Research On Refinancing By Way Of Issuing Convertible Bonds In China's Listed Companies

Convertible bond is a hybrid type of financial derivative, which has the feature of equity, debt, and call option, and becomes a very popular financial and investment instrument in the international market. China's securities market has developed for a relatively short time, and the history of the Convertible bond market is only 10 years. China's listed companies are trying to use convertible bonds to broaden financing channels to solve the problem of lucking funds. In 2006, the China Securities Regulatory Commission promulgated "the Regulation of securities issuance of listed companies". This indicates the convertible bond market in China has entered a new development stage. Convertible bond is increasingly paid attention to by listed companies and investors. What kind of listed companies is suitable to choose convertible bonds in refinancing? How to use convertible bonds in listed companies financing? How to make sure to protect the interests of both investors and financiers? These questions need to conduct an in-depth study. Therefore, the research on refinancing by way of issuing convertible bonds in China's listed companies has important practical significance.This thesis uses the comparative method combined the theoretical and the empirical. Firstly, from the definition of convertible bonds and basic theory, the thesis reveals the financing advantages of convertible bond over other refinancing forms. Then, the thesis analyzes the typical problems of China's securities market through drawing on the experience of the convertible bond market in the developed countries. These problems mainly follow that the listed companies are more concentrated, audit standards issued unscientific, overall financing scale is small, Intraday mechanism is not sound. On this basis, the author proposes to establish the different standards in the different industries, to relax the conditions of entering the market, to support the company issuing convertible bonds, and to increase the variety of convertible bonds, as well as to develop the intermediary institutions.