| As a typical capital-intensive industry,the real estate industry is highly dependent on capital.At present,the real estate enterprises generally have the phenomenon of "borrowing long-term but paying off quickly,debt raising debt".In case of policy regulation or funds not being available on time,it may lead to the mismatch between capital and debt.Without strong financial support as the backing,the real estate enterprises will be difficult.With the tightening of real estate financing policies in recent years,the capital shortage of the real estate enterprises and the operation risk of high debt ratio exist at the same time,so the innovation of corporate capital operation and financing methods has a long way to go.The sound development of China's real estate enterprises has been hampered by the narrow and single financing channels and unreasonable financing structure.In order to solve the capital dilemma,various real estate companies have started to look for diversified financing methods.The emergence of perpetual bonds provides a good solution to the financing problem for a number of real estate enterprises,and enriches the product categories in China's bond market,further meeting the diversified investment and financing needs of investors and issuers.The operation of perpetual debt in international capital market is more mature than that in China.In recent years,China's major enterprises are also actively trying.In June 2013,Evergrande first sounded the horn of issuing perpetual debt instruments in China in Hong Kong,and various real estate enterprises have followed suit.Perpetual debt has become a hot rising star in the capital market.In recent years,China's real estate regulation policies are frequently introduced,and financial supervision continues to be tightened,resulting in the continuous tightening of financing channels for real estate enterprises.Under the background of increasing difficulty in financing both at home and abroad,real estate enterprises will face more severe tests.The feature of perpetual bonds that only pay interest and do not need to repay principal has attracted some large real estate enterprises or state-owned enterprises,including "Beijing real estate leader" Capital Development.As of December 31,2018,the balance of the Capital Development's perpetual bond is about 8 billion yuan.Therefore,it is more convincing and representative to choose the Capital Development as the case company to analyze the motivation and effect of real estate enterprises to use perpetual debt financing.In combination with the above background,this paper lays a theoretical foundation for the subsequent case analysis with the theory of superior financing,the theory of financial contract,the theory of asymmetric information and the theory of optimal capital structure.Then,the paper introduces the basic information of initial public offering shares,the property right structure and the general situation of financing over the years,summarizes the issuing process of its perpetual debt,and introduces the specific terms and conditions of the financing plan in detail.At the same time,it also makes an in-depth discussion on the specific accounting treatment and tax treatment of this financing method in combination with relevant regulations of our country.Secondly,the paper analyzes in detail the main reasons for choosing perpetual debt financing,including supplementing working capital,reducing asset-liability ratio and locking up long-term funds to guarantee the development and construction of projects.In the main part of this paper,theoretical research and case study are combined to analyze the direct financial effect before and after the initial share option of perpetual debt financing.In this paper,a qualitative and quantitative approach is adopted to analyze the advantages and disadvantages of the economic consequences of perpetual debt financing relative to bond financing and equity financing from the perspectives of capital structure,capital cost,financial risk and financial return.At the same time,the longitudinal comparison is made by combining various financial indicators of the Capital Development,supplemented by a horizontal comparison of Vanke group which did not issue perpetual debt during the research period.It was found that the issuance of perpetual debt improved the debt paying ability and growth ability of the Capital Development.However,while the first opening enjoys the proceeds of perpetual bond financing,it may also be accompanied by risks,and its profitability does not show a good trend as expected.Only by improving the endogenous growth ability of the company can the financing gap be effectively solved.Finally,based on the case analysis of this paper,we get the corresponding experience enlightenment: choose the appropriate release time and scale,weigh the advantages and disadvantages of financing;Ensure the hematopoietic function of business activities and standardize the use and management of funds;Innovate ways to diversify financing portfolios and comprehensively expand financing channels.Through the research method of combining theory with cases,this paper discusses the motivation and financial effect of perpetual debt financing of the CapitalDevelopment.This paper inquired a large number of the latest data of the Capital Development and enterprises in the same industry,hoping to objectively and truly reflect its financing effect.The analysis of this paper highlights the essence of the value of this case study,hoping to provide a certain reference for other enterprises that are interested in expanding financing channels of perpetual bonds,and to make a beneficial exploration for improving enterprises' use of innovative financing varieties and improving their financial performance,so as to make full use of the unique advantages of perpetual bonds,let the perpetual bonds more vigorous in the reform wave of China's capital market. |
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