Research On The Motivation And Economic Consequences Of Convertible Bond Financing Of Sany Heavy Industry

In recent years,with the development of China’s economy and the improvement of the capital market system,the scale of China’s margin trading and securities lending market has continued to expand,and enterprises’ demand for financing has increased and they are constantly seeking more diversified financing methods.Convertible bonds have been widely used in financial markets around the world.But in China,it was not until February 2017 when the new regulations on refinancing were promulgated that it was gradually known by the market and showed explosive growth.In this paper,Sany Heavy Industry issued 4.5billion yuan of convertible bonds as the research object,to analyze its motivation and economic consequences.First of all,through the induction and summary of relevant literature at home and abroad,the current research results and basic theoretical knowledge of convertible bonds are preliminarily introduced,and the basic theory and research results of convertible bonds are summarized,which provides basic theoretical support for the subsequent analysis of enterprise cases.Secondly,it introduces the basic situation of Sany Heavy Industry,and reviews the whole process of Sany convertible bond.By analyzing the real situation of the case enterprise and the theory related to convertible bonds,this paper explores the reasons for the enterprise to issue convertible bonds;Through the event study method,this paper analyzes the stock price fluctuation caused by the issuance of convertible bonds;Through the calculation of some important financial indicators and comparison with the industry average,the financial performance changes before and after issuing convertible bonds are compared;Combined with the situation of convertible bond to equity,this paper analyzes the changes of Sany Heavy Industry’s share capital and earnings per share.Through in-depth analysis of the case,the final conclusion is that Sany Heavy Industry fully considered the economic transformation and its own long-term development needs by issuing convertible bonds to obtain the funds needed for enterprise investment projects,and achieved a positive market response;A series of financial indicators show that the business situation has been improved;The successful development of the investment project has improved Sany’s core competitiveness and expanded its market;The total share capital of Sany Heavy Industry was increased,and the equity structure of the enterprise was optimized.Through the research and analysis of this case,it can provide reference for China’s engineering equipment manufacturing industry to issue convertible bonds.