Research On The Convertible Bond Financing And Optimal Allocation Of Assets Of Daqin Railway

With the promotion of China’s energy development strategy,"road to railway" policy,comprehensive development of railway construction land and other policies put forward requirements for the allocation efficiency of main business assets and land resources of railway enterprises,and also drive the increasing financing demand of railway enterprises.At the same time,the development of mixed ownership in the railway industry promotes railway companies to use the listing platform for financing,introduce social capital and reduce the debt pressure of guotie group.In this context,Daqin Railway innovatively adopts the convertible bond financing mode of "priority subscription" + "follow-up transaction" to raise funds of 32 billion yuan,and successfully attracts social investors to participate in investment.How this financing activity introduces social capital to enterprises and how it affects the optimal allocation of assets is worthy of further study.At present,domestic scholars pay more and more attention to the optimal allocation of assets of state-owned enterprises,but there is a gap in the research on the supporting role of financing activities on the optimal allocation of assets.In terms of the research on the financing mode of railway enterprises,scholars generally propose to make better use of the listing platform and introduce social capital.However,the past literature is still lack of targeted research on how to explore diversified financing methods such as convertible bonds.Based on this,taking Daqin Railway issuing convertible bonds to finance the acquisition of high-quality assets as an example,this paper tracks the process of Daqin Railway’s "Birth financing motivation-Convertible bond financing process-Forming financing effect",and analyzes the impact of asset allocation on financing demand,the reasons for choosing convertible bond financing,the design and issuance process of Daqin convertible bonds,as well as the financing effect of Daqin convertible bonds and its supporting effect on asset optimal allocation.Through the research,this paper draws the following conclusions: first,the asset optimal allocation strategy of Daqin Railway requires enterprises to acquire high-quality assets such as land use right assets and Southwest Ring Line assets,improve the use of listing platform in financing activities,and introduce social capital.Second,compared with other financing methods,convertible bonds have the advantages of large financing amount,low capital cost in the early stage,and the nature of equity conversion can be used to improve the capital structure.In terms of attracting social capital,the provisions on the time and amount of credit subscription and reduction of convertible bonds are more conducive to improving the timeliness of financing and attracting social investors.Third,the issuance design of Daqin convertible bonds finally realizes the goal of optimizing the allocation of enterprise assets and helps to improve the sustainable financing ability of enterprises: on the one hand,the raised funds are targeted to improve the quality of assets and realize a virtuous circle between asset allocation and financing ability;On the other hand,more than 25 billion yuan of social capital was successfully introduced to improve the asset securitization ability of enterprises,so as to lay a foundation for enterprises to make better use of the financing platform of listing in the future.At the same time,through research,this paper puts forward practical suggestions for other railway companies: first,railway enterprises can use convertible bond financing to strengthen the application of listing platform and raise funds for asset allocation activities;Second,railway enterprises can introduce capital and broaden the nature of capital with the help of the opening of convertible bonds.In the issuance process,first,through the design of "priority subscription",they can obtain funds from major shareholders to improve the timeliness of financing and finance designated investment projects,and then use the form of "block transaction" to gradually convert the subscribed capital of major shareholders into social capital with the help of the listing platform,while stabilizing the market value of convertible bonds and the company’s stock.Third,the asset allocation and financing capacity of railway enterprises should promote each other and form a virtuous circle.