As an innovated financial product, SMECN effectively broadens the financing channel for small and mediumsized enterprises. Influenced by many restrictive factors, SMECN is lagging behind in the development of Chinese capital market. The practice in successful SMECN issuance in Chongqing, inland area in the west part of China, shows that the development of SMECN needs institutional innovation promotion from such two layers as inside an enterprise and society.