Research On Financing Methods And Countermeasures Of SMEs In China

Since 20 century, Small and medium enterprises(SME) have developed rapidly. By the end of 2013, there were more than 42 million SME were registrated in China, and contributed about 60% of the Chinese GDP. Obviously, SME play an important role in the national economy, especially in the development of economy of the emerging market countries.Howerver, SME distributed all over the world, not only in China, have been facing financing trouble, and lead to SME can not have a sustained and healthy develpoment. The causes that lead to SME facing financing difficulty not only the own system problem of SME, such as information asymmetry, and the lack of the financial system in SME, etc, but also the macro financial environment, such as the credit system of SME. It is said that the SME financing difficulty have become an popular topic in government and academic circles.In order to understand and resolve the SME financing difficulty in China, this article set the SME's financing type as the starting point, and then used the pecking order theory(POT), trade-off theory, MM theory and business cycle theory to analyse the SME own difficutly and the external and internal investment enviroment in China. After that we use Qtong's IPO case with SWOT model to research the method to resolve the financing problem.The content of this paper is as follows: the chapter 1 is the introduction of this paper, it coverd the background and research method of the article. The chapter 2 is the related literatures reviews, including the macro perspective, micro perspective and institution perspective. The chapter 3 is the present situation and financing difficulty of SME in China, we mailyanalysed the causes which lead to SME faced financing problem. And in the chapter, we tried to propose some solutions that situation with some financing mode of foreign countries. The chapter 5 is the case study. And the last part is the conclusion of this paper.