Investigation On The Problem Of Enterprise Financing In Shanghai

Economic activities, every rational people are avoiding disadvantages, especially in the financial markets. When the bank to avoid the risk of bad debts due to companies not willing to provide financing system supply, the business community and will make the appropriate system of design, production and management needed to meet financing needs. This is the trade association in modern operation was especially evident.Trade association is a kind of contract organization, which has important coordination function in the market. During the period of the Republic of China, political, economic and military environment is complicated and changeable, enterprises should be based not only on the complicated domestic environment, but also to compete with the foreign traders which was difficult. Financing difficulty is a prominent problem. Trade association as representative enterprises involved in the member interest in corporate finance and debt issues for many in the modern view which still has reference significance to substantive exploration, including setting up industry bank, to provide credit guarantee loans for the members, tangible guarantee and were responsible for the loan of audit supervision, distribution, and even help other members to solve debt problems, etc.The original intention of trade association’s establishing industry bank’s was to provide loans to members, however this would be failure in the unstable and harsh environment. Because on the one hand, the warlords forced Banks to subscribe for bonds, and even direct borrowing to raise rates, the bank overwhelmed and closed; on the other hand, speculation was popular with banks, trade associations formed banks whose capital were weak got too involved.During the period of the Republic of China the legal system was not perfect, the market mechanism was not sufficient, the trade association was an important supplement to the market mechanism that it makes the development of the market mechanism to run in some efficient way:the trade association loans credit guarantee or tangible security, allows members of the loan become more successful for the industry overall membership. The associations also negotiated with the government, the bank about loan interest rate, loan amount, loan term, and strive to maximize the business interests of the members. In addition, in the corporate debt problems of chamber the trade associations negotiated with the other trade associations to make representations, and strive to make the interests of the whole industry members to maximize.During the period of the Republic of China, Shanghai is the economic center of China, the local enterprise Quantity is bigger, so as to trade association. I selected a number of Shanghai industry association including silk business, construction industry, cotton industry, coal industry, glasses business, the output of tea industry, machinery industry, chemical industry, Textile industry, the mechanism of coal industry, printing industry, drug business association such as the object of study, the trade association in corporate finance and debt problems on the role of research.When the existing system can not provide the supply system for market participants, the market participants themselves will fill this vacuum through system innovation. Association for enterprises to solve the problem of financing three attempts is such a system innovation, regardless of how the final effect, this provides a way for solving ideas and newcomers.