The Development Of Forestry Listed Companies Based On The Investment And Financing Theory

Although China has become one of the world’s major forest products production and consumption countries, but not the powerful forest industry country. The forestry enterprise development still faces a series of challenges: Forest resources foundation is still weak, the science and technology converting into the productivity are not high, the level of forestry mechanization is still lag behind in general, financing is difficult, and funds are shortage, which has become one of the bottleneck problems that restrict the development of the forestry enterprises. During the development of forestry industrialization, the insufficient funds are one of the main obstacles to its development. When the main body is under the condition of relatively weak, the capital market provides a promising platform for forestry industrialization. Capital market can promote the interest mechanism formation for the forestry enterprises based on the capital ligament, breakthrough the capital bottleneck in the industrialization, and improve the efficiency of resources allocation. Taking the Fujian forestry listed companies, Fujian Jinsen Forestry Company Limited and Yong’an Forestry(Group) Share Company Limited, as the cases, this paper discusses the investment and financing issues of forestry enterprises. The main conclusions are as followings:(1) Capital is the blood of enterprise operation. Whether the capital is normal circulation, decide the enterprise’s survival and development. Financing activities is an important part of enterprise capital management, and enterprise financing policy determines the enterprise’s capital structure. Small and medium-sized enterprises want to grow up completely in the reform of market economy in China. It is necessary to expand the financing channels, accumulate their own money, and at the same time finance through the stock right, bond and other legal methods.(2) Forestry industry not only directly affects the economic development, but also is related to the change of climate, ecological environment construction and people’s life quality. It has good development prospect. First, the national relevant financial and trade policies support for the development of forestry economic provides a solid foundation. Second, forest products export trade has become the driving force for China forestry economic development. Third, forestry enterprises can participate in carbon sequestration trade, and realize the forestry development capital benefits.(3) Capital market is one of the most important financing channels in collecting development funds for enterprises. The use of capital market financing is also a kind of resources optimizing allocation process, which not only can promote the effective utility of funds, but also can promote the economic development. Due to the particularity of the forestry industry, forestry investment and financing development face the shortage of national funding, the imbalance of forestry capital structure, the difficulties of forestry loaning and financing, the single channel of investment and financing, and so on. Forestry investment and financing are from national and local governments without return, from the forestry industrial investment funds, from guarantee system, from bank loans, from assets securitization financing, and so on. To promote the reform of forestry listed companies financing system, to perfect the financing platform construction should be perfected, the financing channels should be broadened, and rural financial reform should be promoted and the related laws and regulations on the forestry development should be perfected.(4) Finance is the core of modern economy. Perfect forestry financing mechanism is beneficial to reduce the forestry risk, improve forestry investment returns, and arouse the enthusiasm of forest property owner management. To Perfect forestry financing mechanism mainly include the followings: first, the forest right dynamic management should be strengthened, i.e. to stabilize and carry out the property rights, promote the forest property ownership registration and verification, speed up the certificate issuing process, and improve the forest property information unified management system. Second, the innovation of forestry operation and management system. The ecological public welfare forest red line should be strictly adhered to, forestry industry chain should be expanded, and the business mode should be changed from a single to pluralism development. Third, financial support should be increased. Forestry support policies should be well implemented, and the system of forest resources assets appraisal should be perfected. Fourth, the forestry service system should be perfected. Pay attention to the management main bodies, accelerate the construction of agencies, and promote forestry infrastructure construction.(5) Forestry production rotation is long, and investors tend to ignore its creative value ability. They are not willing to invest in the forestry market, thus the forestry company’s financing and reproduction are very difficult. Forestry enterprises should establish the ideal of the capital market, build perfect forestry financing support system, and use the securities markets, to develop forestry industry investment fund, guarantee system, and securitization financing. Especially, using the stock market to collect forestry development funds will become a new important way to promote China’s forestry industrialization further development.