Research On Debt Problem Of Kunming Electric Power Enterprise In Modern Times (1910-1949)

In the late Qing Dynasty and early Republic of China,kunming electric power enterprises rose with self-protection rights and experienced three stages from start-up to expansion and then to sustainable development.In order to adapt to the ever-expanding market demand since modern times,kunming electric power enterprises have long relied on debt funds in their operation and development,and formed a development mode of debt financing to the capital market.At the same time,in different development periods of modern Kunming electric power enterprises,this debt phenomenon also showed their own stage characteristics.In the early stage,kunming electric power enterprises were faced with the problem of insufficient funds once they were built.The enterprises obtained loan funds by mortgaging fixed assets,and then continuously absorbed capital from the market through debt financing to maintain operation and expansion in the later stage.Due to the lack of funds in the social and economic environment,the modern Kunming electric power enterprises were faced with the continuous management dilemma of lack of start-up funds at the beginning of their establishment.To keep up with the expansion of the late and operations,under the condition of the early financial market is not yet perfect,kunming electric power enterprise through financial institutions lending,turn both internal and external debt to absorb social debt in the form of financing,in order to widen the enterprise’s capital channel,and formed the mortgage in the early development of fixed assets to obtain long-term borrowing lending patterns.Driven by the internal relocation during the war,the business of Kunming electric power enterprises became increasingly stable,but there were still debts in the process of operation.Due to the different nature and scale of the two electric power enterprises,the debt problems have their own characteristics,mainly reflected in the difference of mortgage assets and debt time limit.Although the forms of debt are different,the causes of debt are the same.Due to the restriction of wartime environment,the stability of assets of Kunming electric power enterprises is weakening day by day.Coal shortage problem aggravates the shortage of enterprise liquidity.However,as a whole,with the gradual expansion of business scale,the operating income of Kunming electric power enterprises is more excellent than before the war.By the time of the Liberation War,the debt form of the two electric power enterprises has completely turned into the short-term loan of mortgaged liquid assets.This kind of debt financing way can realize the rapid expansion of business,the electric power enterprise in kunming successful use debt mode to promote the development of kunming electric power industry,the main and the development trend of China’s industrialization and enterprise reasonable use of debt financing means,stability of the fixed assets,and satisfy the business enterprise market due to reasons such as the law of development of government regulation.It is precisely under the action of the above factors that the debt problem has been accompanied by the operation and development of kunming electric power enterprises in modern times,and has a continuous positive effect on the development of Kunming electric power enterprise.