A Case Study On Financing Of SMEs Through OTC

As the most active force in contemporary economic life,small and medium-sized enterprises play a vital role in the national economy.Chinese multi-level capital market mainly exist the problem that first develop floor market,then OTC market is and the main board market is given priority,low-level capital market is not perfect,SMEs are difficult to obtain direct financing from the capital market.Due to the high growth and high operational risk characteristics of SMEs themselves,lack of funds has become a key problem in their development.Therefore,the expansion of financing channels for SMEs is imperative.This paper first elaborates the theory of multi-level capital market,including the theory of financial division of labor and the theory of enterprise financial growth cycle.Secondly,review and summary of Chinese SMEs financing status from three aspects,the bank loans,public offering of stock and bond financing,conclude that financing of SMEs in China is very difficult,at the same time,deeply analyze the financing characteristics of SMEs and the way that regional OTC market provide financing.Then take the M Company and Zhejiang OTC market as an example for small and medium enterprises with OTC case study.M companies rely mainly on the absorption of corporate investment,the amount of government funding is not high and unsecured mortgage financing status,conclude M companies exist over-reliance on internal financing and financing structure of a single problem,M company solve the financing difficulties through Zhejiang OTC,and then elaborated M company's financing process in Zhejiang OTC,at the same time from various aspects of the M company's conditions and advantages,and further get four aspects enlightenment: obtained to strengthen technological innovation,improve enterprise internal governance,clear market positioning and standardize financial system.In the end,the paper summarizes the whole thesis,and the successful financing case of M Company has important theoretical value and practical significance for the SMEs to broaden the financing channels,which is difficult to obtain bank loans,and can not be listed on the main board,look to the future,listed in the regional equity market enterprises may be transferred directly into the board,"the National Equities Exchange and Quotations."...