Research On The Financing Guarantee Of SMEs In Hefei City

As Anhui Province and Hefei Municipal Government ramps up infrastructure investment in Hefei,the urban environment,infrastructure and industrial innovation are new,economic development shows a thriving situation,attracting more and more high-quality talents to flow to Hefei.As the leader of Anhui Province,Hefe's economic development is of great significance to the Province.In 2018,the total GDP of Anhui Province reached 3000.68 billion yuan,an increase of 8.0%,ranking ninth in the provinces and cities of the country.Among them,the total GDP of Hefei City reached 782.29 billion yuan,a growth rate of 11.38%,accounting for 26%of the total GDP of Anhui Province,which led to the economic development of Anhui Province.With the future development trend of the Yangtze River Delta cities gradually integration,the future economic development of Hefei is predicted to have more space.SMEs have contributed greatly to the economic development of Anhui Province.By 2018,there are more than 1 million small and medium-sized enterprises in Anhui Province,accounting for 99%of the total number of enterprises.Among them,there are more than 200000 small and medium-sized enterprises in Hefei,accounting for about 20%of Anhui Province,providing more than 70%of jobs in the city.It played a vital role in the economic development of Hefei City.In 2018,a total of 499 enterprises in the province became the province's special high-tech small and medium-sized enterprises.Among them,56 households in Hefei were short-listed,covering most of the quota in Anhui Province.SMEs have strong development potential and have made tremendous contributions to local economic development,employment opportunities,income and people's quality of life.Hefei Municipal Government pays particular attention to the development of SMEs,and has given a lot of support in policy.However,in the process of growth and development,SMEs still face many problems.The way of financing is relatively single,the threshold of financing is set too high,and the shortage of collateral has been the primary problem accompanying the development and expansion of SMEs.Due to the downward pressure on the domestic economy in recent years,the three interest rate hikes by the Federal Reserve in 2018 and the uncertain trend of Sino-US trade war have put SMEs into a disadvantageous survival environment.At present,China's GDP growth rate began to slow down,the competition between SMEs has become more and more intense,resulting in increased operating costs,reduced profits,their own credit risk.Although the management system and the external environment of the guarantee institutions have become more and more perfect in recent years,there is still information asymmetry between the small and medium-sized enterprises and the guarantee institutions and the banks.The means of handling the non-performing loans of the guarantee institutions is still relatively traditional,and counter-guarantee measures still can not fully cover risks,and all of these will lead to the accumulation of stock risks in the guarantee industry.China is in an important period of industrial transformation.The government provides multi-faceted policy support for SMEs.Therefore,in the current economic situation,SMEs in Hefei City coexist with challenges and opportunities.Financing guarantee institutions,banks and governments should flexibly face the current market environment and escort the development of SMEs.This article specifically proposes solutions to the problems existing in the financing guarantee of SMEs in Hefei City.Firstly,it discusses the concepts of SMEs,financing and guarantees,and then analyzes the development status of SMEs and financing guarantee institutions in Hefei,including Hefei City's vigorous promotion of the new model of cooperation between the government and the Bank based on the"4321" risk ratio sharing;further clarify the main status of the policy guarantee institution;took the lead in setting up the country's first guarantee industry guarantee company.Next,it summarizes and analyzes the problems existing in the financing guarantee industry of SMEs in Hefei City.Including the defects of the internal system of the guarantee institution,the quality of the personnel is not high,and the disposal mechanism of the non-performing assets is not sound enough;the assets of the small and medium-sized enterprises are single,the information is opaque,and the concept of honesty is weak;the cooperation between the bank and the guarantee institution is not smooth;the government guarantees the financing Excessive intervention by the organization and related support are still insufficient.Then it analyzes the typical experience of financing guarantee system in the United States,Japan and China,which leads to the thinking of financing guarantee system for SMEs in Hefei.Finally,according to the characteristics and history of Hefei's economic development,the fundamental problems of SMEs'financing and the shortcomings in the development of guarantee industry,this paper puts forward some measures to solve the problems of SMEs'financing guarantee in Hefei.It includes improving the internal mechanism of the guarantee industry,strengthening the construction of the relationship between the guarantee organization and the banks,the government and the small and medium-sized enterprises,improving the self-credit consciousness of the small and medium-sized enterprises and perfecting the external environment of the guarantee industry.So that guarantee institutions,banks,the government can better support the development of small and medium-sized enterprises,the realization of Pratt&Whitney Finance.