Brief Analysis of Importance of Credit Construction to Private Enterprises

the impact on private enterprises' financing and further developmentAbstract: At present, private enterprises are facing the problem of re-venture, which results from, to a large extent, the difficulty of financing. Therefore, this paper will emphasize in analyzing the situation and causes of private enterprises' current credit status as well as the importance of establishing a credit system for private enterprises. Furthermore, the paper will present the defects of Chinese financial arrangements, the information asymmetry in capital market and the bottleneck of private enterprises' size, which block the transmission of credit and financing. In the end, the paper will recommend some feasible solutions to above problems.