Finance Right Of Chinese Small And Medium Enterprises And Its Realization

The difficulty of financing that Small and Medium-sized enterprises (SME) faced inChina has not been solved in the long term. Along with the increasingly important role thatSME played in national economy, the solution of this problem related to the betterdevelopment of SME, which could playing a more significant role in the future. Therefore,this thesis attempt to determine SME’s finance right in China by analyzing the rationality,limit that SME getting financing and the rationality of legislation’s establishment. It followedby author’s different ways of thinking based on the existing related legal system that problemof SME’s financing can be solved in the framework of the law from perspective of right.SME’s finance right in China is a legal right belongs to Chinese SME, which meansChinese SME could obtain necessary fund by certain financing behaviors. Specifically, SME’sfinance right in China is an option right of Chinese SME’s financing behaviors; Moreover, theobligor of is right not a specific person or organization; The subject of SME’s finance rightshould exercise their right independently and they have the right to remove injurious made myothers even by requesting the remedy of national public power when necessary.By analyzing social history and current situation, Chinese government has relativelylarger executive power, which is exercised on the basis of policies instead of laws in mostcases. As a result, policies’ substantial effect relatively higher than laws.Without legal protection, SME’s finance right in China, which relatively stand on weakposition, is hard to be realized.Therefore, in order to realize SME’s finance right in China in the framework of the law,firstly rule of law in China should be guaranteed. Restriction on the government power byinstitutional construction urge government to respect laws and acting by laws. Secondly, thesystem should be well-designed to ensure the better exercise of SME’s finance right, andguarantee the legal remedy when it has been violated.