A Study On The SMEs (Small-and-middle-Sized Enterprises) Financing In China

The positive role which the SMEs held in national economics has been generally concerned , and the financing difficulty especially has been becoming the focus . By a study of the SMEs financing difficulty , the developed countries discovered that a financing gap appeared on account of the transaction costs brought by small-scale and asymmetrical-information when the SMEs found the outside capital . Basically , the SMEs in China have been distressed by the same reason , but the financial institution was the most important reason which should not be neglected . Besides , the undeveloped market institutions couldn't offer enough public services which aggravated the side effect and at the same time made the sources of the financing difficulty even more complicated.Besides the introduction and the concluding remarks , the main part of the dissertation is composed of 3 chapters . From three aspects , the first chapter discussed the best-financing-order^ the limit of inside financing and the choices of different financing way under different binding conditions which inconluded asymmetrical information , financial institutions and public services .The second chapter introduced the developing tendendcy of the SMEs in China and made a general description of financing difficulty first. Then through inspecting the relevant literatures , the auther tentatively inquired into the sources of the SMEs financing difficulty in China . The countermeasures were offered in the third chapter , according to the problem abovementioned , reducing the transaction costs of financing is the most important things that the government, banking institutions and SMEs should do . Finally a suggestion were adduced on how to cultivate a financial services system .The main conclusions and viewpoints within the dissertation are summed as 4 respects as followed : 1. The reduction of transaction costs dominantly depends upon the financing institutions which was not perfect in China , but notto discard it completely , what we should do is to rectify it appropriately . 2. In order to solve the problem of adverse selection and moral harzard in financing , the government, banking institutions and SMEs have actually born part of the transaction costs ,but the share wasn't symmetrical . 3. It is true that the small-and-middle-sized banking institutions have the advantage of large ones about the financing information of SMEs under usual circumstances , but it isn't a full condition of developing a great number of SMBIs on account of the changing conditions . 4. Presently financing of the SMEs still depends on the state-owned commercial bank , the way improving resources allocation not only focus on the quantity but also on the quality .