Listed Companies In China Convertible Bond Financing Methods Applied Research

Convertible bonds (CB) financing is now emerging in Chinese capital market. Public company using this kind of financial instrument can help to resolve the problems of exorbitant equity financing scale, few security types and slow financing innovation in this market. Although some public companies have tried it in practice, and the domestic academia has showed much interest, mostly the focus is affected by security dealers and so, on the theory of CB pricing aiming at arbitrage. A theory about the characteristics, advantages and disadvantages of CB financing can hardly be seen. Our research begins with analyzing the economical inbeing of CB, summarizes the history and status in quo of Chinese CB financing. We conclude that CB financing can decrease many types of equity-related and debt-related costs in firm's external financing contrasting with debt and equity financing. We also contrast our experimental evidence in Chinese market with the overseas evidences, and find some characteristics and flaws of domestic issuers.This article stands the view of enterprises' financing. It analyzes the convertible bonds as one of the enterprises' financing channels, has made some positive research in status of convertible band, and analyzes the financing effect of convertible bond. The aim of this article is that help enterprise to grasp the means of convertible bonds and practice wisely. The preface introduces the background of this article and the basic ideas shortly. The body consists of four parts: general theoretical analysis of the convertible bonds, developing status of convertible bonds, effect analysis, and the analysis of affect factors, the last part analysis about the problems and develop trend of companies' convertible bonds financing.This thesis's innovative points include: 1) To the newest extent, it integrally summarizes status of domestic CB financing by public companies. 2) It gives an experimental study of the representative domestic CB issue samples up to the present facing corporate financing.