The Financing Problems of Chinese SMEs under the Global Financial Crisis

Small and Medium-sized enterprises (SMEs) play a very important role in Chinese economy. The global financial crisis has brought both positive and negative impact on SMEs. It forced SMEs to rethink their growth models and future plans. However, the biggest problems Chinese SMEs are confronting now are financing difficulties. In order to solve the issue, it needs the support from the banking system as well as the capital market. Moreover, if Chinese SMEs want to turn the financial crisis into an opportunity, they should also restructure their businesses and build greater brand recognition and customer loyalty.