| For a long time, domestic small and medium-sized enterprises have been tortured by their deficiency in formal financing channels. To help them attain funds through legal and effective channels and enhance their development, China's government issued two financing tools(SMEB and SMECN) in 2007 and 2009 to help their enterprises attain funds through issuing bonds. Although these two tools worked, they were still exposed to some problemsThe author intends to research on these two issued financing tools, especially focusing on factors contributing to their being listed, its operation mechanism as well as defects postponing its expanding. In this paper, the author selected some cases and analyzed them through financial analysis. Total bonds and enterprises breaching contracts are also studied via concrete financial data. The author, thus, will figure out fundamental reasons for events of default. After analyzing these tools and relevant cases, the author now comes to two conclusions. First, both of two tools are not perfect in the allocation of risks. Once risks occur, investors will suffer lots of losses. Thus, when they are issued, lots of external guarantee institutions need to be introduced in. All these factors contribute to its low efficiency of issuing and high financial costs. Second, floaters of SMEB and SMECN shall be selected carefully, for it will have a decisive effect on possible events of default concerning SMEB and SMECN in future.The emerging of these two tools, to some extent, contributes to the development of China's small and medium-sized enterprises which are in great needs of funds. Doing researches on them can be abstracted priceless experience, explore their weakness so as to constantly perfect these two tools. Thus, this study is of enormous practical significance. |
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