Research Of Developing Exchangeable Bonds In China

The development of Chinese bonds market is non-consecutive from the total amount currently, the scale is too small. From the structure, corporation financing relies on equity financing overmuch, and neglects bonds financing. Corporation bonds issuance scale and rhythm can't make the adaptive response with the changes of macroeconomic indexes.In addition, with the successful completion of non-tradable shares reform, more and more equities which held by the shareholders of original non-tradable shares are released from the restrictions on sale and change into the circulation status. It affects the smooth operation of securities markets seriously, dismays investors' enthusiasm. The main reasons for these problems are the underdeveloped structure of capital market and the uncoordinated development of stock market and bonds market.In order to set up a perfect capital market, the key is to develop the bonds market, adjust and improve the structure of the varieties of corporation bonds, accelerate the innovation of derivatives products of bonds, such as the innovation of exchangeable bonds. It is mixed financial products. As an innovation of convertible bonds, exchangeable bonds appears timely, not only helps to relieve the impact to market which is from the release of restrictions on sale of shares, but also promotes the healthy development of capital markets, and expands the varieties of bonds market investment products.Exchangeable bonds develop rapidly overseas, and research theories are more mature. But there are no exchangeable bonds products in our country and little research on exchangeable bonds. The existing research about Exchangeable bonds is at the application of decrease of the State-owned Shares. In my paper, I analyze mainly from Chinese corporation bonds market, use mature experience from the development of exchangeable bonds market overseas, combine with actual situation of capital market in our country and base on the basic theory of bonds, take the history of literature, comparative analysis, case studies and other research methods. After compare exchangeable bonds with convertible bonds and discuss the feasibility, concept of the development of exchangeable bonds in our country, and the affection for the capital market I give some rational proposal for the development ofexchangeable bonds.