Ten Ways Of Financing In Capital Market

The capital market includes not only the narrow sense of the securities market, but also the following forms: 1 and domestic stock market: facts show that the number of domestic securities market in small and medium enterprises is increasing and the process is accelerating.

Small and medium-sized enterprises can pay attention to this market, understand relevant policies and regulations, create conditions actively, and strive to enter the domestic securities market.

2 and Hongkong Growth Enterprise Market: Hongkong gem was founded in 2000. Although it has been running for several years, the market scale of Hongkong gem, the amount of single issue financing and the running status of the two tier market are not ideal.

The Hongkong Securities Regulatory Commission is still actively encouraging mainland private enterprises, especially small and medium technology enterprises to list on Hongkong gem. If SMEs have better asset quality, higher product technology content and a certain cash flow, they are willing to pay an intermediate fee of about 1/4 to 1/8 of the financing amount, so the market can still be used as a financing channel.

3, overseas gem: in addition to the Nasdaq market in the United States, Singapore, Canada, Australia and New Zealand and other countries have set up gem for SMEs financing.

Some emerging markets, such as Singapore and Australia, welcome the listing of technology companies in the mainland.

From the mainland enterprises listed in these markets, although the threshold is higher and the formalities are complex, the amount of financing is relatively large, the opportunities for refinancing through issuance and rights offering are relatively large, the market performance is better, and it is conducive to the expansion of local influence of listed companies. The products enter the local market 4 and property rights trading market: property rights pactions are in the ascendant in China.

In order to solve the shortage of funds, small and medium-sized enterprises of science and technology can register some equity patents (intangible assets) and tangible assets in the property exchange, which can solve the shortage of capital within enterprises and increase cash flow. It can also lay a good foundation for further capital market operation, 5, mergers and acquisitions of listed companies: Listed Companies in traditional industries are faced with industrial pformation or upgrading and need to raise new projects with high technology content by means of stock raising funds.

By contrast, through the merger and acquisition of small and medium-sized technology enterprises with better overall conditions, they are more effective than new similar projects.

Therefore, small and medium-sized technology enterprises that meet the requirements of the acquisition of listed companies can actively contact with listed companies with industrial relevance and find their opportunities to acquire equity or assets, patents and projects.

Small and medium sized scientific and technological enterprises can not only create a financing channel for their own development, but also achieve the purpose of indirect listing.

6, large group company trusteeship: small and medium technology enterprises can establish entrustment relations with large group companies (state-owned enterprises or privately-owned) which have high correlation with industry, the product raw materials are in the upper and lower downstream relations or the technology and resource sharing, which will be incorporated into the management "department" of the large group company, and fully share the capital, technology, information, city taste and so on.

7, issue of corporate bonds: corporate bonds are mostly used for new projects, with interest higher than the interest rate of the same period, with a period of two to three years.

Generally speaking, large enterprises have more debt in the market.

Small and medium-sized enterprises can use this way to finance if they have higher profit projects and larger demand for funds.

Guan Jian has to solve specific issues such as underwriting, interest payment and repayment on time.

8, issuing trust products: trust products are popular varieties in the past two years, generally entrust trust investment companies to private placement, for some large-scale infrastructure projects, to investors interest rates higher than the bank interest rate at the same time, and also need to trust investment companies to pay trust Commission.

Trust products belong to financial innovation varieties. If small and medium-sized technology enterprises have mature development projects and good profit models, they can try to use this way to entrust investment companies to help finance.

9, Asset Securitization: small and medium-sized enterprises pledge assets to investment banks (securities companies or merchant banks), issuing equivalent asset securitization varieties by investment banks, issuing funds raised by small and medium-sized enterprises, and asset securitization varieties can be traded through specialized markets.

10 and asset share holding: small and medium-sized enterprises can divide the net assets as shares according to the actual assets of the companies, take MBO (Management shareholding), ESO (employee stock ownership) and raise funds to the specific shareholders to sell shares, and realize the diversification of shares.