Research On Chinese Listed Real Estate Companies' Financing Preference

The financing problems of listed company, especially financing cost and financing preferences, have been bone of contention in recent years on the capital market. In China, a listed company always takes allotment of shares and increment of issues in stocks as important follow-up financing steps after its IPO. At the same time convertible bonds are gradually be taken to achieve refinancing purpose. Comparatively, a listed company has little interest on debt financing. This is contrary to Western classical theory which concludes that "endogenesis source of financing is better than exogenous financing, while bond financing is better than equity financing."In this paper, Principal Components Analysis (PCA) is used to research status and capital structure optimization direction of listed real estate companies. Constructive advices are given on optimization measures and proposals. Research on capital structure optimization not only has theoretical significance but also be of great value to practical environment: a guide for listed company to arrange its capital structure and further promote the development of China's national economy and the stableness of financial market.The paper combines interrelated theories and methods on Finance, Accounting, Multi-variant Statistics and Business Management. Research results can be provided as decision-making reference for the enterprises themselves, investors, the relevant government departments. It also provides decision basis and fiance capacity evaluation methods for enterprises, investors, related administrative department of government and evaluation methods for other industries' financing ability.