China's Sme Credit Evaluation Model And Rating System Is Discussed

Credit is not only the foundation stone for financial system, but also for the market economy as a whole. To certain extend, modern economy could also be interpreted as credit economy, the enterprise credit is a major part of credit system in China. Due to the fact that medium and small enterprises make up to 99% of all Chinese enterprises, the credit for medium and small enterprises can be regarded as the key element within the enterprises credit system as a whole. However, the actuality of medium and small enterprises in China is worrying;the lack of credit has not only negatively affected the establishment and standardisation of market economy but also jeopardised survival and long-term development of their own. One of the major causes for the lack of credit is the lack of effective credit-rating system.Credit-rating mode is a complicated systematical issue involving legal policy, economic system, administrative system, rating standards, rating methods, etc. In this dissertation, the rating methodologies for medium and small enterprises will be emphasises and discussed in details.Credit rating methods could be divided into two major categories, nature-determination analysis and quantificational analysis, the latter method would be main point of this dissertation. According to major-component and differentiate statistics researching of financial data for 98 public-listed companies (including 30 medium and small enterprises) as well as raising a brand new concept of 'Quotient of desire for paying the loan', a viable credit-rating differentiation model could be obtained through illation of credit-rating models for large listed companies. Applying this model into medium and small enterprises and through discussion of appropriate credit-rating model comply with Chinese economic system, we can finally acquire the outline of a feasible model for medium and small enterprises.Last but not least, the selection of feasible credit-rating modes for medium and small enterprises in accordance with the situation of China is also discussed in the light of substantiating the structure of this dissertation.