Study Of Trust Financing For Smes

Small- and medium-sized enterprises (SMEs) play an important and indispensable role in China's economy, yet they have experienced lots of difficulties in financing. The problems lie in their own as well as the outside environment. It's quite urgent to satisfy their needs in order to prompt the economy to develop more healthily.The trust industry originated in Britain, evolved with the market economy in the West, and became an indispensable part of the financial market, lever of economic development, and one of the pillars of the financial sector. In China, since the founding of the first trust company, i.e. China International Trust & Investment Company, the trust industry encountered five large-scale revamps in 1982, 1985, 1988, 1933 and 1999. With the enacting of Trust Law of P.R.C., Regulations of Trust & Investment Companies, and Interim Regulations of Funds Trust for Trust & Investment Companies, China's trust industry faces unprecedented opportunities and enters an age of regulated development and innovation.Compared with other means of financing such as stocks, bonds or bank lending, trust financing excels in procedure and speed, which are the main obstacles facing SMEs. The thesis will emancipate the feasibility of trust financing for SMEs by comparison and present a workable solution of trust financing, i.e. issuing ordinary trust products, angel investment products, and trust products secured against yield rights in future, together with bundled trust products issued by a SME union.