The Path Analyses Of Local State-owned Enterprises Investing In The Sino-foreign Joint Venture Financial Leasing Companies

Under the background of China's rapid economic development,most of the local state-owned enterprises in China bear the functions of the local government investment and financing platform,and have made great contributions to the development of local urbanization and regional industrial upgrading.However,the huge investment in local infrastructure construction makes these local state-owned enterprises are facing a shortage of funds for the national situation,and the limitation measures about the local government debts,they make the traditional creditor indirect financing channels of local state-owned enterprises have many limitations,and the current equity financing mode,such as PPP mode,also has its obvious limitations.So many local state-owned enterprises will open up financing channels focus on capital market,direct financing to investors in public issuance of stocks or bonds,in order to meet the low cost and large-scale capital demand.Local state-owned enterprises' direct financing from the capital market,is inseparable with the financial situations and the industrial structures of the enterprises.Therefore,many local state-owned enterprises take investment in financial institutions,in order to improve their financial situations,and help the upgrading of industrial structure.It will deepening the reform about the enterprises,and help them adapt to the market.At the same time,they will get the cheaper and larger fund from the capital market,in order to achieve the purpose of benign loop.About the choices of the financial licences investments,the Sino-foreign joint venture financial leasing companies become the major choices.Because they help the enterprises in line with the national policy guidance,to dock international capital market,to optimize the industry structures,transformation of credit for profits,to control the risk of the shareholder investment,to support the development of the local industries,the strategic layout of financial holding mode and other advantages.In order to realize the value of state-owned assets,improve effectively the industrial structures of the local state-owned enterprises,promote the local industrial economics developments,the financial leasing companies need for professional,scientific and reasonable layouts of the fund channels,business models,risk controls,personnel managements and so on.Those operational practices can help the local state-owned enterprises to improve effectively the industrial structures and the financial indicators,solve the problem of the capital financing needs and the industrial development demands,reach the long-term goals about the development of the local economy construction and financial reform,while the risks can be controlled.At last it will deepen the reform of the state-owned enterprises.