System of Innovation of Private Enterprises

Abstract: In recent years the rapid Development of private enterprises, but financial difficulties have become a bottleneck restricting the further Development, the need for a wide range of barriers to financing system for deep system analysis, through the financial system innovation, system innovation of private enterprises and credit environment and system innovation . to improve the financing environment for private enterprises.

Paper Keywords: private corporate finance private enterprise system, financial system, the credit environment, institutional innovation

With the continuous Development of China's market economy, private economy in the national economy have become increasingly prominent role and status of private enterprises is gradually replacing the state-owned enterprises have become the driving economic growth, investment and the leading force. However, the rapid Development of their economic situation compared to the private narrow channels of poor corporate finance, financial difficulties have become a bottleneck restricting the further Development. reasons. mainly due to the height of the financial system in the banking monopoly, the lack of private financial institutions, capital market development is bad, the lack of multi-level (or diversification ) of the capital markets, private enterprise system lags behind, is not standardized, less perfect social credit system construction and other factors. Private Enterprise Finance. is a multifaceted system of comprehensive problem and needs through institutional innovation and private enterprise to improve financing environment.

First, broadening financing channels for private enterprise system innovation
(A) bank financial institutions to deepen reform, improve the system of indirect financing of private enterprises.

1. State-owned commercial banks to speed up reform of property rights, establish a modern financial enterprise system. State-owned commercial banks have generally faced with a single ownership structure, inadequate capital, low efficiency and other issues, ownership structure and thus an urgent need for the introduction of private capital or foreign staff, and improve corporate governance structure, form a good management of incentive and restraint mechanisms, a fundamental guiding state-owned commercial banks towards the direction of the development of modern banking. shareholding system reform is a fundamental way. It can further clarify the property rights of state-owned banks to rationalize with the government, between state-owned enterprises relations, to promote state-owned banks truly enterprise management, capital efficiency rather than by form of ownership to choose the lending portfolio. In this way, private enterprises and state-owned enterprises to competition for funds in a fair position of the bank to get broad and sustained financial support.

2. Bank financial institutions should further improve the credit and financing system.

First, by expanding long-term sources of funds to improve the term structure of deposits and loans, set up a new deposit agreement and other measures to address the variety of loans to the structural contradictions, to make full use of the floating interest rate policy. Constantly improve the differential interest rate pricing mechanism, pricing and higher interest rates interest rate risk management, to ensure that bank capital to invest in scientific decision-making. Second, we should vigorously improve the credit management system and mechanisms to strengthen internal risk control system construction, further improve the authorization and credit management, guided primary banking institutions in accordance with the distinction, to maintain pressure requirements, efforts to improve the loan structure. strengthen the communication between the bank and improve financial services. actively support the reasonable business loan conditions meet the funding requirements, to achieve the promotion of private economic development and improve their efficiency "win-win" for private enterprises to Research and design features and requirements of financial products, credit management and performance appraisal, training of specialized small business credit management. so that more private enterprises to be supported in time.

3. The establishment of private joint-stock banks, to support private economic development.

Development of small and medium sized banks, particularly the development of the private capital as the main sponsor of the private banks, private financial capital and by private industry, the integration of capital, private finance and private enterprises to improve corporate governance structure, the introduction of private management, private financing to avoid risk, to better meet the financing requirements of private enterprises. and flexible mechanism of private banks, fewer non-performing assets, financing ability, high level of profitability, to provide financing services to private SMEs larger space. the benefits of, liquidity, safety features and financing of private investment in small and medium fast track to adapt features are bound to solve the problem of financing private enterprises.

(B) build a multi-level capital market system. Communication channels for direct financing of private enterprises.

l Elimination of private enterprises listed on the Main Board of the financing of the discriminatory treatment. To increase the implementation of the "approval system" in the efforts to comply with legislation, policies, quality of private enterprises to enter the capital market, capital market development not only bring fresh blood, More importantly, the capital market, "just, fair and open" principle can be manifested.

2. Health guide the second board market, the priority development of the OTC market. The current Health of not only the need to actively guide China's second board market, but also the need to counter market as the second board market while developing a market, to actively restore and orderly development of A wide variety of transactions subject to participate, expanding the number of transaction types OTC markets to avoid high transaction costs and market conditions on private capital financing constraints of SMEs. You can try the OTC market, Shanghai, China Price Center the establishment of a national counter market management committee to guide the establishment and the Shanghai municipal centers offer local networking OTC market. and to require listing on the OTC market, SMEs, when its net assets, after-tax profits, market value reaches a certain price and other conditions or requirements, you can directly ascend to the motherboard or the second board market. Links http://www.hi138.com Research Papers Download
3. Actively attract venture capital, and actively develop small and medium private notes, bond financing. In the body of venture capital, apart from the center of venture capital and entrepreneurial risk investment, enterprises should also be encouraged to attract foreign investment and private science and technology venture capital fund joint venture and risks of investment. At the same time, relying on the OTC market to the private small and medium paper, bond financing sustainable development, to reduce its financing costs and improve capital structure.

Second, private enterprise system innovation itself
(A) establish a scientific system of internal governance, the implementation of standardized management, the gradual separation of ownership and effective implementation. As market conditions change and the scale of private enterprises in growing their own, private enterprises during the rule of man start-up management should innovation. Private enterprise system should be in leadership, employment mechanism, standardized production and management system and so on, the application of scientific management methods and management tools to reduce management's blindness and randomness. first of all to ownership structure and capital structure adjustment, clear property rights, regulate business behavior, correct guidance and attitude of the successor to the property and property rights awareness, and secondly to solve the problem of corporate control. At present the genuine share of the benefits without the shareholders rarely participate in the operation, leading to the status of ownership and management status of the conflict intensified. can consider the introduction of professional managers to build a new corporate governance structure. Outside of the progressive realization of business management, younger and better educated, and then gradually transition to the separation of ownership and management rights.

(B) the property rights of private enterprises to accelerate diversification and asset securitization process and seek to grow through capital markets. Diversification of property rights is the premise of clear property rights. To achieve diversification of property rights, we must first solve the property "dominance" problem. the property is too large concentration of private enterprises, through decentralization and social equity to achieve diversification of ownership structure in order to meet the modern property rights system, which requires the establishment of modern corporate governance structure. private enterprises in diversifying the structure of property rights, the system should ensure that small and medium the interests of investors, large shareholders controlling the relative instead of absolute Holdings, clear property rights to every legal and natural persons to become independent stakeholders. Second, to speed up the process of asset securitization of private enterprises. to increase their investment through the market, asset conversion, transfer of property rights and other capital works to bring in new investors, to promote diversification of ownership structure, private enterprises can also conditional listing of the introduction of public investment, through capital markets to clear property rights and growth.

(C) increase the credit management system construction, promote credit culture. Private enterprises to formulate rules and regulations related to the internal credit management, including "" Management Control Program Review control procedures for contract review >>,<< procurement control procedures >>,<< >> so, may establish special conditions of the credit management department, responsible for credit management within and outside the enterprise, within the enterprise to implement a quality management as a fundamental of the total credit management, from product procurement, production, sales and after-sales service and other links on a good pass, and strive to improve product quality, credit ���� create products and continuously improve the business and customers, consumers, credit relations between, regulate the financial system, in accordance with relevant state regulations, the establishment of properly reflecting the financial situation of the system, increase corporate financial transparency, not to cook the books, not evasion of bank debts.

Third, the credit environment for private enterprise system innovation financing
Private enterprise in improving the subjective honest and trustworthy, it is also the objective need to improve the credit environment of private enterprises, private enterprises to help improve the social credit, financing changes in the vulnerable position of private enterprises.

(A) the establishment of private enterprise credit system. Now need to coordinate and integrate all the credit resource system, the establishment of a national, shared private enterprise credit records management system. The reputation of the establishment of mechanisms will enable the sharing of credit information related to financial institutions resources, credit conditions more transparent, reduce costs and risk pricing information costs for private enterprises to provide basic conditions for credit rating. Meanwhile, the credit history of private enterprise and its shareholders to increase the cost of default, to willingly increase the risk of their own constraints.

(B) to establish a scientific system of private enterprise and private credit rating of SME credit guarantee system. Credit rating is an effective way to reveal the credit risk of private SME credit rating system and a sound, to solve the difficult problem of financing of private enterprises has a positive practical significance. in the credit guarantee system, first, the Government should develop in line with China's national conditions of private credit guarantee system for SMEs, organized and set up a national credit guarantee fund for SMEs and SME credit guarantee associations, to strengthen the commercial guarantee the company's supervision, standardize the operation of security agencies in the market. To establish a standard security mechanism entrusted to professional security organizations, forming a binding guarantee the standardization of competitive markets. The second is to establish and improve the financing of private guarantee fund for SMEs. by the government-funded Guarantee Fund should be standard management and operation, and actively establish mechanisms for financial compensation, the implementation of institutional investment management. Third, innovative way of security, counter-guarantee to actively explore further security measures, SME credit guarantee policy to encourage giving. Fourth, to build a sound legal protection system to support long-term development of private enterprises. Links to Research Papers Download http://www.hi138.com