Analysis On The Motivation And Effect Of Baosteel Group's Issuance Of Exchangeable Bonds

As an emerging financial instrument,Exchangeable Bonds have been widely used in China's securities market in recent years and are favored by listed companies and investors.This is mainly because it not only has the function of low-interest financing,but also has the function of disguised reduction.The issuer can set specific terms according to the purpose of the issuance,and investors can choose whether to split off according to the agreement.The many characteristics of Exchangeable Bonds make it flourish in China.This paper uses theoretical research and empirical analysis to study the motivations and effects of issuing Exchangeable Bonds through cases.Baosteel Group was selected as the case study because Baosteel Group issued “14 Baosteel EB”in 2014 as the first Public Exchangeable Bonds in China.It is important to study its issuance for the development of China's Exchangeable Bonds;and Baosteel Group issued “17 Baowu EB” for the second time in 2017.Through two analyses,the different effects of issuing Exchangeable Bonds can be compared vertically.This paper is divided into three parts to analyze the issue of Exchangeable Bonds by Baosteel Group.The first part: Chapters 1 to 3,introduces the background of Exchangeable Bonds,reviews its practice and reviews relevant theories through literature,and then proposes the problems studied in this paper by Baosteel Group's two issuance of Exchangeable Bonds.The second part: Chapters 4 and 5,respectively analyze the motivation of Baosteel Group's two issuance of Exchangeable Bonds,the financial effect under the financial indicator analysis method and the market reaction based on the event research method.The third part: Chapters 6,draws conclusions on the results of case analysis,summarizes the inspiration of Baosteel Group to issue exchangeable bonds and proposes corresponding proposals for the issuance of exchangeable bonds.