A Bank Jiangxi Branch Small And Medium-Sized Enterprise Financing Business Innovation Research

Chinese national economy has enjoyed constant growth since the implementation of the reform and opening-up policy. According to the document published by the Statistical Bureau on March 9th, 2016, we have made a remarkable achievement in social and economic development since the Eighteenth National Congress of the Communist Party of China. Our major aggregate indicators on economy and society continue to increase their proportions in the world and per capita indicators keep climbing up along the world-wide rating. These accomplishments contribute to improve our international status and influence notably. In 2015, the GDP of China accounted for 15.5 percent of total productivity of the world. At the same time, small and medium-sized enterprises play an increasingly significant role in boosting our economy, especially in such sectors as promoting the employment of urban citizens and activating the market. However the extrusive problem of financing has become a choke point to the small and medium-sized enterprises. In response to the call of the government, commercial banks rise to the occasion to alleviate the financing adversities. This essay selects the Jiangxi Branch of Bank A as the research object. Based on the fundamental information of the Jiangxi Branch of Bank A, analyses of related statics, theories concerning the current situation of financing of small and medium-sized enterprises as well as some other problems puzzling these enterprises, this essay aims to explore the reasons for SME financing and provide some practical advice for the Jiangxi Branch of Bank A.This essay is composed of four sections, the first of which mainly states the related theories and some critical concepts, including Modigliani-Miller, Balance Theory, Asymmetric Information Theory, The Pecking Order Theory. After the general statement, the main focus falls on the application of highly adaptable Financing and Credit Rationing theories and Financial Business Cycle Theory in SMEs. Then the second section elaborates the status quo of the financing of Jiangxi Branch of Bank A'S SME clients as well as a series of problems such as entry barriers, mortgage issues, short terms, complicated procedures, delayed approvals and impractical innovations. In the third section, with reference to foreign cases of financing, the author analyzes the financing innovation in Jiangxi Branch of Bank A from the perspective of creative products, business process, credit system, guarantee system and so forth to figure out the shortcomings in the product innovation. The last section provides respective solutions as well as some suggestions for Jiangxi Branch of Bank A on the acceleration of the reform of enterprise system, strategies and specific approaches to creative SME-financing.