Study On SMEs Financing In China

The topic about Small and medium enterprises(SMEs) is worldwide and everlasting. There are lots of SMEs, which is inherent demand and inevitable result of economic development. With the development of our reform and openness, SMEs in China have got rapid development and play an important role in absorbing social labor, stimulating market, increasing income, stabilizing society, regulating product structure.Accelerating the development of SMEs in China, will ensure that Chinese economic reform and developmental targets get realized successfully in the future several years. Developing SMEs will lay a solid basis for sustained and stable development of national economy.However, financing dilemma is the most important factor that influences the development of SMEs in china. Financing not only is the beginning of capital operation, but also is the prerequisite of capital utilization. Short of capital, SMEs will not get everlasting development. So researching on SMEs financing and exploring how to perfect financing system of SMEs in China, is of vital importance to settle SMEs financing dilemma and promote economic and social development in China.The article consists of four parts.Chapter 1 is a summary of SMEs financing in China. At first, gives a definition to SMEs, then puts forward the status and role of SMEs in China. Secondly, analyzes the main financial methods and their features, and points out that government should support SMEs financing. Finally, concludes that financing is important to SMEs development.Chapter 2 points out financing status quo of SMEs in China, and probes into it from external causes and internal factors of SMEs. External causes involve the restriction from governmental law, financial institutions, security market and social service system. Internal factors refer to the constraint from scale, technology, management, credit level of SMEs. On this basis, author brings forwand the countermeasures to SMEs financing dilemma and puts forward the hypothesis about how to perfect the SMEs financing system.Chapter 3 makes a detailed elaboration about how to establish the indirect financing system of SMEs in China. Firstly, establishing credit guarantee schemes in China, which is the most practical and important task to solve the SMEs financing dilemma.SMEs have difficulty in loan guarantee. So establishing credit guarantee schemes is indispensable and imperative. The practical mode of loan guarantee system may be summarized by "one body two wings", including loan guarantee, mutual guarantee and commercial guarantee.The main function of credit guarantee schemes isto evaluate loan level, expand credit guarantee, and trace the debt. Secondly, financial institutions will give credit support to SMEs and make financial innovation. State-owned commercial banks will improve financial service to SMEs. In the premise of credit safety, commercial banks should be encouraged to set up the stimulation and restriction mechanism of loan to SMEs, and to increase the ratio of loan to SMEs. Moreover, better management of credit department of commercial banks will ensure that SMEs have full financing sources. At the same time, small and medium financial institutions which serve for SMEs should get support. SMEs and small and medium financial institutions are cooperative partners by nature. Small and medium financial institutions should fully exert their advantages to meet the demand of SMEs financing. Finally, developing the lease financing, not only solves SMEs financing dilemma, but also imports technology and equipment.Chapter 4 makes a detailed elaboration about how to establish the direct financing channel of SMEs in China. Firstly, develops the venture capital, which is important to the development of SMEs, especially to the growth of technical SMEs. To further develop venture capital, we should construct favorable exterior environment. Through criterion of policy, innovation of institution, and improvement of environment, shapes the venture capital mechanism with the core of market constr...