Analysis Of Structure And Performance Of Credit Guarantee Industry Market In Hunan Province

Credit guarantee industry, an important part of modern credit system, is a new service industry in modern market economy. It is not only in itself a promising industry, but also bears significance for solving financing problems and improving market operation mechanism for small and medium-sized enterprises. In Hunan, the credit guarantee for small and medium-sized enterprises has made remarkable achievements in their financing. However, there are also problems revealed in practice as credit guarantee industry has still a very short history as an industry in Hunan and industrial market is not fully mature. Market structure is an important factor for market behavior and market performance of credit guarantee business, and therefore research on optimal structure of credit guarantee industry market the Hunan credit guarantee industry is of great significance.Firstly,we make a thorough exploration on previous analysis on market structure as well as performance from both at home and abroad,and comments are given on their problems and limitations. We also claim that credit guarantee industry in its early stages need to learn from both at home and abroad and follow the market approach. Then we analyze relation between market structure and market performance of credit guarantee industry theoretically. After analysis of basic types of market structure we study mechanism of how market structure effects market performance with reference to market properties of guarantee industry market. Moreover, we deduced with game theory model that oligopoly market structure is optimal for guarantee industry market.And we measures market structure of credit guarantee industry in Hunan with the CR index and the HHI index. After measuring that in cities in Hunan province, we conclude that credit guarantee industry thereof are of oligopolistic market with intensive intervention from government but undesirable market performance. We also carried out empirical study on market structure of credit guarantee industry to market performance, including such aspects as amount of bond, profit of enterprises, social contribution. The research indicates that undeveloped oligopolistic market has a better performance than that of highly oligopolistic market.Finally, this thesis, with reference to status quo of credit guarantee industry in Hunan, put forward countermeasures to optimize the market structure and improve the performance. Studies have shown that in the initial stage of credit guarantee industry, monopolistic competition market is conducive to market expansion and efficiency improvement, while in its mature stage oligopolistic market is most optimal. At present, credit guarantee industry in China should rely on both market and government, and vigorously expand scale of the market to form monopolistic competition market, which will further gradually transit to a monopolistic market through market competition. The proposals are expected to provide guidance for development of credit guarantee industry in Hunan.