Study On SMEs Financing Of China

Though SMEs are playing an important role in the social and economic development of China, yet Ihe growth of them is gravely restricted due to difficulties in financing. Taking this issue as main topic and utilizing analytical methods of both empirical, normative, retrospective and inductive, this paper makes a systematic analysis of the difficulties China's SMEs face in financing and reasons behind it, and comes up with some effective countermeasures to help solving the problem.First, the author states relative theories in the financing of SMEs including "gap in capital financing" and "gap in liability financing" of SMEs, the problem of moral hazard and adverse selection caused by information asymmetry.After an in-depth empirical analysis of the status quo of SMEs financing made in different respects such as financing channel, financing structure and methods, in Chapter 2, the author sums up the reasons for the difficulties China's SMEs face in financing.In Chapter 3, the author introduces international SMEs financing modes, practices andexperience which China should use for reference.Based on the above analysis and taking China's reality into account, in the last part of the paper, the author make suggestions for policymakers to solve the problem of China's SMEs financing.