A Research On The Supply Of Financial Markets And Equity Financing Preference Of Listed Companies

China's listed companies strongly preferred to equity financing, which can be observed directly by a great deal of phenomenon. Thought summarizing and absorbing the relevant achievements in the research field, we find that these explanations cannot well explain such a phenomenon. The reason lies in the inappropriate point of the research. In the paper, we explore the facts which effect the financing choice of enterprise based on the modern financing theory and also analyzes the supply of banking credit markets, corporate bonds markets and stock markets in China, finding that there are both restrain and incentive internal mechanism. And these could affect the choice of financing and equity financing preference in our listed companies. But we don't take it for granted that we should take some restrain measures to control the equity financing preference. The key point is to develop and perfect Chinese financial markets and go to length to make the listed companies have enough room to choose when financing. Thus we put forward some suggestions.