Analysis Of Tunneling In Refinancing Of Listed Company

With the progressive development and improvement of China’s market economy,more and more enterprises listed in the stock market, Today, enterprise’s stock marketvalue has become the representation of the operating and investment value of listedenterprises. Refinancing of listed companies in China have gone through from mainly fordebt financing, debt financing and equity financing, and until now more companiesprefer equity financing.In2010, China began to implement the new regulatory standards set out in <TheBasel Accord>, raised a higher regulatory on commercial banks ’ capital adequacy ratios,which caused a new round of China’s listed commercial banks refinancing wave, as amember of China’s listed commercial banks, CMBC chose to refinance at the beginningof2011.This article includes a refinancing of the CMBC case studies, analyse the relatedproblems in the case, and made appropriate suggestions. In the first part of the article,describes the research background and study overview about this document andexplained the research methods and innovative points of the article.Chapter I is the case study, introduced the background of the case, includingrefinancing market stage and it’s development in China, analyse the reasons for Chineselisted company refinancing generally prefer equity financing. After the description of thecurrent state of the industry, is for programme determines procedures for specificpresentations, and describes the implementation of the final solution, provides an analysisof the applicability and impact of the programme.Next, in chapter II, mainly analyse theproblem of tunneling in the case, introduced the issue of tunneling, in the process, withthe private placement programmes of CMBC and comparing successful privateplacement of the2010Bank and visually see the Bank refinancing issues privateplacement programme. In the third part of this article, for bank financing in the event ofthe corresponding proposals on two issues, including curbing the tunneling of interests inthe private placement and optimization commercial bank capital opitimization.