By Cao Xiaoqi, Guo Jiaofeng, Hong Tao ,Yang Yu　

Date: 2005/01/28

Abstract:

A survey is conducted on 3313 private enterprises in appropriate provinces and municipalities in terms of their financial credibility. The study shows a poor credit record of these enterprises, which is caused by bad credibility of local and grass root government agencies, by a flawed legal and regulation system, as well as by the internal defects of the firms. This issue has become the bottleneck to the sustainable development of these private enterprises. The following suggestions are made to promote a healthy growth of the private enterprises: 1. to enforce the construction of the creditability system of the government; 2. to bring into full play the private business associations and grass root level Party organizations in the construction of credibility and to facilitate the building of private enterprise credit mechanism; and 3. to normalize the market order and to set up a punishment mechanism on breath of faith in order to promote the rapid development of private enterprises.