As an innovative instrument to solve the financing problem of China’s SMEs, the private bonds for SMEs join China’s corporate bond market in 2012. In spite of growing research concerning the different aspects of private bonds for SMEs, a comprehensive analysis of the parties, issuing mechanism, investor protection, risk factors, etc. in the Chinese environment is still unexplored. This paper summarizes the main characteristics of private bonds for SMEs, and based on this, it tries to compare the SMEs’ bonds with other high-yield bonds in developed countries getting some insightful conclusions. The research points out the critical points about the bonds and proposes some directions for further research in investor protection, risk evaluation, etc. |