What Is Capital Market Financing?

Issuing corporate bonds Corporate bonds are mostly used for new construction projects, with interest rates higher than bank interest rates over the same period, with a term of 2 to 3 years. Generally, large enterprises in the market issue more bonds. SMEs can use this method of financing. The key is to solve specific issues such as bond underwriting, interest payments, and repayment on time.

Capital market financing

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Issuing corporate bonds Corporate bonds are mostly used for new construction projects, with interest rates higher than bank interest rates over the same period, with a term of 2 to 3 years. Generally, large enterprises in the market issue more bonds. SMEs can use this method of financing. The key is to solve specific issues such as bond underwriting, interest payments, and repayment on time.
Chinese name
Capital market financing
the term
2 to 3 years
Use
Mostly new projects
Nature
SME
content
Issuing trust products
Trust and investment companies are generally entrusted to private private placements for large-scale infrastructure projects. The interest rate for investors is higher than the bank's interest rate for the same period. In addition, trust commissions must be paid to the trust and investment company.
Asset Securitization
SMEs mortgage their assets to investment banks (securities companies or commercial banks). Investment banks issue equivalent asset securitization products. The funds raised by the issuance are used by SMEs. Asset securitization products can be traded through special markets .
Asset Shares
Small and medium-sized enterprises can divide the net assets into shares according to the actual assets of the company, and raise funds through management shareholding, employee shareholding, and sale of shares to specific shareholders, and realize the diversification of shares.
Property market
Property rights transactions are relatively standardized, and there are corresponding price evaluation systems for assets and stocks sold, and the transaction methods are basically market-oriented. In particular, small and medium-sized technology companies can list some equity patents (intangible assets) and tangible assets on the equity exchange in order to solve the shortage of funds, which can solve the shortage of internal funds of the enterprise and increase cash flow; it can also lay a good foundation for further capital market operations. basis.
Listing on domestic and foreign stock markets
Listed company mergers and acquisitions

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