The Research On The Problems Of Chinese Small Loan Companies Listing In Hong Kong

Chinese Small Loan Companies as one of the formal micro-credit institutions, has been made a significant contribution to solving the problem of the development of small and micro enterprises. These Small Loan Companies solved the fund demand of small and micro enterprises, and become their "blood transfusion" institution. However, it is very hard to find their own "blood transfusion" institution in the market. Capital bottleneck problem has become one of the important obstructive factors in the development of Small Loan Companies. This situation not only related to their own development, but also related to the development of small and micro enterprises in our country. Broadening the financing function and reducing their financing costs of Small Loan Companies has become a very real and pressing problem.Based on the analysis of this issue, this paper analyzes the problems of feasible financing channels of Small Loan Company, and in-depth studies of a new financing channel, finding the problems that might encounter in the implementation process and the solutions. Comparison of the traditional and expanding financing channels of Small Loan Companies, the traditional financing channels, including the capital increase, commercial bank lending, all have some problems. Expanding financing channels, including borrowing from each other, asset securitization, issuing small loan debt, public financing, also hare many imperfections. In contrast, public financing especially listed overseas, has many beneficial factors in the development of Small Loan Companies. The time is short for the Small Loan Companies successfully appear on the market until now. And it also has some limitations. However, this financing is still worthy of our in-depth study. Once it can be replicated implemented, it will bring a new turn for solving financing of our small loan companies.Compared to domestic listing, the overseas listing has less restrictive conditions for Small Loan Companies. Overseas listing also can bring the Small Loan Companies to better capital markets, financing platform and management system. It is good for the long-term development of Small Loan Companies. Contrast the mode and the location of overseas listing, Hong Kong’s capital market is relatively excellent choice to Small Loan Companies, and the specific pattern of listing will be carefully chosen according to their own situation. However, due to the differences between Hong Kong’s markets and inland market, and the Small Loan Company’s own shortcomings, the process of listing in Hong Kong will encounter many problems. How to solve these issues, and make a small loan company successfully achieve the market, it requires all parties joint efforts. Based on the studies of actual cases, this paper found some issues that Small Loans Companies may be encountered in Hong Kong listing, and provide the relevant policy suggestions. Hope to provide some reference for solving financing issues of the Small Loan Companies in our country.