Jiangsu Sunshine Ag Convertible Bond Investment Value Analysis

The convertible bond is such a kind of bond by which you can buy publishers' long option of common stocks, which is also a sort of hybrid derivatives between common bonds and common stocks.Jiangsu Sunshine Co.ltd is the first listed company that may publish convertible bonds since the ratification system was performed in securities markets in China. By analyzing its outer environment, inner natural priority and articles design of convertible bonds, this paper draws a conclusion that the articles design of interest rate, expiration and conversion price of the convertible bonds Jiangsu Sunshine Co.ltd published takes investors' benefit into account fully. Moreover, the stocks of the company have a good growth in the future. In a word, the convertible bond is of good investment value and is worth investing.The implementation of the investment project of fund collected by convertible bonds Jiangsu Sunshine Co.ltd published will strengthen its competition ability of technology and talents, enhance its profit ability, and improve its inner weak links, as anybody can see. Jiangsu Sunshine Co.ltd will be able to face calmly the pressure from the globalizational competition when China entry to WTO.Measurable calculations of this convertible bond's forward option by Black Scholes model show that its actual value surpasses its nominal value. So we can draw the same conclusion by both qualitative analysis and measurable calculation that this convertible bond has great investment value really.At last, several pieces of advice are given to the value appreciation of this convertible bond of Jinangsu Sunshine Co.ltd:(l) Optimize the shareholder structure of the company; (2) Optimize the management of the company; (3) Pay special attention to culture construction of the company.