The Research About External Refinancing Preference Of Listed Companies In China

Due to the late development of the capital market in our country, our financing tools are limited. Since then, our scholars consider the public companies in our country "Equity refinancing preferable". They regarded that public companies in China have a strong preference in equity financing while they are trying to refinance. In recent years, as the reform of Equity Division completed, China’s/capital market develops rapidly. As a result, there is a diversify of the financing tools and the country’s public companies shows different kinds of refinancing. Apart from the equity refinancing ways such as allotment of shares and additional shares offering, the managers also introduce debt refinancing ways like:Convertible Bond, Bond with attached warrant and Debenture. Compared with the equity refinancing, the debt refinancing shows more advantages and more attactions. And the debt refinancing is better for the management of a public company. Besides, China’s stocking market crashed due to the infulence of financil crises happened in2008in United States, it brings negtive effect to the public company, too. The lasted data shows that, our country’s public company has decreased the preference of equity refinaning. Changes of refinancing strategy has began. So, it is neccesary for us to take a research of theory of public company refinancing preference in China, especially the strategy of refinancing in pulic company has been changed.This article redefines a concept of public company refinancing in the conclusion of previous research. We consider that a public company refinacing should not conclude IPO. Select A-share non-financial listed companies in China as the research object, and we limit the researching rang within the external refinancing. Collect datas of China’s A-share non-financial lised companies refinancing in recent10years and analyse the datas througl statistics and comparision. Finanlly, we draw a conclusion that, thinking over all the refinancing methods, basing on either the behaviors or the result of refinancing, the A-share non-financial public companies in China are no longer equity refinancing preferable. Basing on the theory and pratical research, we found that the internal management of a compay is less important in external refinancing preference, while the external elements such as changes of marketing environment, the behaviour of the investor, the raising of bond market, the policies are more important. In view of this, the article provides some advisers for the refinancing as well as the financing strategy optimization of public companies in China and improvement of China’s capital market.