Research On The Financing Performance Of Convertible Bonds Issued By Huatian Technology Company Ltd.

Convertible bonds are increasingly popular in the capital markets.Convertible bonds are hybrid financial instruments that not only have the attributes of ordinary bonds,but also give investors the power to voluntarily choose to convert shares during the transition period.China's capital market started late,and the duration of convertible bonds in China is still short.Theoretical research is not as deep or wide as foreign scholars,and the research on convertible bonds is still not mature enough.This paper selects Huatian Technology Company as the case study object,which belongs to the emerging industry,and studies the financing performance of convertible bonds financing.This paper first introduces the development of convertible bonds at home and abroad,describes the related research of scholars on convertible bonds,and establishes an analysis framework of “Company Characteristics-Securities Design-Financing Performance”.Secondly,a comprehensive analysis of the case: a brief introduction to the basic situation of the company;comparing the relevant financial characteristics of Huatian Technology with the same industry,analyzing whether the company has a specific type in the theoretical research,and the reasons why it chooses to issue convertible bonds;based on the analysis of the terms of Huatian Convertible Bonds,it is studied whether the convertible bonds designed have an effect on the company's refinancing behavior;comparing with various refinancing methods,it comprehensively portrays and understands the motivation of the company to choose to issue convertible bond financing.Thirdly,by calculating the company's relevant financing costs,analyzing the short-term market response and financial ratio,the financing performance of the company's issuance of convertible bonds is verified.Finally,it is concluded that the case company has problems in issuing convertible bonds,and provides some suggestions for the future listing of convertible bonds by listed companies.Through a comprehensive analysis of Huatian Technology's issuance of convertible bond financing,this paper believes that in order to achieve the purpose of replenishing capital,the company should minimize the negative impact of refinancing.China's listed companies should flexibly use the financing tools such as convertible bonds,rationally design the convertible bonds provisions for the company's own problems,and realize the innovation and development of convertible bond financing.