Research On The Flow And Effect Of Kelun Pharmaceutical's Over-raised Funds

The GEM market "NASDAQ of Chinese style" was formally launched on October 30 th,2009.Twenty-eight companies of firstly approved batch was listed on the GEM market in the train of aggravation of IPO over-raising.In fact,the phenomenon of super-financing occured not only on the ChiNext,moreover,over-financing at different degrees also arose on the Main-Board and the SME Board market.The original intention of companys getting public is the rapid development and growth of the company.Therefore,the over-raising problem itself has more advantages than disadvantages to the company's growth.Funds raised for the scheme can be put into the expected project.In addition,the excess funds can be transferred to other projects or research of new technologies,further bringing greater benefits to the company.However,serious over-raising will bring a lot of harm to the capital market.Due to the lack of specific and explicit supervision and control system for the lack of over-raised funds in the capital market by the China Securities Regulatory Commission and related departments,a large number of over-raised funds are underinvestment,over-investment,and even the existence of bank deposits,resulting in a large amount of capital wasted on capital.The normal and stable development of the market presents great challenges.However,serious over-raising will bring a lot of harm to the capital market.Due to the lack of specific and explicit supervision and control system for over-raised funds in the capital market by the China Securities Regulatory Commission and related departments,a large number of over-raised funds are underinvestment,over-investment,and even result in the existence of bank deposits,with a large amount of capital wasted,which presents great challenges to the normal and stable development of the capital market.Experts and scholars have conducted some research on the efficiency of our country's capital market over-raised funds investment.However,up to now,there have been few in-depth case studies on the use and management of super-raised funds by listed companies in China.This article takes Kelun Pharmaceuticals listed on the SME Board in June 2010 as an example to conduct in-depth research and analysis of the flow and use efficiency of Kelun Pharmaceutical's over-raised funds to provideexperience for the use and management of other listed companies' over-raised funds.At the same time,the study on the flow and use efficiency of over-raised funds will also help improve relevant policies and regulations,regulate the financing behavior of listed companies,and promote the sustainable development of the capital market.The article is divided into five chapters in the structure,including: the first chapter is the introduction;the second chapter is an overview of relevant theories;the third chapter is the case analysis of Kelun Pharmaceutical's over-raised funds;Chapter 4 is the enlightenment and proposed countermeasures about the case;Chapter 5 is the conclusion and prospect of this study.The article proposes corresponding solutions in response to the inadequacies in the use and efficiency of super-raised funds of Kelun pharmaceutical industry.Firstly,it strengthens the fund management system to use the company's over-raised funds in a more standardized manner.Secondly,it broadens the use of funds.The way of channels is to make super-raised funds more efficient for the company to bring development momentum.Thirdly,it develops a more reasonable and more rigorous project investment program to avoid the loss of finance,human and material caused by blind investment.Finally,it should timely disclose super-raised Information on the use of funds to ensure the stable and healthy development of the company.The government and investors should also take effective measures to regulate the market mechanism and cultivate the quality of rational investment except the enterprise itself.Only when many parties work together can China's capital market develop in a more healthy,stable,and orderly manner.The research methods of capital investment and efficiency used in this paper can be used for reference to evaluate the flow and effiency of funds raised by companies,which has certain guiding significance for guiding enterprises to use over-raised funds efficiently as well.