A Research On The Supervision System Of Private Bonds Issue Of Small And Medium-sized Enterprises In China

The small and medium-sized enterprises are an important driving force for the sustainable development of national economy and an important part of the national economy. However, compared with large enterprises, the small and medium-sized enterprises are in a weak position in the capital strength, business scale, risk prevention and other aspects. The existing financing are not conducive to small and medium-sized enterprises to raise funds. Everyone knows the financing difficulty of small and medium-sized enterprises. In order to promote the sustainable development of small and medium-sized enterprises, we need to expand the financing channels for small and medium enterprises. Because of its convenience, saving the cost of financing, private placement bonds play a more and more important role in the market economy. It is used in many countries. Private placement bonds provide an effective means of financing for small and medium-sized enterprises. In May2012, the Shanghai Stock Exchange and Shenzhen Stock Exchange issued the pilot regulations concerning small and medium-sized enterprises private placement bonds. China is beginning to pilot the small and medium-sized enterprise private bond business. However, compared with the developed countries, we lack legal regulations, supervision system and academic achievements about small and medium-sized enterprises private placement bonds. It will seriously affect the healthy development of small and medium-sized enterprises private bonds markets.The small and medium-sized enterprise private bond is small and medium-sized enterprises issue in order to financing through private placement. It has a lower threshold, less restricted, looser regulation. Small and medium-sized enterprise private bond issue is advantageous to absorb idle funds, increase the financing capacity of small and medium enterprises, increase the proportion of direct financing and promote the stability of the financial market development. Our enterprise bond has experienced four stages of development and is mature. In this context, in2012May the small and medium-sized enterprise private bond get into the pilot issue. With the initial market unpopular, the private placement bonds risk problems of small and medium enterprises concerns come one after another. By strengthening supervision of the small and medium-sized enterprise private bond issuance, it is conducive to the protection of the interests of investors, maintain the stability of the securities market and make up lack of the law itself. Supervision system should implement security, efficiency and fairness goals. Supervision should also follow the principle of legality, fairness, justice and moderation.America private bond issuance system has a relatively complete legal system. Britain attaches importance to the development of the role of self-regulation. Private supervision system for Taiwan area is mature. At present, supervision of small and medium-sized enterprise private bond has many problems. There is no unified law legislation."Pilot approach" also has many deficiencies. There is no clear administrative supervision organization and supervision responsibilities. Judicial supervision lacks the corresponding conditions and regulations on the civil compensation. Therefore, we should establish unified private bond legal system of small and medium-sized enterprises and change the specific legal provisions. Administrative supervision should establish correct concept, clear regulatory body and responsibilities. At the same time, we should perfect the necessary conditions of judicial supervision, strengthen the protection of civil rights and administrative power interferes with the judicial prevention. In addition, we should play self-discipline supervision function of securities exchange and strengthen the day-to-day supervision of the small and medium-sized enterprise private bond trading. We should establish fair credit rating system and maintain stability of private bond market.