Strategies For The Financing Of Private Enterprises In China

Since open-reformed, the Privately owned enterprises of China went through more than 20 years' development, have been the key force which dominating China's mainly economy competitive advantages. As we all know, the Privately owned enterprises are the power's fountain of China development of economy. It's evidently that the rapid development of the Privately owned enterprises need the support of much financial capital.However, during the development of the Privately owned enterprises, lacking of financial capital been the most important question , it's severe block the healthy development of Privately owned enterprises. Furthermore, whth the restrict of Native Capital Market to Privately owned enterprises, it makes financing channel of Privately owned enterprises not favoring in native. In this paper it deemed that the major approaches of Privately owned enterprises in China are as following: abroad financing and venture investment, and abroad market is the major tactic of abroad financing. Therefore, analyze the abroad financing and it's financing channel or venture capital has real signification for developing China's privately enterprise.This article took full advantage of how to open up the privately enterprise's financing channel. It mainly discussed about direct financing and indirect financing. At the same time, we also refer to the financing stratagem based on the enterprises' life circle. In accordance to five different stages of privately enterprises' development, and their different requirement of capital, here provided available financing method .Meanwhile, Venture Investment, Abroad Financing Hong Kong Carve Board are stress analyze aims. We used a real case to discussed available and exercise steps. In the face of china enter into WTO, china's privately enterprises would competitive with international companies. We can divided the development of the privately owned enterprises into some stages, each of which need the support of other financial organization. These financial organizations can join the course of the development under the lead of government capital, therefore, according to the present situation ofour country, it's very important to make various financial organizations to play their parts most efficiently. It's the reason why this article makes it as the core of the study.