Constraints of External Sources of Financing for Domestic Private Enterprises in China

Private enterprises have been playing an increasingly important role in the development of Chinese economy, but they are having difficulties in accessing external sources of financing which mainly include bank loans, stock market and informal finance. This paper has analyzed the reasons why they face such constrains and also given suggestions to Chinese private enterprises so as to improve their access to external sources of financing. It is believed that it can be helpful to domestic private enterprises in China.