| As a financial instrument, the convertible bond is very special in nature. It has some advantages that other financial resources do not have. Because of the profit expectation of its conversion, interest rate is for below others, and the expenditure of interest can shield the effect of taxation. After conversion, the bond becomes common stock, and it will not be necessary for the corporation to pay it back, which will improve the financial structure of the corporation who issues the convertible bond. Just because of the advantages that have been illustrated above, the convertible bond finance is very attractive to those who want fund. To the investors, when the stock market becomes from weak to strong, or the issuing company may have better profit, its stock price will climb. The investors may choose the convertible bond be transformed to the stock according to the transformation price which the issuing company stipulates, and enjoy the company good achievement to draw the bonus and benefit which the company climbs in. When the stock market is murky, both the issuing company's convertible bond and stock price fall, in this time, the investors sell or hold the convertible bond, or transform into the stock are all inappropriate, they would rather choose the retention and gain interest. Therefore, the convertible bond provides the investors with the stock's and the bond 's best attribution, and they may share the stock long-term potential growth and the bond's security. It is above two reasons in addition to the stock market departing from the macroscopically economic that caused our country's convertible bond the swift and violent development in 2003 and 2004. This article analyzed the reasons from the aspect of the policy law, the macroscopically economical trend, the anticipation to Renminbi, a high level of the first market return ratio, the issuing provision and so on. Therefore, this part of research has the certain practical significance. But the convertible bond had many problems in our country. One, the convertible bond market scale was insufficiently big. The deep level reason mainly lied in the policy decision maker. The policy decision maker has carried on the strict stipulation to the responding body. Two, the issuing provision had questions, for example, the issuing provision having interior incardination, the issuing provision excessively occupying the circulated stock shareholder's benefit, the issuing provision being too complex and so on. On the one hand, these have enlarged publishers' cost because they wanted to spend the very big energy to design these provisions. On the one hand, these have enlarged investors' cost because they wanted to spend the massive time to study these provisions, compare these provisions. Therefore this part of research has the certain significance to the policy maker and the issuing company. Concrete chapter arrangement was following: First chapter analyzed our country convertible bond's issuing basic situation. The detail content was divided into two. First section was the basic situation. It analyzed the issuing bodies' profession distribution, analyzed our country's the financing growth situation by the convertible bond, analyzed our country's low zhongqianlv situation, and analyzed the convertible bond's the dilution situation to the stock market. Second section illustrated our country's convertible bond's issuing provision. The second chapter summarized the related theory about the convertible bond. Third chapter analyzed our country's deep level reason that the convertible bond market scale was not big. Fourth chapter was some ponders about above, including four contents. First section discussed the reason that our country' the convertible bond recently fast developed. The second section analyzed the issuing provision question. Third section illustrated the factors thatshould be considered when bond were to issue. The fourth was the author's suggestion that should be taken to make the convertible bond issuing better. This article used the data mater... |
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