Research On Issues Related To Financing By SMEs In China

First, this Article objectively analyzes and demonstrates the importance of SMEs in China's economic development and reveals that the difficulties in financing have become a key issue that hampers SMEs development. The paper explains from actual circumstances the main reasons behind the difficulties that the SMEs face in financing, and analyzes in detail the present status of financing by SMEs in China, including definitions in China and in other countries regarding SMEs, summary of SME's financing structure, in-depth analysis of the present status of financing by SMEs, and explanations regarding the main reasons behind the difficulties that the SMEs face in financing. Chapter II proposes specific policies and put forward detailed suggestions on how to solve the difficulties face by China's SMEs in credit financing. The suggestions highlight efforts by the State and government, commercial banks and SMEs themselves, including such policies and suggestion as optimization of external business environment for SMEs, establishment of SMEs-oriented banks supported by State policies, improvement of credit guarantee system for SMEs, introduction of a modern enterprise system with property ownership system as its core, standardization of financial system in enterprises. Chapter III focus on case studies from the perspective of commercial banks and proposes four SME financing models to address the difficulties that the SMEs face in financing.