Research On The Status And Strategy Of China's Private Enterprises Listing Financing

Currently, the private companies in china are developing dramatically and have come an essential component of the national economy. However, as for plenty of private companies at the initial stage, it is pretty difficult for them to obtain the necessary capital due to narrow financing channels. The capital structure of the private company that mainly consists of internal financing and intermediate financing has hampered the private companies from further development. Therefore, looking for an effective means of financing suitable for the private company has become imperative and timely.Along with the gradual opening of the national policies on the IPO (initial public offering) of the private company, it hasn't already been a fantasy for the private company to achieve IPO. IPO is profoundly appealing to the private companies since it will help them raise capital, promote reputation and increase the ability of liquidity. Consequently, it has become the irresistible choice for the private companies, especially for them with difficulties of cash flow. Myriad experiences have proven that IPO of the private companies is of great benefit to not only solve their concerns of financing but also offset their deficiencies of management. In addition, capital market will enable the private companies to enhance their core competitive advantages, the regional industrial structures to be adjusted acceleratively, and the resources of the capital market to be allocated efficiently. Accordingly, whether for improving the China's stock market itself, or for developing the economy as a whole, it is necessary to impel more and more private companies to achieve IPO.By theoretic analysis, this article focuses on the phenomenon that more and more private companies are financing through IPO, based on the related concepts and principles, probing into the significances, the influences as well as the strategies of the IPO in terms of the private company. Moreover, this article analyzes in depth by means of the case of HW group planning the IPO, analyzing in detail its current business situation and financing requirement, its restructuring process, the alternatives of IPO, and the issues and solutions met during the investigations related to IPO. Eventually, this article will contribute to the strategies to address the financing issues of the private companies achieving the IPO, from the multiple perspectives internally and externally.