A Research On The Establishment Of Finance Supporting System Of Small-medium-sized Enterprise Of China

The small-medium-sized enterprises have developed rapidly and have made great contribution to the GDP growth since the open-door policy, especially these years, they are taking a great role in enlarging employment, stimulating non-government investment, improving the economic structure, pushing the technology, stabilizing the social order and system innovation. But our small-medium-sized enterprises are confronted with many restrictions that come form not only the market, but also from the government structure and property right protection. The emphasis of this paper is but on the finance restriction which is demonstrated clearly by the great gap between the capital demand and capital supply. We see it clearly from the theory and reality that the finance restriction has greatly constrained the development of the small-medium-sized enterprises. So we must reconstruct a new finance supporting system to drive to solve this problem.This paper can be divided into 4 parts, the first part provides a review of the finance theory, the research condition of small-medium-sized enterprise and analyze the finance channel, which provides a safe theoretic ground for this paper. We can divide the foreign theory into two kinds: one is from the course why there are many restrictions, the other is from the solution. The domestic theory research is revolved in theoretic research, policy suggestion and analysis on the finance situation. But domestic research is just in the beginning period.The second part is about the finance gap. The analysis can be divided into 4 aspects: one is from the small-medium-sized enterprise itself. The false hard information the small-medium-sized enterprises provide, the high bargaining cost for banks to obtain soft information and the scale economy decides a high implementing cost to the banks; the inadequacy of mortgage and hypothetic make it impossible to draw down the transaction cost. All of these make the commercial banks reluctant to loan to small-medium-sized enterprise.The second is from the commercial banks. The bureaucratism and the multi-level management organization system are the systematic root that why the commercial banks are reluctant to loan to small-medium-sized enterprises. The lack of market competition is the core reason that why the small-medium-sized finance organizations say no to the small-medium-sized enterprises, which give a good reason that why the small-medium-sized finance organizations grow fast while the finance problems to the small-medium-sized enterprises is not relieved. The third is from the policy of the government. The commercial banks are lack of motivation to loan to small-medium-sized enterprises, because of the discriminating policy from the government, in the same time, the policy turns the small-medium-sized commercial banks into risk avoider. All of these enlarge the finance gap. The fourth is from the primary market. The information asymmetry and the positioning diversity make itnatural that the primary market is bora to serve the large-sized enterprises. So the finance gap can not be solved just relying on the primary market.The third part is about international comparison and study. We should take advantage of the foreign experiences as follow: 1 .The government should strengthen the finance support to the small-medium-sized enterprise. 2. We should construct and the legal system and policy direct. 3. To construct a specialized finance organization. 4. To construct a credit hypothetic system. 5. To construct the secondary market and venture capital unit.The fourth part suggests a new finance supporting system, which is the care part of this paper. 1. we should stick to the basic constructing principle which is focused on endogenetic small-medium financial institutions, because if the state-owned banks become the main fund source of the middle-small enterprises, this will destroy the initial effective capital structure (Which has a stimulating and restricting effect), while this will result in a soft restriction on the developing capital of sma...