Author(s)

Yuanjian Jiao

Corresponding Author

Yuanjian Jiao

Abstract

The coexistence of SME financing difficulties and private lending difficulties is a unique phenomenon in the field of investment and financing in China. Based on the perspective of institutional arrangements, this paper uses logical analysis to analyze the root causes of this double dilemma. The research results show that financial repression is the direct cause of the dual dilemma of China's SMEs financing and private lending, and the existing economic system with public ownership as the main body has many defects in its institutional origin. To fundamentally solve the double dilemma, it is necessary to start from the aspects of changing ideology, reforming public-owned enterprises, and reforming the political system.

Keywords

SME, Financing, Development Study.