Corporate Debt Financing Behavior Under Refinancing And Reduction Of New Regulations

In the first half of 2017,with the successive promulgation of the New Refinancing Regulations and New Reduction Regulations by CSRC,the pricing mechanism for non-public offerings of listed companies was revised and the behavior of the shareholders and supervisors through the reduction of quotas was under tougher supervision.As a result,the private placement market has been hit unprecedentedly,and the debt financing market has received unprecedented attention.The refinancing preference of listed companies has thus changed.The phenomenon of "heavy stock light debts" has reversed.The introduction of New Refinancing Regulations and New Reduction Regulations is major changes in Chinese capital market.The existing research on corporate financing behavior has not yet considered the impact of the two new regulations.This article takes advantage of the timeliness of the two new regulations and selects FPT as a case study object.Through analyzing the debt financing behavior of FPT's public issuance of corporate bonds in 2017,it is discovered that the current debt financing behavior of FPT originates from New Refinancing Regulations and New Reduction Regulations.The promulgation of the new regulations also coincided with the upward trend in loan interest rates,which led them to abandon the method of financing targeted issuance and bank loans,and eventually chose to issue bonds,and secretly repay debts in the name of supplementary liquidity,in order to achieve an improved debt structure.Ease the effect of short-term debt repayment pressure.FPT debt financing behavior is opportunistic behavior,resulting in the economic consequences of the mismatch of resources,while the introduction of New Refinancing Regulations and New Reduction Regulations is precisely to achieve a reasonable allocation of social resources.Therefore,the China Securities Regulatory Commission did not realize its original intention of introducing New Refinancing Regulations and New Reduction Regulations.To this end,it proposed to improve the relevant provisions of the use of raised funds,strengthen the disclosure requirements for the use of funds raised,and carefully approve the three points of change in the use of funds raised.