A Legal Research On Folk Financing Of Chinese Small And Medium-Sized Enterprises

This thesis focuses on the legal construction of folk financing of small andmedium-sized enterprises. Considering the status quo of folk financing for Chinesesmall and medium-sized enterprises, this thesis tries to explain and explore thefailures in financing through economic and legal philosophy. Through analyzing thelegislative intention and background of folk financing for Chinese small andmedium-sized enterprises, this thesis will put forward that, under the currentextremely monopoly of financial system, the public financial institutions’ preferenceupon major enterprises and the effective laws’ negativeness against small andmedium-sized enterprises which result in discrimination thereto in the financingmarket, furthermore, explore the source of the unequal treatment. This thesis willindicate that the current law shall be amended and perfected yet the folk financingmarket’s positives is significant for the small and medium-sized enterprises, and themunicipal regulation shall be loosen to expand the small and medium-sized financingmarket so that the distribution efficiency of the folk funds can be maximized.This thesis consists of two parts as preamble and content, in which the preamblecontains the purposes, status quo and methodology of this thesis and the contentincludes the following:Chapter1is a general introduction of the captioned mater. Firstly, this chapterdefines the small and medium-sized enterprises and the properties thereof and setsforth the role of the small and medium-sized enterprises in the economic development in China. Thereafter, this chapter introduces the status quo of folk financing of smalland medium-sized enterprises in China and analyzes the reasons of folk financing.Chapter2analyzes the limitations of small and medium-sized enterprises in theeconomic perspective, then, this Chapter exposes phenomenon of the public financialinstitutions’ preference upon major enterprises which is the fundamental reasons forthe small and medium-sized enterprises’ failure to obtain financing through regularfinancing manners. Meanwhile, this chapter clarifies that although there are a lot ofprivate capital in China, the financing channels of small and medium-sized enterprisesare otherwise going smoothly, yet there is high cost and potential risk of illegal fundcollection.Chapter3introduces the legislative experiences and significance of the UnitedStates, Japan and Taiwan regarding folk financing of small and medium-sizedenterprises. Through the introduction of the above-mentioned, the government shallpay due attention to the folk funds in supporting the financing of Small andMedium-Sized Enterprises and shall promote the coexistence of modern finance andprivate finance, and shall strengthen the supervision of the private finance.Chapter4analyzes and specifies the legislative status of Chinese folk financingfor small and medium-sized enterprises. This chapter points out that the current legalframework has a tendency to deny the folk financing in China which is unfavorablefor the development of folk financing of small and medium-sized enterprises. Basedon this, this thesis proposes amendment advices in civil and commercial,administrative and criminal perspective respectively.