Study On The Effect Of China’s Shadow Bank Financing On SMEs

Since the reform and opening up, the small and medium-sizes enterprises (SMEs) have become an important engine driving China’s economic growth, and have promoted rapid economic and social development of our country. At present, the number of China’s SMEs accounts for99%of the total national enterprises, GDP contribution rate is as high as70%, tax contribution rate is more than50%, while addressing the problem of employment of the80%labor force in town. However, in the global financial crisis, China’s inflation rate continues to rise in the form of financial support, the needs of SMEs has lagged behind, difficult to meet the needs of the development of SMEs, financing difficulties, the development financing cost higher problem has been plagued by SMEs. However, under the situation of global financial crisis and the continuing rise of China’s inflation rate, the financial support needed in the operating process of SMEs is obvious lag, and cannot satisfy the need of the development of SMEs, problems of financing difficulties and higher financing cost has plagued the development of SMEs.At the same time, China’s social financing structure and financing environment is constantly changing, a lot of social "idle" capital is "free" from the outside of the formal banking system, and forms many shadow banks in different forms. Shadow bank with its unique creativity, superiority and flexibility enters the social entity economy through varied channels and ways of financing platforms, to a certain extent meets the financial need of SMEs. The rapid development of shadow banks provides a new solution for the financing of SMEs.This paper firstly describes the concept of shadow banks, SMEs, financing of SMEs and the relevant basic theories. Secondly, introduces the development status of China’s shadow banks, analyzes the impact of China’s shadow banking financing for SMEs, and points out problems in the shadow banking that exists in the financing of SMEs. Once again, takes empirical analysis on the financing case of the shadow banks on Dalian SS Trading Company. Finally, puts forward the corresponding countermeasures and suggestions to perfect the shadow bank financing for SMEs.