Research On China's Informal Finance Supporting For SMEs' Financing

Since the reform and opening up, The small and medium-sized enterprises (SMEs) have been making immeasurable contributions for the development of our national economy. However, SMEs are facing financing difficulty in the process of the development, and informal expand a road for SMEs. Therefore, in this context, the thesis studies on informal finance supporting SMEs' financing systematically from the perspective of economics.The thesis firstly research on the present situation of informal finance, and we found that informal finance is very active and huge, occupying a big proportion of GDP. Meanwhile in the process of development informal finance also formed a variety of lending styles, presenting flexible, convenient features, greatly meeting microfinance demanders especially SMEs; Then, the thesis analyzed that small scale, weak strength and poor anti-risk ability, which makes SMEs' financing characteristics different from the big enterprises', and the financing of SMEs show more internal financing, less direct financing and relying on bank lending, but these financing channel can't satisfy SMEs' financing needs. Therefore, in the process of financing, SMEs face problems such as internal financing staying power shortage, hold back by direct financing channel, constrained by bank financing, in this case, the informal financing 1 highlights its unique advantage.The thesis analyzes that Chinese informal finance give financing support to SMEs theoretically and empirically. In theory, through the analysis of the financial repression theory, financial deepening theory, the thesis points that the informal finance has the necessity of existence and development in the financial system in China; Financial altogether naturally theory also confirmed that informal finance was born in the SMEs' financing needs, and informal finance and SMEs have a relation of promoting each other; the advantage theory of informal finance supporting for SMEs' financing reflects that the informal financing has incomparable information cost and transaction cost advantages comparing to the other financing channel, and the advantage model strengthens the theories. And in empirical, through analysis of three aspects:financing scale, financing regional comparison and influential factors,the thesis confirmed the role in informal financing supporting SMEs, meanwhile in the process of informal financing supporting SMEs, there are some deficiency:lack of the guide, lack of deposit guarantee mechanism and so on.In order to make informal finance support SMEs better, the thesis reference successful experience of foreign informal finance supporting the development of SMEs, combined with some problems of Chinese informal finance supporting SMEs' financing, the thesis puts some policy suggestions with strengthening the financial supervision and guidance, building and perfecting the small financial institutions as well as perfecting financial security system.