Study On Beijing Listed Companies’ Financing Structure Problems And Its Solutions

Financing is the precondition for listed companies’ development. Listed companies deem Beijing as an emerging market, and have a very strong desire of financing. So they seize every opportunity of finance, i.e. issuing bonds, IPO, issuance and allotment. They specifically prefer equity financing. However, it is an inevitable topic that listed companies shall return to shareholders when they develop rapidly. Shareholders take the risk to invest on the enterprise and consequently take a share of dividend. This is a basic logic of listed companies and simple principle of the stock market. However, in Beijing, this basic logic is not well presented. Listed companies’ weigh financing over returning, resulting in higher risk of China’s securities investors and less of dividends. Stimulus policy not only benefits shareholder and company’s long-term development, but also related to the balance of interests between different groups of shareholders. It is critical to the long-term development of the stock market. Therefore, it is necessary to further study the causes of "high financing, low return". This article starts with the listed companies’ financing and rewards, and applies both qualitative and quantitative analysis. Summarizing cases of listed companies’ financing and returns, the article analyze factors of “high financing, low return”. It is concluded with suggestions and conclusions to promote sound development of Chinese stock market.