Chinese Financial Deepening Impact Analysis On Sme Financing In The Western Region

This paper first of China's western region of financing for SME status of the suppression of China's long-standing financial policy and financial constraints of SME in China's western region of the impact of financing from all angles to the analysis, China's long-standing financial and financial constraints inhibiting Policy is causing the financing of SME in the western region the status of one of the main reasons, and then the article also deepen the analysis of the financial policy direction and tried to identify these policy changes for the western region, the impact of SME financing, the last article for those affected from the Enterprises and policies of their respective made a number of recommendations.The article maintains that, although the current SME financing difficulty is not unique to the western region, but the western region of the financing difficulties of SME has its own unique characteristics and causes, to study its impact on the financial deepening must first make clear his current Characteristics. Therefore the article in the first chapter, on the western region of SME and the financial markets of the characteristics and development of an analysis of the first chapter on the concept of the western region and development of SME, a characteristic of these characteristics of the impact of its financing, and then Enterprise financing from the general theory of classification and financing to SME in the western region of the various financing the development of the situation and development prospects, because at this stage the western region to bank credit as the main financing channels, the final chapter of the SME bank financing at this stage More prominent in the asymmetric information and credit rationing, scarcity of qualified collateral issues such as a more in-depth study.The article is because of external policies and changes in the market for the western region, the financing of SME affected, so only the first chapter of the main analysis of their own is not enough, so the second chapter in the article is mainly in the west of the SME financing policy and External markets on the reasons for the first chapter to the western region their own analysis of the characteristics of the supplement, for financial reform in China before the financial restraint in the western region SME financing from the capital supply, the price of capital, cash flow impact on the three aspects: First of all Chinese people Banks and various regulatory authorities through administrative means strict control of all financial institutions and their operating funds, the direction, structure and spatial layout, resulting in the eastern and western financial institutions and financial markets uneven levels of development. So that the western region SME financing channels for a single, increased financing costs. The article once again through the establishment of mathematical models of the mode of funding the Government's loan-to-deposit interest rate of the price that is strictly controlled and western regions of the relationship between the financing gap that separated the financing needs of enterprises, development of equity capital financing to resolve this contradiction is the fundamental way out. Finally, the article analyzes China's capital controls to curb the flow of capital market development in the western region, is also a single channel for SME financing, difficulties in financing the status quo.Chapter III of the articles of China's financial reform in the direction of the four directions First, price liberalization. Xiao admitted that the interest rate, exchange rate controls. The second is the liberalization of business, various financial institutions can be a business, cross-business and fair competition. Third, market liberalization. That is, relax and corporate funds into the financial market restrictions. Fourth, the liberalization of capital flows. Policy changes in the market for all kinds of articles through the direction of exchange rate reform, reform of interest rates direction, the direction of capital market structure reform in three areas of its SME financing for the western region, the impact of the analysis.The article affirmed the conclusion of the first financial deepening of China's reform is an inevitable direction, and then from the west of SME and their own government and regulatory bodies both in the financial reform of the western region of the financing of SME are a number of strategies and policy recommendations. By expanding financing channels for enterprises in the direction, noting that China's financial reform should be a gradual process, in a long time, China should still to financial constraints as a means to help the western region deepen the reform of financial enterprises to seize the historical Opportunities, reduce the maximum degree of financial deepening reform of enterprises in the western region development of the adverse effects of the western region to gradually establish a highly efficient modern multi-level financial market system.