Basic Knowledge Of Refinancing (1)

Basic knowledge of SME financing

What is the financing of small and medium-sized enterprises?

The financing of small and medium-sized enterprises refers to the direct financing of small and medium-sized enterprises in the stock market through the rights issue, issuance and issuance of convertible bonds.

The financing of small and medium-sized enterprises has greatly promoted the development of listed companies. More and more attention has been paid to the financing function of SMEs in China's securities market.

Financing problems of small and medium sized enterprises in Listed Companies

1, small and medium-sized enterprises have a single financing mode, and mainly rely on equity SMEs.

Listed companies have strong preference for financing of equity SMEs.

Before 1998, the rights issue was the only way for the listed companies to re finance small and medium-sized enterprises. Since 2000, the issuance has become another option for the listed companies to raise the financing mode of the small and medium-sized enterprises. Since 2001, the financing of the convertible bonds has become the target of the listed companies.

When considering the financing mode of small and medium-sized enterprises, the listed companies in China mainly consider the difficulty of financing, the threshold and the size of the financing of small and medium-sized enterprises. At present, the financing of equity SMEs has become the first choice for the financing of SMEs.

China's stock ownership structure is very special, and the non tradable legal person shares account for more than 60%. Under such circumstances, the financing of equity SMEs has a certain effect on improving the ownership structure.

However, the single equity SME financing does not take into account the differences in capital structure of the enterprises, and does not conform to the financing principles of SMEs in regard to the optimal capital structure.

Some people studied the Shenzhen stock rights company in 1997, and found that the average assets and liabilities ratio was 43.29%. For such companies to continue the financing of equity SMEs, the capital structure of enterprises is more unreasonable.

2, the amount of financing of SMEs exceeds the actual demand.

Theoretically speaking, the investment demand is a dialectical relationship with the financing means of small and medium-sized enterprises. Only when the necessity of investment is combined with the possibility of financing of small and medium-sized enterprises, can a better investment result be produced.

However, most listed companies usually carry out the financing of small and medium-sized enterprises in accordance with the upper limit set by the policy, rather than determining the financing amount of small and medium-sized enterprises according to the investment demand.

The listed companies can raise as much money as possible to choose the financing way of small and medium-sized enterprises and the important goal of formulating the issuing plan. The financing amount of small businesses often exceeds the actual demand for funds, resulting in inefficient utilization of funds and other problems.

3, the financing direction of SMEs is blind and uncertain.

For a long time, listed companies generally do not pay attention to the feasibility study of investment projects, resulting in frequent changes in fund-raising funds, low investment projects, and obvious signs of piecing together projects.

Many listed companies lack sufficient research on investment projects. After raising funds, they can not invest as planned, resulting in varying degrees of idle funds, and some have to change their fund-raising investments.

According to statistics, in the first half of 2000, the companies listed, issued and issued shares were taken as samples. By the end of 2000, after an average of more than half a year, only 46.15% of the total funds had been invested. From the prospectus, we can see that most enterprises invest in six months or a year, so many enterprises buy their bonds, or deposit them in banks, or participate in the placement of new shares. Quite a number of enterprises have to use the previous fund-raising "assault" because they want to re finance SMEs.

Due to the failure to complete fund-raising investment as planned, in order to seek medium and short-term returns, listed companies have launched the entrusted financial management business.

In this way, the financing of listed companies not only does not promote the normal development of SMEs, but also causes the problem of capital utilization deviating from the financing purpose and inefficient use of small and medium-sized enterprises.

4, dividend distribution policy is arbitrary.

Whether it is the phenomenon of light cash distribution before 2001 or the large proportion of cash dividends paid by a small number of Companies in 2001, it reflects the randomness of the dividend distribution policy of listed companies to a certain extent.

The listed companies have not formulated a dividend policy that ensures the normal development of enterprises and can give investors a stable return.

Dividend policy formulation failed to combine the long-term development strategy of listed companies, and the majority of public investors failed to get higher dividend returns through dividend distribution.

5, the financing efficiency of SMEs is low.

In recent years, the efficiency of listed companies has become the most serious problem of SMEs financing through the financing of small and medium-sized enterprises.

According to incomplete statistics, of the 34 companies that made the rights issue and the issuance of new shares in 2000, 26 of them had a decline in the annual net asset yield before and after the financing of SMEs, of which 13 of the rights allotment companies had a net profit of 2000 much lower than the previous year's net profit, and only 8 of the companies with increased returns, accounting for 1/4 of the total survey.

The 2001 annual report shows that in 2000 and early 2001, 30 companies issued annual reports or pre tax announcements on the issue of rights issue or issuance.

SMEs' financing efficiency is low and their performance is slippery, which makes investors' investment intention gradually weaken.

If this problem is not solved for a long time, it is extremely unfavorable to the development of the listed companies themselves and the securities market.

The reasons for the financing problems of small and medium sized enterprises in Listed Companies

1, the actual capital cost of equity SMEs financing is relatively low.