Financial Innovation and the Improvement of Chinese Small and Medium-sized Enterprises' Financing

The financial innovation has been studied in this paper from the perspective of the conception of financial innovation, and principles and theories. The authors explore different kinds of financial innovation which influence the Chinese economic life, and discuss the practical application of the principles and theories in China. Firstly, the authors discuss financial problems of small and medium-sized enterprises, explore their financial options and analyze the reasons of their financial difficulties based on the characteristics of the current findings. Secondly, they explore the efficient ways to solve those financial problems, including system innovation, product innovation, as well as technological and institutional innovation. The authors stress that the Yiwu international trade reform analysis has made financial innovation theory more specific and visual. Finally, they make a summary of the problems that financial innovation theory exist in the practical application, and formulate the direction for the existing bottleneck of the financial industry in China.