A Game Analysis Of The Financing Of China's Small & Medium Enterprises

Small-and-medium enterprises(SMEs) play a important role in the development of this country's economy. But in comparison with big enterprises, SMEs face a series of special problems in their development, among which the difficulty in financing is the bottle-neck problem that checks the development of SMEs. In order to solve this problem, two methods may be used to give stronger financial boost to SMEs: (1) To strengthen direct financing for SMES, including the establishment of the second-board market, and loosening the requirements of the issuing of bonds,etc. (2) To strengthen indirect financing for SMEs, which includes the development of small and medium financial institutions, and establishment of the credit assurance system for SMEs etc.From the angle of the efficiency of allocation of funds, this paper analyzes the advantages and disadvantages of the two methods with the game theory and the information economics theory taking the actual situation in our country. And it reaches the conclusion that the indirect financing system should be established in our country, and more support of indirect financing should go to SMEs. Based on this conclusion, this paper particularly analyzes two important measures: (1) analyses the importance of small and medium financial institutions in the financial boost to SMEs from the angle of the efficiency of allocation of funds, and concludes that the private financial institutions should be publicly managed. (2) analyses the advantages and disadvantages of the "one body two flanks" credit assurance system of our country, and suggest that our country should establish a new credit assurance system for SMEs that has the assurance institutions of state and provincial levels as its core, and the municipal level commercial assurance institutions supported by local finance and mutual assurance institutions as its basis.