Preferred Stock Financing For Commercial Banks' Capital Management Impact Study

On November 30,2013,China promulgated the "Guiding Opinions of the State Council on Pilot Preferential Stocks",opening up a new road for China's commercial banks to replenish their capital.Domestic theory and the impact of preferred shares have been explored and studied.Most of the domestic research on preferred stock is to study the establishment and improvement of the legal system of preferred stock or to analyze the background,development history,practical experience and evolution process of foreign preferred stock under the background of different legal systems,and finally draw some theory or conclusion of preferred stock.However,in practice,there are few practical applications of preferred stock financing,and there are few studies on the management of bank capital after the actual issuance of preference shares by commercial banks,basically refer to the relevant literature of foreign preferred stock or introduce the successful experience of foreign banking preferred stock issuance,and put forward the reference to our country's banking industry and bring about the benefits to shareholders,financial performance,financing efficiency and corporate governance Impact.As the other primary capital preferred stock can effectively supplement the capital of commercial banks,many commercial banks have tried to use preferred stock financing.In 2014,Shanghai Pudong Development Bank actively participated in the pilot of preferred shares and successfully issued preferred shares,making it the third joint-stock commercial bank in China that successfully issued preference shares.Based on the actual cases,this dissertation aims at studying the influence of the issuance of preferred stock by Shanghai Pudong Development Bank on its capital management.Firstly,it elaborates the related concepts,functions,characteristics and the related concepts and theories of the capital management of the preferred stock.Then it analyzes the terms of the preferred stock issued by Shanghai Pudong Development Bank and the size of the capital before and after the issuance,the capital structure and other indicators,by comparing the data of Shanghai Pudong Development Bank for the past 10 years with the data of the Pudong Development Bank,we observe the influence of the Pudong Development Bank on the capital management through issuing the preferred stock financing,analyze the positive and negative impacts of the commercial bank's preference stock financing on the company,so as to successfully issue preferred shares for other commercial banks will provide experience and reference.