Research On Supply Chain Finance Led By Core Enterprise

Small and medium-sized enterprises play an important role in China’s economic development and social progress,in job creation and technological innovation.However,what is not consistent with their huge contribution to our economic development is the apparent lack of support received by SMEs,especially in terms of financing.In China,the difficulty and cost of financing for SMEs has become a key concern.This thesis makes a study of the ways to solve the problem of difficult and expensive financing for SMEs.Through information asymmetry theory and signal theory,it is easy to see that SMEs find it difficult to obtain financing from banks and other financial institutions,mainly because it is difficult for banks and other financial institutions to understand both the real intention of SMEs to use funds and the future development prospects and operations of SMEs.However,with the emergence of supply chain finance,the emergence of effective signals has become possible.The core enterprises in the supply chain or third-party platforms can tap into effective information through the business behaviour of SMEs and assist SMEs in sending effective signals to help financial institutions fully understand SMEs and endorse their credit,so that SMEs can raise funds that they could not obtain from banks before.In addition,core enterprises with strong overall strength and abundant cash flow can also build their own supply chain platforms to solve the financing difficulties of upstream and downstream SMEs in their supply chains.At the national level,relevant policy documents have been issued on several occasions to support the development of SMEs and promote diversified financing models.In this thesis,Sinopec is selected as the core enterprise to investigate the core-led supply chain financing model to solve the financing difficulties of SMEs.Through the study of Sinopec’s epec supply chain platform,it is found that the core-enterprise led supply chain finance can deliver effective signals and alleviate the problem of difficult financing for SMEs caused by information asymmetry in the past,and can also improve the operating capacity of the core enterprises.This thesis also proposes suggestions for optimizing the core company-led supply chain finance model in the hope of providing reference and lessons for other similar core companies to develop supply chain finance.