Are listed companies really short of money

Recently, in addition to the intensive listing of new shares, listed companies in Shanghai and Shenzhen stock markets have frequently refinanced through allotment, issuance of new shares and issuance of convertible bonds. Almost every week, several refinancing plans are waiting for the approval of China Securities Regulatory Commission. It is understandable that listed companies use the securities market to refinance in order to realize the dual expansion of capital and assets. Judging from the function of the securities market itself, refinancing of listed companies is also one of the effective ways to optimize the allocation of resources. Through rights issue, listed companies can obtain physical assets and cash assets, while through issuing new shares or bonds, listed companies can raise more cash and create favorable conditions for the company to achieve sustainable development. The problem is that when a large number of listed companies use idle funds to issue shares or play new shares in the bull market, and they gain a lot, the motivation for frequent refinancing is not so simple. The author thinks that the refinancing of listed companies should be the choice when companies are short of money. And take out huge sums of money to play new shares, such as *STTCL,10 billion, which is enough to prove that listed companies have sufficient funds. Moreover, *STTCL also said that the company has ample idle funds in its books. In this case, why should listed companies refinance? The reason is also very simple. Under the wealth effect of Shanghai and Shenzhen stock markets, the desire of listed companies to circle money has expanded. Some listed companies, whether they really need money or not, frequently launch refinancing plans when the market is easy to make money. In this desire to circle money, in order to have more funds to invest, some listed companies report false projects or exaggerate the use of project funds when applying for refinancing, so as to circle money to more investors. What's more, listed companies are keen on stock trading or new shares, and the company's income comes from investment income rather than the expansion of its main business, which is not only not conducive to the long-term development of listed companies, but also encourages the market bubble to some extent. How does the market pay for such refinancing? It is gratifying that not long ago, Youngor's application for issuing convertible bonds was strictly examined and approved by the management, and it was finally rejected. Although Youngor is indeed a company with steady operation, good performance and no bad record, under normal circumstances, the refinancing of such a company should be supported by policies. However, the successful investment of CITIC Securities has greatly expanded Youngor's wealth. Together with the original investment of 320 million yuan, 654.38+0.2 billion yuan has been recovered. At present, the market value of the remaining equity has exceeded 654.38+0 billion yuan. From the management point of view, Youngor is not short of money. Most of the huge CITIC Securities it holds can be circulated. If it needs funds, it can completely throw away some securities to release funds. What is the frequent refinancing of listed companies? Youngor's hit a wall poured cold water on listed companies whose desire to circle money expanded. Sina statement: the content of this article is purely the author's personal opinion, which is for investors' reference only and does not constitute investment advice. Investors operate accordingly at their own risk.