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Refinancing of listed companies awash with liquidity Perspective

Author: ZhongWeiPing¡¡ZhangJiHeng From: www.yourpaper.net Posted: 2009-10-10 18:44:40 Read:
[Abstract] awash with liquidity, the current major issues facing the Chinese economy. A simple analysis of a variety of methods of governance is awash with liquidity, that governance awash with liquidity should be "multi-pronged" refinancing of listed companies have recently introduced as one of the solve awash with liquidity, should have a rhythm and steady run, so as not to lead to large-scale market risk. Listed companies re-financing of the concept, the mode of financing the development of the status quo and the causes of the analysis, the author believe that listed companies re-financing governance is awash with liquidity, must strengthen refinancing regulation and supervision, correct grasp of refinancing and liquidity sexual flooding two The point of balance between a planned manner, appropriate to carry out refinancing of listed companies, in order to fundamentally solve the problem of excess liquidity.
[Words] is awash with liquidity; listed companies; refinancing

First, the issues raised

Awash with liquidity has become an important feature of the Chinese economy and even the global economy. Awash with liquidity has become the hottest topic in academic circles, but also macroeconomic management departments focus on prevention issues. Awash with liquidity problems have a greater impact on the national economy, and also have a greater impact on people's lives, and correctly handle the flood of liquidity problems, has become the top priority of the government work.
What is awash with liquidity? We should from the Perspective of the excess liquidity. Excess liquidity (Excess Liquidity) is a concept in economics, said monetary authorities Currency excessive amount of money is growing too fast, adequate sources of funds for banking institutions, the rapid increase in household savings. Macroeconomic performance than the GDP growth rate for the money growth rate; purposes of the banking system, the performance of the loan growth much faster than deposit growth. Strictly speaking, however, excess liquidity, both from appearance, or cause the solution from the point of view, is a complex economic and financial theory problem, and not just usually refer to the currency issue too much, deposit and loan spreads issues such as excessive. Excess is the amount of the concept of serious overcapacity will inevitably lead to flooding.
, Solve awash with liquidity, there are a variety of ways, such as through the control of the current account surplus with the size of the capital and financial account surplus liquidity inflows stopped from the source; or open market operations by the central bank to raise deposit reserve ratio, the issue of the proliferation of directional central bank bills and operation of the foreign exchange investment management companies to siphon off excess liquidity in the financial system; Furthermore guided by liquidity to asset markets and the real economy to ease liquidity. Nearly a year, the government through the central bank open market operations to raise the deposit reserve ratio, the issue of the orientation of the central ticket refinancing of listed companies awash with liquidity of the various means of governance, which, through the refinancing of listed companies has become the flow of current governance awash with the mainstream. According to statistics, since 2008, following the China Ping An announced on 21 January 1500 billion financing plan, just a month a total of 23 listed companies in the introduction of intensive refinancing program, involving 204.3 billion yuan of funds. It can be seen that the refinancing of listed companies adopt the practice of direct liquidity to asset markets and the real economy to divert the flood of liquidity, to some extent alleviate the flooding, but there are also some problems can not be ignored. I believe that the excessive number of listed companies to refinance only can not effectively govern awash with liquidity, it will trigger a series of problems, such as the performance of listed companies will lead to landslides, investors' willingness to invest gradually weakened, and if the problem long-term can not be resolved, the development of listed companies and securities markets are extremely unfavorable. Therefore, how to grasp the refinancing and awash with liquidity, the balance between the two points, there are plans, appropriate to carry out the refinancing of listed companies to properly resolve awash with liquidity.

Refinancing of listed companies theoretical analysis

(A) listed companies refinancing defined. In a narrow sense, the financing behavior of an enterprise financing process. Operating conditions according to its own production, has the status of funds, and the company's future business development needs, through scientific forecasting and decision-making, the use of a certain way, to the investors and creditors of the company to raise funds from certain sources, organize the supply of funds to ensure that the needs of the company's normal production, operation and management activities needed financial behavior. The motivation for the company to raise capital should follow certain principles to carry through certain channels and certain ways. Generally speaking, companies to raise capital is nothing more than three purposes: expansion of enterprises to the expansion of corporate debt as well as mixed motives (debt mixed with motivation). Broadly speaking, the financing, also known as the financial, monetary intermediation of funds, the parties raising or extending loans to the financial market of funds through a variety of ways. Financing can be divided into direct and indirect financing. Direct financing by financial institutions, the media, by the government, enterprises, institutions, and individuals to contribute directly to the lender of last resort, as a lender of last resort financing activities, the funds directly to its facilities for production, investment and consumption. Indirect financing by financial institutions, the media, and financing activities by the lender of last resort to the lender of last resort, such as enterprises to banks, trust companies, finance and so on.
"Refinancing" refers to enterprises refers to listed companies (more) again and issuance of bonds or increase their investment and financing to external borrowing behavior. Example, listed companies in the stock market on the financing for the issue of new shares and corporate bonds issued in foreign behavior belongs refinancing. Therefore, we believe that the refinancing of listed companies is the direct financing of listed companies placements, issuance and issuance of convertible bonds in the securities market.
(B) the refinancing of the status quo of China's listed companies analysis. Compared to non-listed companies, listed companies more flexible choice of financing channels and financing. Government-raised funds for listed companies, the ability of its subsequent development largely depends on the ability of companies to refinance. Beginning in 1998, China's listed companies is obvious demonstration of refinancing keen, I use empirical data analysis found, the as regulatory audit policy adjustment, the listed companies tend to stage demonstration of a refinancing tool preferences. Basically, the characteristics of China's listed companies to refinance performance in the following areas:
1. Generally showed equity refinancing preference. Listed companies has preferences in equity financing, debt financing relative neglect. According to the website of the China Securities Regulatory Commission, from 1991 to 2002, China's A-share market to raise a total of 595.19 billion yuan of funds, including the allotment and issuance of 205.6 billion yuan of funds, 35% of the total amount raised. Placements, issuance has played an important role in China's listed companies to raise funds. Cause of equity financing preference of listed companies in China main reasons: First, the low cost of equity financing; flawed corporate governance structure.
Placement financing and additional favored. Affect policy guidelines and changing the direction of development and the level of activity of the three ways of refinancing allotment, issuance of convertible bonds issued home number and the amount of funding for this year up he fall. Since May 2006 the issuance of securities of listed companies management approach has been formally promulgated and implemented, the private placement quickly become the most popular of the listed companies to refinance. In 2006, there were 63 listed companies' issuance in the A-share market to refinance 107.28 billion yuan, 157 times listed companies in the A-share market issuance to refinance 272.3 billion yuan as of December 11, 2007. In addition, the additional refinancing plan for listed companies, there are 242 times listed company, has announced reflect the issuance of refinancing has been showing exacerbated by rising annually.
Listed companies in 2007, the implementation of additional refinancing, we note that there are 133 listed companies' choice of private placement. Reason for being in hot pursuit of the listed company private placement, mainly for the following reasons: First, it helps the listed companies to realize the asset securitization, the introduction of a new strategic shareholder and strategic intent. Do not need to tradable shareholders financed the purchase, you can get a lot of cash. And the acquisition of new assets, to help open up new business performance of the company's continued growth, thus becoming an important driving force rose, while the larger part of the number of shares to strategic investors into longer-term holding period also helps corporate governance improved.
3. Bonds with warrants financing SANDOVAL. Bonds with warrants is a corporate bonds with warrants attached, can be separated into two parts of pure bonds and warrants, giving listed companies once issued two financing opportunities. Bonds with warrants financing of mixed varieties of bonds and stocks, with the essential difference between ordinary convertible bonds is separable trading of bonds and options. First introduced in the end of 2006, the securities of listed companies issued management separation of trading convertible bonds as a listed company refinancing varieties, and their conditions of issue, issuing procedures, terms and conditions set more specific rules. In this context, many listed companies announced the issuance of convertible bonds. According to statistics, in 2008, published the separation of trading convertible bonds plan of listed companies for a total of four, is intended to raise funds of 54.2 billion yuan, China Ping An intends to raise 41.2 billion yuan was removed, Jiangxi Copper Company intends to raise 6.8 billion yuan, Huadian Power International intends to finance 53 billion U.S. medicine proposed financing of $ 0.9 billion. Two listed companies to publish convertible bond offering plan, a total of 36 billion yuan, Nanshan Aluminum 28 billion and Liugong 800 million yuan, respectively. Refinancing of listed companies has been adopted bonds with warrants, I believe that the main reason is that it has the unique advantage conducive to attracting investors. First, investors can get debt service, and thus higher requirements to the issue of the company's operating capacity; Second, when the warrants exercise price is lower than the positive stock market price, the investor can through conversion or transfer Warrants in the secondary market arbitrage, without having to worry about the issuer's stock price rises mandatory redemption of warrants; When the warrants exercise price higher than the positive stock price, investors can choose to abandon the exercise of warrants, the warrants are often Issuer gratuitous gift. Third, multi-angle regulating listed companies refinancing
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