The so-called refinancing mainly refers to the direct financing of listed companies in the securities market through allotment, issuance of additional shares and issuance of convertible bonds. For the development of listed companies that have been listed, some ways are often needed to play a greater role in promoting, and refinancing can do this. The refinancing function of China stock market has attracted more and more attention. Unfortunately, due to many reasons, there are still some problems that cannot be ignored in the refinancing of listed companies.

Factors affecting refinancing

1. The influence of financing cost on equity financing preference: for debt financing cost, the cost of refinancing can be said to be much lower than it, so this is also the main reason why listed companies are very keen on refinancing;

2. The influence of listed companies' governance structure on financing preference: Most listed companies in China stock market are restructured and listed by state-owned enterprises through incremental issuance of shares, and their governance structure still bears the brand of state-owned enterprises;

3. The impact of the evaluation system of listed companies on equity financing preference: For listed companies, their management goal is mainly to maximize the interests of shareholders. However, because the after-tax profit index of enterprises only assesses the debt cost of enterprises in indirect financing, but does not assess the cost of equity financing, even if it is assessed, the result is always low, so listed companies prefer equity financing;

4. The influence of listed companies' profit expectations on their preference for equity financing: As the profitability of most companies will drop sharply after refinancing, the return on assets of listed companies is basically lower than the loan interest rate of banks, which makes major shareholders more inclined to equity financing;

5. The influence of other uncertain factors on equity financing preference: The financing of listed companies is not only affected by financing cost and corporate governance structure, but also by other factors such as growth and financial status.