登录  
 加关注
查看详情
   显示下一条  |  关闭
温馨提示!由于新浪微博认证机制调整,您的新浪微博帐号绑定已过期,请重新绑定!立即重新绑定新浪微博》  |  关闭

Chi翻译工作室

高性价比翻译服务,欢迎垂询

 
 
 

日志

 
 

Enterprise financing questions  

2009-02-22 16:16:26|  分类: 部分翻译作品回顾 |  标签: |举报 |字号 订阅

  下载LOFTER 我的照片书  |

The first question:

Enterprise financing is a funding act and process taking the enterprises as subject. That is the enterprises, according to its production, operation and funds status as well as needs for future operation and development, through scientific prediction and policy decision adopting some ways, raise and organize funds from definite channels to safeguard the enterprises’ needs for operation and management. In market economy, according to source of funds, enterprise-funding ways could be divided into internal funding and external funding. The former funding is a process turning enterprise’ retained profits and depreciation into the investment of its own. The later funding way is a process turning the funds of other economic subjective into the investment of its own. Along with process of technology and enlargement of production, external funding has gradually become an important way to get funds for enterprises, because merely internal funding could not meet funds needs of enterprises. The two main external funding ways are equity financing and debt financing, which include loan from banks or non-banks, issue and bond, commercial credit, compensation trade and foreign capital introduction etc.

Project financing, according the formulation of FASB (NO.47), is” a loan method with limited recourse or without recourse for a large scale project funding. The borrower, in principal, takes the capital and profits as sources for repayment. In addition, the project capital, rights and benefits would be considered as mortgage.” The Outbound Project Financing Management Method commonly issued by the State Planning Commission of China and the Administration of Exchange Control gives a definition for the current project financing as “ an outbound funding method for domestic project, which takes its expected project income, assets, rights and profits to shoulder debt.” Project financing is a special financing method involving at least three parties of sponsor, Project Company and investor. Its features are great financing amount; long project construction and payback periods and holding many uncertain elements. Generally, it has good economic and social profits. Project financing methods mainly include BOT, TOT, ABS, financing tenancy as well as outbound fund. Enterprise could solve its shortage of funds with these methods. Before financing, firstly, you should learn well that the nature of capital is profits pursuing but not emergency helping and charity. Secondly, you should learn the traits of capital’s repayment and withdrawal and must shoulder the requirements for financing costs; thirdly, you should think how to meet the requirements for financing combing enterprises’ actual conditions.

But in financing, banks give different evaluation criterion: capital security and repayment ability of borrowers. For enterprise financing, banks may pay more attention to its repayment ability but security for project financing.

The concrete criterion is as follows: from the angel of assets, it includes capital location, application, and market condition for such assets; increase tendency of rent and potential rent, return ratio, cash flow, situation of tenancy nature of assets and tenement. From the angel of borrower, it includes operation achievements in the past, assets situation for mortgage, the rights and benefits composition of shareholders as well as credit situation.

The fourth question:

Assets securitization is the most finance innovation in the international financial sector in the 21st century. Rising in US in the middle 1980’, it spread quickly to the whole world. In the current international capital market, it’s the most vigorous financial products with the quickest development owning to assets backed securities. Through assets securitization, professional bankers created many complex and innovative financing composition and high efficient carriers to meet the constant changed needs of various assets, sponsors and investors.

As an advanced financial instrument, assets securitization has following advantages: 1) It can change assets of liquidity shortage into circulated securities and thereby increase assets liquidity and finance adaptability. Through securitization, enterprises can transfer its securities with due accounts receivable and get funds for enterprise operation. Thus, it opens a new financing channel and save cost for financing.2) It is favorable to the assets liability management of the enterprises. It can realize a healthy assets liability structure through transferring unwilling due loan to adjust a rational due combination of securities. Meanwhile, the assets securitization is helpful to get funds with reasonable interest rates.3) It is favorable to improve enterprises’ operation. Some risks such as interest rate and due risk could be transferred to security investors through assets securitization. 4) Securitization is often considered as transferring and assets are not longer listed in balance sheet. Thus, enterprise leverage ratio especially rights and benefits rate of return and assets rate of return are increased. It is a financing method out of finance forms. 5) Owing to the application of credit increasing technology, it gives financing chances for some sponsors with low credit through market.

Its shortcomings are as follows:

1)      The discerning ability for investment risk faces test. From the angel of commercial banks, they are unwilling to turn good assets into securitization but hope transfer their bad ones to numerous investors. So, the investors of securitization products should have very strong risk discerning ability and endurance and need very high professional knowledge and skills to avoid becoming last victims of the risk transferring from commercial banks.

2)      The market agent mechanism is distempered. Owing to assets products are fixed profits products with sensitive credit. Credit rating report is the most important part for the products to release information. But, we have immature market agent institutions in the current stage in our country. In terms of credit rating, some defects such as imperfect system, non-standard operation, low transparency, various standards, chaos market order, lacking enough fair and independence and low approval of investors are still existed.

3)      The existence of morality risk in the investment for securitization. After the sale of securitization assets, the originators no longer shoulder illegal duties the assets. But as loan service managers, they still carry on the later management according to the contrast. They mainly hand the repayment of borrowers to funds trustee banks and report to the trustees. Such arrangement includes some risks. Loan service managers no longer shoulder illegal duty for securitization products management and so they lose power and activity for performing their duties faithfully. But this is an important part for investors to receive enough and stable cash flow. Owing to credit assets (including some good assets) have been completely transferred to special purpose vehicle (SPV), some former borrowers may have to delay their repayment. To grantee recycle loan on time, any other loan managers could not replace the position and role. The investors for purchasing securitization products may face some investment risk.

4)      There is not a complete legal environment. The preciseness and validity of trade structure in assets securitization need to be safeguarded by relevant laws. In addition, there are more market subjects in assets securitization and the rights and duties among them need to be fixed, which are also according to laws. The current establishment of SPV has much contention with the Company Law, the Bankrupt Law and the general Provisions of the Civil Law in force. Meanwhile, as for legal system environment, we require that some laws and legislations concerning company composition and supervision, establishment of trust and duties of trustee, financing report, information revealing requirement, force duties of trustee, assets sufficiency rules and repayment ability should be determined.

5)      There is a nonstandard accounting and taxation system. The accounting treatment methods directly decide if the assets securitization could be truly sold and construct a financing mode outside of accounting forms. Currently, we have not clear regulations in the accounting principles in our country, which make uncertainty concerning its development. Moreover, taxation status directly decides the financing costs and feasibility and too much taxation will lose its cost advantage compared with other financing modes. Too many taxation links greatly trouble for assets securitization, but an unclear taxation status brings more risks to the traders of securitization. For example, in the aspect of turnover tax, the trade amount of assets securitization often reaches up to hundred millions or even billions, but the current business taxation is 5%. If we contribute according to the scale, the assets securitization will lose its economic value. In addition, some taxes like stamp duty, real estate tax and foreign affairs tax and so on also have such problems.

The sixth Question:

Landowners often develop real estate project together with commercial real estate Development Company. At present, the cooperation generally includes the following styles:

1) The party owning land use right provides land use right (land protocol discount or constituting jointly investment proportion through buying shares with evaluation). The other party possessing real estate development qualification provides funds and techniques. In the name of the two parties, the two parties commonly develop. The house will be distributed, used or sold according to the promised agreements. It’s illegally a classic cooperation style and in keeping with the trait of joint operation in contents and style. Internally, they commonly operate and shoulder risk and work together and get their profit returns in the managers of profits distribution and land compensation and so on according to the agreed contract. Externally, they shoulder joint liability together.

2) The party owing land use right provides land use right and other party invests capital and techniques. The land is developed in the name of the party owning land use right. When the houses are constructed, according the agreement, the house and the land in the scope they covered will be transferred to the investors. It’s a contract in the name of cooperation development and absorbing development funds and sharing interests. The party of the land use interest therein shoulders the development operation and risk. The other party of the cooperation only invests capital and techniques without its name and could not participate the operation and shoulders risks. They just enjoy fixed profits parts or get fixed house as investment returns. Actually, it’s a contract of loan in the name of cooperation development. Owning to the project is developed in the name of the party of land owning land use right, the risks therein mainly be shouldered by the party of supplying land use right.

3) The party owning land use right provides land use right and the land is developed with the capital and techniques of developers and in the name of the developers. When the project is completed, the developers, according to the distribute scale in the contract they reached, house ownership and land use right will be transferred to the party of owning land use right. It’s cooperation and a contrast of one party shouldering development and operation. In fact, its nature is transferring land use right in the name of cooperation development. The developers mainly shoulder the risks.

4One party provides land use right and the other party provides capital and they commonly make up a real estate development company. They share the house completed or the profits of the project according to the agreement and develop in the name of Project Company. Such project company of cooperation development is like a legal joint venture. The project company develops according to the approved business scope and shoulders its risks of operation in its name. When the project is complete, the mission is end. It is very helpful to solve the risks for the two parties. Owning to the new real estate development company is a legal person, the party of owing land use right must handle relevant land transferring formalities when they provides land transferring right.

5) The party owning land use right, which lacks development qualification or holding low-degree development qualification, often reaches development contract with qualified real estate Development Company and takes part in the development in the same name. The real estate development company attached handles the project approval, land use approval, construction report, sale contract signing and housing ownership certificate. Meanwhile, the company gets some proportional management fees and shares fixed profits. The cooperation style gets out of the administrative management for the development, lowers costs. In fact, it is a real estate certificate-leasing act for the development company. In case the cooperation party files a lawsuit when some disputes are rising, relevant contracts are often considered as invalid.

The seventh question:

At present, small and middle - sized enterprises generally face big pressure of survival and difficult funding problems in the current macro-economy polity regulation and credit squeeze. How to solve the difficulties of financing and get funds becomes a great problem for these enterprises’ survival. Until now, there are two financing channels: one is interest and the other is claim. But for those enterprises, owning to those enterprises are too small and the interests are cheap. Interest could not work. Moreover, in the unconsciousness of some enterprisers, even if some investors are willing to purchase their stocks, the enterprise could not accept to be only a trader, but not a director. Thus, The road of interest financing is blocked. But, the financing mode of claim must get the help of banks. As for industry investment fund, it is a faraway thing. So, difficult bank financing is an obvious thing for small and middle-sized enterprises including real estate development enterprises.

So, the real estate enterprises lacking of funds turn their eyes to the stock market at the same time. Listing financing boasts advantages of low costs and big size. If one enterprise is listed, it will get a platform for constant financing. Undoubtedly, it is the best result for small and middle-sized enterprises.

In the July, NASDAQ of US welcomed its first Chinese real estate enterprise named China House. On March 31, 2006, Henan Sunshine Holding was listed in the main board market of Singapore creating a new record for the inland real estate enterprises in the country. At the end of April 2007, the main board market of Singapore welcomed another inland real estate enterprise of China-Guangzhou Yuanbang Real Estate. These small and middle-sized real estate enterprises such as Sunshine Holding and China House opened a new financing road as listed companies in overseas markets. On the one hand, these enterprises widen financing channels. One the other hand, the names of these enterprises are well known. These companies get a platform for constant financing and have a less funds pressure.

In a word, it is a better way for small and middle-sized real estate enterprises to be listed in the overseas markets

  评论这张
 
阅读(372)| 评论(0)

历史上的今天

评论

<#--最新日志,群博日志--> <#--推荐日志--> <#--引用记录--> <#--博主推荐--> <#--随机阅读--> <#--首页推荐--> <#--历史上的今天--> <#--被推荐日志--> <#--上一篇,下一篇--> <#-- 热度 --> <#-- 网易新闻广告 --> <#--右边模块结构--> <#--评论模块结构--> <#--引用模块结构--> <#--博主发起的投票-->
 
 
 
 
 
 
 
 
 
 
 
 
 
 

页脚

网易公司版权所有 ©1997-2018