(1) Permanent. This is determined by the method of stock financing. Since stocks have no time limit, shareholders are not allowed to request withdrawal of their shares under any circumstances. Therefore, the introduced foreign capital can become permanent productive funds and stay in the enterprise without causing any problems. Like any joint venture or cooperative enterprise, the foreign party may withdraw funds due to expiration of the contract or unexpected changes, causing the enterprise to be in trouble. Especially through the issuance of B shares for financing, the foreign capital attracted by the financing country will only increase but not decrease. B shares can only be traded among foreign investors and cannot be sold to domestic investors, so the foreign capital raised by the financing country is relatively stable. , the country's ability to attract foreign investment will not be affected by hot money.
(2) Initiative. By attracting foreign investment through stocks, the financing country can use legal and policy means to restrict investors' purchasing methods, types of purchases, methods of capital entry and exit, tax rates, etc., and make corresponding regulations. The financing country can also independently decide which industries and enterprises are allowed to What is not feasible for foreign investment, so as to guide the investment direction correctly.
(3) Efficiency. International stock financing is conducive to companies that issue stocks to the world at a higher level. From the perspective of their own interests, foreign stock holders will be very concerned about the operating results of the company, which will help the company improve its management and profitability. The issuance of stocks by companies to the outside world has effectively improved their international reputation and credibility, which is conducive to companies exploring product sales markets and developing international operations.
3. Overseas investment fund financing
The role of overseas investment fund financing is to make society idle funds Aggregated and maintained together over a longer period of time, this is quite beneficial to financiers. In addition, sound management is a general investment strategy of investment funds, so investment funds are also very beneficial to the stability and development of the capital market.
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