Chattel Secured Financing Of Medium-Sized And Small Enterprises In China

In recent years, medium-sized and small enterprises is flourishring. At present, the number of medium-sized and small enterprises in China accounted for more than 80% of the total enterprises, 40% of industrial output value, supplying 80% of jobs to solve unemployment problem, createing 90% of new jobs, medium-sized and small enterprises have become an important growth point of economic development. Foreseeable that in the 21st century with an increasingly competitive economy, medium-sized and small enterprises will play a greater role in economic development, its status will become more prominent. However, with approximately 80% of the GDP contribution, the medium-sized and small enterprises has been suffered considerable constraints and limitationst in recent years, the speed of development slowed down. The main reason is the serious shortage of funds needed, especially financing difficulties for medium-sized and small enterprises. Although the financing channels for medium-sized and small enterprises are gradually widened, it still difficult to meet the developmental needs of their real capital. Just 20% of financial support was received from credit resources, which is very limited in development. According to the World Bank statistics, 29% of liquidity in large-scale enterprise received from bank loans, while only 12% of working capital in small and medium enterprises from bank loans, only 2.3% of the liquidity in the small businesses whose employees less than 20 from bank loans, 80% of the medium-sized and small enterprises lack of funds, 30% of the enterprise funds are very tight.Chattel secured financing is a form of financing guaranteed by chattel. It is a fundamental way to solve the financing problem of medium-sized and small enterprises. Additionally, Chattel secured financing will have an important role in promoting various economic and social agents.This dissertation is divided into five chapters. Firstly, it starts with basic concepts involved and the theory of chattel secured financing, introduces the evolution of personal property security systems, personal property security regime functions and personal property security legislation status in China. Chapter 3, using econometric analysis, it shows perfect chattel secured financing system will promote economic development and have an affect on economic entities including medium-sized and small enterprises. Chapter 4, investigated of the status of accounts receivable, inventory financing about 102 medium-sized and small enterprises from Shenzhen and Shanghai securities exchange and compared to the successful experience of developed countries, the current status of chattel secured financing in China is revealed to to analyze the problems. Chapter 5, based on the revious research, it proposes the appropriate policy measures and recommendations on how to promote chattel secured financing business of medium-sized and small enterprises.