Research On Choice Preference Of The Mode Of Refinancing Of GEM

At the 19 th National Congress of the Communist Party of China,General Secretary Xi Jinping pointed out that “deepening the reform of the financial system and enhancing the economic capabilities of financial services entities”,which fully demonstrated the importance our country's society attaches to service entities in the financial sector.China's economic growth rate and growth pattern are undergoing major changes,and the dominant forces are going through deep structural changes.As an significant portion of the financial sector,financing activities also need to pay attention to the sources of funds,the level of recruitment,the efficiency of use,and other aspects of activities.The GEM is an significant complement to the whole board market and has an significant place in the capital market.It provides financing and growth space for companies that are not yet able to finance and develop on the Main Board,such as entrepreneurial enterprises,SMEs,and high-tech industries.With the expansion of the size of the GEM market,the original intention of providing direct financing channels for enterprises has become more pronounced.At present,the domestic research on refinancing has been constantly updated.Some research has analyzed the impact of the listed companies on the decision-making of refinancing in China.Part of the study has chosen the acts of refinancing on the main board or listed companies on GEM.There are also some scholars who study the impact of refinancing on the impact of performance.However,there are few studies on the selection of refinancing options by listed companies from the perspective of the GEM.Therefore,this paper selects the perspective of GEM to explore the choice of refinancing methods for listed companies.This article summarizes the progress of domestic GEM listed companies' refinancing,combined with the comparison and case analysis of GEM listed companies' refinancing methods,and summarizes the current status of China's GEM listed companies' refinancing.This article has conducted a comparison of the ways of refinancing GEM listed companies and their declared effects.It also analyzed the influencing factors of refinancing methods and reached the following two conclusions:First,In the entire securities market,the refinancing of the GEM market is relatively late and its scale is still relatively small.Directed issuance is the first refinancing method used by listed companies on the GEM and the largest amount of funds raised;Corporate bonds appeared on the GEM in the same year as the private placement,but it was not until 2016 that the corporate bond refinancing model began to develop rapidly;Although the two refinancing methods of allotment and convertible bonds have matured in the entire securities market,they still belong to the emerging refinancing model in the GEM market.Compared with private placements and corporate bonds,the timing of allotment and convertible bonds on the GEM Market is relatively short,and the amount of financing has not yet reached a scale.Further exploration and development are still required in GEM listed companies.Second,the empirical test found that the allotment effect of allotment was significantly better than the other three methods,followed by issuance of corporate bonds,private placements,and issuance of convertible bonds;ROE has a negative impact on all four refinancing methods;The asset-liability ratio,age of the company,and shareholding ratio of the largest shareholder have significant effects on the four refinancing methods,respectively,while the impact of net cash flow from operating activities is not significant.