An Analysis of Treatment of Financing Preference of China’s Listed Companies

China’s listed companies will show great preference for equity financing and a liking for pecking order theory in certain given policy environment and distempered market, which will have negative effect on the listed companies. The dominance of control persons, the main characteristics of the formation of equity financing preference of China’s listed companies will deprive other investors of their interest, seriously compromising the financing function of China’s securities market. Hence, governance of companies and control persons’ power should be strengthened, and further construction of a capital market system should be held as the guidance for the treatment of financial preference of listed companies.