Causes for SME's Financing Problem in China and its Countermeasures

Difficulty in financing is a general problem faced by small and medium-sized enterprises (SMEs) of every country in the world. In the particular historical period of system turning and structural adjustment in China, the SME's problem becomes more outstanding and complicated. In dealing with the financing difficulties of SMEs, we should firstly make great efforts and improve the quality of all the SMEs to strengthen their inherent financing ability; secondly strengthen the credit management for the improvement of the financing environment; thirdly expand the channel of indirect financing to perfect the system of indirect financing; and fourthly develop new direct financing instrument actively so as to improve the capital market.