Legal Studies On The Bond Financing Of Chinese Small And Medium-sized Enterprises

Thousands of small and medium-sized enterprises(SMEs) in China account more than 50% in GDP, but in their development process, they have always been facing "financing" problems. Over the years, the government has adopted various policies to try to resolve this historical problem, however, the effect is not significant owning to the existing legal and policy environment. According to economic theories, studies show that bond financing is the most suitable model for SMEs'development, but in our country, SMEs are facing a imperfect supporting legal system of SMEs, high threshold of trading market, the missing of the OTC market system, and the unadequate service system for SMEs, and therefore, there is abnormal phenomenon that equity financing is far greater than bond financing. In this context, this paper will be based on reality, starting with studying the current legal system of bond financing in our country, and by exploring the law of development of bond markets and developed countries's practice of capital support for SMEs, to proposed to support bond financing of SMEs in China. There are five aspects in this paper as follows:Firstly, this paper discusses the general issue of SMEs'financing system. In the first part, the paper accurately positions SMEs in the capital market and their personality by definitioning the concept of SMEs; in the second part, the paper describes the common cause of difficulties of bond financing for SMEs and from the perspective of economics, proves that bond financing for SMEs is better than equity financing, and encourages SMEs to make use of bond financing.Secondly, due to bond financing is significance for the development of SMEs, this paper reviews the financing of corporate bonds on the basis of the existing legal system, and analyzes the causes of the existing hinders of bond financing for SMEs from the macro and micro levels, therefore in order to solve the above problems.Thirdly, from the perspective of issuing system of bond financing of SMEs, this paper studies the themes of the examination and approval system for the issuance, distribution threshold limit, and the problem of the way of public offering of bonds is sufficient to meet the needs of SMEs issuing, and puts forward the corresponding proposed changes based on foreign experiences.Fourthly, from the perspective of SMEs'trading system by bond financing, this paper analyses multi-level capital market development in countries who have the successful practices, discovers the advantages and disadvantages of exchange market and the OTC market for SMEs'bond financing in China, and proposes some constructive measures for their development.Last but not the least, from the perspective of ensurance system of bond financing for SMEs, this paper structures relevant system such as service system for SMEs, the SMEs'bond liquidity guarantee and debt repayment protection which run throughout bond issuing and trading, and these systems should be affirmed in legal form which promote the continuous development of bond financing of SMEs.