Debt-equity Swap Of State-owned Enterprises, Financial Assessment,

For many years,state-owned enterprises has always been perplexed by high liabilities. Excessive debits not only cause enterprises to increase much interest,but also influence commercial banks' assets and raise financial risk. If a new measure is not carried out,many state-owned enterprises and commercial banks will be bankrupted. In this case,government of China put out a new step,that is,transfer of Bondholding to Shareholding,which is only used in those qualified enterprises. In my thesis,by financial analysis,I study the problems as follows:(1) The objective of transfer of Bondholding to shareholding in the state-owned enterprises;(2) The reason why the state-owned enterprises are heavily in debts is the defect of their corporate governance;(3 ) Simplified transfer of Bondholding to Shareholding will probably make corporate governance more unreasonable. Through all above analysis,the final aim of transfer of Bondholding to shareholding in the state-owned enterprises depends on the retreat of state-owned units.