Their Investment Sources and Financial Modes

The non-state-owned Enterprises are playing a more and more important role in China's economic growth. Currently, the principal source of capital of the non-state-owned enterprises is from the investment of business owners and the earnings kept in the firms. The social funds do not have a ready access to the non-state-owned enterprises. As far as the financing is concerned, the non-state-owned enterprises mainly count on the internally generated funds and the loans from the commercial banks. However, in China, the commercial bank loans are not readily accessible to the non-state-owned enterprises due to the deficiency of the existing banking structure and the system of the non-state-owned enterprises. Consequently, efforts have to be made to further the financial reform, promote the development of the securities market, gain effective access to the international capital market and perfect the system of the non-state-owned enterprises. This will enable the non-state-owned enterprises raise capital efficiently and gain steady financial support from different sources.