Debt Policies of Chinese SOEs-based on banking relationship

摘要

The financial leverage effect is not a determinant factor of a company's debt policy.Unlisted SOEs mainly raise money from bank-based financial system and undertakes more social duties,the implicit assurance or soft budget induce them to accept huge loans from state owned banks regardless of financial leverage loss.But listed SCCs raise money in a market-based financial system,make debt policy in order to meet the rigid request of CSRC on debt ratio corresponding with some financing and refinancing behavior and pay no or less attention to financial leverage effect.