Research On Risk And Prevention Of Perpetual Capital Securities Of Jinke Group Company

China’s capital market has developed for many years,and various financing channels give enterprises many choices.Among them,the perpetual capital securities which is between stock right and claims,has sprung up in recent years,and ti is especially popular with real estate enterprises.perpetual capital securities is a kind of bond with no fixed term,which contains the issuer’s right of redemption and is accounted for as equity capital.Although perpetual capital securities is a mature financial product in the international capital market,China’s sustainable debt business started only in 2013.And unlike the literal meaning of perpetual capital securities,in reality,most of the perpetual capital securities issued by Chinese enterprises has been redeemed in 2-4 years.In recent years,because of the accounting characteristics of perpetual capital securities as equity capital,many enterprises which are troubled by high capital-liability ratio and shortage of funds have issued perpetual capital securities to solve the difficulties they are facing.But does the jump in interest rate and floating interest rate of sustainable bonds,which protect investors,affect the purpose of issuing sustainable bonds and bring risks to the whole business of sustainable bonds?In view of the above concerns,this paper takes Jinke Group’s issue of perpetual capital securities as the research object based on case study method.After introducing the purpose of Jinke Group’s issuance of sustainable bonds and the terms of sustainable bonds,according to the whole business process of Jinke Group’s sustainable bonds,the article analyses the terms of its issuance,the duration of its sustainable bonds and the risks in the exercise of the right of redemption of its sustainable bonds.Finally,in view of these risks,this paper puts forward some countermeasures for enterprises to cope with the risk of perpetual capital securities financing.It is hoped that under the support of the Financial Development Committee of the State Council for the new stage of perpetual capital securities,it will provide reference for enterprises using sustainable debt.