Research On The Risk And Control Of Lens’s Convertible Bond Financing

As a kind of financing tool embedded with American call option,convertible bond has become one of the important financing tools of Listed Companies in China in recent years with its unique advantages.However,compared with western developed countries,the development of convertible bonds in China is relatively short,the convertible bond market is not mature enough,and some listed companies do not fully understand the financing risks and preventive measures of convertible bonds.The main research object of this paper is the risk of blue thinking debt transfer issued by blue thinking technology in 2017.First,this paper analyzes the whole process of blue thinking technology to issue convertible bonds,and analyzes the reasons for its selection.Secondly,identify the main risks in the whole process of financing.Furthermore,the paper analyzes the control methods and problems of blue thinking technology in the process of risk control.Finally,the corresponding risk control suggestions are put forward and the relevant enlightenment is summarized.Through research and analysis to identify the risk points in the whole process of Lens convertible bond financing,it is found that convertible bonds are mainly affected by the following risk factors: interest rate design risk,issuance failure risk,dilution effect risk and resale risk;There are three ways to control the risk of Lens Technology:the control of the risk of clause design,the control of the proportion of convertible bonds held by the controlling shareholder and the control of the price of convertible bonds;In the process of control,there are some problems,such as incomplete information collection and disclosure,high frequency of downward correction of share price,and the management of business risk needs to be improved.Through case study and based on the theory of risk management,this paper puts forward the following control suggestions: before the issuance of convertible bonds,listed companies should carefully choose the issuing time,and improve the work of information collection and disclosure.In the period of convertible bonds,listed companies should reasonably exercise the right of downward correction of the price of convertible bonds,establish an early warning model by combining entropy weight method and efficiency coefficient method to evaluate the risk level of the company,and constantly enhance the company’s operation ability and development ability.Based on the risk control experience of Lens convertible bond,this paper summarizes the following inspirations: the issuing company should set up reasonable convertible bond terms,establish an index early warning system to monitor the macroeconomy,and the controlling shareholders should strengthen their risk awareness.