Quanzhou Private Corporate Finance Issues

The private economy is to grow up gradually after the reform and openingup new things，but after30years of development，this new thing coveringalmost all walks of life of the entire economy，it has become an important partof China’s socialist market economy. China’s private economy in all aspects ofthe national economy has played a huge role in promoting and demonstrationeffect. Private enterprises to expand the scale of the gradual development ofthe process will still encounter a problem，including the problem of theshortage of funds is more serious. Especially small and medium-sized privateenterprises in their infancy，they in the process of growing up is not acomplete credit history also insufficient assets available for mortgage thebiggest bottleneck restricting the development of them is financingdifficulties， because they have to face information asymmetry problem.Quanzhou，the number of firms in the number of private enterprises reachedmore than99%of the total number of enterprises，and the growth rate is alsovery fast. Quanzhou private enterprises in terms of the number of output value，taxes，provide jobs plays a decisive role in Quanzhou economic developmentand social stability. Fujian Province， a major private enterprises areconcentrated in Quanzhou，a large part of private lending is concentrated inQuanzhou， has important practical significance to study the problem offinancing of private enterprises in Quanzhou.This article first introduced the background and necessity of the Financingof Private Enterprises in Quanzhou research，research status introduced thecurrent situation of the domestic and foreign scholars on the financingproblems of small and medium-sized enterprises and private enterprises，forthe systematic exposition of related research，for existing research is brieflydescribed. The second section describes the basic concepts of privateenterprises with financing， described the financing channels and ways. And abrief overview of the basic theory of financing for private enterprise，mainlyMM theory，financing pecking order theory，signaling theory，agency costs theory and corporate life cycle theory. Then summarized the status of thedevelopment of private enterprise in Quanzhou，found that private enterpriseis an important part of the development of the national economy in Quanzhou，a major force in promoting the Quanzhou local economic development，butalso the operation and management of private enterprises has becomeincreasingly standardized. But the financing problem will still exist，manifested in the strict restrictions on direct financing by the nationalfinances， indirect financing suffered credit crisis， lack of self-financingcapacity of private enterprises，security problems and credit risk managementsystem deficiencies. Then analyze the causes of difficulties in financingprivate enterprises in Quanzhou，from three angles are reasons between banksand enterprises，the enterprise’s own reason and institutional reasons. Reasonsinclude asymmetric information， the willingness to lend， the collateralrequirement is not met，the development of small and medium-sized financialinstitutions is not standardized between banks and enterprises. Enterprisesthemselves，including financial transparency，lacks of credit，capital andcollateral shortage. Institutional reasons be treated differently in the policy ofstate-owned enterprises and private enterprises，private enterprises are notproviding effective service. Finally，he recommendations，ranging from thechoice of the financing of private enterprises，and that the different types ofprivate enterprises should choose a different way of financing. The proposedfinancing model innovation，including BOT mode and TOT mode，insurance，financing and asset-backed financing. Presented from the perspective of theprivate enterprises to establish a modern enterprise system，strengthen itsmanagement，establish credit awareness，play to the advantages of industrialclusters financing. The views from the government level and improveenterprise credit guarantee system， strengthen the credit rating system，improve risk control mechanism of enterprise credit guarantee system，theexternal environment of the credit guarantee institutions and guaranteeagencies，and the emphasis on the role of private capital. The views fromfinancial institutions to improve the financial service system，to develop indirect financing channels，development of direct financing channels and tostrengthen and improve the social intermediary services.