The Investment Analysis And Portfolio Management On China's Convertible Bond

Convertible bond is a new type of financial derivative which has the character of high profit and low risk. It can apparently move the utility frontier upwards when added into the invest portfolio.Since 2002, convertible bond market which gradually came active has attracted the institutional investor's attention and become an significant component of bond market, or even the securities market in China.In this article, on the foundation of reviewing the growing course and nature of China's convertible bond market, I will introduce the current developing situation of global convertible bond market, so as to systematiclly investigate the major clauses of regulations concerning convertible bond as well as their affection on the bond's invest value. I will particularly pay attention to the convertible bond's constitution of value and the various facts that influence its market pricing which will help us rationally evaluate the invest profit and risk of the bond and analyze the invest opportunities in such different steps of its listing as offering period, non-convert period and convert period. Meanwhile, the analysis on the the bond's effect and function in invest portfolio with focus on the trait of China's securities market will be another important task in this paper. I will also introduce the process and standards of convertible bond asset allocation and summarize the invest strategy of differernt types of investor on organizing and managing convertible bond.