A Case Study On The Financing Of Preferred Stock-based On Kangmei Pharmaceutical Co.,Ltd.

The preferred stock is an important financial instrument in the world.In the 30 s of last century,the developed countries such as the United States and Great Britain began to use preferred stock,which not only provided stable funds for enterprises,but also provided diversified choices for investors with different risk preferences.According to the experience of the developed countries,the priority shares indeed contribute to the effective role of the different stages of social development.Compared to the United Kingdom,preferred shares started late in Chinese.In the last century at the beginning of 80 s in China,China promulgated the Opinions Provisions of the Limited by Share Ltd and standardized the preferred stock of basic rights of way.However,the Companies Act did not mention the application of preferred stock,our country's enterprises and investors are gradually forgotten.Until the second half of 2013,the State Council issued a document concerning the development of The Guidelines for Pilot Projects for Preferred Shares,the Measures for Pilot Projects for Preferred Shares in 2014 began to push for preferred stocks,and preferred stocks can return to the embrace of Chinese corporate investors.Preferred shares have formed a relatively mature system in western developed countries,and China is still at the initial step.Equity financing is still mainly in the form of equity refinancing and other forms of equity refinancing.China's preferred shares are more prevalent in commercial banks,and in the non-banking industry,the preferred stock financing model has not been widely used.China's listed companies may still lack a deep understanding of the preferred stock financing model.The research on the system of preferred shares and the literature on the study of preferred stocks using banks as a case study are relatively abundant,but the study of preferred stocks in non-financial listed companies in the form of cases is still relatively less.This aricle analyzes the case of the financing of preferred stocks by Kangmei Pharmaceuticals.It provides a certain basis for the evaluation of case companies when they select preferred stocks as a financing tool.Then it analyzes the influence of preferred stock financing on the case companies.Finally,it analyzes the other possible effects of KangmeiPharmaceutical in this priority stock financing.I hope to provide some valuable theoretical significance for the listed companies using preferred stocks financing in the future.With the progress of China's economy,China's capital market is given priority.The demand for preferred stock in China's capital market is more and more intense,and the current research on the case of preferred stock in China's capital market has practical significance.In order to provide more theoretical guidance to the practice of priority stocks in our country,we can deepen the understanding of the preferred stock market from the perspective of individual cases,and hope that the financing tools of the preferred stock can play a greater role in our financial market.