A Discussion on Constructing the Supporting System for Private Enterprises' Financing
Wang Qiang-chao
Abstract
Wang Qiang-chao
Abstract
Private enterprises have made great contributions to the economic development in China in recent years.However,private enterprises' difficulties in financing have not been resolved up to now.The fact that the ratio of internal financing is too high and direct financing is difficult has prevented private enterprises from further development.The financing bottlenecks may be caused by either internal reasons or external ones.A comprehensive supporting system for financing private enterprises could be attained by improving their qualities,speeding up the reform of state-owned commercial banks,improving capital market step by step and enhancing the legal support on the part of government.
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Private enterprises have made great contributions to the economic development in China in recent years.However,private enterprises' difficulties in financing have not been resolved up to now.The fact that the ratio of internal financing is too high and direct financing is difficult has prevented private enterprises from further development.The financing bottlenecks may be caused by either internal reasons or external ones.A comprehensive supporting system for financing private enterprises could be attained by improving their qualities,speeding up the reform of state-owned commercial banks,improving capital market step by step and enhancing the legal support on the part of government.
Key concepts: Finance, Business, China, Private capital, Risk financing, Internal financing, Government (linguistics), Capital (architecture)