Financing Methods Of Engineering Construction Companies

The short of fund is just like the "bottleneck",which restricts further development of an enterprise.Actually,unitary financing method is the main reason that causes the short of fund.China Railway X Group Corporation(CRXC)is one of bureau-level groups under China Railway Engineering Group Corporation.The main business of CRXC is engineering construction,such as railway construction,road construction and bridge construction,which is typical in construction industry.The paper chooses CRXC as the object of study,and it plays the main role to research the financing methods of the entire construction industry.The paper begins with introduction,and describes the backgrounds,significance, motivation and object of study concisely.It explains a few concepts,such as "financing", "financing methods" and "engineering construction industry" and reviews some financing theories,which include MM theory,Balance theory,Pecking order theory,and Asymmetric information theory.On the basis of financing theories,it introduces some financing methods of engineering construction industry in China,which are equity financing method,debt financing method and unique financing method for engineering construction industry.It highlights equity financing method,project financing method and leasing financing method.The paper takes CRXC as a case,and analyses its financial condition and capital structure by ways of ratio and trend analysis.The fact is that the ratio of assets to debts is very high,because CRXC depends on loan from bank only.According to the analysis of CRXC's actual financial condition and capital structure,and combining with the advantage in the aspect of financing environment, cost and risk,I suggest that CRXC should select the financing method- IPO on SSE (Shanghai Stock Exchange)A share.