| The formation and development of Small and medium enterprises (SME) financial support system was due to the combination of China's SME group development, the growth of modern financial system and the evolution of the national SME policy. The development of SME financial support system was the "SME financing difficulties" in direct response, but once after this system was formed and developed, other external features such as improving the corporate governance structure and the level of normal operation of the company would be derived. The purpose of this paper was, from the banking system and capital market system which is accounted for the largest share and most widely used in the SME financial support system, to further discuss how to develop the financial system through exploring how it supports the development of SME. There were 6 chapters in this paper:Chapter One:First, definitions of SME at home and abroad were compared for the foundation of further research and study. Second, the important role of SME was described. No matter in developed or developing countries, SMEs both played a very important role in supporting national economic growth and tackling employment problems. The national strategic value of SME was especially unprecedented recognized after the international financial crisis. Finally, from the comparative analysis of the actual situation of SMEs'financing difficulties around the world, the importance and urgency of establishment and improvement of SME financial support system was suggested regarding the serious SME financing difficulties in China.Chapter Two:First, the relationship of the foundation of SME financial support system and national policy was analyzed. In any country, the growth and development of SME financial support system was not a pure market spontaneous process, but rather a government-led or government actively involved institutional change process. Comparing the four major stages of China's SME policy's evolution, although SME policy swung, the overall trend was to increase emphasis on SMEs. Second, the establishment of "life-cycle finance theory" of diversified SMEs financial support system was described. And then the SME financial support system of the United States, Japan and South Korea were listed, for the international comparison of how to build China's SME financial support system. For the developing process of China's SME financial support system, after more than 10 years, a relatively sophisticated SME financial support system had been initially formed.Chapter Three:This chapter was focused on banking system. In accordance with the nature of financial contracts, SME financial support system includes two major subsystems, which is debt financing market and the equity financing market. The former includes the banking system, the credit guarantee system for the service of the banking system, SME credit system. The latter includes multi-level stock market system as well as venture capital and other private equity investment market. After years of development, encouragement of national policies and changes of bank of philosophy, whether it is diversified banking institutions or the share of SME loans increased year by year, the ability of banking system to serve the SMEs has been dramatically increased. Next step, it is needed to expedite the establishment of small banking institutions to promote the building and development of financial security system and financial leasing subsystem.Chapter Four:This chapter focused on the comparison of the basic situation of the capital market in the United States, Britain, Germany, Japan, South Korea, Hong Kong and Taiwan regions and china mainland, which unveiled the developing situation of China's capital market more clearly.Chapter Five:This chapter focused on the building and development of China's SME capital market. In October 2009, the first 28 GEM enterprises listed in the Shenzhen Stock Exchange, which marked a new era of the building of China's multi-level capital market. At present, the framework of multi-level capital market mainly includes Shanghai, Shenzhen main-board market, small and medium enterprises board, the Growth Enterprise Market (GEM) and Over-the-Counter (OTC), among which small and medium enterprises board, GEM and the OTC are mainly in service of the SME market. In this chapter, first through the empirical analysis of the GEM listed companies, it could be concluded that the quality was generally good, the scale of the GEM listed companies was expanded, the governance of the GEM listed companies was improved and the financial structure of the GEM listed companies was more stable. A group of outstanding enterprises such as Suning Corporation, Han's Laser was emerged, which strongly accelerated the China's economic construction. Meanwhile, Small and medium enterprises board played a very important role in building a multi-level capital market and supporting national self-innovation strategy. The five years practical experience of small and medium enterprises board provided useful lessons for the introduction and development of the GEM. Second, we had high expectations for the infancy GEM. Then some perspectives were proposed by analyzing the successful experience of the NASDAQ and advantages and opportunities of China's GEM regarding the GEM how to develop into the exit channel for SMEs as a start-up company and venture capital firms and the ability to bring long-lasting high returns for investors.The conclusion of this paper was a brief summary of the full content. |
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