| The purpose of this study is to solve the core constraints in financing of SMEs(small and medium-sized enterprises) that impede their growth and even undermine their liquidity and financial position. In order to solve the problems and constraints are faced by “innovative, entrepreneurial, growth†SMEs in China with regard to access to financing, effectively promote the industrial restructuring of one country and shift the economic growth mode, increase the proportion of direct financing and develop the decisive role of market in terms of resources allocation. The regional OTC market which approved by people’s government at provincial level emerged.In 2014,(several opinions on further promote the healthy development of the capital markets by the state council, 2014) explicitly suggested that “on the basis of the rectification, integrate the regional equity markets into multi-level capital market system." This provides an excellent opportunity for the development of regional OTC market.This article focuses on the construction of regional OTC market, tracking and analyzing its development as well as pointing out some weaknesses. SMEs are unable to enjoy financial leverage because of various financial constraints, lack of support by government institutions and policy makers, and internal weaknesses and flaws of SMEs in managing their business. Furthermore, this article puts forward the corresponding countermeasures, including enhance the laws and regulations, strengthen the top-level design and form a unified regulatory system. Moreover, by exerting the market mechanism and introducing the concept of market competition, the purpose of accelerating rapid, healthy and sustainable development of small-medium size companies could be achieved. |
