The Case Study On Marketed Debt-to-Equity Swap Of China Shipbuilding Industry

In recent years,the situation of the world macro-economic development is unstable,which has an obvious impact and influence on the Chinese economy.At present,some industries appear serious overcapacity phenomenon,the enterprise debt scale obviously expands,the non-performing loan ratio increases year by year.In this context,on October 10,2016,the State Council officially announced the guidance on the conversion of claims into equity in market-oriented banks.This policy marks the beginning of a new round of debt-to-equity swaps in China.As an effective method of debt removal and leverage reduction,debt-to-stock conversion has been applied again in our country.Compared with the round of debt-to-stock conversion,this round of debt-to-equity conversion is more market-oriented,and all the links in its process are operated strictly according to the principle of market economy,namely,market-oriented debt-to-stock conversion.With the continuous promotion of the market-oriented debt-to-equity conversion and the continuous improvement of the related environment,it is of great practical significance to study the new round of market-oriented debt-to-equity conversion.CSIC,the first listed company that successfully completed the market-oriented debt-to-equity conversion,will also receive extensive attention.This article takes CSIC market-oriented debt-to-equity conversion as an example,carries on the systematic and in-depth research to this event.Firstly,the paper summarizes the domestic and foreign literature on debt-to-equity conversion,and introduces the definition,relevant theory and concept of debt-to-equity conversion.Secondly,it makes a brief introduction to the case company,and points out the necessity and feasibility of the market-oriented debt-to-equity conversion in CSIC by analyzing the existing relevant policies,the development situation of the industry,and the management situation of the enterprises themselves.Thirdly,this paper analyzes the preliminary preparation,scheme design and concrete implementation process of the market-oriented debt-equity conversion of CSIC,and introduces every step of the market-oriented debt-to-stock conversion,from the subject-matter capital.Production,evaluation criteria,pricing principles and other aspects of each step in the analysis of the specific links;Then,in the implementation effect of market-oriented debt-to-equity conversion,this paper analyzes the extent of market response to this event in ashort period of time by using the event study method,and also analyzes the interest costs,capital structure,equity structure,and so on.The financial performance evaluates the effect of the market-oriented debt-to-equity conversion.Finally,the relevant enlightenment is given to the enterprises that are going on or want to carry out the market-oriented debt-to-equity conversion.Through the above analysis,this paper finds that CSIC market-oriented debt-to-equity conversion is a successful debt-to-equity conversion case.Through the empirical analysis of the event research method,it is concluded that the market reaction of the event of CSIC market-oriented debt-equity conversion is more remarkable,the market-oriented debt-to-stock conversion optimizes the equity structure and capital structure of the company,and reduces the interest cost of the enterprise.Improve the company's profitability,operational capacity and development ability.Based on the comprehensive analysis of the whole market-oriented debt-to-equity conversion process of CSIC and its influence,the enlightenment of this paper is drawn: the enterprises carrying out the market-oriented debt-to-stock conversion should make adequate preparatory work;the reasonable scheme design is to successfully implement the market-oriented debt-to-stock conversion.We should perfect the mechanism of equity withdrawal and perfect the supporting measures to speed up the process of market-oriented debt-to-equity conversion.