The Smes Private Bond Financing Analysis

Allowing small and medium enterprises(SMEs)to meet the conditions in the case of private bonds issued,the main purpose is to resolve the difficulties of small and medium enterprises in fund raising.However,the domestic small and medium enterprises faces operational risk,information asymmetry and other characteristics,leading to investors Income and risk asymmetry.To this end,how to reduce the investment risk of investors,small and medium enterprises have become the key to the development of private bond financing.In this paper,the case study focus on the XG Company’s industrial environment,the company’s operating status and its private bond financing situation.The case study conducted a comprehensive risk analysis,and adopted a sound new measures,the final issue of private bonds to achieve full sales,to the successful issuance of private bonds to provide a lot of valuable experience.First of all,pay attention to the disclosure of business information,SMEs should take the initiative to increase information disclosure,regularly publish their operating conditions and financial reports,which will help investors understand the business situation of SMEs,reduce investor investment risk,improve the investor’s Investment will;second,should strengthen the construction of debt protection measures to enhance investor confidence.The case study focused on the private bond financing path of XG.Through the analysis of XG private bond financing,especially the research on risk management and risk increase letter,it provides reference for domestic similar small and medium enterprise bond financing.