The Study On SMEs' Financial Bond Issued By Hankou Bank

With the expanding commercialization of interest rate in China,the competition is becoming more and more intense among commercial banks.Traditional commercial deposit and loan business model cannot meet the increasing needs of investors,especially those small micro-enterprises demands of funds.Although they take an important role in the economy,they are facing narrow financing channels since the traditional system of finance.This restricts the development of small micro-enterprises.On the other hand,Hankou Bank,as a regional commercial bank,always adheres to the differentiated development strategy in order to keep its position.Therefore,Hankou Bank expects to create a series of financial products for small micro-enterprises at lower cost to increase its liquidity and raise its competition.This paper analyzes the present situation of the issuance of SMEs' financial bonds,and describes the functions and characteristics of SMEs' financial bonds and products.Based on the theory of active liability management and the theory of optimal order financing,this paper discusses the characteristics of Hankou Bank,and designs the financial bonds for those small micro-enterprises.Based on profit-loss analysis,this paper also discusses the issuing cost and benefits for Hankou Bank.Furthermore,it analyzes financial risk of the SMEs' financial bonds.Finally,this paper evaluates the differences between the SMEs' financial bonds and the other financial products in the current period.This paper draws a conclusion that the current SMEs' financial bonds designed with much more liquidity,flexible and available price.