Current situation of capital cost of listed companies in China

The results show that the average cost of capital of listed companies in China is not fixed, which is different from the cost of equity capital. The average capital cost of listed companies in China shows a downward trend, and the cost of equity capital of listed companies is obviously higher than that of debt capital, which belongs to equity financing. The enlightenment of this paper is that enterprises must correctly understand the advantages and disadvantages of equity financing from the cost-benefit analysis of capital when choosing financing means, and cannot blindly regard issuing stocks as the "optimal" financing means for enterprises.