A Positive Analysis on the Capital Financing Structure of Hongdu Aviation Industrial Shareholding Co., Ltd

Abstract

The paper analyzes the capital financing behavior of Hongdu Aviation Industrial Shareholding Co.,Ltd and finds out that the company has made much headway in the reform of its capital financing structure. Meanwhile, the author diagnoses Hongdu Aviation’s strong partiality for equity capital financing and lack of debt capital financing, low capital profitability and efficiency of capital utilization. Hence, the author suggests that the company decentralize its equity to big proportions, promotes the circulation of its property right and increases debt capital for its sustainable, fast and healthy development.