| Recent years Convertible bond has aroused many people's interest. CBs can be exchanged for stocks after a refined period, serve as tools for adjusting and optimizing corporations capital structures. Therefore, some experts predict that CBs will become the most important financing instrument in the capital market in the future.This essay has five chapters. The first one outlines the main characters of the CBs. It talks about the CBs available in Chinese stock market and their issues.The second chapter introduces the new development in the International Convertible Bond Market, and then makes some suggestions to our CB market.Then the next chapter explores the function of CBs in the capital sructure.How to optimize the capital structure has been a vital problem in modern corporations. Nowadays Chinese corporations lay particular stress on share financing, which goes against the establishment of the best capital structure. As a financial innovation product, convertible bonds play a particular role in optimizing the capital structure. This article tries to illustrate how CBs optimize the capital structure and also bring forward some suggestions .The fourth chapter deals with CBs pricing and investment plans. This is the most difficult part and it cost me much time. I compared the latest issued CBs and priced them, making an invest strategy then.In the last chapter I devised a model to clarify how to use CBs in risk investment. According to my observance, CBs will be very popular in high-tech corporations for its character. At last I concluded how to protect the CB holders by the law. |
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