Discussion For The Financial Management's Problems And Strategies Of Hong Kong SMEs To Development In Inland Of China

Now the number of Hong Kong SMEs (Small-and-Medium-Sized Enterprises) is 98% over the total number of Hong Kong Enterprises, the working population is over 1.3 million; it is an important base in Hong Kong economic development. In the long term economic development of Hong Kong, SMEs owe its specific company culture, to build up an adaptable developed model and operation system to fit its speciality. When inland of China made the reformation and opened its market, Hong Kong SMEs ran its speciality and advantage to provide the cash, technique, different management skill and experience in the transition of PRC economic system and economic development. It plays more contribution to the reformation and soaring economy of inland China.Financial management play the core of enterprises' management, it can assist enterprises to avoid the risk, support the strategical target and set up the operational strategy, so the financial management also play an important role and function in the Hong Kong SMEs' management. At present, Hong Kong SMEs operating in PRC have encountered many financial management problems due to the functional complication between financial management and financial accounting, the financial management is bounded, the fundamental work of financial management is weaker and the financial environment is variable.The financial problems include short term view in investment; looseness in cash management; weakness in financial control; rigidity in enterprise's management mode; under-qualification of staff; backwardness in information management & concept; difficulties in financial funding; over-dependence on taxation benefit from PRC government.In order to solve above problems and hinders, Hong Kong SMEs should pay more attention in the analysis of enterprise's investment, strengthen cash management and financial control; improve the system of organization and management; buildup a good qualification of staff and reform the information management system. At the same time, it should strengthen the ability of enterprise itself to raise the fund and find out different sources of funding, besides, SMEs should increase the ability of taxation planning and reduce the over-dependence on taxation benefit from PRC government.