Financing Case Analysis Of Super & Short-term Commercial Paper Of JXGS Highway Investment Group

In recent years,non-financial enterprises Super & Short-term Commercial Paper(SCP)financing has become a hot spot.As a innovative product of direct financing,SCP has the characteristics of short duration,high efficiency,large amount,and so on.It provides convenience for the enterprise which has short-term funding needs and plays an important role in the capital market of our country.As the first local enterprise of issuing SCP,JXGS Highway Investment Group actively follow-up the national policy,with the help of many years of the bond market financing experience,prepared for SCP financing early.After SCP issuing conditions had be released,JXGS Highway Investment Group applied for the registration of SCP in the first time.December 2013,JXGS Highway Investment Group issued the first phase of SCP,scale of 600 million yuan;During 2014 — 2016,it has respectively issued 8phases,20 phases,1phase successively,the amount respectively accumulated 6 billion and 800 million yuan,21 billion and 600 million yuan,1 billion yuan.By SCP financing,JXGS Highway Investment Group not only has solved its capital demand,but also has had good market effectiveness and had a certain impact in the same industry and the domestic capital market.In this paper,the selection of JXGS Highway Investment Group SCP financing case has some typicality.The paper summarizes the successful experience of issuing SCP,and draws enlightenment,which can provide reference for other enterprises to issue SCP,so the research has a certain practical significance.There is no foreign research on SCP specifically and the research on SCP in China is relatively small.This paper is devoted to the study of SCP financing,which has a certain academic significance.In this paper,the author uses the methods of literature study,case study and chart analysis.Firstly,this paper gives literature review on the issue of expressway financing models,motivation of issuing SCP,the choice of benchmark interest rate and credit spreads and pricing problem.Secondly,theoretical overview of SCP consists of four aspects,which are conception and issuing regulations of SCP,advantages and disadvantages of SCP financing,risks of SCP,theoretical basis of financing choice.In the case analysis part,this paper has a overview of issuing SCP of JXGS Highway Investment Group from the general situation,background and the leading edge.Issuing SCP of JXGS Highway Investment Group,which has the characteristics of large scale,many times and great influence on the industry,has relatively significant effectiveness.This paper analyzes the effectiveness of SCPfinancing of JXGS Highway Investment Group from three aspects: financial effectiveness,societal effectiveness,corporate governance effectiveness.In terms of financial effectiveness,SCP financing has obvious impacts on the asset liquidity,capital structure,financing cost and cash flow of JXGS Highway Investment Group.In terms of societal effectiveness,SCP financing increases market investment varieties and meets the diversified investment needs of investors;aggravates interest rate marketization and boosts related banking business model transformation;reduces the concentration of related banks credit risk and saves credit resources;at the same time,enhances enterprise image and becomes the industry benchmark.In terms of corporate governance effectiveness,SCP financing strengthens incentives and constraints of company management;further promotes the high attention to financial management of the group executives;promotes the company to strengthen the construction of the financial audit team;promotes financial management refinement.In the last part of this paper,the author analyzes the experience of the JXGS Highway Investment Group of issuing SCP and draws the relevant enlightenment.JXGS Highway Investment Group follows-up the national policy actively to create conditions for financing;chooses the issuing opportunity and scale reasonably to get the best issuing rate and with the help of many years of experience in financing to accelerate the financing process.From the successful case of JXGS Highway Investment Group of issuing SCP,we can know that good financial team building help enterprises to obtain financing opportunities in a timely manner;issuing qualification is the basic condition for issuing SCP;designing SCP reasonably is the key to successful issuance.Therefore,other companies can learn from the experience of JXGS Highway Investment Group to provide a new channel for corporate financing.