Financing Mode Analysis In The State-owned Assets Management Company Of TongHua

With the acceleration of socio-economic modernization, construction in Tonghua, financial constraint contradictions have become increasingly prominent. Government can effectively alleviate the pressure on local fiscal expenditures through financing, such as financial investment. In that case, it becomes very important and urgent to solve issues of strengthening finance research, exploring multi-channel fund-raising model, building up integrated financial-investment-and-market investment and financing system, managing to achieve sustainable economic and social development.As government financing platform, Tonghua State-owned Assets Company is regarded as the bridge between government, financial institutions and capital markets, which helps establish government credit and financing platform for long-term mechanism, and attract international capital, government investment, bank loans, social funds, etc. It establishes diversified, all-round development of urban construction, financing channel and investment framework.In market economic environment, government financing model, financing channels and financing size are impacted by macro-economic environment and the macro-control policy, In 2010, with China's macro-control policies'continuity and stability, a more flexible and prudent policy is adapted,. the quality of economic growth and efficiency becomes more focused.2010 macro-control policy is adjusted from "to maintain growth" to "stable growth", adhering to implement a proactive fiscal policy, increasing effort on improving the "people's livelihood" and "structure transformation", continuing appropriate loose monetary policy, and optimizing the credit structure. In the course of development, Tonghua government has always adhered to investment-led economic development strategy. This year, to foster conditions for the development of mega-cities, we will further strengthen the stimulation of investment and project drive, put,more effort on "four major projects" and "Six Plates", comprehensively enhance city planning, construction and management, design construction of Tonghua metropolitan area,. reinforce fundamental infrastructure, and focus on new trend of fast growth in eastern part of Northeast, and trigger the implementation of Tong-Dan economic development area. As a result, the finance demand is increasing on Tonghua State-owned Assets Company.Currently, Tonghua State-owned Assets Company's main financing models are direct financing, indirect financing, and project financing. In market economy environment, the comprehensive effect of various factors TongHua determines the state-owned asset management company cost of capital, which mainly has:the overall economic environment, the securities market conditions, the enterprise internal management and financing status, project financing scale. TongHua state-owned assets management corporation financing decision into capital cost management is, first of all, the capital cost is TongHua state-owned asset management companies choose fund-raising means, on the basis of capital structure decision-making, Secondly, the capital cost is state-owned asset management companies, investment scheme evaluation of the investment decisions. TongHua state-owned assets management corporation financing plan according to the source of funds, the capital cost of capital in the measurement methods, also will be different. According to fund sources including debt capital cost, equity capital cost and has retained earnings capital costs. TongHua state-owned assets management company capital structure optimization scheme, one is the premise to guarantee funds that can come in, Two is to use capital structure, make decisions capital costs to a minimum. TongHua comprehensive consideration of the state-owned assets management company's macro economic and financial environment, TongHua state-owned assets management corporation financing plan formulation process: first, the priority of the direct financing optimized scheme selection may as the important condition, Secondly, the local financial input to the capital as a necessary condition. Again, in consideration of the previous two funds into the premise, to ensure the adequate funding projects, must the indirect finance, as an important source of funds and supplement to capital cost, but compared with controllable scope.In the paper, "Tonghua SME financing guarantee agency" capital project is taken as an example, systematically use financing and capital cost theory to optimize financing design.Tonghua SME Guarantee Ltd. Company was funded and established by Tonghua State-owned Assets Company. It is an independent legal entity. Its registered capital is 300 million RMB. Project funding sources include:government special financial funds, bond lending funds, state policy bank loans, commercial bank loans, private capital investment,Based on the difficult degree of private investment attraction, two set of proposals are raised that Tonghua SME Guarantee Ltd. Company holds either 51% share, or 70% share. After 20 million RMB municipal finance and 20 million RMB private funds have been embarked, according to policy of provincial special funds and the State Development Bank's soft loan amount, four sets of optionss are raised for Tonghua City, State-owned Assets Management Company's commercial bank loan.Capital cost for each of options is as listed as 5.35%,6.70%,6.83%, and 7.72%. From the perspective of capital cost, first one is lowest.However, under overall balancing difficult level of funding sources with cost of capital, since private capital is relatively to collect, while cost of capital is within control, it is preferred to choose a smaller-share-private-capital option, a smaller percentage of financing programs.Considering the actual financing situation, put forward the credit protection measurements, funding sources safeguard measurements, organizational behavior safeguards measurements during project implementation process. Credit protection measurements include the establishment of government debt registration system, the establishment of government debt statistics system, the establishment of government debt reporting system, the establishment of government debt evaluation mechanism, and the establishment of government debt repayment mechanism. Sources of funding include the development of land resources, the state-owned enterprise reform, intangible resources management, project earnings, government revenue and higher-level special funds.Organizational behavior safeguards focus on reforming and perfecting the investment and financing management system, and establishing enterprises'corporate governance structure.