The Financing Problem Research For Chinese Military Enterprises Under The Background Of Enterprises Transformation

Since the founding of new China, our country basically formed a militaryproduction system with which had relatively complete categories, sophisticatedtechnology, advanced equipment comparison and the ability to mass production.Military academy has made great contribution to supply security forces and equipment,safeguard state security and promote the development of national economy. However,with the deepening of the reform in our country and the acceleration transformation ofmarket economic system, the state-owned military academy growing up in the plannedeconomy with more and more disadvantages can not adapt to the requirement of marketeconomy. The transfer on military industrial research institutes are imperative,andfinancing problem is the conversion of the core issues. So it is important to research thefinancing problem under the background of the conversion of the military industriailwhich has both theoretical and realistic significance.Embarking from the military industrial research institutes development course inour country. Paper reviews the theoretical basis about military industrial institutesconversion and the financing, through comparing and analysis typical military industrialpower military financing model, which sums up the major foreign countries militaryenterprise financing experience, explores a financing way which adapt to the currentsituation and development needs of China’s military institutes.The main conclusions are as follows:1. As the most basic, the equity financing isone of the most efficient way of financing, will be the main financing way in the futureafter the conversion of military industrial institutes in China.Through equity financingat low cost, we can raise a lot of liquidity, support enterprise’s technological innovationand new product research and development, expand the scale of the enterprise.2.Thegovernment play the role in financing the conversion of the guide, including: perfect thepolicies and regulations, detailed supporting measures; Strengthening the governmentguide and regulatory functions; Cultivate and perfect intermediary institutions, etc.