Study On The Warrant Bonds In China

1.The research contents and ideasWarrant bond is a new refinancing product in our country's capital market. It's the first time to include the warrant bond into refinancing product at"The management approach on issuing securities of listed companies"on 7,may,2006.There are four issued warrant bond in our country now, and three warrant bond are issuing.There are continued doubts on malicious financing and damage to the interests of small shareholders. The government began the non-tradable share reform to solve these problems. Then the warrant bond emerged in our country.What about of the decisions on new market environment and new financing products by market players? I think this is a very interesting problem. This paper analyzes the warrant bond and I find that the warrant bond in our country are just as the same as WBs in foreign capital market. WBs which is mainly based on debt financing is totally different with CBs which is mainly based on equity financing .This is very important in our country. Have our country's capital market changed in quality? This problem needs paper's further research.Because people are strange with warrant bond, to analyze the market constraint, the decision of market participants and the risk is meaningful for us to master WBs.The main idea of this paper is: First, introduce the birth of warrant bond and the foreign market. Then analyze the characters of the warrant bond, the difference with the other bond and the evaluation. Last, the paper concerns the market risk of WBs.2. Main contentExcept the prolegomenon, this paper has five parts.The prolegomenon is to introduce the objective, framework, contribution and inadequate of this research.Chapter 1 is about the background of the WBs. This part introduces the classical theory of finance and the research achievements at home and aboard.Chapter 2 is about the elements of WBs. WBs is different with the other bond in trading terms and the features. The evaluation of WBs is also analyzed in this part.Chapter 3 is to analyze the decisions of the actors in WBs market. The main actors are the investing side and the financing side. The two sides determine the issuing terms based on the balance of benefits.Chapter 4 is to analyze the market risk of WBs. From the characteristics of WBs, this paper study the market risk of WBs based on the warrants and bond.Chapter 5 is the conclusions. In conclusions, this chapter of this paper focused on reviewing the subject matter, the author'perspectives and conclusions, the lack of research, and further research proposals.3. The main views and contributionsThis paper studies the financing decision by warrant bond (WBs). The article mainly includes WBs production, product features, risk analysis of the decision-making results.The paper's perspectives and the major contribution is as follows :1.Based on existing digital resources of Sufe'library, this article is the first paper studies the warrant bond of china.2. By comparative analysis between CBs and WBs, we point out that the CBs have become equity financing alternatives tools. Main purpose of issue WBs is to conduct low-cost bond financing.3. At present, the warrants market hit is the important reason for Chinese WBs development. Risk of warrants market is bound to intensify the WBs'inherent risks.4. Analysis of the case while using sensitivity analysis, through two angles calculated value and price of issued WBs, discuss the risks by two parts: warrants and corporate bond.The article inadequate and the contents would be subject to further study ,also includes a number of areas :1. Separated government plays an guiding role in the current WBs market. Lack of further study about the inherent purpose of government behavior.2. How to prevent for the risk of WBs, to improve market both need further study.