China's private enterprise financing difficulties in which aspects of performance

Analysis of the status quo of financing for private small and medium-sized enterprises

In recent years, the State Council introduced a series of support for small and medium-sized private enterprises to carry out product structure adjustment

Adjustment and technological transformation policies, these policies to a certain extent to alleviate some of the small and medium-sized private enterprises

Currently difficult financing problems. However, due to the influence of various factors. Small and medium-sized private enterprise financing is still subject to a number of

many limitations, the problem of financing has not been resolved, mainly in the following areas:

l direct financing: the capital market for small and medium-sized private enterprises to provide financing channels are limited,

threshold is too high. China's capital market structure still exists in certain defects, the high threshold of the securities market, entrepreneurial

investment system is not sound, coupled with the small size of private enterprises can not afford the cost of stock issuance, and not

easy to obtain the qualification for public offering and listing of their own weaknesses, is not conducive to the financing of the small and medium-sized private enterprises.

Small and medium-sized enterprise board certainly provides a way for small and medium-sized enterprises to raise funds through the capital market,

but it will not become the main financing channel for tens of millions of small and medium-sized enterprises: as for the issuance of bonds, at present

The bonds issued for the construction of key construction bonds and local enterprises have a fixed interest rate and a longer maturity period, and they are mainly used for

the investment of capital intensive large-scale projects, with the government's dominant role in the development of the economy. Large-scale project investment, with a government-led monopoly driven color,

general private enterprises are difficult to enter, and is not suitable for small and medium-sized private enterprises as a means of financing.

Small and medium-sized enterprises are difficult to publicly raise funds through the capital market. At present, China's financial market has formed

stocks, loans, bonds, project financing, financial support for six financing methods, but these

roost small and medium-sized private enterprises of the degree of openness is very low, in addition to a small amount of credit capital, private enterprises are very difficult to obtain funds through the

through the channels of debt and equity financing. Due to the high threshold of access to the domestic capital market,

along with the increasingly standardized management, it is difficult for small and medium-sized private enterprises to qualify for listing by "bundled listing" as in the early stage of the establishment of the capital market, and the small and medium-sized private enterprises have been excluded by policy from the

capital market, and cannot directly raise funds in the capital market. They can't go to the capital market for direct financing. The establishment and development of the second board market is just

a big wind and little rain, and most high-tech small and medium-sized private enterprises are still difficult to raise the capital needed for development

. And can provide financing services for the vast number of small and medium-sized enterprises in the local stock exchange market and risk capital

The market has not yet been listed on a t-_ agenda, the lack of such small capital market, so that the small and medium-sized private enterprises

It has lost the main channel of direct financing. The vast majority of private enterprises in the medium and long term investment, mainly

rely on the private lending market, private equity, enterprise mutual insurance plus debt-to-equity and other informal, small-scale capital-raising

or equity financing, this kind of financing is small, high cost, high risk, so that the lack of investment in the stability of

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and sustainability, some enterprises even rely on all the money, and the lack of stability. sustainability, and some enterprises even rely entirely on defaulted loans for working capital.

2_I divisional financing: commercial banks have limited financing support for small and medium-sized private enterprises, and the flow of

capital is on the high side. Banks are reluctant to lend to small and medium-sized enterprises due to high loan transaction and monitoring costs. Some

commercial banks have higher requirements for credit management for small and medium-sized private enterprises than for large and medium-sized state-owned enterprises, especially

in underdeveloped areas. The number of small and medium-sized private enterprises that can meet these conditions and have qualified credit ratings is very small, which in fact excludes most small and medium-sized private enterprises from the target of support, and at the same time restricts the grass-roots banks' enthusiasm for supporting the development of small and medium-sized private enterprises.

These requirements are not only the same as those of the state-owned large and medium-sized enterprises, but also the same as those of the state-owned large and medium-sized enterprises. At the same time, small and medium-sized enterprises have difficulty

in obtaining financial support from banks due to their low credit ratings, lack of collateral assets and high financing costs. The Central Bank has issued relevant policies to encourage commercial banks to increase loans to private enterprises, but commercial banks are often unwilling to lend to private SMEs for the sake of capital security by focusing on large customers. Even if commercial banks are willing to issue fixed-asset

loans to private enterprises, they are reluctant to open up loans for infrastructure and technological reform projects to private enterprises due to the unsound approval system for investment projects, as well as the banks' concern about the risks associated with long-term loans, thus private enterprises can only obtain working capital loans for one year at most, and it is difficult for them to obtain long-term capital loans. The private sector can only obtain working capital loans for up to one year, making it difficult to obtain long-term capital loans. In order to

meet the needs of long-term capital turnover, some private enterprises have to take short-term loans for multiple turnover

means, thus increasing the burden of enterprises and financing costs. This shows that the existing financing channels

hard to meet the capital needs of small and medium-sized private enterprises.

3. Informal finance: the main way of financing for small and medium-sized private enterprises, the risk is higher. (1) own

financing. The use of business profits to accumulate development funds, or internal employee financing

raising funds. (2) private lending. Obtaining loans at higher interest rates from relatives or various "underground money changers"

. (3) Mutual guarantee. Small and medium-sized private enterprises guarantee each other and apply for loans. A few years ago, mutual guarantee among private

enterprises was more prevalent, but due to the high risk, top-performing enterprises have been reluctant

to assume joint and several liability for others. At present, in practice, mutual guarantee appeared in the form of debt-to-equity conversion, that is, the guaranteed

guarantee party will be the enterprise's equity collateral to the guarantor, once the guarantor to bear the economic responsibility for its

assumed the amount of money as a capital contribution, so that the claims on the party to be guaranteed to be converted into equity. If there is an urgent need for capital in a short

period of time, small and medium-sized private enterprises will solve the problem by borrowing from each other

.