What Influences Steel Companies' Refinancing Decisions On The Chinese Stock Market?

The paper is focus on the refinancing decision of Chinese steel companies onstock list. The author tried to describe the difference between their decisions andexplained why it happened. The final conclusion is that at current, policy andregulations have much more influence on their decisions than analyzing their ownfinancial ratios as the reference when those steel companies choose refinancingmodel. During refinancing period, if the models could finance enough fund to meetdemand, companies will consider more about the limitations by current regulationsand probability of the acceptance by investors and market. The paper includes fourpart as follows. First is the description about the specialty of Chinese steel companies on localstock market and why we analyze their refinancing decisions. The second part is phenomenon description part. Based on the refinancingdecisions of those steel companies from 1995 till now, the author found the similartrend between steel companies and all companies on stock market. The third part is reason analyzing part. Combined the similar trend on theirrefinancing decisions, the anthor explained how much the regulations influenced thistrend and why. The last part is case analyzing part in which provided three cases for seasonedoffering and convertible bond issueing and given the reason for why thosecompanies chose different refinancing ways. The attachment is comparison among refinancing decisions based on theupdated regulations as the additional information for the last part.