An Empirical Study On The Influence Of Shadow Banking On The Financing Of Small And Medium Sized Enterprises

China’s shadow banking is expanding rapidly, and its role in the capital market has become more and more obvious, which has been widely concerned. Shadow banking plays a similar function to that of the traditional commercial Banks, and has the characteristics of flexible operation, less regulated, and so on. It has opened up a new financing way for capital demanders. And in the in the capital market, the small and medium-sized enterprises in our country has been at a disadvantage, most of them have problems of financing difficulties. Therefore to study the effect of shadow Banks to small and medium-sized enterprise financing, not only has important theoretical significance, but also has important practical significance.In this paper, first of all, I comb and summarize the existing literature of shadow Banks and small and medium-sized enterprise financing. Then, combined with the actual situation of our country, I analyzed the characteristics and development status of China’s shadow banks, financing status and its reason of small and medium-sized enterprises. On this basis, this paper emphatically analyzes the mechanism of how shadow Banks in China influence the financing of the small and medium-sized enterprise and put forward the research hypothesis. For empirical analysis, this paper uses three new board listing Corporation data, based on the panel data model, makes an empirical study of the effect of shadow bank financing to small and medium-sized enterprise financing, empirical results show that,1:large financial institutions in the shadow banking products, such as bank financial products, trust company trust products exacerbate the financing difficulties of small and medium-sized enterprises; 2:small and medium-sized financials, such as shadow banks, small loan companies, private finance, can alleviate the financing difficulties of small and medium-sized enterprises, but the effect is limited; 3:if the commercial bank interest rates rise higher, SMEs are more likely to get loans, so their debt level is higher; if private lending interest rates rise higher, SMEs have more difficult to obtain loans, so their debt level is lower. Finally, in view of the small and medium-sized enterprise financing difficult problem, this paper proposes to strengthen the regulation of the shadow banking, encourage the development of small loan companies and private finance, promote the marketization of interest rate.