Researching On The Risks Of International Trade Financing In The Turbulent International Financial Environment For Chinese SMEs

In recent years, with the speeding up on economic and financial globalization, trade between countries develops quickly, and foreign trade in our country keeps increasing rapidly and sustainably since its reform and opening up. Especially after China entering the WTO successfully, with reduction of the tariff and non-tariff barriers, and gradually opening up of domestic market, our foreign trade amount reaches a new stage. While a global financial crisis caused by American sub-prime mortgage loan in 2007, it forced the financial environment becoming turbulent. The global economy is damaged seriously. The growth-rate of our export descends obviously and the situation of foreign trade is severe. Small and medium sized foreign trade enterprises, which act as the major part of our market, are facing challenges brought by the crisis. Not only are these enterprises facing the worse managing condition and the more serious financing problems, but also various daily-increasing risks in the crisis. All these hold back the development of our country's import and export trade.International trade financing business will not only solve the present capital barrier, but also help the enterprises avoid various underlying risks under the crisis. It's no wonder that the financing business, which aims to push the development of export, becomes the hot topic and causes those enterprises a lot of concern. Because of the crisis, however, the liquidity of global financial market is seriously inadequate, the gap of international trade financing is enlarging, and the risk of international trade is increasing. All these result that it is more and more difficult to practice international trade financing. What's more, it restricts the recover of the global economy seriously. Therefore, for lessening the pressure of foreign trade company, pushing the development of foreign trade financing, increasing the export and speeding up the recovery of global economy, it has important practical significance that reseaching on the problems of international trade financing under the global crisis from the SMEs'side.This paper, firstly, puts forward the trade financing demand by analyzing the change of the financing environment of the SMEs in such a turbulent environment of international finance. Secondly, it makes analysis on the change in the main costs and risks of trade financing, and mainly elaborates the risks what the enterprises are running. Thirdly, taking Guangdong province as an example, it describes the problems and causes of international trade financing in there by investigating and comparable analysising on the present situation of foreign trade financing business. In the end, based on the above studies and combined with objective conditions of the main financing parties which include the government's policy institutions, bank and enterprises etc., it puts forward the count measures and advice to solve the international trade-financing problems under the present crisis.