The Credit Enhancement System Of Private Debt Of Small And Medium-sized Enterprise In Our Country

The financing issues become the bottleneck poblems to influence the development of small medium enterprises (SME), which is one of the crucial part of Chinese socialist market economy. In recent years, the developing SME private debt system has opened up a new path to solve the difficulties of financing. However, the situation that the deficiencies of market reputation and credit rating, as well as the lack of uniform evaluation standards not only increases the difficulties to assess and control the market risk of SMEs, but also deepens the uncertainty in the SME private debt financing market. Here are two main aspects that reflect the reaction of capital market to this uncertainty: firstly, the intermediary, which mainly organized by security dealers, enhances the reviewing standards of SME private debt financing. Therefore, the threshold of SME financing is substantial increase. Secondly. investors keep wait-and-see attitudes to SME private debt financing due to the risk aversion in the capital market. The improvingand enduring SME private debt financing standards can release the risk uncertainty in the system level and thereby provide a normative protection for SME private debt financing.Except preface and end, this paper is divided into four parts:The first part, an overview of credit enhancement system of private debt of small andmedium-sized enterprise. Firstly introduces the concept of credit enhancement private debt ofour country small and medium-sized enterprises as well as credit enhancement system, themain way of credit enhancement is also presented, and then summarizes the cause ofestablishing credit enhancement of system Private debt in our country. Finally from severalaspects elaborated the significance of setting up credit enhancement system of private debt.The second part, to explore and draw lessons from foreign high-yield bond creditenhancement system. By studying European and American high-yield bonds and creditenhancement system, to sum up the experiences of the development of high-yield bondsabroad, Put forward for Chinese private small and medium-sized enterprise bond marketdevelopment experience.The third part, analyzes the present situation of credit enhancement system of privatedebt of small and medium-sized enterprise in our country. This section from the creditenhancement channel, the main body credit rating system, the first private bond Credit supervision system, legal environment of private bond credit enhancement four aspects of the present situation of private small and medium-sized enterprise bond credit system of ourcountry were expounded and elucidated.The fourth part, construct and perfect the credit enhancement system of private debt ofsmall and medium-sized enterprise in our country. The establishment and perfect of privatesmall and medium-sized enterprise bond credit system in our country needs small andmedium-sized enterprise itself and other market main body, government play a role. Generally,we need to innovate internal credit system, expanding external credit system, governmentplays a role in private bond credit.