Analysis The Case Of Credit Enhancement Assemble Bond Of Small And Micro Enterprises Of Guizhou Pan County Government Financing Platform

Small and micro enterprises as the main body of market competition, a wide range of large, distributed in various fields of national economy, are an important force in promoting economic development, activing market economy and keeping social stability. They also play an extremely important role in the economic and social development. But subject to small and micro enterprises’ imperfect financial system, its limited strength, light-asset business and other internal reasons, as well as lag development of small and micro financial services institutions, un-smooth channels in financing market and other external reasons, small and micro enterprises financing difficult problems are still not solved. Therefore, we need to innovate financing models to ease the financing difficulties of small and micro enterprises. Credit enhancement assemble bond of small and micro enterprises becomes a new financial instrument in raising capital.This article uses the methods of summary and comparison analysis, combined with the author’s internship experience in fixed income department of Securities. Through Analysis the Case of Credit Enhancement Assemble Bond of Small and Micro Enterprises of Guizhou Pan County Government Financing Platform, this paper points out the problems of the bond and puts forward some corresponding suggestions.This paper argues the motivation of issuing, issue price, the scale, financing cost, credit promotion procedures and risk of government financing platform in the process of issuing credit enhancement assemble bond of small and micro enterprises. This paper points out that the design of the issue size is not reasonable. The credit promotion procedures is imperfect. The financing cost is too high. The government financing platform has some risk in operations management and business revenue.This paper provides the scale, credit promotion procedures, financing cost and government financing platform company with targeted measures and recommendations:In order to reduce the information asymmetry on the financing needs between main issuer and financing body, the government should build information platform for small and micro enterprises; reducing the nominal interest rate by optimizing credit promotion procedures; building enterprise credit management system to increase penalty cost and decrease default risk; decreasing risk of government financing platform by establishing early warning mechanism and improving the governance structure.