| Over the three decades of reform and opening up, Zhongshan City has attached huge importance to the development of Small and Medium-sized Enterprises(SMEs) by actively playing the role as a watchman in economic development, formulating a large number of targeted policies and measures,as well as optimizing the growth environment of SMEs. As a result, batch after batch of SMEs are constantly growing and thriving, thus stimulating and promoting the economic development of the whole city. At present, SMEs are making increasingly prominent contribution to the city's economic growth. However, with an increasing number of factors restricting the development of SMEs, highlighted by the financing difficulty,SMEs' development is not easy at all. Therefore,it is particularly significant and pressing for the government to promote the improvement of SMEs'financing situation by analyzing the status quo of SMEs' financing difficulty and playing the government's unique role in business financing process.Taking Zhongshan for example, the paper focused on the role that local governments played in SME (small and medium-sized enterprises) financing. With the adoption of literature researches, comparative researches, questionnaires and other methods, analysis was made of the current situations, existing problems and causes for Zhongshan government's involvement in SME financing. By consulting foreign governmental supports to SME financing in developed countries, the paper proposed countermeasures to strengthen the role that governments played in SME financing under the background of the "New Normal" economic development.The paper is composed of 6 sections. Serving as introductions, Section I introduces the background and significance of the paper, current situations in theoretical researches in foreign countries, research ideas, methods and framework. Section II introduces the core concept, theoretical basis and the Correlation analysis. Section III analyzes existing role that Zhongshan government is playing in SME financing. Section IV points out what to improve in SME financing for Zhongshan government and analyzes the underlying causes. Section V introduces advanced experience as to governmental supports to SME financing in the United States, Germany, Japan and other developed countries. Section VI proposes suggestions for local governments to strengthen their roles in SME financing under the background of the "New Normal" economic development. According to investigations,Zhongshan government has to make further improvement in SME financing, shown as follows: Firstly, enterprises are seeing falling financing costs on the whole; however, the recution in costs is far smaller than that in benchmark lending rates. Secondly,microbusinesses are seeing rising financing costs despite the slight reduction among large,medium and small-sized enterprises. Thirdly, with the reduction in lending rates and service charges, other financing costs are rising. There are several major factors hindering the reducation in financing costs for enterprises: the difficulty in cost reduction of bank capitals;the rising bank loan risk premium; the increasing intermediary and administrative service charges which have raised the financing costs of enterprises; the disconnected services in capital reloan also increases financing costs. Considering such problems and causes, the paper argued that local governments should make relevant policies to fuel the development in SME financing, make greater efforts to perfect the financial systems, make better use of the multi-level capital markets, quicken its pace in governmental function transformation,offer better services to SME,etc. As financing difficulties are common with Chinese SMEs,the countermeasures proposed herein based on the actual situations of Zhongshan will come as a solution for the Zhongshan government to relieve difficulties in SME financing. And meanwhile, they will serve as reference to other local Chinese governments confront with similar problems in SME financing. |
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