Abstract
Since the establishment of China’s capital market, it has been imperfect. Many listed companies misappropriating the capital market, and some of them want to expand the size through the capital market. It seems that enhance corporate value is impossible, too. However, companies want bigger and stronger cannot do without a strong leverage of the capital market, and enterprises to enhance their value can be counterproductive in the capital markets, improve the efficiency of capital markets. This paper analyzes Kangmei Pharmaceutical Co., Ltd, and the relationship between its financing and value growth in the Chinese capital market, research results exist mutually reinforcing mechanisms between capital market efficiency and core competitiveness of enterprises.
Highlights
The securities market is the main form of capital markets, since 1990 formalized the system construction, there are more than 1400 listed companies, and the market value reached more than three trillion Yuan
China’s stock market was born and raised in the planned economy and market economy caught in, when it was born from a system of distortion and dislocation on along with it, the system, which makes it function and efficiency have been a strong institutional context suppression, the stock market to optimize the allocation of resources function is twisted into a bear economic, financial restructuring costs and risk transfer tools
In the institutional context at this stage, companies want to rely on the capital market financing of funds successfully, and achieve and enhance their core competitiveness goals or improve the efficiency of capital markets by enhancing their core competitiveness of enterprises seem difficult to achieve [5]
Summary
The securities market is the main form of capital markets, since 1990 formalized the system construction, there are more than 1400 listed companies, and the market value reached more than three trillion Yuan. Economic and social financing through the capital market to achieve the optimal allocation of financial resources [1], the provision of financial resources to the market with a minimum transaction costs for those who need money, and secondly, the market demand for funds to use the financial resources to provide the ability to efficiently output to the public [2]. In the institutional context at this stage, companies want to rely on the capital market financing of funds successfully, and achieve and enhance their core competitiveness goals or improve the efficiency of capital markets by enhancing their core competitiveness of enterprises seem difficult to achieve [5]. If the enterprise to develop the right strategy, establish the correct corporate values, relying on bigger and stronger capital market is not impossible, Kangmei Pharmaceutical is a typical example
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