Study On The Exchangeable Bond

In the development process,an enterprise have to face the need of expanding production,improving product quality and diversified development.And financing is a vital link in these development process.The exchangeable bonds have both characteristics of stocks and bonds,so they can have capital preservation at the same time they can earn high profits.Therefore,Financing by issuing the exchangeable bonds is considered as a method with relatively safety,efficiency and low cost.In China,the time of exchangeable bonds' s development is short.2013 Wuhan Fuxing Biological pharmaceutical industry limited company issued “13 Fuxing bonds”as the first private-placement exchangeable bonds in 2013,and Baosteel Group limited company issued “14 Baogang EB”as the first public-offering exchangeable bonds in2014 December.Especially with the improving and perfecting the system of exchangeable bonds in recent years,this new financial instrument is more and more popular.It is very necessary to research the exchangeable bonds and accumulated experience from some successful case.I hope this paper can provide the enterprise who plans to finance by issuing the exchangeable bonds with guidance through this study.This paper expounds and summarizes some existing problems in the development of the exchangeable bonds based on classical theories and supported by lots of cases,researches and statistics,And put forward feasible suggestions for those existing problems.The first chapter states the background of the exchangeable bonds,research objectives and significance,together with research contents and methods.The second chapter introduces the concept of the exchangeable bonds in detail,then this article summarizes literatures in domestic and abroad.The third chapter,analysis of financing methods of listed companies.In this chapter,this article describes the theoretical at first,then analyze the feasibility of financing by issuing the exchangeable bonds from several aspects.Finally,this chapter analyzes the preference of Listed Companies' financing mode in China.The fourth chapter,the case study of the exchangeable bonds.This chapter introduces the background and the process of the issue of the exchangeable bonds in Tunghsu Group.Then this article analyzes the financing strategy of Tunghsu Group from issue time,issue scale,issue period,exchange period and the interest rate.Then this chapter focuses on analyzing the financial situation of Tunghsu Group.The fifth chapter,problems and suggestions.This chapter sums up some advantages of the exchangeable bonds and proposes some existing problems in the development of exchangeable bonds based on the case study and theoretical research,then makes some suggestions for those problems.