The Study Of Credit Risk Mitigation To Alleviate Private Enterprise Financing Difficulties

Credit Risk Mitigation Warrant(CRMW)is a security that is issued by the credential creator to investors one to many and can be circulated and transferred in the secondary market with credit protection rights.CRMW has been slow to develop and even gradually lost its popularity.Then CRMW was associated with private companies and reappeared in the bond market in 2018.The central bank set up a series of credit guarantee instruments such as CRMW on October 22,2018,with the aim of easing the financing difficulties that have long plagued private enterprises.In May 2022,in order to implement the directive spirit of the CPC Central Committee and The State Council focusing on stabilizing the economic market,under the guidance of the People’s Bank of China,China Bond Credit Enhancement Company took the initiative to set up the bond financing support tool for China Bond private enterprises,give full play to the market driving effect,release clear policy signals,and actively support qualified private real estate enterprises to recover reasonable market financing demand.In view of this,this paper studies the role of CRMW in alleviating the financing difficulties of private enterprises.Past scholars have done more in-depth research on the private enterprises of our country and foreign small and medium-sized enterprises financing predicament.This paper will take CRMW issued by China Bond Raising and the Bank of Shanghai for example to study the advantages of CRMW used by Xincheng Holding through qualitative and quantitative analysis through the theory of financing needs analysis,combined with the strategic planning,business performance indicators and investment and financing situation of Xincheng Holding in recent years.And deeply explore its internal operating mechanism and the final effect.The research results of this paper can provide reference for private enterprises to use CRMW for large financing,help our capital market capital flow and promote sustainable economic development.