Analysis The Problem On Convertible Bond’s Financing Of Listed Company In China

Convertible bond is a financial tool with the features of both debt and equity options. It has nearly170years of history on the international financial markets. From the mature financial markets in developed world to see, convertible bond work as a mixed financing tool of both options and bonds, has achieved a rapid development, has become the first choice for the certain types of companies’ financing. In recent years, the advantages of convertible bond’s financing increased obviously, the research of convertible bond’s financing is becoming a hot topic in financial management and finance.Unique background of development of securities market in China, led to the listed companies’refinancing of excessively high equity financing. Equity financing is directly related to expand the scale of the company’s share capital rapidly, the share price to malignantly fall down. Convertible bonds which is the urgent need of the listed company to alleviate the pressure of the equity financing expansion become a new refinancing channel. In the early1990s of the20th century, the convertible bond has been introduced to our country. After more than20years of development, the convertible bond market has become an important part of financial market in China. And it shows a the good momentum of rapid development. However, because of the shorter time to be issued in China, the macro-economic environment in China is not perfect, the development of convertible bond’s financing in China is not yet mature. Therefore, exploring the financing problems of convertible bonds of listed companies in China is of great theoretical research and practical guiding significance. The improvement and development of the convertible bond’s market system also has important significance to perfect the capital market in China and reduce the financial risk.This thesis use the standardized research method mainly, combine with the empirical analysis method. It also use combination of quantitative and qualitative analysis, comparative analysis, inductive, deductive methods, etc. This thesis proceed from the basic survey on the theory of convertible bonds, reviewed the institutional background of convertible bond financing development, on this basis, collected、 analyzed the data of convertible bond’s financing of listed companies in China, analyzed of the main problems of convertible bond financing of listed companies in China and its causes, and draw on the successful experience of foreign companies’ convertible bond issuing, made many recommendations to improve the condition of convertible bond’s financing of listed companies in China.The thesis divided into seven parts, each part of the specific content as follows:Introductory remarks. This section describes the background and significance of this thesis, the domestic and foreign research status of convertible bond financing and related research results, research methods、research ideas、research framework of this thesis.Part one:Overview of the basic theory of convertible bond financing. It states the meaning, characteristics, types and basic elements of convertible bond, describes the related theory of convertible bond’s financing, finally makes compared to the advantages and disadvantages of convertible bond’s financing.Part two:The general situation on convertible bond’s financing of listed company in China. I collected, collated the data of convertible bond’s financing of listed companies in our country at the present, from legal, issuance, distribution, credit ratings, terms designed, I describes the development situation of convertible bond’s financing in China.Part three:The problem on convertible bond financing of listed companies in China and reason analysis. From the market scale is small, listed companies blindly follow, the issuing time is not appropriate, the design of terms is unreasonable, the information disclosure non-standard and so on, sum up the main problems of convertible bond’s financing of listed companies in China. From the legal, regulation, un-standardized stock market, un-rational investor behavior, I make a detailed analysis of the external causes of the problems on convertible bond’s financing of listed companies in China; from the issuing company’s orientations, the purposes of the issuing convertible bonds, the issuing detailed timing’s policy-oriented, I make a detailed analysis of internal causes of the problems on convertible bond’s financing of listed companies in China.Part four:Basic situations and Experiences of foreign listed companies in convertible bond’s financing. This section introduce the general situations and characteristics of convertible bond’s financing in the United States, European, Japanese companies, concludes and summarizes the available experience in convertible bond’s financing of listed companies in China.Part five:The proposals to improve the convertible bond’s financing of listed companies in our country. Consider to the problems and causes on convertible bond’s financing of listed companies in China at present, from improving the legal system of convertible bond’s financing, correctly guiding convertible bonds’ issuers, enhancing the training for investors, designing the convertible bond’s terms reasonably, speeding up the opening of the convertible bond’s market, I make many recommendations to improve convertible bond’s financing of listed companies in China.Conclusions and prospects part. This section includes summary, conclusions, limitations of the research for this thesis, as well as the follow-up prospects for further research in the future.