How to find a suitable Chinese financing path for

2022-08-09
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How can enterprises find a suitable Chinese financing path?

for enterprises, financing is nothing more than government investment, bank loans and listing, as well as venture capital and other mainstream external financing methods, and Chinese enterprises are no exception

however, the actual situation of China does not allow Chinese enterprises to keep pace with their foreign counterparts. Let's take a look at a set of relevant statistics: due to the adjustment of China's national macro policies, the central bank's policies have shrunk slightly, and the capital expectations of some industries are tight. For example, the central bank raised the deposit reserve ratio by 1% from September 21, 2003, and recovered about 150billion yuan of currency; On April 25th, 2004, the deposit reserve ratio was raised by 0.5% again, and 110 billion yuan of currency was recovered. Considering the currency multiplier effect, the total amount of money used should be reduced by more than 800 billion yuan. At the same time, since February 17, 2004, the issuance of central bank bills has exceeded 50billion yuan per week, so the number of base currencies withdrawn is even larger. This time, the purchase of raw materials by steel mills tends to be stable, and the state will control investment, increasing the difficulty of corporate bank loans. The high threshold of listing in China and the limitation of venture capital undoubtedly increase the difficulty of the mainstream external financing methods of Chinese enterprises

in addition, the "financing bottleneck" has also become the biggest obstacle for the vast majority of Chinese enterprises to use these methods to successfully finance. Of course, the enterprises we refer to here are more small and medium-sized enterprises that survive in the market economy. Although the relevant institutions and departments of the state have begun to establish and improve various policies and measures to improve the financing environment of enterprises since the late 1990s in order to solve the problem of financing difficulties of enterprises; Supervise and urge financial institutions to improve their service system, provide enterprise credit guarantee, develop venture capital and set up small and medium-sized enterprise sectors. However, judging from the actual development situation, these measures of national policies and financial institutions are far from paving the way for Chinese enterprise financing, and enterprise financing is still difficult. An investigation shows that the total loan refusal of small and medium-sized enterprises accounts for 56.1% of the total loans, of which 23.8% are unsecured loans and 32.3% are unsecured loans

with the evolution of China's market economy, for the development of enterprises, the market gap is becoming less and less, the profit space is becoming narrower and narrower, and the possibility of rapid expansion by creative ideas, marketing means or special relationships is becoming less and less. Only through a large amount of capital injection, rapid occupation of the market, and the formation of economies of scale, can enterprises smoothly embark on the road of survival and development. Therefore, a considerable number of enterprises and entrepreneurs in China are urgently looking for capital that can create profits for enterprises, such as bank loans, listing financing, etc., even at high costs. However, due to the impact of national macro policies, banks and other financial institutions have also adjusted their corporate financial service policies and the listing threshold is too high, the development of domestic venture capital is not perfect, and the investment of foreign venture capital institutions is limited Pickiness, etc

as a result, enterprises fall into the whirlpool of conflict between China's national economic development strategy and the survival and development strategy of enterprises. With the success of IPO, the national economic development war is undoubtedly the mainstream, which is not transferred by the will of enterprises. The "financing bottleneck" will also persist for a long time. How can enterprises rush forward and find effective financing methods? If enterprises try to open a gap in China's capital market for their own use, they have to work harder

this paper proposes several unconventional and non mainstream financing methods. Because these financing methods are closely combined with China's national conditions and enterprise conditions, they are temporarily named "Chinese financing" to explore more financing ways suitable for Chinese enterprises

as we all know, the financing channels of enterprises are divided into internal financing and external financing. Enterprises that cannot obtain capital by themselves due to their weak capital strength will focus on the external capital market, including the debt market and the equity market. In addition to the bank loans that enterprises are familiar with, debt financing in the debt market is more targeted to enterprises, which conforms to China's national conditions and is readily accepted by financial institutions. There are also several ways of debt financing, such as portfolio loans, trade financing and fixed return investment

portfolio loans are different from traditional loans, so it is difficult to attach any object to the sample to effectively combine Chinese and foreign banks and guarantee institutions to provide loans to enterprises. There are four cooperation modes: Chinese banks + foreign banks; Chinese funded banks + credit guarantee institutions; Chinese banks + credit guarantee institutions + guarantee enterprises; Chinese banks + guarantee enterprises + guarantee enterprises. These four models are based on inter-bank credit transactions, the credit rating of guarantee institutions in banks, joint guarantee between guarantee institutions and enterprises, and mutual guarantee between enterprises, providing various guarantees and mortgages for enterprises. For example, in the bill guarantee loan between Chinese and foreign banks, the guarantee institution provides the guarantee loan for the enterprise, and the guarantee institution and the third-party enterprise jointly make a commitment to the bank to enhance the enterprise credit, obtain the loan or guarantee the enterprise to mutually guarantee and improve the enterprise credit rating, so as to obtain the bank loan

for enterprises with import and export trade, trade financing, as a short-term financing or credit facility related to import and export trade settlement, is also an effective and fast financing method. For example, package loan, that is, after the exporter receives the non negotiated letter of credit with validity issued by the bank where the importer is located, he applies to the bank with the original letter of credit, so as to obtain the short-term RMB working capital facility required for the production, purchase and shipment of export commodities under the letter of credit. In addition, the bank can also handle bill financing for the holder of foreign exchange bills, that is, the bank will pay the balance to the holder of foreign exchange bills after deducting the discount interest from the face value before the maturity of foreign exchange bills. Export documentary bills and import documentary bills are also convenient and convenient short-term trade financing methods in the short term

the above two kinds of debt financing are more for the short-term financing behavior of enterprises, and they feel particularly comfortable for middle-aged people. "It is the best policy to adopt fixed return investment for long-term financing. Fixed return investment is a kind of nominal investment, whose essence is to charge a fixed rate of return. For the invested enterprises, the financing cost is low and the use risk is small, which is conducive to the development of enterprises. The capital source of fixed return investment is extensive and stable, and there is a large space for capital utilization in the capital market. For example, the domestic fixed return investment funds in China are led by non-government, with financial institutions accounting for 40%, local industrial and commercial enterprises accounting for 25%, the central government accounting for 15%, overseas enterprises accounting for 15%, and the capital market accounting for 5%. The development trend will be that investment funds in Hong Kong, Singapore, Britain and the United States and other places will increasingly enter, and fixed return investment will be an effective way for Chinese enterprises to seek medium and long-term funds

the most effective way of financing in the equity market is listed financing. When enterprises do not have the conditions for listing, they can use trust plans, private funds and strategic investment/direct investment

the essence of the trust plan is the project equity trust plan, which concentrates all funds to realize enterprise financing. Private equity funds are securities investment funds that issue beneficiary certificates to the public. They are collective investment units formed by privately raising funds from specific minority investments through non-public publicity. Their sales and redemption are carried out through private negotiation between fund managers and investors. The legalization of this method is an inevitable trend. Compared with resource integration and scale effect, strategic investment, that is, direct investment, is the most beneficial way of equity financing for enterprises. Through strategic capital, enterprises can rapidly expand production scale, increase market share and obtain market attention. At the same time, with the help of market vision, industrial operation experience and strategic resources carried by strategic investors, enterprises can grow rapidly

there is a sentence: "only what can't be done, nothing unexpected, and what you think can be done". For enterprises, the road of financing is not plain sailing. Enterprises must make good use of the situation and seek the best path to find their own "Chinese style financing" path under the premise of win-win or even multiple wins between enterprises and various financial institutions and cooperative enterprises, as permitted by policies

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