Chen pointed out that debt financing refers to enterprises raising working capital or capital expenditure from individuals or institutional investors through loans. Compared with equity financing with high operating risk, debt financing is more inclined to traditional enterprises, that is, enterprises with low operating risk and low expected income generally choose debt financing with low financing cost.
Professor Chen.
The following is a partial record of Chen's views:
With the promotion of China's international influence and the gradual expansion of China's market scale, RMB bonds will gradually gain the attention and recognition of the international market, and RMB bonds have become an important choice for global institutional investors to allocate assets. On March 20 18, Bloomberg announced that China bonds would be included in its flagship index, named Bloomberg Barclays Global Composite Index, which is scheduled to be officially implemented in April 20 19; JPMorgan Chase has previously included China bonds in its emerging market government index; FTSE and Russell also announced the inclusion of the China bond market in their relevant indices. 2065438+ 191October 28th, China Association of Interbank Market Dealers was officially approved to enter the inter-bank bond market to conduct bond rating business. The recognition of the bond market by international institutions is conducive to attracting more foreign investors and issuers to enter the China bond market, enabling foreign investors to better understand China bonds and enhance the internationalization level of China bond market.
When we talk about debt financing, it means that enterprises raise working capital or capital expenditure from individuals or institutional investors by borrowing. Compared with equity financing with high operating risk, debt financing is more inclined to traditional enterprises, that is, enterprises with low operating risk and low expected income generally choose debt financing with low financing cost.
For example, Internet start-ups that are now in the limelight generally choose equity financing. Because of the high operational risks of such enterprises, the expected income is relatively high, and they can bear higher financing costs without worrying about the pressure of paying interest in the initial stage of their business. Traditional enterprises, such as iron and steel mining enterprises and manufacturing enterprises, generally choose debt financing, because the income and profits of traditional industries have been established, and enterprises will choose debt financing with lower financing cost. Debt financing is characterized by short-term, reversibility, affordability and liquidity, that is, the funds raised by enterprises have time nodes, and they need to repay the funds at maturity and pay interest on debts, which increases the burden on enterprises to some extent.
Professor Chen, a famous economist and CEO of Global Germany, introduced;
Famous economist, professor of finance, doctoral supervisor, the first batch of doctoral students in statistics in China. At present, he is the vice president of China Shanghai Investment Society, an expert member of China Business Federation, the executive director of China Grain Economic Society, an expert in the evaluation of National Natural Science Fund, an expert in China's pioneering humanized capital operation, the host of Shanghai TV's "Real Estate Nighttalk" column, and a special guest of China First Financial, Oriental TV and Phoenix TV. He has been invited to give lectures in universities in Peking University, Tsinghua University and Hong Kong for a long time. He was employed as the summit of international forums and lectures of foreign universities, and conducted academic exchanges with famous universities in Britain, the United States, France and Canada, and visited 100 countries and regions. Known as the most popular authoritative financial expert with international vision. Professor Chen has won nearly 20 national, provincial and ministerial awards for outstanding scientific research achievements. Professor Chen has long been engaged in real estate finance, high-tech and the growth of small and medium-sized enterprises. He is highly forward-looking in these fields and has rich practical management experience. He is good at practical solutions, combines extensive business knowledge with in-depth understanding of specific industries, and is committed to using financial expertise to help enterprises improve their sustainable competitive advantage and profitability, amplify value and create value, and successfully coach many enterprises to go public.