A Case Study On The Influence Of Private Bonds By Major Shareholders

In May 2017,China Securities Regulatory Commission issued new rules for shareholders to reduce their holdings,which more strictly restricted the traditional ways of reducing holdings,such as agreement transfer,block trading and centralized bidding trading;in March 2018,the most stringent new rules on equity pledge were implemented,and private enterprises' ways of raising funds through equity pledge were strictly restricted.Under the guidance of the new pledge regulations,the business model of financing large shareholders of listed companies with bank end investment and borrowing the asset management channel of securities companies gradually declined.The financing channels of private enterprises have been further reduced.At the same time,the exchangeable bonds which have been popular in European and American markets for a long time are gradually emerging in China's capital market.As a special embedded and complete financial derivative instrument,exchangeable bonds can be used for many purposes,and because they are not subject to the new regulations of CSRC on reducing Holdings,avoiding the impact on the stock price,having their unique advantages in low interest financing,issuance procedures,etc.,they are gradually emerging It is selected by large shareholders with financing needs and willingness to reduce their holdings.The issuer's intention and operation means are different,and the impact on the capital market is also different,leaving many cases for learning.The research case selected in this paper is that the majority shareholders of Dongxu group reduce their arbitrage through issuing private convertible bonds in 15 years.In this case,the shareholders of Dongxu group first subscribe for the shares of subsidiaries at a low price,and then issue private equity to avoid the restricted period Exchangeable bonds,and through a series of means to raise the company's share price before the stock exchange period,and after entering the stock exchange period,the stock exchange can be realized smoothly.The issuer gains high profits in the short term,but in the long term,it has a negative impact on the group and its subsidiaries,especially the interests of other investors in the capital market.There are many factors in the event,which has a greater adverse impact.This Case is very Typical.This paper first combs,studies and summarizes the relevant literature and theoretical basis to lay a good theoretical foundation for the article,then introduces in detail the relevant companies involved in the case and the causes and consequences of the development of the event.In the case analysis part,it analyzes in detail the causes,operation methods,impact results and causes of the event,in addition to using direct financial data and announcement information as evidence In addition,it also makes correlation analysis and rigorous reasoning for a series of events in this process,and finally draws reasonable conclusions and puts forward relevant suggestions,aiming to provide theoretical suggestions for the healthy development of exchangeable bonds in China while enriching case study literature.