Study On Financing Channel And Risk Analysis Of Beijing SW Company

SMEs play extremely important role in national economy system. They represent 80% of all kinds of enterprises, offer more than 70% job positions in China. However, SMEs in China are not facing an optimistic financial market. The mainstream financial markets(Banks) in China are targeting state-owned large and medium-sized enterprises, and the borrowing system based on asset appraisal will shut out most of the SMEs. The credit system, the assets condition and other problems of some SMEs make them very difficult to get funds from mainstream bank lending system.How to solve the problem of difficult financing in SMEs has become the hot topic among many government officials, scholars and entrepreneurs. However, the actual situation is not optimistic. The crux of the problem lies in the contradiction in nature between the defects of the SMEs and the demands from the mainstream financial market. Multi-level Financial capital markets lay a good foundation for solving the financing problem, the continued launching of the SME board, the GEM and the new three boards widens the financing channel for enterprises, and the transformation from current audit system to the registration system reduces the financing threshold for SMEs. In today’s ever-changing capital market, an equity financing mode appears and overturns the traditional financing mode based on asset appraisal and makes many SMEs feel at a loss. The equity financing is still a new thing in domestic financing channel. Although it is less than 15 years from its initial development till now, it already shows strong vitality.According to industry appraisal institutions(qing group), there are 1917 financing cases in 2014, though the financing cases in capital market of more than 2300 listed companies are not included, the disclosed transaction amount reaches 101.2 billion in 1712 cases. The huge trading volume is the feast shared by enterprises and capitals, but how to know equity financing and successfully financing becomes enterprise owners’ trouble. This paper research is different from theory research by other papers. It makes full use of my work experience and practice, analyses actual financing cases, revises with mathematical model in finance and finally summarizes the core problem of equity financing.This paper starts from the equity financing theory and tries to reveal the essence of it.Based on the successful actual operation cases, this paper analyzes the key issues in the equity financing process from the two-dimensional perspectives of both the SMEs and the private equity funds, does the explanation of the core factors in business valuation, valuation adjustment mechanism and dilution clause with the valuation model theory in financial management, and eventually refines the key factors and suggestions in the equity financing process.With this, the SMEs can have a better understanding about equity financing and avoid the possible risks effectively.