The following stylized facts emerge from our analysis: (1) State-owned firms continue to enjoy more generous external finances than other types of Chinese firms. (2) Chinese private firms have resorted to various ways of overcoming financial constraints, including reliance on the increasingly more mature informal financial markets, cost savings through lower inventory and other working capital requirements, and greater reliance on retained earnings. (3) Substantial variations exist in financial access among private firms, with small private firms facing more financial constraints whereas more established firms having financial access more equal to their SOE counterparts. (4) Although not as accessible as for SOEs, the Chinese formal financial sector does provide Chinese private firms with substantial financial resources, especially for their short-term needs during daily operations. (5) The most pressing financial constraint facing Chinese private firms is their limited ability to secure long-term funds to invest for growth, and resolving this issue should be one of the top goals of financial reforms in China.
Hale, G. and Long, C. (2011), "Chapter 13 What are the Sources of Financing for Chinese Firms?", Cheung, Y., Kakkar, V. and Ma, G. (Ed.) The Evolving Role of Asia in Global Finance (Frontiers of Economics and Globalization, Vol. 9), Emerald Group Publishing Limited, Bingley, pp. 313-339. https://doi.org/10.1108/S1574-8715(2011)0000009018Download as .RIS
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