A Study On Convertible Bonds Financing Of Chinese Listed Companies

Convertible bonds refer to securities that are issued in line with requirements of laws and can be converted to stocks in accordance with terms fixed on upon issuance. It is a kind of financial product that possess features of both security and stocks, and has become an important financing channels by Chinese listed companies. Convertible bonds are key to solve a series of problems such as over high percentage of equity, single security types or the slow development of financial innovation. The thesis makes detailed empirical study on convertible bonds financing from the point of corporate financing, explaining how corporate should make reasonable use of this tool, making detailed analysis on issuance and raising of securities through detailed data and diagrams, and making suggestion on improvement. It also draws the conclusions on its feasibility and makes suggestions on its improvement qualitatively and quantitatively.The thesis is divided into 7chapters. The first chapter explains the thoughts and the structure. The 2nd and 3rd chapters explain the theories on corporate financing and convertible bonds. The fourth chapter makes SWOT analysis and IFE appraisal, analyzing the feasibility of convertible bonds in listed companies strategically and qualitatively. The fifth chapter is the core of the thesis, analyzing the feasibility of convertible bonds employing Black-Scholes model and binomial trees model. The sixth chapter is also the core. The seventh chapter draws the conclusion.The thesis tries to find the way to further develop convertible bonds by empirical study, providing reference for finding new financing channel and realizing sustainable development.