Analysis on SMEs’ Financial Constraints in China

On the basis of an overview of general constraints perceived by SMEs in China, this paper aims at providing a comprehensive investigation into SMEs’ current financing situations of each source and their severities. Then we make a detailed analysis into the institutional factors affecting access to internal financing, the inherent reasons for banks’ icy attitudes towards SMEs and latent causes responsible for the difficulties when SMEs raising capital from equity market. At last, this paper put forward some worthwhile suggestions of improving private firms’ access to financing and policy agenda of critical changes from the perspective of enterprises, governments and financial institutions.