A Availability Analysis On Eastablishing "Second Board Market" To Sovle The Financing Problem Of SME In China

From the world's expeirence in sovling the financing problem of SME,many counties have established the second board market for high-tech enterprise especially.But many second board markets have failed to act its role except NASDAQ ,such as EURO NM,SASDA(in Singapore),GEM(Growth Enterprise Market) in HongKong.Some of them even have closed.Then the problems we are facing to as followings:There are so many SMES lack of capital in China that whether we need to establish the second board market like other Countries.This paper wants to do a availability analysis on eastablishing"Second Board Market"to sovle the financing problem of SME in China.Tish paper have Introduced some background about the development of SME, it also have analyzed and evaluated all concepts about whether establishing the second board market in China .Then it defines the characteristic and orientation of the second board market and analyzes the requirements or qualification of establishing the second board market.According to the succeeded and failed experiences ,quantity of growth SMEs is the basic requirements to develop the second board market besides system-establishing.Because of the characteristic of factor endowment structure,there are not quantity of growth SMEs in China.We can know that not only from the macro environment such as our industry choice,the R&D level,but also from the development status of SMES in China.Besides lack of quantity of growth SMEs,the equity finance is not suit for SMES.So we shouldn't develop the second market at present.Though we can't develop the second market,we shoud take some other policies to solve the finincing problem of SMES,for exemple,developing the small and medium banks.