A Study On The Purpose And Change Of Exchangeable Bonds

Since the successful issuance of China's first exchangeable bond in 2013,the number of exchangeable bonds in China has been rapid development.Because the introduction of exchangeable bonds is not so long,domestic scholars mainly study on the exchangeable bonds' influence on corporate performance,legal system,accounting treatment,pricing model and development motivation.Based on the theories of bonds,this paper studies the exchangeable bonds by descriptive statistics and case analysis based on the knowledge of financial management and corporate strategy.The author first made a preliminary descriptive statistics on all the publicly and private exchangeable bonds before 2016 in Shanghai,and standardized a set of normal to determine the motivation of exchangeable bond.Then the author found that the exchangeable bond whose purpose is reduction is more than others.Then,after reading a lot of references at home and abroad,the author had a profound understanding of the meaning of exchangeable bonds,issuing motives,income and risk,etc..The author draws the final conclusion of this paper by further descriptive statistics and in-depth analysis of Zhongzhu medical case.At the end of the article,the author puts forward three suggestions from the respect of the supervisory department,and makes a prospect for the future research of this article.Compared with other literature,this paper standardized a set of normal to determine the motivation of exchangeable bond,then uses descriptive statistics and finds that the purpose for the shareholders to issue exchangeable bond are financing or reducing equity,and the number of reduction is more than others.Then this paper uses the case of Zhongzhu medical company to further explain the shareholders issue the exchange bond for the purpose of reducing equity and the listed company may cooperate with the shareholders to carry out capital operation to raise the stock price,so that shareholders get huge gains.In the end,the author gives advice in several aspects and hopes to rich the research literature.