Research On Financing Motivation And Performance Of CSCEC Preferred Shares

Preferred stock is a new financing tool in China's capital market in recent years,which plays a supplementary role in China's capital market.Preferred shares appeared in China's market in the early 1990 s,but because the company law promulgated in 1993 did not mention the preferred shares,the newly sprouted preferred shares lost their vitality in the Chinese market and disappeared from the market.After the 2008 financial crisis,Chinese enterprises need new financing means to solve the problem of insufficient funds.After China Securities Regulatory Commission passed the "Preferred Stock Pilot Management Measures" in 2014,this financing method has been paid more and more attention by major enterprises.In 2018,21 listed companies in China have issued preferred shares,of which 15 are in banking industry,and the remaining four are in infrastructure industry and two are in manufacturing industry.China Construction is the first non-financial enterprise to issue preferred shares.It has the problems of high asset-liability ratio,shortage of liquidity and so on.At the same time,China Architecture has achieved good results after the preferred stock financing.This paper chooses Chinese architecture as a case study,intending to provide a new financing possibility for other enterprises through the study of Chinese architecture.This paper analyses the financing scheme of China's construction preferred stock from the aspects of content,issuing object,process and the way of using funds.It analyses the Financing Motivation of China's construction from three aspects: making up for the shortage of funds,expanding the scale of enterprises,reducing the ratio of assets and liabilities,alleviating the pressure of debt,maturing external environment and responding to the call of the state.Then the performance of Chinese architecture is analyzed.This paper chooses the financial index analysis method to analyze the financing performance of China's construction preferred shares,selects Shanghai Construction Work as the target enterprise of the horizontal comparison of the financial index analysis method,and uses the event study method to study the market reaction of China's construction preferred shares financing,and makes a more comprehensive study of the financing effect of China's construction preferred shares.Through case studies,it is found that China's construction industry has produced remarkable results after issuing preferred shares,and its financial situation has improved compared with that before issuing preferred shares.The short-term market response is good,while the profitability,solvency and development ability have also been significantly improved.However,according to the financial performance of Chinese architecture in the past two years,the positive impact of preferred shares on Chinese architecture has not been sustained for a long time.Therefore,this paper draws the following conclusions: combined with the difficulties faced by itself,China's construction preferred stock financing is a reasonable behavior;China's construction preferred stock financing short-term financial effect is obvious,but the long-term positive impact is not obvious.According to the research conclusions,this paper draws inspiration for the government and other enterprises,gives suggestions on whether the government manages preferred shares and whether the enterprise carries out preferred shares financing,and analyses the shortcomings of the paper.Finally,the development prospects of preferred shares in China are prospected.