Case Study Of Shenzhen Airport Issue Of Convertible Bonds Financing

The development of enterprises needs stable financial support,and enterprises mainly raise funds for development through financing.The diversified financing methods in the capital market meet the financing needs of enterprises.Enterprises can choose the appropriate financing methods according to their own situations.Convertible bond is a kind of mixed financing tool,which has both creditor’s rights and equity.The issuance of convertible bond financing can obtain stable capital to support the development of enterprises.In February2017,China Securities Regulatory Commission issued new regulations on refinancing,additional issuance,share allotment and other financing methods are limited,but convertible bonds are not affected.The new rules of refinancing promote the development of convertible bonds,and gradually become an important way of financing in the capital market.Due to the late start of convertible bonds in China,the relevant research is not mature enough.At present,most of the domestic research on convertible bonds focuses on the announcement effect of convertible bonds,the impact on corporate performance and other aspects of empirical research,and there are few specific case studies.Therefore,it is of great significance to study the influence of convertible bonds on the company.This paper selects the convertible bonds issued by Shenzhen Airport as the research object,introduces the financing background,analyzes the issuing motivation of convertible bonds and reviews the issuing and redemption process of convertible bonds on the basis of combing the research literature of convertible bonds,elaborating the concept and relevant theories of convertible bonds.Then it analyzes the influence of issuing convertible bonds on the company.The relevant analysis is mainly carried out from the following aspects: First,it calculates and analyzes the financing cost,and analyzes the change of capital structure,financial risk and cash flow combined with the relevant indicators.Then it analyzes the impact of convertible bonds’ conversion on the equity structure and earnings per share,and the growth ability of the company from convertible bonds’ financing projects This paper analyzes the market reaction of Shenzhen airport to issue convertible bonds by using event research method,and summarizes the successful experience of Shenzhen airport to issue convertible bonds.Based on the case study of convertible bonds issued by Shenzhen airport,this paperdraws the following conclusions: the actual financing cost of convertible bonds is reasonable;the issuance of convertible bonds adjusts the proportion of debt capital and equity capital,optimizes the capital structure of the company;the conversion of convertible bonds to shares dilutes the shareholding ratio,earnings per share of the controlling shareholders;the convertible bonds will be available in the short term after the announcement Poor field response.Finally,according to the conclusion of the study,we can get some enlightenment.For an enterprise,it is necessary to choose the right time,control the scale and set up the reasonable terms to issue convertible bonds.In addition,it is necessary to choose the right way of financing.For regulators,we should strengthen the supervision of the information disclosed by the issuing companies to prevent the company from counterfeiting,protect the interests of investors,and promote the development of convertible bonds.Through the research of this paper,we hope to provide some reference for the enterprises that intend to issue convertible bond financing in the future.