J Company Financing Strategy Innovation Research

J company is a state-owned enterprise in charge of major projects and infrastructure such as roads, and bank lending has been a major and only one financing channel for a long time. How to get more effective financing channels, improve capital efficiency, reduce financing costs and better serve the local and regional economic development, which has been a matter of concern to management team.Based on the analysis of current situation of J company on the aspects of corporate finance, financial condition and financing conditions and making comparison among five kinds of financing options as bank loans, corporate bonds, debt financing, asset securitization, equity financing, this paper proposes medium-term notes(MTN), commercial paper(CP), and asset-backed securities(ABS) for J company as innovative application of financing tools, and combined strategy, internet strategy and market-oriented financing strategy as innovation of strategy.The major innovation points of the paper are as follows:1. The proposed innovative applications of financing tools and financing strategy have never been applied for J company;2. This paper propose a method to make assessment of different financing schemes by assignment analysis through 7 aspects: cost of financing, debt maturity, financing scale,financing threshold, the flexibility of the use of funds, personnel requirements and market discipline, as well as a method to conparing the cost of MTN and bank loan.3. The proposed combination of Internet technology and financial engineering technology, to develop the design more structured financial product for the Internet customer base.Research results show that it will be helpful for J company to adapt to economic and financial technology and market trend, and take actions as changing from the previous indirect financing to direct and indirect financing combination; from the previous single banking channel, to diversified channels of banking, insurance and brokerage; from simple credit to more flexible, more diverse forms of medium-term notes, corporate bonds,asset-backed securities and asset management plans, etc. The infrastructure financing practice of J company have same reference value to other state-owned enterprises. By more attractive structured financial products for the majority of investors with the application ofInternet technology, the financing needs of the enterprise and a variety of different investment needs from the community could be better served with increased financial assets fluidity, reduced the systemic risk, win-win and maximized benefits.