Influence Of Interest Rate Liberalization On Financing Chinese SMEs

In the past few decades, the state-owned economy has been the backbone of China’s real economy, occupy an important position in the national economy. With the process of reform and opening, private capital began to germinate, greatly enriched the composition of China’s economic structure. SMEs has developed rapidly in recent years,and has become new forces which can influence the development of future economy.By the influence of China’s economic system, the finance markets, financial institutions,decision-making intentions and other factors,SMEs has been facing financing difficulties which has become a bottleneck restricting its development and growth.SMEs’financing problems has become a matter of urgent doubt. On the other hand,since the reform and opening of China’s economy has achieved remarkable development,based on the real economy of socialism with Chinese characteristics, the financial system also continue to improve and deepen.With the gradual deepening of market-oriented economic development, interest rates liberalization play a important role in financial reform and entered the final stage of its development.The chain reaction of interest rates liberalization to the real economy is bound to nurture our participants. Continuously push forward the process of interest rates liberalization also makes banks facing a inevitably changed environment. As a result, banks have to accelerate the pace of transformation of traditional philosophy and business model change to maintain its own development.The more deepening market-oriented operating takes twilight to solve SMEs financing. Problems.This dissertation analyzes the rate decision theory and corporate financing decisions,points out the underlying causes of SMEs financing difficulties. Secondly, the dissertation describes the history and development stage of China’s interest rate liberalization, points out the benefit and adverse effects it take to the SMEs financing. Points to know the fact that opportunities and challenges are both in the process of financial deepening. Finally, gives suggestions to SMEs in such aspects as to improve credit rating and financial management, widening financing channels on the background of interest rates liberalization.The innovation of this dissertation is that make the interest rate liberalization and SMEs financing problems combined, discusses and proposes solutions in the condition of interest rates liberalization, SMEs how to seize opportunities, meet unfavorable factors, so as to solve the financing problem.