The Research On Financing For Chinese High-tech Enterprises

In the 21st century, with the rapid development of new technology revolution world wide, the process of economic globalization is significantly speeding up. Science and technology play leading roles in promoting economic development and social progress as well as protecting national security. The world is full of intense competition in the field of scientific innovation. Most countries around the globe regard scientific and technological innovation as an important national strategy, science and technology as strategic input, and developing technology and related industry as a key breakthrough. Towards the new circumstances of world's science and technology development and intensely international competition, the first twenty years of this century is a critical period of developing economy, science and technology in China. Focused on building a moderately prosperous society in all respects and promoting the modernization strategy of socialist country, the 16th National People's Congress of the Communist Party called for planning long-term development on science and technology, that is, A Plan on National Long-term Development of Science and Technology (2006-2020), which identified China's overall goal on developing science and technology in the next fifteen years. The Plan requires establishing a new and innovative system which adapts to socialist market economy and laws to scientific and technological development and shaping a reasonable layout in order to gain great breakthrough and leap-forward development. The Plan also demands that R&D investment takes up a rate of 2% of GDP. The ultimate goal is to work up a technological power with ability of independent innovation and to lay the foundation for ranking innovative nations. To achieve the strategic goal of science and technology, it is an urgent need to address some problems existing in high-tech enterprises in China, for example, at present financing mechanisms or financing systems have not yet been established to adapt to stage of developing high-tech enterprises. As a result, it is especially important to develop high-tech industries in a way of constructing financing systems of enterprises based high-tech life cycle as quickly as possible.The paper firstly explains the high-tech enterprises, enterprise financing and western theories of modern corporate finance, and then discusses capital requirements, risk characteristics and modes of financing at different stage of development on the basis of theories of enterprises'life cycle. Next, the paper analyzes the current situation and major financing problems in high-tech enterprises at this stage. Finally, in view of analyzing financing system of American high-tech enterprises and their successful experiences, the paper puts forward feasible ways on constructing financing mechanisms of high-tech enterprises in China.