SME Financing Method During The Asset Securitization Tide

During the China’s Reform and Opening, SMEs as a new economic force in China’seconomic development has played an important and significant role in stabilizing thenational economy. However, SMEs in China’s economic development has encountered abottleneck, shortage of funds becomes the biggest obstacle to vigorous development ofSMEs, but there is still unable to meet the SME’s huge funding needs.Therefore SMEsneed to seek new financing measures. Asset securitization as a new financing instruments,the financial sector is the20th century great initiative, inherent in this kind of financing ofSME financing ideas to solve the shortage of funds to provide a new way of thinking. Onwhich the risks and benefits of separation and restructuring to high-quality assets ascollateral, through specialized financial institutions to capital markets issued to investors,so as to achieve the purpose of raising funds.In the way of securitization, Europe and the United States have chosen two differentkinds of securitizations, these two methods are also other countries in the world securitizedtemplates, occurred in2008in the U.S. subprime mortgage crisis, two different kinds ofasset securitization way to get a different result, German Pfandbrief bonds on behalf of theEuropean sheet securitization products are withstood the test, showing superior stabilityand ability to resist risks. This provides asset securitization of SME provides a goodreference.This paper analyzes the characteristics of our country and status of SME financing,asset securitization proposed method can be used to improve SME financing difficulties ofinnovative ideas. Then introduce balance sheet asset securitization outer two different ideas,definitions, characteristics and operational processes, specifically describes a sheetsecuritization products in Europe: Germany Pfandbrief bond (Pfandbrief), through thisbond detailed analysis, discover Pfandbrief securitization of SME debt worth learningadvantages; empirical part analyzes SMEs fit method, and finally proposes theimplementation of asset securitization of SME proposals with a view of China’s SMEs toexplore effective means of financing help.