China Sme Credit Facility

It is generally considered that small enterprises have contributed a lot to the system transition and the success & uniqueness of economic development of China At present, financing difficulty is still the chief obstacle that restricts the development of small enterprises. Integrating the theory with our country's idiographic practice, we know, credit financing is the main financing pattern in small enterprises, the small enterprises' financing difficulty is mainly represented as the credit financing difficulty. The paper mainly studies the small enterprises' credit financing & risk management in the process of transition economy and gradual reform Firstly, the paper begins with the financing structure of small enterprises, compares the data home & abroad, and analyses the financing order and the institutional inducement of small enterprises. Then, the author interprets the small enterprises' credit financing difficulty from the aspect of finance system and emphasizes on the special colony-high-tech small enterprise, and also analyses its actuality, characteristic and reasons which lead to its financing difficulty. Based on the above, the article tries to implement the credit risk management so as to reduce the information asymmetry in the dealing between bank and enterprise, therefore, enhancing the credit-availability of small enterprises.