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The circulation times listed company finance oriented research

Author: FeiGuiXian From: www.yourpaper.net Posted: 2010-03-01 18:17:53 Read:
Abstract: circulation times, the listed company's financing policy, environmental disruptive changes. Securities market system of innovation, changes in the structure of the market, will bring both opportunities and challenges for the financing of listed companies. The orientation of the the full circulation listed companies financing based on the characteristics of the circulation times China's capital market and the status quo of the listed companies.
Keywords: full circulation; financing;
capital markets

The characteristics of the circulation time of capital market

In the era of full circulation. The listed companies will gradually build a sound and effective internal and external governance mechanisms, tradable shareholders and non-tradable shareholders' interests converge dominated securities market shift toward the true sense of the value of the investment and a full-price game. Chinese capital market asset valuation functions will be gradually restored and continue to improve the value of the assets from the attention to the carrying amount of the transition to profitability, the effectiveness of the market to a certain extent by market investment philosophy will focus on the pursuit of revenue spread income into focus match the risk of several major important changes. Listed companies in the finance, asset restructuring, asset replacement, will consider the secondary market, the stock price reaction. Tender offer, share exchange acquisition of major shareholders to secure controlling position without losing repurchase implemented, these practices are common in the international market will appear. Institutional investors as the market mainstream, will lead the market transition to long-term investments based direction when the "aircraft carrier" of the national economy and the backbone enterprises in general, as a whole into the stock market, securities market at the same time and savings funds, pension funds, corporate pension QF11 institutional investors such as social mainstream funds Share the preferred way of economic growth in the economy, the Chinese stock market is bound to become a "barometer" of China's economic growth. Capital market system is more robust, more diverse way of corporate finance.

2 full circulation of China's listed companies financing trend analysis

2,1 M & A financing to become one of the mainstream finance
With the completion of the equity division reform, different weights listed companies with shares, with shares of different valence "unreasonable phenomenon has been changed, the M & A pricing basis for a unified, rationalize both sides of the transaction value judgments. Full circulation solve the institutional defects that impede mergers and acquisitions, corporate mergers and acquisitions more power. First state-owned enterprise reform, the Government's encouragement protect shell behavior exist for a long time. The Chinese government is based on the identity of the owners rather than the referee identity involved in M ??& A activity, especially in the face of the loss of state-owned listed companies, able to "finance" the resources value, the government is forced through preferential policies or to encourage mergers and acquisitions, do everything possible to keep its listed status, which protect shell objective to promote the development of mergers and acquisitions. Second, market globalization and the IT revolution lead to increased competition, forcing countries to relax regulatory policy, mergers and acquisitions institutional innovation, to create a more favorable external environment for mergers and acquisitions. Again split share structure reform, the shares in full circulation trading convenience for mergers and acquisitions, including the reduction of transaction costs and liquidity improvement. Also from within the enterprise, there are a lot of mergers and acquisitions motivation due to mergers and acquisitions is a rapidly expanding production capacity to obtain the qualifications for listing a shortcut, you can achieve diverse industries, product diversification, increase returns, reduce operating costs and risks. Relevant evidence that management acquisitions preferences.
A full circulation era, the greatest obstacle to eliminate the impact of mergers and acquisitions efficiency, as an important prerequisite for mergers and acquisitions is one of sufficient liquidity of equity. Acquisition management practices of listed companies, "the agreement to transfer operations of the outstanding shares of a listed company apply for provisional rules" such as the introduction of the system, and provide an institutional guarantee for mergers and acquisitions, the general decline of the proportion of the largest shareholder of listed companies tradable share reform. Holding the right to compete for high-quality corporate behavior has become more active. With the perfection of the market mechanism, more innovative approach in restructuring, mergers and other activities, while the original, single restructuring will be multiple directions. The expansion of the market mergers and acquisitions, but also for the majority of investors has brought an unprecedented level of new business opportunities. Shows that the circulation time, mergers and acquisitions, financing will become mainstream.

2,2 non-public offering increased
Non-public offering financing fast, low-cost financing. The permitted low barriers to market risk is small. From institutional investors, private placement can be a simple and low-cost way to participate in a high-growth company or industry, access to the profits of the high-speed development, general lock-up period, can then be carried out only in about a year's time circulation, the investment cycle short and will be very lucrative income. From the investment bank brokerage perspective. Class project cycle is short, high success rate, less resource, and therefore to be welcomed. Small investors, the greatest benefit of the non-public offering is the largest shareholder as well as the strength of the strong investor risk tolerance can be near the market, and even more than the market price for listed companies to transfer funds to minimize the small shareholders investment risk. Non-public offering to institutional investors, and there is a one-year lock-up period, the smaller the impact of stock price volatility, and at the same time as an innovative means of financing, to increase the price has a significant advantage of. Directed to issue to buy the assets to be able to solve the problem of insufficient assets acquired funds of listed companies, and to solve the difficult problem of simultaneously acquisition of listed companies with asset restructuring. Practice watching from home and abroad, private placement or private has been one of the highlights in the process of development of the securities market by major investment banks, many investors favor. Another private placement for listed companies to provide tools for reorganization of assets to a particular object, or the introduction of strategic investors and even allow new shareholders backdoor listing for acquisitions of listed companies restructuring in the context of full circulation of the "New World", and has become a mergers and acquisitions The reorganization of the major carriers. Since 2007, listed companies in the non-public offering more signs of accelerating. The 2,3 bond financing will gradually Active
In October 2005 the State Council approved the notice of the opinion of the Commission to improve the quality of listed companies "raised" to encourage listed companies to comply with the conditions of the issuance of corporate bonds. May 16, 2006, the issuance of securities of listed companies management approach promulgated appropriate to reduce the issuance of convertible bonds, according to the principle of the market price of issue of the convertible bonds issued by listed companies financial indicators, the upcoming current net assets yield requirements reduced from 10% to 6%, lowering the threshold for refinancing of listed companies. Relevant state support listed companies to broaden the channels for refinancing, actively trying to issue corporate bonds, convertible bonds and short-term financing bills. The rising volume of bond financing since 2006, another issue of convertible bonds of listed companies and investors is a win-win choice in circulation times.

2,4 asset securitization accelerate
The rapid development of the asset securitization may be an efficient, or be able to increase the enterprise value of the financing for enterprises, which are widely used. Famous bankruptcy isolate theory: asset securitization can greatly eliminate the risk of bankruptcy, to reduce the the investors credit risk and bankruptcy costs, and reduce the cost of financing advantage. Asset securitization can be a lack of liquidity and able to generate stable cash flow to meet the asset into the sale and circulation of securities in the financial markets, so that the capital requirements of the recipient with the future cash flows of the assets as the basis of credit through the issuance of securities to obtain direct financing. Asset securitization can improve asset liquidity and credit rating, improve the capacity of the original balance of interests to ease liquidity pressure, prosperous capital market, and promote innovative financing role. The benefits of having a high rate of return for shareholders, but also having to adjust the structure of bank balance and reduce the risk of the banking system, attract savings deposits transferred to the capital markets, to expand the capital market capacity and a series of advantages. A win-win situation of our listed companies involved in financial financing dilemma worthy of a cheap, efficient financing channels, can achieve the interests of enterprises and investors, China's capital markets continue to improve.
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