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The Analysis On Financing Decision Of China MinSheng Banking Corp.,LTD. Issuing Convertible Bonds

Posted on:2006-04-23Degree:MasterType:Thesis
Country:ChinaCandidate:C B JiangFull Text:PDF
GTID:2156360152970295Subject:Business Administration
Abstract/Summary:PDF Full Text Request
As an exterior method of raising funds, convertible bonds contain the characteristics of stocks, bonds and options. It is a popular method for enterprise's raising funds. Convertible funds issued by many corporations could be converted into their common stocks. Therefore, we can take it as a method of deferred stocks.After China's entry to WTO, China MinSheng Banking Corp, LTD. faced tougher competition from the strong foreign banks and other Chinese banks. How MinSheng will gain its advantage over others and enjoy its fast growth in the process of China's rapid growth? The most important method is to expand its capital and enlarge its scale of bank's assets.First of all, after analyzing three exterior methods of raising funds, MinSheng could use the methods between issuing common stocks and convertible bonds. Since the advantages the convertible bonds have, it became the final choice of Minsheng. And then by analyzing its financial vectors, Minsheng convertible bonds are the deferred common stocks. We study its capital cost and the influence on financial indicators. Meanwhile, we also analyze the value of the convertible bonds issued by China MinSheng Banking Corp, LTD.The final conclusion is that although its capital cost will be high if the convertible bonds are converted into stocks in advance, however, the convertible bonds is the best choice of Minsheng Banking. Minsheng Banking will benefit a lot from the issue.
Keywords/Search Tags:MinSheng Bank, Financing, Convertible Bonds, Capital Cost, Option Pricing Models
PDF Full Text Request
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