A Case Analysis Of Exchangeable Bond Issued By TASLY HOLDING GROUP.CO.LTD

Exchangeable Bond(EB)is a bond that can be exchanged for shares of other companies,which issues by the shareholders of a listed company,can exchange the shares held by the listed company in accordance with the law and in accordance with the agreed terms within a certain period of time.On October 14,2013,the 13 Fuxing EB was successfully issued,Exchangeable Bond was officially entered into public view.Since then,with the further improvement of relevant laws and regulations,the issuance quantity and scale of Exchangeable Bond have grown rapidly and become the eye-catching star products in the bond market.Notably,due to the relatively short development time of the exchangeable bond in China,both the issuer and the investor are relatively insufficiently aware of their knowledge,which is somewhat limited to further development of this product.The purpose of this paper is to analyze the issuance motivation,terms of design,financial impact and potential risks of Exchangeable Bond based on the actual public offering of Exchangeable Bond by Tasly Holding Group Co.,Ltd.in 2015 through a combination of theoretical analysis and case studies Problem,with a view to start a discussion,promote public's understanding and application of Exchangeable Bond.Firstly,the paper summarizes the definition,characteristics and classification of Exchangeable Bond.Secondly,it studies the role and risk of the issue of exchangeable bonds,and analyzes the current situation of the legal environment of Exchangeable Bond in China.Then,taking Tasly Holding Group Co.,Ltd.'s public offering of Exchangeable Bond in 2015 as its research object,the paper extensively read the literature and collected a large amount of data to interpret the company's motivation and clause design for the issue of Exchangeable Bond and its financial impact and potential risks.Finally,it is concluded that the issue of Exchangeable Bond may not be able to improve the operating performance of the issuers,and the timing of issuance will restrict the realization of arbitrage through reduction of shares.Besides,the flexible design of distribution terms will protect the interest of the Exchangeable Bond issuers.The paper will also put forward relevant suggestions on how to improve the development of Exchangeable Bond in light of the actual situation in the domestic market.