Study On The Development Of Chinese Convertible Bond Market

The convertible bond, which has the dual chracteristics of the stocks and bonds, has the functions of the financing and risk avoiding. Since 1980's, convertible bond has drametically developed worldwidely and has been an important component of international financial capital in many developed countries. The convertible bond market has been gradually developed in China since be starting in 1990's. However, comparing to the west advanced countries, it is still in the initial stage.Since 1990's, number of studies were conducted on the convertible bond, which has mainly focused on the methods of pricing and the problems in items. Although the market system of convertible bond has been also studied, the research results are old and not suitable with the current economic marcket. The thesis summarized the development and present status of the convertible bond, further analysed the main nature of the convertible bond market in China, and also comparing with the current data. Based on the reseach results, we respectively pointed out the existing problems in the five subsystmes of the convertible bond market. Subsequently,the significance of developing convertible bond market for improving and prefecting the capital market was discussed, meanwhile its validity in solving the interests'conflict among creditor, manager and stockholder was aslo analysed. Finally, the conclusion was drawn that that building and optimizing our convertible-bond market system should be focused on the following five fileds, i.e. the production system of convertible bond, the supply system, demand system,the market media and the trade system, by expanding the coordination forward.