Research On Pricing Strategies Of Convertible Bonds Issued By Listed Banks

In 2017,China's Securities regulatory Commission revised the "Implementation Rules for Non-Public Issuance of Shares by Listed Companies" and issued the "Provisions on The Reduction of Shares held by Shareholders,Directors,supervisors of Listed Companies",thus attracting high attention from all sides.Total convertible bonds issued in 2019 exceeded 250 billion yuan.Convertible bond is a relatively complex financial product with stock options.The short term outburst makes both the issuer and ordinary investors have certain deviation in their judgment of its theoretical value.Therefore,the accurate determination of the theoretical value of convertible bonds is conducive to the issuance of enterprises pricing reference and make corresponding provisions,but also conducive to investors' rational judgment of the investment value and risk of convertible bonds.Based on this,this article on the basis of previous studies,combined with domestic there is no generally accepted for the reality of convertible bonds pricing model,through the analysis of all kinds of convertible bonds pricing model applicability and characteristics of the chosen B-S model and binary tree model and add additional clauses,the correction method and adding steps to adjust,attempt to our country commercial bank issued to determine the theoretical value of convertible bonds,and the theory of value and price and listed the error of the closing price,to determine the two pricing models of applicability and operability,at the same time analyze the limitation and deficiency.On the case selection,this paper focuses on issuance of the largest commercial bank convertible bond market,chose the issuance is moderate and just entered Jiangsu bank of the issue of convertible bonds issued a detailed pricing analysis,then,extend to all commercial Banks to issue since 2015 convertible bonds,in-depth comprehensive analysis and calculation,a more intuitive pricing effect of the two models,and get the following conclusions:(1)The calculation results of the two models show that the theoretical value on the issue announcement date is close to the actual price,and most of them are higher than the actual price,the value of convertible bonds of most commercial Banks is undervalued,and the value of convertible bonds of small urban commercial Banks is relatively undervalued.(2)Except for two convertible bonds whose closing prices on the issuing day were lower than the issuing price,the theoretical value of the other convertible bonds were all greater than the issuing price of 100 yuan.The convertible bond market as a whole is worth investing in.In this regard,the reasons summarized in this paper include the rapid expansion of China's convertible bond market,the problems in the selection of parameters,the limitations of the model,the low underlying share price,the low convertible share price and the uniform terms.In view of these problems,this paper puts forward Suggestions for improving the pricing of convertible bonds in China from the perspectives of policy,issuer and investor,in order to promote the pricing of convertible bonds issued by commercial Banks in China.