally, this dissertationbuilds a comprehensive appraisal index model to evaluate the financing efficiency ofvirtual collective bond-“Xin SME Bond”.With regard to applied research, this dissertation explores the SME collectivebonds financing innovation model from private collective bonds and asset securitizationwith the combination of China’s SME financing system, which is on the based of thefinancing situation of SME collective bonds, reference the innovation concept of theforeign advanced SME financing and creative thought of collective bonds. Relevantcountermeasures and suggestions are put forward on constructing environment of themarket and designing the collective bond products.