Research On Pricing Of Convertible Bonds In Jiangnan Water Affairs

Convertible bonds account for a large proportion of the financial markets of various countries and are a popular financing channel.In 2017,China announced a new regulation on financing channels and issued stricter regulatory requirements.The previous financing methods had great constraints and restrictions,making the issuance of convertible bonds more popular with issuers.The issuance of convertible bonds combines the basic nature of stocks and bonds.When all convertible bonds are converted into stocks,the issuer can minimize the cost of capital and the investor can make further profits.The basis for maximizing the interests of both parties,but the actual situation is that many companies cannot successfully realize the conversion of shares.The decisive factor affecting the success of the conversion is the relationship between the conversion price and the positive stock price.Only when the pricing of the conversion price meets the interest needs of the issuer and the investor,can investors have the possibility of further profit Choosing to convert stocks is the only way to maximize the stock conversion.The positive stock price depends more on market factors,so whether the setting of the stock price is reasonable determines the success of the stock exchange to a large extent.This article takes Jiangnan Water Convertible Bonds as an example.For the entire process from the issuance of convertible bonds to the failure of conversion,it is divided into two stages: initial conversion price and revised conversion price.First,the influencing factors of the conversion price are analyzed.Based on the game equilibrium theory,Study the acceptable conversion price of the investment and financing parties,and then analyze the optimal conversion price,and use this as a standard to analyze the fact that Jiangnan Water has a high initial conversion price,low efficiency of the conversion price,and a lack of return.Issues such as sales risk management and control,and finally,summarize the issues that should be paid attention to in the pricing of the conversion price from the aspects of macroeconomics,company management,and convertible bond terms.I hope that those who are planning to issue convertible bonds or encounter problems during the conversion of convertible bonds Listed companies provide valuable references.