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The Financing of TVEs (Small and Medium Enterprises) in China.
As reforms progress and the Chinese economy becomes increasingly open, the role of small and medium-sized enterprises-----township and village enterprises in the country is growing. They produce 30% of gross industrial output, despite its growing importance, at the end of 2000, the TVEs accounted for only 8 percent of bank lending , and only 3 percent of the companies listed on the Shanghai and Shenzhen stock exchanges were TVEs firms. The discrepancy between the dynamism of the TVEs and its limited use of intermediated financing suggests that if TVEs want to sustain its current rate of gr…
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