Perfect The System Of Financing Of Smes Path

According to the conditions of SMEs and SME financing system in China, and the advanced experiences of foreign countries, this paper try to study the perfection of the SME financing system path selection. And to study in perfecting the SME financing system how to arrange the priority and importance among social supporting system, indirect financing system and direct financing system. And proposed which need to be developed first in the construction of each system.To explain the characteristics of SMEs in China, this paper reviews the history of SMEs and its status today. Then a brief review of the development of financing theory and the theory of SME financing is given in the paper, and including the successful experiences to solve the SME financing problems in developed countries.After reviewing the reform process of financial system, the paper briefly explained the status of SME financing in China.On the base of the analysis in the characteristics and the financing situation of SMEs, and under the guidance of Pecking Order Theory and the Financial Growth Cycle Theory which proved to be in accordance with the situation in China, the paper proposed a general idea of path chosing during the construcing of SME financing system.In the following three chapters, according to the order of priority and importance, we discussed the path of perfecting the social support system, indirect financing system and direct financing system respectively, and put forward some innovative ideas and policy recommendations as well. They include: to improve the tax system, indirect fiscal support and policy-oriented banks as the main way, and to enhance the self-accumulating capacity of SMEs, to adjust industry structure of SMEs, to improve the competitiveness and the employment of SMEs as the main purpose for the social support system construction; by improving the loan approval mechanisms to take advantage of the numerous branches of large commercial banks, and by reconstructing rural credit cooperatives into joint-stock commercial banks to develop small and medium banks for indirect financing system construction; to standardize and improve OTC markets as the main way for direct financing system construction.Finally, we summarized the main points of the paper and the lack of research, then proposed future research directions.