China's Sme Credit Financing Difficulties And Countermeasures Analysis

Accompanied by the development and growing improvement of the market economy in China, the medium and small sized enterprises have got a great growth and have become the main power to push the stable and healthy development of the national economy. They have been playing a more and more fundamental role in optimizing the economic structure, improving market efficiency, expanding social employment, and promoting technological innovation. However, in a long period, the difficulty in raising money is hunting with the development of the medium and small enterprises and makes some influence to the stable and healthy development of the national economy.Credit facility is a major method for the medium-and-small business enterprises to raise money. The information asymmetry on the credit market makes merchant banks allocate the credit rationing to these enterprises, which is the fundamental factor of the difficulty in raising money. The paper adopts both theoretical and empirical methods to analyze the reality factors of the difficulty from three different aspects which are the macro environment, the medium-and-small business enterprises, and the merchant banks. All of these factors hasten the information asymmetry in the credit market and cause the credit rationing.In this paper, some suggestions are put forwards in this paper with the aim to solve the difficult crediting problem. The first is the innovation of the merchant bank as the lender. The second is the sound environment of the credit for the medium-and-small sized enterprises. As for the bank, it should promote the innovation of the business model and the financial product, change the traditional mortgage method, and alleviate the information asymmetry problem. As for the credit environment, it is of vital importance to enhance the development of law and regulation, enrich the mortgage system of the medium-and-small sized enterprises, fasten the progress of the medium-and-small enterprises' financial institutions and loosen the restrictions of the private lending.