Private Enterprises Listing And Financing Scheme Selection Of Countermeasures

Since China’s reform and opening up, private enterprises have become a new force of China’s economic development. Because of the limited scale of development and cash flow, most enterprises have seldom interest in the stock market. With the rapid development of Chinese economy, the private enterprises have now finished primitive accumulation, enterprise dimensions expands gradually; There is an urgent need for their listing and financing. As these private enterprises are yet in the developing and the second reforming stage, the corporate governance is inappropriate, lack of internal control system, and with internal financing and indirect financing capital structure problem. The above bottlenecks restrict the expansion of the private enterprise and sustainable development.Along with our country stock issuance conditions and audit system evolution and improvement, private enterprises’listing policy gradually relaxed, it is a great attraction to get money, improve an enterprise’s branding and raise stock liquidity through listing. It has been proved by a large number of practice that private listing is helpful to solve the financing problems of private enterprises and beneficial changes in corporate governance defects; less so, private enterprises with capital market operation is beneficial to improve the core competitiveness of enterprises, to accelerate the adjustment of regional industrial structure, capital market and resource optimize configuration. Therefore, no matter from the Chinese stock market itself, or from the economic development level, it is needed to encourage more private enterprises to be on the market. It is quite necessary for them to explore a suitable for private enterprises financing mode, and "forced" norms of private enterprises internal management.This paper present a case analysis on HJ Inc.’s listing plan, concretely analyzed its operating status and financing demand, public choice and the problems encountered during joint-stock restructuring and listing and its corresponding countermeasures. Also, here we have researched the significance and the function as well as the corresponding listing financing strategies from internal and external aspects of listed private enterprises’listing and financing countermeasures.