Chinese Telecom Companies Financing Model Strategic Choice

The telecommunication industry is one of the current industries with the fastest developing speed of our country, has exceeded the developing speed of national economy for 15 years in succession, has already become the guide industry with important national economy and basic industry, has produced more and more obvious marked effects in creating social wealth and bringing out the economic growth of other industries, has already become the indispensable factor in people' s daily life. With the deepening of China' s reform and opening-up and China' s entry into WTO, the operational system of telecommunication industries is developing constantly too. Because the market competition is becoming fiercer, which the importance of the capital is displaying day by day, the capital becomes the key factor in restricting every telecommunication operation, and therefore, financing becomes the topic that the Chinese telecommunication industry can' t avoid. This thesis will give you a brief introduction about the operational characteristic of Chinese telecommunication, and the characteristic of telecommunication industry financing. Also, make a brief introduction about the financing environment which related to telecommunication enterprise, mainly introduce the influence on the telecommunication financing that products and enterprise cycle make, the relationship between international capital market and telecommunication financing, and the Pros and Cons to the telecommunication financing because of China' s entry into WTO and the import of foreign capital, and this thesis will review four stages of historical gradual progress of financing of operational field of China Communication, namely, government investment is the stage of the main fact; the preferential policy is the stage of the main fact; it is the stage of a main fact that the preferential policy is added to the financing indirectly; the preferential policy is cancelled; and give priority to indirect financing as well as try many kinds of financing way. Also will brief introduce, analyses and appraisesimple introduction correlates with endogenous financing. Two kinds of more foreign typical financing modes, namely, stock market financing mode which represented by Great Britain and America and bank financing mode represented by Japan and Germany, and will analyze and discuss the insufficiency of financial mode of our country presently, as well as the relevant factor of mode selection which affect telecommunication financing. Firstly, the selection of financing mode; Secondly, the issues of matching with the national economy development level and trade characteristic, trade developing stage: Thirdly, matching with the degree of domestic capital market; Finally, put forward the suggestions and projects on the program of financing mode of our country's telecommunication operation. It's good to develop the direct financing and rely mainly on stock financing, strengthen the weight of bond financing progressively, form the financing order of" endogenous financing-creditor's fights financing-stock financing" and eventually form the financing mode of many kinds of financing way coexist, and how to choose the financing way of each stage it carries on the comparatively concrete suggestion.