Financing Strategy Of The Sporting Goods Business In The Mainland Of China Research

While 2008 Beijing Olympic Games is coming, it brings a very rare opportunity to all sports goods companies in China. Facing and preparing to seize this expanding opportunities, the sports good companies is deeply limited to develop by the factor of corporate financing, not only the traditional financing channel of bank is very strait and difficult, but also the internal financing can't meet with the fund demands required from business development. In this situation, how to solve this problem of the bottleneck restrictions of fund shortage?It happed that many sports goods companies from the mainland of China were financing under the modes of Private Placement and Public Offering these years, such as Lining company, Anta company, China Dongxiang company and etc., especially in 2007,two sports goods companies succeeded in listing in stock market in Hong Kong, it seems that the tideway of Public Offering is coming.Whether the financing what based on the modes of Private Placement and Public Offering on the capital market, is the new trend for the sports goods companies in the status of lacking fund or not? Whether the company should implement Private Placement before Public Offering, or not? Whether the companies should list in oversea stock market?This article was began the analysis of the financing theories first, summarized the theories of western Capital Structure and finance order, analyzed the reference value and restriction in practice for the sports goods companies. At the same time, on the basis of the presentation and analysis on four financing cases of the listed sports goods companies, it summed up the actuality that the sports goods companies in China chose the Equity Financing Preference. In fact, this actuality is against western classic financing theory of the Pecking Order Theory, is it the certain choice or random phenomena? The problem bought on the further analysis on the financing value from Private Placement and Public Offering to the sports goods companies in latter charts.The value of Private Placement and Public Offering was the emphases of analysis from the two sides of finance and non-finance in this article. The data of four public sports goods companies strongly supported and effectively certified the value and benefit from the two financing models for the sports goods companies, pointed out the shortage and weakness, made some suggestions for implementation. After analyzing the contribution of Private Placement and Public Offering completely and objectively, it proved the importance of the financing in Chinese sports goods companies from the practice side. During the Public Offering presentation, it was expatiated on the reason of listing in oversea stock market, the course and feasibility that Hong Kong is regarded as the first choice of the listing location.Summarized all analysis in this article, finally it presented the proposal of financing strategy for all sports goods companies, encouraged them to carry out the financing model of 'Private placement first, then Public Offering', provided some executive advice, guided them to establish the optimal financing strategy to maximize the financing value.