SME Asset Securitization Financing

Nearly 30 years of reform and opening up China's SMEs obtain tremendous development. At present, SMEs as a catalyst for the economic development of our country play an important role in the coordinated economic and social development. As we all know, the biggest obstacle of the development of SMEs in China is financing problems. As a financing tool, asset securitization originated in the 1970s, which makes assets lack of mobility, But in the future will have a stable cash flow ,through the structure the risks and benefits elements will separated and reorganized, then converted into the securities which can sale and circulate in the financial market.This paper studies the use of this asset securitization financing to help SME financing problems. The basic conclusions of the article is referring to foreign experience and the combination of China's national conditions, through reasonable system of innovation we can use the Asset Securitization as a tool of financial innovation to supple and improve the SME financing system, and promote the development of SMEs. This paper is divided into four parts. First, the discussion of definition of SMEs and the role ,then analysis of the financing situation of SMEs and their causes; Secondly, the theoretical basis of Asset Securitization will exposited and focused on the asset securitization process and the operation of the participants, and Contrast to the traditional financing methods; Again, China's SMEs on the asset securitization financing choice, mode selection were discussed, and through our first Enterprise Asset Securitization financing cases (CIMC trade receivables securitization) structure, The financial analysis to illustrate assets into securities sponsors of the benefits; Finally, My discussion of the limitations of SMEs asset securitization financing law, accounting system, and so on-side constraints, and discussed how the government assets in the securities of SMEs in the process of playing a leading role.