Study On The Financing Problem Of The China SME Private Placement Bonds

Financing problems have been a major bottleneck for the development of SMEs for a long time. The financing channel of SMEs in China is usually limited to banks,which often influenced by China's fiscal policy is tend to cause financing difficulties. The emergence of high-yield bonds provides a convenient means for SMEs,to some extent, it can alleviate the difficulties. So SME Private Placement Bonds will be a good channel for SMEs concerning to the scope and the process.This paper introduces the present situation, financing mode, advantages and disadvantages about, combined with the problems encountered in the course of developing China's SME Private Placement Bonds. In this paper, I analyzed the main factors of SMEs efficiency of private bond financing, including financing costs and risks, capital utilization, the degree of solvency. According to these factors, I build the efficiency evaluation model for SME Private Bond, including 30 SME private bonds issuance companies. Finally, I draw the conclusion that private bond financing for SMEs is not efficient.