Legal Regulation Of The Private Financing Of SMEs In China

As we all know, SMEs in China has already become an important force and an important part of national economic development.30years since the reform and opening up, the rapid pace of development of China’s SMEs have made an important contribution to the increase in national income, broaden employment channels, to promote economic growth, expanding domestic demand. However, the lack of funds, financing difficulties and other problems associated with the process of the development of SMEs in China, in particular, the problem of financing has seriously hampered the further development of China’s SMEs. Within the formal financial sector in the field of China’s financial restrictions due to many factors and links, is difficult to achieve, or to meet the financing needs of SMEs. Especially in the context of the waste heat of the current financial crisis has not been fully dispersed, business difficulties, further increase the pressure of the funds, a large number of small and medium enterprises have had from other financing channels to seek financial support, so that public financing channels for SMEs gradually become current financing. Folk financing in the policy edge, China has been taking various measures to control or regulation, but other measures had little effect next only to seek legal means, however, China’s current legal norms of the private financing of SMEs is not perfect, it will seriously affect the security and stability of our financial field. Therefore, through legal means to regulate behavior of private financing of SMEs to effectively protect the financial security of our investment and financing have important practical significance. As a starting point for thinking, this article will be Wu Ying qualities of Group financing fraud case highlights the private financing of SMEs plight discuss the current private financing of SMEs lack of the legal system as the starting point. With the current reality of China’s socio-economic development of SMEs and to learn from foreign practices and experiences, and strive to perfect the mechanism of the legal norms of the private financing of SMEs in China, so that from a legal perspective to better regulate the financing activities of SMEs in China, civil purposes.This paper is divided into five parts:The first chapter is the introduction. Mainly described the research background and significance, at the same time introduced the overall structure and ideas of the paper.The second chapter in Wu Ying the true qualities Group fund-raising fraud, for example, reveal the difficulties of small and medium-sized enterprises in financing, which have a more clear positioning of the object of this paper. After that, why small and medium-sized enterprises to choose private financing its main financing brief further drawn to chose the private financing of SMEs in China is mainly because of two reasons, one from the formal financial sector, small and medium enterprises financing difficulties of SMEs due to their own structural characteristics, more suitable to seek their own development by way of private financing.The main content of the third chapter is to explore the need for legal regulation of private financing. For private financing of SMEs are mainly related to the rights and obligations of the two-bedroom main one as the capital demand side of SME, the supply side of the other funds, to the interests of the two parties as well as to ensure the stability of China’s financial industry, and much-needed legal way regulate the behavior of private financing, this is not only the problem currently facing our country, but also in other countries of the world is also facing problems. Because our current address this issue, but also did not form a perfect legal system, private financing has been run outside the system.The fourth chapter focuses on the valuable experience of the developed countries, the legal regulation of the private financing of SMEs. Due to different countries in different theoretical insights into the financing of small and medium-sized enterprises, the financing model is divided into a government-led and market-oriented. The two financing modes, respectively, the relevant laws and the terms of its provisions, with the continuous development of market economy, in both financing model derived from a combination of both the advantages of hybrid financing model. The study is the fifth chapter of the specific measures the legal regulation of private financing of SMEs in China. Legal regulation process should be the pursuit of efficiency and safety of the combination; Second is through the legislative process, the formation of the corresponding legal systems, supervision of financial business put forward clearly defined; Finally, the existing legal regulatory system, strict implementation of relevant laws and regulations, market, legal, and financial regulatory together to achieve steady regulation.