The Financing Behavior Of State-owned Enterprises In China - Based On System Analysis

Enterprise financing belongs to the category of Corporate Financing. But Chinese state-owned enterprise financing seems beyond this category. Under the planned economy, there was hardly any enterprise by its original definition in China. Capital was supplied by government. State-owned enterprises had no freedom to choose methods of financing. So there was no need to study enterprise financing.With the deepening of the reform of economic system, the financing system of Chinese state-owned enterprises is changing too. Being contrary to the theory of enterprise financing in market economy, the current situation is the listed state-owned enterprises have a strong preference for the equity financing while the unlisted ones rely on the loan from the banks, especially the state-owned banks.Combining positive analysis and normative analysis , my thesis has tried to analyze the institutional reasons behind the unreasonable status within the analytic framework of institutional economics. The institutions are the rules of people' s behaviors. To change the unreasonable status, we must change people' s behaviors. And to change people' s behaviors, we must change the institutions which lead to the behaviors. Basing on this analysis, my thesis puts forward some measures and advices, for example, reforming of state-owned enterprise, reforming of state-owned commercial banks, improving Corporate Governance, strengthening the capital market supervision, and so on.