| Since 2009, the year when the world-wide financial crisis outbroke, the world economy has been trapped in trouble. China has been seriously challenged, too. SME, which plays an important role in China's economic development has also been seriously affected. This phenomenon makes us pay more attention to the development of SME. China's reform and opening up started 30 years ago, and during this period, China's SME and private enterprise have developed rapidly and achieved important goals, and this enables them to become an important effort of economic and social development.Although the development of SME in China contributed a lot to the national economy, the development of SME in China faces some old problems that can not be ignored and are urgent to be solved, such as financial difficulties, inadequate social service system, lack of information, low levels of enterprise management and market competition, low overall quality and so on. Besides those problems, it is also under the pressure of constantly arising new problems.Objective understanding of the situation of SME's means a lot to the sustained and sound development of national economy. China has a huge pressure in employment, the situation is very tense.Chinese SME provide about 75% of employment opportunities. It seems that SME plays a crucial role in easing employment pressure and solving employment problem. Meanwhile, the fact that small and medium enterprise plays a significant role in economic development has been widely confirmed, especially in developing countries. In China, SME account for 99% of the total number of Chinese enterprises, the output value and profit tax account for 60% and 40%, their economic and social stability and sustained and rapid development has made outstanding contributions. At present, the total number of small and medium enterprises households accounted for 98.5% and the number of employees account for 70%,50% of the total assets. The value of final goods and services they created account for 50% of GDP,75% of urban job opportunities. However, financial difficulties severely restricting the further development of SME. According to an IFC survey of small and medium enterprises, the largest amount of development funds comes from internals while the loan and equity financing account for less than 20%. 70% of domestic lending is distributed to medium and large enterprises, while SME received relatively little proportion of funds. Thus, funding problem is the "bottleneck" restricting the development of SME. For these reasons, various countries have given a high degree of importance upon the development of SME, however, owing to the special nature of SME, it has not formed a unified framework yet. Looking ahead, the equity trading of SME is still the tough problem, especially in developing countries where the development of SME mainly rely on indirect financing. Since the reform and opening up in China, small and medium enterprises is the most active subject of our national economy, and playing an more and more important role in the national economy. However, small and medium enterprises's equity trading and its contribution to the national economy is extremely disproportionate- this significant structural paradox in financial operation restricted the rapid and healthy development of SME. There are two main causes for the phenomenon: first, its own "physical" defect; Second, the inadequate supply of our financial system, the inefficient operation and the imperfections of the capital market. And the latter one is an extremely important factor. It can be concluded that it is very urgent and necessary to promote the development of SME and innovate the financial system.On the whole, China is still a developing country, and SME is generally small, weak and risky in equity trading. Thinking about the risk-controlling, banks and other financial institutions unwilling to distribute money to SME, so the development of enterprises can not get enough support. At the background of global financial crisis, China should vigorously develop small and medium enterprises. City Commercial banks must face and take practical measures to solve the problem- how to develop, how to maintain the liquidity and adequacy of funds.Only in this way we could optimize the economic structure, promote economic development, and develop urban and rural economy. It also has an important influence in increasing financial revenue and employment opportunities and improving people's lives. Now we should focus on solving the financing problem of SME and improve financial innovation in organization and product. Based on this fact, the paper seeks to analyze China's small and medium enterprises through credit financing, and aims to introduce the development of city commercial banks and SME credit financing situation. It also provide successful models in some developed countries, and the analysis of City Commercial Bank's relationship with SME and its role in SME equity trading, so as to provide reference and recommendations in solving the problem of equity trading in small and medium enterprises.Should further improve the China City Commercial Bank for SME financing system for the establishment of a system, from the perfection of the SME guarantee system, strengthening the banks and guarantee companies, the establishment of SME financing in line with our credit system, these three areas to improve the institutional system of credit facilities for SMEs.City commercial banks by strengthening self-construction, better credit financing for SMEs. Can do it from three aspects:first, to actively explore financing channels and raise the capital adequacy ratio; second to improve the organization, optimize the mode of operation; third is to reduce non-performing assets and improve core competitiveness.City commercial banks should actively and effectively to financial innovation, financial services for SMEs from the new measures, to gradually establish a more optimized system of credit management, credit financing products to constant innovation, to suit different types of SMEs. |
PDF Full Text Request