Study Of Chinese SMEs' Enterprise Bond Financing Modes

Small-and-Medium-sized Enterprises (SMEs) play an important role in the development of national economy. Because of their small sizes, large numbers and agile methods of management, SMEs are fit for the complex market and are important to drive the national economy to increase steadily, take workers, flourish market, and promote competition. At present, our country is under on the pressure of employment and recession. How to solve it? Developing SMEs is an efficient method. However, there are many problems that restricting the development of SMEs due to little attention has been paid to SMEs for many years. As we know, the growth of enterprises needs enough money, but a lot of SMEs are difficult to financing. When Commercial banks provide loans to enterprises, they prefer large corporations to SMEs, which restricts SMEs' development seriously. At present, SMEs financing modes are mainly owned-financing and commercial bank loans financing, so SMEs are getting into trouble on financing. Lacking of directed financing modes such as enterprises bond financing and equity financing from capital market makes SMEs' financing cost so highly. So Firstly, I think the bond-financing model will be the SMEs' financing model in future by analyzing the bond financing theory and researching the excellent experiences of western developed countries. Then my thesis mainly focuses on the enterprises bond financing modes of SMEs. At present, enterprises bond financing is so difficult to SMEs, so building SMEs Association may be a good way. That is to say, some good SMEs build SMEs Association and issue enterprise bond. Of course, the limit of law and rules of bond financing should be changed and abolished. So the countries' policy constitutorsshould change their tune and make system innovation. At last some suggestions and conclusion have been arrived in my thesis. Wish my thesis be useful to the SMEs' directed financing.