China Small And Medium Enterprise Financing Problem Research

Since China adopted the reform and opening-up policy, with the deepening of economic restructuring, small and medium-size enterprises (SME) have been playing an increasingly important role in the national economy. The financing of SME, however, has been plaguing China’s overall economic development. How to develop SME, how to broaden the financing channels for SME and how to make the funding resources of SME needed for development match their center stage in the national economy, these become the current challenges our country has to face. As the prudent monetary policy was altered to moderate tightening. China Banking Regulatory Commission (CBRC) proposed a few suggestions for the construction of’six mechanisms’and the management of "four entities" in Guidance for banks loaning to SME in2005, followed by Notification to support commercial banks improving financial services for SME in June,2010,which suggested commercial banks should take different measures based on diversified business, these indicate the vital position that credit financing occupies in SME’development and financing. Therefore, solving the problem of credit financing offers a new idea to broaden SME’financing channels, to help them out of financing dilemma.This paper focuses on SME credit financing, standing on the situation of SME credit facilities and related theoretical studies at home and abroad, with the development of credit facilities for SME in other countries and experiences on the SME financing, thoroughly analyzed the financing situation of SME in China, proposed carrying out an policy to build systems of credit financing for SME, including the supply system, credit system and guarantee system.