Small and medium-sized enterprises(SMEs) have played the important roles in the various economies which have been promoted greatly by the development of these enterprises .And also it is concluded by all countries that it's a priority to place the development of small and medium-sized enterprises on their top agenda.With the rapid development of China's economy, Chinese SMEs have developed rapidly and have also taken a part for contributing a lot to the economy.However that the development of Chinese SMEs have been always restrainted by the financing difficulties,especially the funding of loan from financial institutions has been a stumbling block for China's economy. This article has focused on the funding gap problems for SMEs in China and the analysis of that what kind of relevant countermeasures we should take. Based on the perspective of the asymmetric information theory, the principle of risk diversification and the theory of credit rating upgrading,this article has conducted the exploration of the Chinese credit guarantee system for SMEs and the current problems with itself,pointing out the specific and constructive suggestions of that how should do to tackle these problems.This article consists of four parts:Part one is about the general introduction which consists of four sections.The first section has introduced the background and significance of the topic. Small and medium-sized enterprises in China has contributed a lot to the rapid development of the economy yet have seen the funding gap problem increasingly worsen since the reform and opening up.And that there are numerous defects in the Chinese credit guarantee system for SMEs would be highly harmful for the economy in the long term. Section two has articulated the funding gap difficulties ,the financing difficulties based on the perspective of information asymmetry ,risk allocation principal.Section three has introduced the research methods of this article which has described the current situation of Chinese credit guarantee system for SMEs and the reletive suggestions.Section four has summerazied the new thinking way of exploring the solutions to solve the problems that the Chinese credit guarantee system for SMEs faces now.Part two has studied the economic analysis of Chinese credit guarantee system for small and medium-sized enterprises. This part is divided into two sections.The first section has introduced the concept of SME credit guarantee system that is defined as a mixed public good which provids financing for SMEs. Section two has focused on the theories of SME credit guarantee system,inlcuding the asymmetric information theory, adverse selection and moral hazard theory, order theory of financing, the theory of risk transfer and risk diversification, and the theory of credit rating upgrading. Part three has focused on the development of China's SME credit guarantee system.Ans this part has been divised into four small sections.The first part has primarily traced the historic background for China's credit guarantee system for small and medium-sized enterprises,from the incubation period to the date.The second section has deliberately described the operation of the system which hasdeveloped rapidly in its scale and its quality,fully being identified as a new industry.Section three has analysed the operation modle of China's SME credit guarantee system which started at 1992,as well as stating the modles of the credit guarantee systems in Japan,United states,Germany and Taiwan. And now the system mode is being credited as one institution,two sub-branch and five parts.One institution means the institution for SME credit guarantee system which includes two sub-branchs ,commercial and mutual guarantee institutions.All the whole system is fully operated in all the government levels.Section four has explorated the problems existiing in the guarantee system and institutions.These problems are refering to the guarantee institutions which face the problems of capital shortage,scale inadequacy ,the lack of compensation mechanisms,the lack of professionals and the unspecific mechanism for risk diversification.And for the second aspect of the hinderance is about the SMEs which are characterised by the poor management and lack of good credit. The third one is beared on the financial insititutions which is of reluctance in loaning for the small and medium-sized enterprises.The fourth point of problems is the administrative intervention, regulatory uncertainty and unclear responsibilities taken by governments. And the last of all is the lack of specific regulations that supports the guarantee credit system for the small and medium-sized enterprises in China.The fourth part has explored the suggestions to improve the credit guarantee system for small and medium-sized in China. This part consists of five sections.The first section has analysed several suggestions to improve the credit guarantee system based on the analysis of financing instutions.These suggestions include broadening the financing channels,setting up a compensation mechanism , enriching the variety of security operations,defining a clear market position,improving the expertise of professionals and setting up the risk allocation mechanism.The second section has viewed the SMEs credit guarantee system differently from the perspective of SMEs.To improve the guarantee system,the SMEs should enhance their credit awareness and improve the management.And also the bank should take its part to build the credit guarantee system.Banks should cooperate and communicate fullly with guarantee institutions to help them build the credit system..And in this process,government should weaken thier administrative intervention, set up a special monitoring and supporting department to support the operating of the guarantee system.After all,government should regulate properly in legislation and the whole social credit system. |