Design Of LJ Corporation’s GDR Financing Scheme

In recent years,with the continuous opening of my country’s capital market,such as "Shanghai-Hong Kong Stock Connect","Shenzhen-Hong Kong Stock Connect" and "Shanghai-London" and later expanded to Germany and Swiss securities trading markets,this also provides opportunities for domestic enterprises to financing in international market financing Essence The current interconnection mechanism of deposit certificates is an important bridge connecting domestic and foreign financing channels.Not only eligible enterprises in China can issue GDRs on overseas stock exchanges(such as Europe),and eligible companies abroad can also be traded in domestic Shanghai and Shenzhen transactions in China Released CDR.Starting from financing theory,this article first introduces theoretical and research on domestic and foreign financing of enterprises in overseas financing and domestic enterprises.Secondly,use LJ as a case to analyze the company’s financial conditions,financing needs,financing structure and business planning,combined with the advantages and disadvantages of different financing methods,and finally choose the GDR financing plan;in addition,the necessaryness of using the GDR financing plan for LJ Company to develop the GDR financing solution.The feasibility and financing target analysis;Finally,the GDR financing solution is comprehensive and complete,including:issuance structure,factors,pricing,implementation processes,and financing scale and impact.In response to the issues that need to be focused on the company’s GDR distribution and the risks and challenges that may be encountered,this article also puts forward response measures and made summaries and suggestions.Generally speaking,this plan can basically solve the financing and development demands currently facing LJ companies,including: 1)to meet the greater funding demand gap;2)optimize the financing structure and reduce leverage;3)to meet overseas business expansion,specially It is the funds required for overseas development,such as overseas mergers and acquisitions,repaying overseas loans.This article is mainly characterized by practice and operability to make a complete and comprehensive exposition for the choice and design of the LJ company GDR.First of all,for the individual LJ company,through the issuance of GDR,it can solve a series of outstanding problems that the company currently exists in financing development and meets the company’s demands for overseas market expansion.The demonstration effect can not only deepen the level of awareness of the GDR financing method,but also provide the GDR listing cases with the characteristics of other A-shares with large funding gaps,unbalanced financing structures,and actively seeking international development.This article is not only conducive to enriching theoretical and exploration of financing demand for corporate financing,but also more practical value.