Research On The Factors Affecting The Discount Rate Of Convertible Bonds In China

Up to now,China has issued more than 200 convertible bonds,and the domestic convertible bond market is developing vigorously.The unique conversion makes the convertible bonds popular with investors.At the same time,many domestic and foreign scholars have found that the pricing efficiency of convertible bonds is not well and the phenomenon of discount is widespread.However,much more researches focus on pricing,and the research on discount phenomenon of convertible bond is slightly insufficient.Based on this,it is necessary to study the influencing factors of the discount phenomenon of convertible bond in China.This paper first reviews the research results of the factors affecting the discounted of convertible bonds.Secondly,based on the theoretical analysis,the calculation method of discount rate based on theoretical value is selected.The relevant influencing factors are analyzed from the convertible bond itself and other factors,and the theoretical analysis of the influence of the selected factors is carried out.Then the theoretical value of the sample convertible bonds and its discount level are obtained through the B-S pricing model.Combined with the convertible bond market in China,the current situation of China's convertible bond discount phenomenon is analyzed.Finally,based on the unbalanced panel data,the overall research on the factors affecting the convertible bond discount,the research by industry,the scale of the issue and the study on the first day of listing were all carried out..The results show that the discount and premium phenomenon of China's convertible bonds are widespread,and the discount phenomenon is more obvious.The empirical research shows that,on the whole,China's convertible bond premium rate is most susceptible to the bottom value and market conditions.In addition,the shorter the remaining period,the smaller the premium rate of convertible bonds;and convertible bonds which in the conversion period will have a higher premium rate.Compared with industrial convertible bonds,the international and technology industry's convertible bond discount premium level is susceptible to more variables,and investors are relatively cautious and conservative.Investors are more aggressive in the speculative psychology of small-sized convertible bonds,and the investment in large-cap convertible bonds is more optimistic.The first-day discount and premium level of convertible bonds was mainly affected by the bottom line value and the CSI 300 stockindex.Through the above analysis,this paper proposes that the issuing company must be innovative in setting the terms;make the stock market and the bond market balanced development do further work on investors' education about convertible bonds,attracting more investors,especially individual investors to participate in the transaction of convertible bonds;,and thus stimulate the vitality of China's convertible bond market and promote the healthy development of the domestic financial market.