Hongdu Aviation Listed Companies, Capital Financing Structure Reform Practice Research

As a major part of the reform of the capital financing system of China's state-owned enterprises (SOEs), the reform of the capital financing structure signifies a trend of the reform of the country's SOEs and microscopically reflects market's role in resources allocation.In light of experiences of the reform of the capital financing structure of China's aviation industry enterprises and the modern theories of the capital financing structure of enterprises and financial management as well as some other theories, with a combined approach of normativism and positivism, the author analyzes the reform of the equity capital financing and debt capital financing structures of the Jiangxi Hongdu Aviation Industrial Shareholding Co., Ltd. (Hongdu Aviation) and finds out that the company has made much headway in the reform of its reform of the capital financing system. At the same time the author diagnoses the Hongdu Aviation's strong partiality for equity capital financing and lack of debt capital financing, low capital profitability and efficiency of capital utilization, inadequateness in its corporate governing structure and unimproved revenues.Hence the author suggests that the company decentralizes its equity to big proportions, promotes the circulation of its property right and increases debt capital for its sustainable, fast and healthy development.