Research On Digital Finance To Relieve The Financing Constraints Of SMEs In China

At present,small and micro enterprises(about 28 million),individual businesses(about 62 million),and small and medium enterprises(including individual businesses)accounted for more than 90%of the total number of all market enterprises,contributed to more than 80%of the country's employment,more than 60%of GDP,61.46%of fixed asset investment reached,more than 50%of the tax revenue,and more than 70%of the invention patents.It is a key link for Chinas supply-side structural reform to develop SMEs.However,China's SMEs have high operating risks,insufficient collateral,and information asymmetry between the two parties,which make the development of SMEs constrained by financing constraints for a long time,and 81%of SMEs'liquidity needs cannot be met.60.5%of SMEs could not obtain long-term loans.The emergence of digital finance has found a new breakthrough in alleviating financing constraints.Relying on the Internet,digital finance carries out in-depth mining and analysis of information through big data and fintech,and realizes all-round integration of digital information and finance.Digital finance covers the whole process of financing,including information technology,customer insight,financial scenario,product operation and intelligent risk control.By connecting SMEs with financial institutions through big data,it can broaden the financing channels of enterprises,enhance financing efficiency,improve the credit evaluation system,alleviate the information asymmetry,and then reduce the financing cost of both sides,thus opening up a convenient and efficient new way for SMEs to finance.This paper comprehensively uses the basic theories of network economic theory,information asymmetry and transaction cost theory,SMEs financing demand theory,financial repression and financial deepening theory.By substituting digital finance into the financing situation of SMEs,this paper demonstrates the feasibility and necessity of relieving the financing constraints of SMEs with the financing game models and panel data varying-coefficient models,and measures the actual financing support effect of digital finance on SMEs in various regions.It is found that digital finance has significant advantages in enhancing the trust and matching degree of both sides of capital supply and demand,as well as enhancing the use efficiency of capital and information resources.Detailed and systematic analysis of the current situation of digital finance as an emerging business form to alleviate the financing constraints of SMEs:Provides diversified financing options for s SMEs;Financing support takes shape;Continuously innovate in products and services;The form of financing risk control is flexible and drives the optimization of SMEs.However,there are still some problems,such as high risks in some areas,lagging development of enterprise credit system,slow digital reform of traditional finance,low integration of technology and digital finance,and difficulty for SMEs to adapt to the digital financial environment,which inhibit its role in financing support for SMEs.Put forward targeted innovative countermeasures,such as strengthening the prevention and control of high-risk areas of digital finance;Vigorously promote the construction of enterprise credit system;Promote the construction of the "information credit" platform;Accelerate the digitization process of traditional finance;Promote the deep integration of digital finance and technology;Improve the information level of SMEs;Build a digital supply chain ecosystem.The above countermeasures and suggestions should be taken to prevent risks of digital finance,improve the utilization rate of financing for SMEs,enhance the adaptability of digital finance to SMEs'financing,realize self-improvement of SMEs in the digital financial environment,and greatly alleviate the financing constraints of SMEs.