Study Of Chinese SMEs’ Financing Strategy

By the development of economy, SMEs is becoming more and more important. Everycountry pays more attention and support to SMEs. Financing dilemma is a common problemencountered by many SMEs in the development process, it got more and more attention togovernments and the community.The main reason of financing difficulties of SMEs is that information asymmetry, and itmanifested in corporate financial structural imbalance (internal financing and externalfinancing). Secondly, financing difficulties reflected in the narrow financial channels ofcorporate, lack of internal financing capability, and it directly results that enterprise is heavilydependent on commercial loans. Third, information asymmetry has led to discrimination inthe financing of SMEs process, and it exacerbating the financing difficulties. Overall, There’smany reasons for China’s SME financing, some are their own factors, and the others may forpolicy.Through empirical research on the financing of SMEs factors were tested, and analysethe contuibutury factors for the test results, exploring what factors have a more significant andbroader impact on SMEs’ financing activity. Based on the empirical research results inconjunction with the current situation of SMEs and analysis financing reasons, recommendcountermeasures.Firstly, the paper elaborates the research status of scholars at home and aboard, so wehave a basic understanding to the issue of financing of SMEs and the formation of the theory.Then, it introduces the details of the financing structure theory: classical finance theory, themodern theory of financing structure, the new financing structure theory. Laid the theoretical foundation for this paper. After that, this paper present SMEs’ situation and carried out adetailed analysis, including: SME financing channel analysis, analysis of the causes of thefinancing of SMEs and SME financing risk control analysis.Then, in order to more in-depth understanding of the problem, this paper analyzed theproblem from the perspective of the financing structure, and proposing factors of financingstructure from micro and macro aspects, and make assumptions. After that, it took theempirical analysis to the factors that affecting the financing structure. This article selected60listed companies in the financial data for2011-2013from the NEEQ, by establishing multipleregression model, obtaining the of correlation degree between financing structure of SMEsand factors.Finally, to the current situation and financing problems of SMEs in China, it madesuggestions and countermeasures from their own and policy.