Research on SMEs Financing Channel Based on Financial Deepening Theory

SMEs contribute 60% of total industrial output, 57% of sales income and 40% of profit tax, moreover, SMEs provide 75% of the town jobs, but financing of the SME is very difficult for a long time. The solution approach lies in referring to financial deepening theory, deepening reform and opening-up of financial market, especially opening-up to private capital, and lies in allowing the private capital to enter monopoly field controlled by state-owned capital, and developing direct financing, opening junk bond markets, vigorously developing GEM and OTC market, actively promoting interest rate marketization process to create a good financial environment for SMEs development.