Myers' Pecking Order Theory is a popular doctrine explaining corporate financing preferences. However, not all corporations in the world observe Myers' Pecking Order Theory. For example, Chinese listing corporations do not follow Myers' theory. This paper, using static cost analysis, explains an important factor that results in financing preferences of Chinese listing corporations. Authors believe that a comparison between the new stock price and the indifference price is necessary in deriving corporate financing preferences. The finding is reconfirmed by Chinese listing companies' IPO data.