Study On Financing Strategy Of Convertible Bond

Convertible Bond is a derivative instrument between common bond and common share. A Convertible Bond is a bond that gives the holder the right to convert the bond to common share of the issuer at a fixed ratio during a stated period. Comparing with other financial instrument, Convertible Bond has much strength, such as offering lower financing cost, and optimizing capital structure.With a history of over 150 years abroad, convertible bond is composed of a series of specific terms. In 1843, New York Erie financed with Convertible Bond, it is the first Convertible Bond in the world. But the Capital market of our country is very young. The corporation —"Qiongnengyuan"~issued the first Convertible Bond in Chinese capital market in 1991. With the development of the Convertible Bond in China, there is a law system about it.In twenty years of The Reform and Open in China, we have a very important experience in the Convertible Bond . In the article design, we not only learn the experiences in overseas.My text consists of four chapters.The first chapter introduces the theory of the Convertible Bond really and the situation of the Convertible Bond in China.The second chapter discusses the article of the Convertible Bond and analyzes the weakness of the article design in our country.The third chapter analyzes how to design the article of the Convertible Bond and present some advices in the Convertible Bond now and tomorrow.The final chapter is an example analysis. It analyze the Convertible Bond of "Yageer".