Financing Plan And Risk Control Of The Changsha Pilot Investment Holdings’ Company Yang Hu Yuan Project

The Chinese government has tightened the supply of money and land since2009,so the companies that focus on the regional development and public utilities suffer thepanic of financing difficulties. In this article, we innovate the company’s financingstrategy by combine the Changsha Pilot Investment Holdings’ strategic positioning,business model, capital demand and its own experience.We introduce the financing condition of the regional development and recall themain research results of the regional development’s financing mode. However, as theglobal economic chops and changes fantasticality, we have to explore the new andmore efficient financing mode for the regional development.By summering thefinancing advantages of TEDA Investment Holding and Shanghai jinqiao Groupcompany, we find that they are good at financing diversity、setting up financialdevelopment platform and building circular economic system.We compare thedifference among land financing、bank financing and non-bank financing. We alsoanalysis the Corporate bonds、Medium Term Note、Trust、Equity Fund、 AssetSecuritization、Project finance and IPO by using the cases respectively. All these enrichthe CPIH’s financing methods.Though a thorough analysis of the CPIH’s finance cases,we find out how the CPIH designs an unique umbellate trust products and finances4billion RMB by using its particular policy advantages、market advantages and trustfinancial platform advantages. The most outstanding feature of the cases is the kind ofpreferred stock financing. In this way, the issuer not only optimizes the financestructure, avoids the over debt, but also improves the company’s credit level; but alsomaked the company full enjoyment of "interest tax shield" benefit in the protection ofnon-diluted earnings and management rights.As mentioned above, we conclude that the CPIH makes great effort on integratingthe equity financing and debt financing、combining the government investment andNongovernmental financing、setting up multilayer financing system and buildingcircular economic system.