Ownership, Market-oriented Process And The Bank Loan Facility Cost Differences

With the increasing competition, enterprises in access to external financegradually becomes difficult. Chinese enterprises, especially the listing Corporation,preference of equity financing. When the stock market downturn, the enterprise isvery difficult to obtain funds from the stock market, the debt market financingfunction is particularly important. In the domestic, because most banks arestate-owned banks, therefore, the state-owned enterprises in the bank lending hasgreat advantages, while the private enterprises are facing the serious financingconstraints. Unless there is a strong public relations capacity, a governmentbackground or outstanding qualification, or private enterprises it is difficult to get abank loan. This makes the private enterprise showed and state-owned enterprises withdifferent financing preference and the financing cost. China’s commercial banks creditpolicies of enterprises in different regions differ significantly. Regardless of theproportion of credit facilities from the point of view, or from the loan interest rateperspective, the eastern and western regions there are obvious differences. AlthoughChina’s financial reform and improvement in the growing depth, regionaldevelopment imbalances still exist. Meanwhile, China’s banking competition isincreasing, so will offset part of the policy differences between regional credit.This article mainly from the bank loan financing of state-owned enterprises andprivate enterprises financing cost is different, the other by the data validation in themarketization process of different regions of the state owned enterprises and privateenterprises financing the cost of credit between whether there are differences, suchdifferences are as what commercialize a process to improve and reduce, thus givedifferent enterprises for reference, combined with their own situation, thedevelopment of more suitable financing mode.