Research On SMEs Financing Issues In China

SMEs (Small and Medium Enterprises) as an important part of China's market economy and in promoting China's economic development have played a major role at all levels. However, SMEs in China under the influence of internal and external factors such as, they generally faced serious constraints on the development of financing problems. In the current context of China's economic transformation, SME financing, such as the financing issues have become more prominent. The SME failures occur frequently in coastal areas in recent years is an example. Based on above situation, the dissertation expanded research on SME financing issues, with a view to finding methods of resolving the problem.In the first part of dissertation, restructuring economy background, describes the research to solve the financing problems for their own development, national policy development, promoting the country's economic development is of great theoretical and practical significance, based on previous academic research on SMEs financing issues to sort out, combining analysis of the focus and direction of this research. Chapter two introduces the theory of net income, MM theory, theory of credit rationing theories of corporate finance of enterprises financing channels of direct and indirect financing, equity financing, and analyses of how, as the theoretical basis of this paper. In the third Chapter, combining theoretical basis, this dissertation analyzes China SME financing present situation, pointing out that inadequate endogenous financing, exogenous financing, financing channels, such as the difficulty, financing problems exist in China SME, and focuses on the analysis of the problems mentioned above. IN the fourth Chapter, eventually find defects because of their qualifications, insufficient support of financial institutions, security agencies is not perfect, set high thresholds for direct financing, and is the reason the financing difficulties of SMEs. Finally, analysis of results of research, the article from improving their own qualification, improve the modern enterprise system, widening financing channels for enterprises, strengthen management and policy support in the Government put forward suggestions to solve financing problems. Once the endogenous, exogenous financing environment and policies, legal environment has been to improve, SMEs can be development healthy, and this will inevitably plays a great role in promoting development of China's economy.