A Case Study Of Bank Of China’s Debt-to-Equity Swap To Rongshengzhonggong

In October 2016,the State Council promulgated the "Opinions on actively and steadily reduce leverage of Enterprises",encouraging the marketization of debt-to-equity swap to solve the problems of excessive corporate debt and high non-performing loan ratio,and promoting the supply side reforms in the "deleveraging" task the successful completion.The document to re-pull the debt into the shares of everyone’s attention.Looking back on the process and effect of China’s first debt-to-equity swap in 1999,although the short-term results were significant,the latter enterprises were back again,and due to the limited mechanism of the withdrawal of asset management companies,there was a final risk of being borne by the government departments.By comparing other corporate debt-to-equity programs,reading relevant literature at home and abroad,summing up the research results of scholars,at the same time to collect relevant data on the Internet,this paper found that the debt-equity swap is divided into two categories : One is the creditor’s rights directly to equity,the other is the bank and the enterprise jointly set up the fund,the bank shares to obtain high-quality equity,the enterprise to the equity debt.This article to study the debt-equity swap case belongs to the first.The research steps are as follows: from the Bank of China on the case of debt-to-equity swap,detailed study of the debt-to-equity swap,including debt-equity swap,the use of debt-equity swap,debt-equity swap Reasonable pricing,the type of debt to convertible,and finally in such a debt-to-equity process in the bank can choose the exit channel.The purpose of this paper is to find out the problem of RSI’s debt-to-equity swap program,and combine the theoretical and practical data to design a new debt-equity swap scheme.The ultimate goal of the article is that through the study of the case of Rongsheng Heavy Debt-to-Equity Swap,the method of debt-to-equity conversion,which is suitable for convertible convertible bonds into the convertible bonds,will achieve the real reduction of corporate financial leverage,Bank nonperforming loans to help the government to achieve the purpose of economic goals.