Financing is an effective way to satisfy different needs of both capital supply and demand. Different financing modes determine the financing efficiency directly. In various countries around the world, their distinctive financing modes depend on their market economy system and financing system. For China, a country during economic transition period, it is of great significance to alter the existing inefficient financing mode and enhance the financing efficiency. Based on the comparative analysis of the two kinds of prevailing overseas financing modes, this paper discusses the financing mode that is suitable to China's actual conditions in the transition period. It is found that a new financing mode is needed to coordinate the development of both direct and indirect financing in China. ? 2011 IEEE
