Research On Securitization For China's SME Financing

The healthy development of China's SME(Small&Medium Enterprise) is playing a very important roll in national economy growth. At present, hard-financing has becoming an obstacle to SME's development. The effects were imperceptible, though lots of efforts have been taken. Therefore, it is urgent to grope for a new approach for financing.As one of the most important innovations in 1990s, asset securitization can provide a significant train of thought to lighten the puzzle of SME financing in China. It is a financing instrument that the security assured by the corporation's assets with high quality is issued by a special purpose vehicle(SPV) who separate and rearrange the assets'risks and profits. At the same time, those assets can produce the predictable and stable cash flow, though they are lack of liquidity. Asset securitization has been matured in many developed countries, but it is still young in our country. Corporation asset securitization in our country is seldom and the securitization for China's SME financing has not been put into practice. The thesis is devoted to providing the foundation of theory and practice to China's SME securitization financing, so as to prepare for experiments and enhance the efficiency of their financing by reducing the costs and avoiding disadvantages.At first, the thesis reviewed the relevant theory about asset securitization at home and aborad. Secondly, the characters and dilemmas of the SME financing were analyzed and securitization was posed in order to mitigate dilemmas. The definition, operation procedure and traits was introduced and the feasibility of China's SME securitization was analyzed considering the agents and profits. Then the factors, which restricted SME securitization financing, and the choices of basic assets were summarized after the analysis of successful case. Finally, some suggestions and countermeasures has been put forward in order that they would be beneficial to seek after an effective and feasible approach for SME financing in our country.