Research On The Optimization Of Capital Structure Of HB Coal Inc

As an important resource of our nation's economic product, the development of coal industry promoted huge effect on Chinese economy. In recent years, because of the global depression, the rate of our nation's economic growth was slow, and because of the industrial structure adjustment, the demand of electricity for coal declined, which made the coal market low. The many kinds of emerging energy caused the global price of coal slumping. The foreign country dumped coal to domestic market, which caused coal market oversupplied, making the golden age of coal industry changed a lot. The price of coal kept slumping; the listed companies of the whole industry were facing a lot of difficulties.In the context of sustainable economic development, we need the joint efforts of many ways to make the coal enterprise going concern, break through and to enhance competitiveness. As a basic constitution and operation of an enterprise, capital structure is assignable. It's a bridge to link the owner, operator, investor, creditor and so on.This article used the pre-IPO HB coal and electric Co. Ltd. as the researched object, began with commenting the research results of the capital structure and prioritization scheme made by the Chinese and overseas scholars further analyzed the necessity of optimizing the capital structure. Next this article analyzed this company's capital structure, ownership structure, financing channels, the relation of cost of capital to performance, and compared with the competitors. And then considering the influence of capital structure, this article offer a proposal to optimize the capital structure of the HB coal and electricity Co. Ltd.