The Financing Research Of Huatai Electric Power Co., Ltd.

With the rapid incensement of electricity demand and deepening of power industry reform, both power grid company and generation company are faced with competition as the independent market entity and a corporate body under the government's macro control and market regulation.Under the new competition environment, as a capital intensive industry, power industry needs substantive financial support for its survival and development.Therefore, how to raise the capital for development and constantly improve the financing capability become a generally observed question for utility industry.The huge capital demand greatly challenges the financing structure and capability. The power company will confront with huge financial risk if it cannot resolve the financing problem. Under this background, it is important to study the financing patterns by various channels.Huatai power company is a large Stated Owned Enterprise (SOE) which engages in the construct and development of power source.Huatai needs to be put into about 44 billion RMB for power plant development during 2004-2010 after earlier calculate.Based on the research of international and domestic development tendency and according to the status quo and capital demand of Huatai, this paper analysis Huatai's financing environment from both macro and micro aspect, present the practical, exercisable basic financing method of Huatai for the several future years after considering the main problems and conditions. Also the paper initially probes into the optimization of commonly used financing approach and design of innovative financing approach of Huatai.This paper presents some innovative and constructive ideas for the Huatai's financing approaches through the analysis and investigate the relevant data via the analysis document, summarize and combining theory and practice and referring the theory of economics, business administration.