Research On Difficulties And Countermeasures Of China's SME Financing Under The Financial Crisis

In recent years, with the development and growth of SMEs, their position in the national economy enhanced significantly .In 2008 , the SMEs create the final value of goods and services accounted for 58.5% of the national GDP and pay taxes account for 50.2%, which occupy"half"in the national economy . But the situation of the SMEs'"strong but weak position" has not been fundamentally changed, particularly in respect of financing, its contribution to the economy and the financial support which they received are very asymmetric. Currently under the influence of the financial crisis, SMEs financing fall into a more embarrassed situation. In this paper, author based on theory with practice, analysed the current status of SME financing, causes,and learned from foreign advanced concept of the financing of SMEs, finally put forward ideas and suggestions which solved the plight of China's SME financing.First of all, this paper defines the scope of small and medium enterprises, describes SME financing's manner and characteristics in China , meanwhile analyzes macro-environment for SMEs, financing structure, characteristics and financing method combined with the current reality of China.Second, the author analyze the reasons that give rise to small and medium enterprises financing difficulties from both internal and external . In the external causes, through the introduction of Stiglitz—Vince model to explain the reasons for difficulties in financing small and medium enterprises, Pointing out that as the information asymmetry between banks and SMEs, arising from adverse selection and moral hazard, leading to the implementation of bank credit rationing for SMEs is the main reason for difficulties in financing small and medium enterprises. At the same time, China's financing structure defects and the lack of medium and small financial institutions also contributed to an important reason for small and medium enterprises financing difficulties. In the internal factors, mainly SMEs'non-standard internal management and not perfect financial system led to deterioration in its credit, so as not to facilitate the financing.Once again, through analyses the United States multi-layer capital market and Japan's policy-oriented financial institutions ,the author think the U.S. diversified capital markets has facilitated the financing of SMEs at different stages , in Japan it run as government-led SME finance establishment of specialized services institutions, both mode of financing difficulties of SMEs in China should be learned from.Finally, based on understanding of SME financing difficulty ,the author proposed three-pronged approach solutions to SME financing difficulties Suggestion: To establish a multi-level financial system, broadening financing channels for small and medium enterprises; increase government support for small and medium enterprises; strengthen the risk of Guarantee dispersion, compensation and incentives, improve the credit guarantee system for SMEs.