the arrival of a new round of global monetary easing is quietly affecting the pattern of international financial markets. at the same time, the cross-border financing of mainland companies ushered in a favorable external environment. considering the global financial status and the advantages of connectivity with the mainland financial market, many mainland enterprises regard hong kong, china as the first choice of cross-border financing, and use cross-border capital to improve the capital operation of enterprises and optimize the debt structure, so as to welcome a new round of development boom from a higher starting point.
driven by economic globalization, china is opening wider to the outside world. mainland companies are increasingly willing to compete in the global market, and cross-border financing is not only a solution to capital needs, but also an important bridge to the international market. on the one hand, through cross-border financing, mainland enterprises can legally introduce sustainable and low-risk overseas funds, optimize corporate debt structure, and raise working capital and medium and long-term capital needed for development. on the other hand, in the process of issuing cross-border financing products, mainland enterprises can also gain recognition from overseas investors and the international capital market, improve their competitiveness and influence in the global scale, and accelerate the development of globalization.
however, many enterprises cannot issue investment-grade cross-border financing products overseas due to insufficient qualification conditions, resulting in limited overseas financing channels and scale. based on the strong demand for high-quality capital, enterprises can effectively solve the financing problem through trs total income swap. trs gross income swap is a safe, stable and efficient cross-border financing mode. it is reported that china construction group has been the first in the capital market in hong kong to carry out this business. in the total income swap of china construction trs, mainland financing enterprises shall pay the inferior capital to the inferior capital in accordance with certain priority and inferior capital ratio. china construction hong kong priority shall use the equivalent overseas capital and the superior capital paid by overseas investors as investment capital to subscribe the financing products issued by the financing enterprises in hong kong. based on the operation mode and trading characteristics of china national construction trs total income swap, non-investment grade enterprises can issue overseas investment grade financing products in hong kong, break through the financing barriers caused by insufficient qualification conditions, and effectively solve the problem of capital shortage in enterprise development.
with the implementation of the national policy of encouraging active and effective use of foreign capital, more and more mainland enterprises take the initiative to participate in international financial cooperation and seek diversified cross-border financing modes including trs total income swap. by opening channels for efficient flow of capital at home and abroad, and by virtue of the hong kong capital market, we can achieve continuous improvement and development of ourselves, which also lays a solid foundation for further integration into the international market environment.