China's Listed Companies Financing Research

The financing of listed companies is a general and complicated problem. Because the shortage of fund is a generally financial problem faced to the listed companies in China. The financing is not only a kind of appearance, but also a profound and complicated problem of structure. The capital structure is made up of debt financing and equity financing. There brings the deeper problems, such as preference of equity financing, ownership structure and the market of creditors. To such a complicated logical structure, I study it in the empirical and normal, analytic and reasonable ways.There are many problems in the listed companies in China, such as an obvious preference of equity financing, the complication and focuses of ownership, The ratio of shares of the Country and corporations is very high. The ratio of shares which can't circulate is very high, too. At the same time, the size of the market of creditors is very small, and the ways of debt financing is very limited.There are two kinds of factors to influent the capital structure of listed companies in China's young capital market. The first can be described as system factors, such as structure of ownership, the structure of stockholders, and incentive mechanisms, etc. The other can be concluded as non-system factors, known as the growth cycle of industry, degree of market competence, even the market of control rights and creditors and so forth. The defects of corporation governance, the low cost of equity financing, the flaws of controlling by inner persons, asymmetric information and policy trend lead to obvious preference of equity financing. According to the problems, reasons and rooted influential factors, I give some helpful advice correspondingly to improve the capital structure in the listed companies in China and to improve the market of creditors in China. The former consists of to increase the circulation of stock market, to prevent big shareholders from collaborating, to create effective incentive mechanism, and to choose the appropriate capital structure according to the separate degree of market competence. The later consists of to create sincere environment, to enhance the execution of courts, to improve the laws of bankrupt and corporation, to improve the notes market, to blaze new trails of bonds market, to raise the organization investors and to issue the convertible bonds.