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The Theory Of Convertible Bond And Its Practice In China

Posted on:2004-10-21Degree:MasterType:Thesis
Country:ChinaCandidate:S X YuanFull Text:PDF
GTID:2156360092975902Subject:Accounting
Abstract/Summary:PDF Full Text Request
Convertible Bond is a kind of financial instruments that is based on the carrier of corporate bond and permits the holders of Convertible Bond to convert it into common stock at the stipulated price in the stipulated time. It owns bond and stock's properties, that is to say, its interest rate is not only lower than common bond, but the issuer reconciles the proportional relation of equity capital and debt capital, so as to benefit to optimism capital structure. Based on above, Convertible Bond has become a kind of quite mature and popular financial instruments. Now the globe Convertible Bond market capital scale is beyond 1000 billion dollars. In American, Europe-union, Japan and South-earth Asian counties and regions, Convertible Bond market has played an important part of financial market and pulled these counties and regions' financial markets prosperity and enterprise competence increasing. In contrast to developed countries, our Convertible Bond market only lies in beginning phase. In the meantime, there exits many difficulties in our Convertible Bond, such as excessive stock equity, financial rate, short of investment types and the difficulties in financial innovation. So we need to issue bond style and equity style's financial products and perfect relate market. Especially in the last year, Convertible Bond market was in low tone, and the newly-issuing stock was polled by feet. Convertible Bond, as a middle investment or financial instrument, not only helps issue enterprise to reach the aim of a long-time equity capital, but its market system's prosperity and development benefit to China capital market's maturity and diversification of financial risk. So, issuing Convertible Bond becomes the first tool of many enterprise and countries to finance. Up to now, there are above 50 listed companies' board of directions who put up issuing Convertible Bond, and 20 of them have been permitted by share holder's meeting. Even though Convertible Bond will face a development chance, we have to recognize that there are faults that limit the development and perfect of our Convertible Bond market. This paper prepares to probe into the characteristic and regularity of Convertible Bond running in our capital market, to pull Convertible Bond into successful practice by virtue of the link of the theories of Convertible Bond, such as Convertible Bond's factors-planning, the choice of issuing time, the influence to financial structure, pricing-model, etc, and the running situations of the issued Convertible Bond.
Keywords/Search Tags:Convertible Bond, Capital Market, Conversion Value, Finance
PDF Full Text Request
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