| The five channels which are Government financial support, Formal financing, Informal financing, Owner/shareholder investment, Foreign capital investment, could almost sum up the capital resources of companies in China. I．The main financing problems that Chinese enterprises are currently facing are briefly stated as below: (I) Defect of Corporation Financing System The financial system in China is led by the central bank, supervised by bank supervision committee. The main body of the system is a group of commercial banks, including the policy banks, the combined urban-rural-cooperated banks and the non-banking organizations. With the financial capital's distributing structure, most of the financial capital belongs to the banks, which are mainly state-owned exclusive investment commercial banks. Therefore, the financial organization system shows the situation of monopolization monopolized by those commercial banks, which are monopolized by state-owned exclusive investment commercial banks. (Ⅱ) Unbalance of Marketing Structure Unbalance of the marketing structure shows in two aspects: one is the term of financing. The credit financing and the capital market financing are too high and these three methods could not reinforce mutually. The marketing position appears repetition, vacancy, disperse objectives and low efficiency. In addition, there are some problems in market subdivision and market position among these three financing methods. The government always focuses on basal facilities' construction and technical reconstruction projects while offering financial fund. The market goal of our state-owned bank is usually service to large or medium scale state-owned enterprises. While there are so many limitations in scale or benefit creative capability if the corporation wants to come into the Chinese stock market. Another aspect is disequilibrium of market opportunities. To different type of the enterprises, the channels of capital preparation and market opportunities are absolutely different. For example, one state large basal construction company's capital resource is mainly from national financial investment and financial organization project financing. Therefore, it is more easier for the company to fix such kind of problems. The state-owned commercial enterprise mainly receives fund by indirect financing and partial informal financing. For some medium or small scale corporations, especially private owned ones, the difficulties of capital preparation are well-known. And they are generally depending on enterprise owners' investment and partial informal financing. (Ⅲ) Careless Enterprise Organization and Administration First, the careless administration results in the credit crisis of the enterprise. The phenomena of triangle debt in 1980s and repudiation in commercial field in 1990s made the bankruptcy of numberless state-owned or private owned enterprises. It also showed the credit status of our Chinese enterprises. The poor credit made the investors and financial organs lack of the confidence on the corporations. Therefore, the capital of investors or financial organs is left while the enterprise is facing the difficulties of capital preparation. Second, careless administration results in less consideration about how much is the cost of the capital when the time and the structure matches enterprise financial needs. Most enterprises could not make a reasonable plan for financing before this action. (Ⅳ) Lack of SpecialistChina has no much specialist in the financing related to the enterprise capital preparation cost, avoid tax revenue and feasibility. To catching up with other developed organization, china still has more steps to go. (Ⅴ) Low Technical Evaluation Level about Enterprise's Credit in China The credit evaluation system in China is not wholesome. The professional evaluation organization level is a little bit low. While the bank always evaluates enterprise's overall economic status and market prospect through its credit stuff and issue the loan according...
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