The difficulty SMEs facing in obtaining financing is due partly to factors within the financial system and partly to the nature of China's small enterprises.
Thinks to the historical factors, the establishment of Chinese financial system is outer-generated character called "government-leading regulatory transformation", which lacks "demand-causing regulatory transformation" formed by the market spontaneously.
In addition, the ratio of equity capital and debt capital not onlyinvolves the decision by the enterprise itself, it also closely related to thestage of economic development, finance system and enterPrise govemance.
At the same time, comparing policy-type finance with financial direct investment, which is also a method the governments intervene the economical, the former has a stronger binding force to the enterprise and a higher fund use benefit.
The author concludes that the interruption of the government affects seriously the financing of private enterprises,and causes the absence of financial support.
It is neglected by the study of ChinaAs we know, well-functioned corporate governance mode is the precondition and foundation to guarantee the shareholders' interest.
3. A once popular notion that differ "Bank oriented system" from "Market oriented system" once enplaned the difference between the enterprises' capital structure and corporate governance in Japan and Germany and those in U.K. and U.S..
The new financial system based on diagnosis-related groups will be in favor of private investors compared to the governement-dependent university hospitals.
In 2000, Ecuador adopted the dollar as its official currency and gave up the sucre in a desperate move to halt inflation and help a distressed financial system.
The traditional success of the German Mittelstand is partly attributable to a system of finance that is richly layered by complementary institutions designed to meet the financial needs of both large and smaller enterprises.
Ideally we want a system of finance that encourages colleges to produce a given level of service at the least possible cost.
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Important aspects should be considered such as quality of management, coverage, equal access for all and effective system of finance and payment.
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Middle small enterprise plays an important role in the economic development of our country especially in the current stage. But with the adjustment of the economics and finance system, they encounter the difficulty to finance. Draw from some accomplishments, some ways are available here in order to revolve the financing problems of Chinese middle small enterprises.
The discussion concentrates mostly on new high tech mid level enterprises difficulties in raising money.Two solutions for raising money are:(1)create and implement laws and regulations,as well as protection policies that create a suitable economic system for banks,and(2)creation of management bureau or department that assist mid level enterprise development.In other words,create a three level government management network with an assurance system,from the national government to the local city and commun...
The financial system of China has got initial marketlization in the reform and opening abroad over the past twenty years. Joining WTO, will powerfully promote the China' s financial system to get further reform, opening abroad and development. Meanwhile the inner and abroad circumstances for collecting capital of China's enterprises will change greatly, which generally be benefit of the finance of enterprises, but the requirements for standards on the enterprises fi-nance will be more and more.