The Research On Constructing Diversified Direct Financing System Of The Small And Medium Private Enterprise In China

With the further develooment of economic reform in China, the small and medium private enterprises(SMPE) which is the main private economy has become the impormant part of the national economics, and played an accelerating role in handling employment, export and market booming. Increasingly promoting the development of SMPE is the commonly wish. Nowadays SMPE are changing from the "small and scattered"running pattern to the scale economics and intensive pattern. At the same time, such enterprises prepared beforehand are steping into the development stage of the industrial structure adjustment and upgrading ,which leads to an increasing demand for finacing.While the financing supply channels for SMPE are so invalid that shortage of financing is to be the main factor holding back private economic development. The character of paivate enterprises, the benefit-tending of the bank and policies system make it difficult to finance from the bank for SMPE. The right choice to sovle the problem of financing for SMPE is to construct a diversified direct finacing system. Based on the theory of capital structure and direct financing, this article analyses the character and the situation of SMPE and provide a demonstration analysis to the contridiction of the financing supply and demand. Forthermore, the reason of the financing predicament is given and the priciples, the structure characters and the corresponding measure is proposed to construct the direct dinancing system. The bright spots in the article are: 1) Defining the small and medium paivate enterprises furthure; 2) Proposing the principles, the structure characters and corresponding measures for constructing the direct financing system of SMPE; 3) Deducing the inherent reasons of the difficult financing of SMPE by the analysis of financing supply and demand.