Study On The Financing Of The Private Enterprises In China

Since the reforming and opening up in China, the rapid development of the private economy has become the most important historic significance of the social economic phenomenon. The government in China has revised the constitution four times since 1982. Then it makes the policy environment become looser. Especially that the private property is sacred and inviolable has been written into the constitution on the Second Session of the Tenth People's Congress. This will give the private economy a quite bigger development space and also will improve the enthusiasm of the private enterprises. There are a lot of problems for the development of the private enterprises, but the financing problem is the first one. So solving the financing problem of the private enterprises effectively will exert a positive influence for the private enterprises' internationalization, modernization, standardization and lasting sound development.I．The analysis of the present situation of the development and financing of the private enterprises in ChinaThe private enterprises in China have processed five stages mainly. With the policy circumstances becoming looser, they are playing a more and more important role in the national economy. But the problem of the fund is also the most important one. On the basis of combining the data that IFC researched about the financing situation of the private enterprises in China with other material, the thesis analyses the present situation of financing.II．The study summary of the financing of the private enterprises in ChinaThrough analyzing the interrelated discussion of Liu Lifeng, Yang Tianyu, Zhang Chenghui etc.that are the team of Study on the Expanding of the Private Economy Financial Channel and Lin Yifu, Fan Gang, Zhang Jie, the author finds that the financing problem of the private enterprises have been studied mainly from the external factors such as the financial institution, the capital market and the influence of the government at present and little importance has been attached to the internal factors of the private enterprises, no more than the study on the financing of the private enterprises from the two angles .So this article tries to analyze the financing of the private enterprises from the two viewpoints.III．The analysis of the characteristics of financing of the private enterprises in ChinaOn the basis of analyzing the particularity of the characteristics of financing of the private enterprises in China, this article discusses the characteristics from the following ten aspects: (1) The quantity is small and the frequency is high; (2) On the side of the financial channel, the internal finance is chief and the external finance is subsidiary; (3) On the side of the financing way, the direct financing way is chief, the indirect financing way is subsidiary and the financing way is relatively single; (4) The financial cost is higher than others; (5) The financial risk is relatively bigger; (6) On the side of the financial structure, the proportion of the stock financing is strictly higher than that of the debt financing; on the side of the debt structure, the proportion of the short-term debt is higher than that of the long-term debt; (7) On the side of the financial policy, the majority of the private enterprises take the rapid financial policy; (8) The financial quality is quite inferior; (9) On the side of the financial plan, the financial plan of the private enterprises is relatively poorer; (10) On the side of the financial idea, the private enterprises have no scientific normal financial idea and the financing activity presents random;IV．The analysis of the difficulty in financing of the private enterprises in China The development of anything is the result that both the internal and external factors act together. If we attach more importance to one part and neglect the other, it is not benefit for the things to development harmoniously. So the analysis of the difficulty in financing of the private enterprises in China should be made from the two a...