Study On The Credit Guarantee System For Small And Medium Enterprise In China

With the development of China’s economy, small and medium enterprises are playing an increasingly important role in the national economy. SMEs are not only an important cornerstone of social stability,but also an important innovation strength and expand the export Nevertheless, SMEs make a significant contribution to economic development and social stability, while their own are faced with backward technology, low operating efficiency, financing difficulties, etc. Among them, the problem of financing has become a bottleneck restricting the development of SMEs in particular. Moreover, the problem of guarantee has become a bottleneck in the bottleneck. Therefore, the study of SME credit guarantee system in China, proposing proposals to make it perfect has great practical significance.The article first introduced the research literature on credit guarantee for SME and analyses credit guarantee system using the principles of economics. Next, the article presented the development status quo of SME credit guarantee system in China and described the experience of building credit guarantee system for SME in Japan and United States.After the analysis of the status quo of SME credit guarantee system in China and the reference of experiences of other countries, the article recognized that credit guarantee system for SME in China had many inadequacies in both the external and internal environment, especially the lack of risk prevention mechanism and the absence of regulation on guarantee agencies. The2major problems have plagued the development of credit guarantee industry in China. Therefore, the article proposed some proposals for the improvement of SME credit guarantee system and elaborated on how to establish an effective risk prevention mechanism and how to build a sound regulatory mechanism for guarantee agencies.