An Analysis on Financial Environment and Mitigation Strategy for the Financing Difficulties of Taiwan-funded Enterprises in Chinese Mainland
Focused on the financing difficulties of Taiwan-funded enterprises in Chinese mainland,the paper introduces a new analytical perspective,by which inappropriate financial environment has been considered as a key factor.Since the financial environment of Chinese mainland has specific strengths and weaknesses,and has promoted specific financial regulations,traditional commercial banks have corresponding credit preferences which can be summarized as favoring the big and state-owned business,rather that the small or private ones.By contrast,the Taiwan-funded enterprises in Chinese mainland are neither state-owned nor large(mostly small and medium-sized),plus with information asymmetry with banking institutions,and therefore facing a higher threshold for credit market access.It can be expected that the key steps to solve the above problems is to make the financing channels more unimpeded for small and medium-sized enterprises(including private enterprises)in the Mainland financial system.
NETL
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万方数据
