The Study On Financial Project Of Gansu Provincial Highway Aviation Tourism Investment Group Co.; Ltd

Nationwide infrastructure construction in a large-scale arises resulting from the Twelfth Five-Year Plan, offering a favorable opportunity to the highway construction enterprises; however the enterprises are still facing a challenge that lending quota in financing institutions is unceasingly reducing as the People’s Bank of China has consecutively increased reserve requirement ratios for5times since the year of2011. Therefore, a highway construction enterprise has to expand and so as to diversify its financing channels to break through. This paper is to establish a debt financing model and study debt financing decision-making against highway construction industry using the transaction cost and pecking order theories as theoretical basis, finally provide scientific and reasonable solution for financing decision making against highway construction.This paper takes the Gansu Provincial Highway Aviation Tourism Investment Group Co., Ltd.(GHATG) as the object of study. Firstly, it presents the corresponding financing theories, including transaction cost and pecking order theories, to establish a solid theory basement for the systematic and scientific financing model-setting, and gives an overview on the financing channels for and the current financing state of highway construction enterprises. Secondly, analyzes the GHATG’ financing state, presenting its development history, current financial and financing conditions and its chock points in financing; subsequently, proposes various financing solutions under the guidance of financing target and principles, and select appropriate ones for GHATG after comprehensively comparing and analyzing based on the cost model, which is built by utilizing the transaction cost and pecking order theories. Finally, proposes proper risk prevention actions after studying and analyzing the risk posing by the solutions selected, and ensures the feasibility of the solutions, so as to provide the decision makers at all levels with the necessary and valuable information, consequently lays a foundation for the fund-raising for infrastructure construction required by the provincial Party committee within the scope of Twelfth Five-Year Plan.