Research On Internal Capital Market And Financing Constraints Of Fosun

At present,China's economic situation has entered a new normal with the further deepening of reform and opening up,and the coexistence of economies with various forms of ownership has been increasingly improved,in which private enterprises play an increasingly important role.The fifth national financial work conference once again put the improvement of financing structure on the agenda,which also showed that the country is highly concerned about the financing of enterprises.Under the background of economic transition,China's capital markets while in the process of constantly improve,financial system reform,but the system construction is still in the place of detail with the western developed countries there is a certain gap,under this special background,the development of the enterprise is limited by a lack of money,it is also a national emphasis on finance at the root of the problem for many times.Capital as the root of enterprise development,where the money comes from,how to make the most of the utility of the money has become the most concerned issue of the enterprise.However,due to different ownership,private economy is more likely to encounter financing difficulties and expensive financing costs in operation.In the development of private enterprises in China,more and more enterprise groups emerge under the collision of expansion impulse and financing constraint.Thanks to convenient information communication and complex shareholding arrangements,the unique network of relationships forms a unique internal capital market within the group.In the studies of foreign scholars,the emergence of the internal capital market is to make up for the imperfections of the external capital market,and there is a certain degree of autonomy in the capital allocation of enterprise groups,which is also confirmed by domestic studies.For the financing problem faced by the enterprise,can the capital market constructed within the group help ease the constraint? Can internal capital markets better focus on more promising member companies?In what way does the enterprise finance itself through the internal capital market? With these problems in mind,this paper chooses the single case of FOSUN as the main body of the paper.In this paper,we mainly discuss the behavior of FOSUNPHARMA,the core subsidiary of the group,to use the internal capital market for capital operation.The internal capital market constructed by the group develops rapidly and the functional structure is relatively perfect.Under the restriction of external financing constraints,FOSUNPHARMA provides guarantee for the development of the enterprise through various internal financing forms,which provides a good case for us to study this kind of phenomenon.Through the discussion of this paper,FOSUNPHARMA has adopted a variety of internal financing means in its development,such as internal equity transfer,private issuance and so on.The analysis of relevant financial and non-financial indicators also shows that compared with the situation of capital flow shortage in the initial establishment,after using the advantages of the internal capital market,the relatively abundant capital flow provides a strong support for the expansion,research and development and new construction of enterprises.Admittedly,in the process of financing in the internal capital market,private enterprises will inevitably bring some risks.At the end of this paper,relevant decision-making Suggestions are put forward for possible problems in the internal financing of enterprises.