Analysis Of The Private-owned Enterprise Financing In China

Since late 1990s, private-owned enterprises have become one of the most active growth poles of China economy. But not symmetrically, financing support to the private-owned enterprise from financial department is too limited. The channels of financing are mainly from internal financing or financing arrangement by local governments. However, internal financing arrangement is only suitable for the early development of private-owned enterprises. When the development of private-owned enterprises came into the stage of pursuing the combination of technology advancement and capital intensity, new way of financing arrangement is needed.The present financing system is built on the base of vertical credit relationship which mainly serves for the external financing of state-owned enterprises. Under this system, the state-owned banks are the financing media which were endogenous from state-owned economy. It is very difficult for the private-owned enterprises to get into this system, and it is also difficult to achieve external financing through this kind of financing system. The credit system supporting private-owned enterprises for external financing is horizontal one. So in order to establish external financing system, we need to motivate the finance innovation behaviors endogenous to private-owned economy, and encourage private-owned enterprises to establish finance media agency funded by them own, and to foster endogenous horizontal credit relationship. And through all of the ways, we can make private-owned enterprise get necessary finance support from the inside of the credit relationship, and relax the financing tension through capital flowing among private owned enterprises. At the same time, we should encourage the private-owned enterprises to self-adjust and inter-restrict during the financing activities.The main opinion of the thesis is: in the process of private-owned enterprises' developing from internal financing to external financing, we must achieve the transition from vertical credit relationship to horizontalcredit relationship. After analysis of the prevailing opinion about financing difficulty, the author points out that the only way to resolve the problem is the finance arrangement endogenous to private-owned economy.Using the method of case studying, the thesis analyses the operation mode of Taizhou commercial bank and Xintaishang guarantee corporation, demonstrate the energy of financing system endogenous private-owned economy. The author has investigated 135 enterprises belonging to the Taizhou Chamber of Commerce in Shanghai, and got the fist-hand dada about the current operation conditions of private-owned enterprises.In the last part of the thesis, the author gives the following advice: promote further credit support, and encourage commerce bank to attract private capital; broaden the channel of direct financing, and motivate qualified non-state-owned enterprises to participate foreign stock market and issue enterprise bonds; establish and improve credit guarantee system, and support non-stated-owned enterprise for setting commercial or mutual insurance agencies.