Research On Direct Financing In Tianjin

Financing problem has always been the core element of China’s economic development, and the narrow financing channel worse the financing problem about many small and medium-sized enterprises. In order to meet the demand of enterprise development, and help them solve the problem of the financing difficulties, we should consider to improve the financing method. In addition to bank loans, direct financing which lacks of intermediary should be considered as a method expanding the financing channel and optimizing the distribution of resources. In developed capital market, the proportion of direct financing is generally more than 50%, while financial market in China is still too reliant on indirect financing like bank loans. With the development of the integration of the beijing-tianjin-hebei region and the approval of tianjin free trade zone, tianjin which is located in the center of the bohai economic circle plays more important economic role. Besides the current policies show the support of the direct financing and the development of multi-level capital market. So tianjin should focus on the development of direct financing and play a role of guidance.Through research on direct financing in tianjin, this paper analyzed the total amount and proportion of direct financing,securitisation rate, the proportion of direct financing with indirect financing and GDP. This paper also shows the situation of equity financing and bond financing. The low proportion of direct financing in tianjin, small number of listed companies and poor financing capability are main problems.so this paper made a further analysis about the favorable factors and restriction conditions,then put forward feasibility measures to improve the direct financing in tianjin.