Study On The Construction Of SME Financing System In China

With developing of our country's economy and deepening of our socialism marketing economy, small & middle enterprises' (SME) effect that is an important role of our economy become more and more clear. It's a universal phenomenon that SME exist wherever and whenever. This is an internal demand of our economy development and an inevitable result. SME is an important force for our economy increasing, an important base to safeguard social stability and to ensure full employment. It is a young pioneer of rural urbanization, and a fresh troop of S&T innovation. But facing the change of economy circumstances in our country and in the world, SME bears more andmore pressure. Particularly, SME financing difficulty is a big restricted factor that affects SME survival and development.SME financing difficulty is because of its weak factors, imperfect financing environment and the constructing of socialism marketing. SME has small scale. His quality of property is not good either. Instability of its management makes it affected easily by the fluctuation of economy. And there is serious information asymmetry in the SME financing process. AH these make SME weaker than big company in capacity of repayment, will of repayment, and guarantee.The direct financing market of SME is developing. First board market has strictly permitting condition. Second board market has been built for short time. Private financing market can't be distinguished between good and bad. Indirect financing market has been built maturely. But the bank systems are reforming, who strengthen risk management, load money prudently. Small banks have not enough quantity, who should perfect the cooperate government. Some medium organizations should strengthen their service to SME financing. That SME resolve its financing difficulty meet severe challenge. So it haspractical meaning and theory merit to construct a whole SME financing sporting system to prompt SME development.The thesis introduces the theory of SME financing and the process of SME developing, finds out the origins of practical problems, and draws on developed countries' experience. It points out some opinions and ways to resolve SME financing difficulties. The main content is as follow:The first part is introduction. It explains why I select this object and what meaning about SME financing. It defines some fundamental concepts. It places SME categories and gives some explains. And it points out the scope of study and the means that are used.The second part classifies SME financing ways, and makes a comparison. It analyses the effecting factors and requirements about SME financing. And it introduces and comments on the theory of SME financing, too.The third part discusses the historical process of Chinese SME financing mechanism, expounds Chinese SME development historically, and how changed Chinese financing mechanism from planning economy to market economy.The fourth part is current analysis of SME financing difficulties, finds out its expression character, etc, according to classifying of SME financing ways such as internal financing, external financing, direct financing, and indirect financing.The fifth part analyses internal factors of Chinese SME financing difficulty. It point out that the reason that SME financing is difficulty is SME' large quantity, complicatedly, small scale, bad management, no good property, scarcely skilled person, and imperfect corporation reformation.The sixth part analyses the external factors of SME financing difficulty. In our financing market circumstance, large banks are reforming themselves, guarding against financing risk, and have preference to large corporation. Small banks have not developed enough. Security market is just developing,so fist board market is difficult to support SME financing. Second board market has just been building, imperfectly. It is not formed a multiplex security market system. Chinese SME credit guarantee system is developing just now. Some organizations that serve SME give bad service. Judicial circumstance should be perfected.The seventh part studies foreign SME financing. This part introduces two kinds countries' SME financing experience. The one is American and English who are market-orientated financing system. Another is Japan and German who are bank-orientated financing system. The capital markets of America and English are very perfect, where SME can get long capital easily. The bank systems of Japan and German are very prominent and have their characters, which support SME financing more than others.The eighth part is how to construct our country' SME financing supporting system to prompt SME development. The fist, SME should strengthen their quality themselves, which have creditworthy internal base. The second, we should encourage private financing and supervise their interaction. The third, we should perfect bank system; deal with relations between banks and enterprises, and relations between large banks and small banks rightly. And banks should make finance innovation continuously. The fourth is to construct SME multiplex security system, where the second board market plays a leading role. The fifth is to build integrated SME credit system. The sixth is to promote SME credit guarantee system. The seventh is to make government function clear that supply SME multiple service. The eighth is to build efficient SME medium service system.