Research On The Optimizing Capital Structure Of China Metallurgical Group Corporation

Since the reform and opening, China continues to improve the status in the world economy. With the reform and development of the China’s capital markets and the gradual improvement of economic system, the construction industry’s Pillar position in the national economy continues to strengthen and the healthy and steady development of upstream and downstream related industries has been boosting in a certain degree. In recent years, "the Silk Road Economic Belt and the 21st-Century Maritime Silk Road"; the integrated region of Beijing, Tianjin and Hebei; the Yangtze River economic belt three strategies continue to advance the field of infrastructure and public services, producer services, strategic emerging industries which are in the construction industry to provide a broad space for development. At the same time in the context of the reform of state-owned enterprises, in order to respond to market demand, to help the construction industry transformation and upgrading, to improve construction enterprises’capital efficiency, to achieve optimal allocation of resources, to develop construction enterprises healthily and steadily, to maximize enterprise value,optimizing the capital structure has a crucial importance in the company’s capital structure optimization.In order to dynamically optimize the capital structure of China Metallurgical Group Corporation, this paper reviews the classical theory of capital structure, bases on existing domestic and international capital structure dynamic optimization studies and applies a combination of theoretical analysis and case studies. First of all, this paper theoretically analyze external macro factors influencing the company’s capital structure and microstructure company management factors, and then text correlation detection of sample data in the construction industry, at last propose the strategy that dynamic optimization the optimal level of capital structure in static; presented to dynamic optimization level static optimal capital structure strategy. Secondly, under the analysis of the situation in the construction industry and the capital structure of MCC, this paper based on the counting of optimal capital structure, analyzing factors and dynamic adjusting optimal capital structure in static to get the target capital structure interval of MCC. Finally, comparing the present capital structure and the target capital structure interval of MCC, this paper get the corresponding specific strategies to optimize the capital structure of MCC.This paper through adopting China Metallurgical Group as representatives of the construction industry and the analysis of capital structure of the listed construction companies to provide reference to optimize the capital structure of the industry and to advise on capital structure optimization strategy.