Developing Corporate Bond Market To Support Smes Financing

SME financing problem has always been a serious and chronicproblem which has plagued the world economy for a long time. Theopaqueness of SMEs information, the lack of mortgage assets and theirunstable credit demand, determined that it is extremely hard for SMEs toearn the support of bank loans. In the same time, the development ofSMEs is the backbone of stabling economic growth and socialemployment. SMEs directly determine the healthy development of theeconomic situation of the whole society.In this paper, the author starts from analyzing the financing problemsfaced by SMES, from both the internal view and external view, thencombined the thoughts with research results of domestic scholars as wellas foreign scholars. After comparative analysis and systematic analysis,the author find out the developing the corporate bond market is aneffective way of solve the financing problems of SMEs.Then the author goes through what an important role the corporate bond market play in an emerging economy. Compare the bond market inemerging market with the market in developed economies. Find outseveral points that we should learn from the developed market whiledeveloping our own.Finally, the author discusses how to develop the corporate bond market tosupport different style of investing demand, and give out severalsuggestions.