A Study About Securitization For China's SMEs Financing

SMEs play an important role in China's economy. However, it is a puzzle in the whole word, especially in China, that hard-financing is a big obstacle in the development of SMEs. The reasons of puzzledom of China's SMEs financing are more complex, because the hard–financing and unreasonable structure of financing both exist. Therefore it is an important subject to resolve such a problem. A lot of scholars devote themselves into this study. Regretfully, the fruits of their studies are proved to be deficiency by practices and theories. So, to have a further study in this subject is very necessary.Securitization is a new kind of financing technology that have enjoyed a great development in the world and become an important financing mode. Besides, it has been used in SMEs financing in some concerned country. But, securitization has just get into its starting development and there are only few cases in our county. The study of applying of securitization for SMEs financing is still blank in China. This article compares securitization with other financing technology based on the introducing and any analyzing of the structure, principle and process of securitization. In the base of reasons of hard-financing and unreasonable structure of financing, this paper discuss the value that securitization is used to resolve the puzzledom of SME's financing with the theory of credit- admeasure and the relation between financing structure and value of corporation.In addition, this article probes the mode for the securitization to be applied in the SMEs financing. After introducing the case about securitization for SMEs in The South Korea, this paper discusses such problems as the choice of underlying assets, the design of organization structure, the way to enhancement of credit grade, the design of category of securities and the control for the concerned risk about securitization in China's SMEs financing, trying to resolve some related technology problems. At last, this paper analyzes the obstacles about the applying of securitization in China's SMEs securitization in today's environment of accountant, revenue and law system, and puts forward the related suggestion.