Research On The Legal System Of SMEs' Financing Credit Guarantee In China

Small and Medium Enterprises (SMEs) are important component parts of national economy and contribute greatly to the development of national economy. SMEs play roles that cannot be replaced by large enterprises in creating employment opportunities, stimulating market competition, promoting technological innovation and enhancing economic vitality. In recent years, however, SMEs have been in financing difficulty, which has become the dominant factor restricting the development of SMEs. SMEs' credit financing difficulty is due to imperfect market economic system as well as their own reasons. To solve the problem of imperfect market economic system, the moderate government's intervention is needed. Establishing the credit guarantee system can compensate for credit insufficiency of SMEs and reduce the risks of financial institutions. At present, the western developed countries have established complete credit guarantee systems to share these credit risks with financial institutions. Referencing the advanced experience of other countries and combining with China's actual conditions, this dissertation thoroughly researches and analyzes SMEs' credit financing difficulty in terms of law, and proposes some suggestions upon improving the SMEs' credit guarantee system in China.In addition to the introduction and conclusions, this dissertation is divided into five parts as follows:The first part, an introduction to the SMEs' financing credit guarantee, briefly analyzes the definition and criteria of SME, the reasons for SMEs' credit financing difficulty and the theory that the moderate government's intervention is needed to solve SMEs' financing difficulty. This part also indicates that improving China's credit guarantee system is necessary to solve SMEs' financing difficulty.The second part, the SMEs' credit guarantee systems in other countries, mainly analyzes and concludes the SMEs' credit guarantee systems in the United States, Japan, France etc, which can be used as references for improving China's credit guarantee system.The third part, the present status of SMEs' financing credit guarantee system in China, presents a survey of China's credit guarantee institutions and the practices of credit guarantee of various regions in China, and evaluates the SMEs' credit guarantee system in China. The fourth part, the problems with the SMEs' credit guarantee system in China, analyzes the problems in China's current legislation of credit guarantee, including low-level legislation and the lack of a specialized credit guarantee legislation, and the problems in the operation of China's credit guarantee system, including the incomplete risk control, the lack of effective supervision over the credit guarantee institutions and so on.The fifth part, the suggestions for improving the SMEs' credit guarantee system in China, presents three ways of improving the SMEs' credit guarantee system in China, including enacting the separate regulation for the SMEs' credit guarantee system, improving the operation of institutions of SMEs' credit guarantee by the stationary source of guarantee funds and the avoidance of administrative intervention, and enhancing risk prevention measures of these institutions through the internal and external control.