| As the main financing method for listed companies after the split share structure reform,private placement is popular among listed companies due to its advantages such as low cost,simple procedures,and loose conditions.As a new financing tool for listed companies,exchangeable bonds have been welcomed by the securities market since their launch,and also provide new financing channels for shareholders of listed companies.With the increasingly perfect regulatory system,the number and scale of exchangeable bonds have also increased rapidly,with a year-on-year growth rate of 173.17% in 2016.In 2018,due to some factors,the impact on debt financing has been significant,and the growth rate of exchangeable bonds has slowed down,However,the overall scale has continued to increase so far.By the end of August 2022,the total issuance scale of exchangeable bonds in China has reached 460.934 billion yuan,including 117.57 billion yuan for public offering and 343.364 billion yuan for private placement.Private placement of exchangeable bonds has become the mainstream of the market."Controlling shareholders can participate as investors in the subscription of directional new shares issued by listed companies,as well as as as financiers in the issuance of exchangeable bonds.Controlling shareholders can participate in the subscription of directional new shares issued by listed companies at an appropriate time,while combining the issuance of exchangeable bonds to finance can achieve the win-win goal of solving the financing difficulties of listed companies and earning income through the reduction of holdings through the conversion of exchangeable bonds.Therefore,",It is of great significance to study the combined financing of controlling shareholders.This thesis takes Chint Electric Appliances and Chint Group as the research objects,and uses normative research and case analysis to explore the motivation,financing process,and effectiveness of Chint Group’s subscription for directional additional financing and issuance of exchangeable bonds.In terms of normative research,it reviewed a large number of domestic and foreign literature on convertible bond financing,directional additional issuance financing,convertible bond and directional additional issuance of portfolio financing,introduced the conceptual characteristics of convertible bonds and relevant provisions for directional additional issuance,summarized the financing process of portfolio financing,and analyzed the two modes of portfolio financing.In the case study,taking the portfolio financing of Chint Group issuing exchangeable bonds and participating in the targeted additional issuance of Chint Electric Appliances,a listed company,as a research case,the process,motivation,and economic consequences of the portfolio financing were studied,and the reasons for the success of the portfolio financing were analyzed.Through case analysis,it is possible to gain a deeper understanding and exploration of convertible bonds and directional additional issuance portfolio financing,which not only can raise a large amount of funds for enterprises,but also can enable enterprises to obtain greater economic benefits through raising funds to invest in high-quality projects.Controlling shareholders can also obtain stock appreciation gains through the conversion of convertible bonds.The analysis of cases in practice has brought enlightenment to enterprises that need financing: portfolio financing can not only raise huge funds for companies,but also achieve good economic results.In portfolio financing,the selection of issuance timing and the appreciation potential of underlying stocks are the guarantees to ensure the success of issuance and stock exchange.Designing a reasonable portfolio financing plan is the key to achieving a win-win situation for both financiers and investors,Listed companies should make good use of portfolio financing tools to expand their financing channels,and the profitability of the projects invested by the raised funds is the fundamental purpose of implementing portfolio financing.The thesis is divided into five chapters: The first chapter is an introduction,expounds the domestic and foreign research literature on exchangeable bonds,private placement of new shares,exchangeable bonds,and private placement of portfolio financing.The second chapter is mainly a theoretical overview.It first introduces the concept and characteristics of exchangeable bonds,as well as the concept and relevant regulations of directional additional issuance.Then it elaborates the operational steps of exchangeable bonds and directional additional issuance portfolio financing,the mode of exchangeable bonds and directional additional issuance portfolio financing,and finally introduces the theoretical basis.The third chapter introduces the entire process of the case,first of all,explaining the directional issuance of new shares by Chint Electric,and then introducing the issuance of exchangeable bonds by the controlling shareholder Chint Group.The fourth chapter is a case study,which first introduces the basic steps of portfolio financing operation,and then analyzes the reasons for Chint Group’s use of convertible bonds and targeted new stock issuance for portfolio financing,including the need for Chint Electric to finance photovoltaic projects,Chint Electric to solve project financing issues through targeted additional shares issuance,and Chint Group designs and issues a portfolio of convertible bonds to supplement the financial pressure of subscribing to Chint Electric’s shares.It is believed that the controlling shareholders not only raise a large amount of funds through the combined financing of private placement and exchangeable bonds,achieving the value-added of the raised investment projects,but also bringing certain benefits to small and medium-sized shareholder investors.At the same time,it also analyzes the reasons for the successful financing of Chint Group using a combination of exchangeable bonds and private placement of new shares.It is believed that the combined financing of exchangeable bonds and directional additional issuance not only raises huge amounts of funds for controlling shareholders,but also enables both Chint Group and Chint Electric to obtain huge profits.The main reason for obtaining financing income is that controlling shareholders have absolute control over listed companies.Designing exchangeable bonds for share prices and directional additional issuance prices is the key reason for financing success and profit,It has brought enlightenment to enterprises that need financing.Portfolio financing can not only raise huge funds for companies,but also achieve good economic results.In portfolio financing,the selection of issuance timing and the appreciation potential of underlying stocks are the guarantees to ensure the success of issuance and stock exchange.Designing a reasonable portfolio financing plan is the key to achieving a win-win situation for both financiers and investors.Listed companies should use portfolio financing tools well to expand their financing channels.The main contributions of this article are as follows:(1)There are few studies on private placement and exchangeable bond portfolio financing in China,and most studies focus on issuing exchangeable bonds for financing or private placement for financing.Therefore,this case is intended to enrich the relevant research on private placement and exchangeable bond portfolio financing.(2)The existing research on private placement or issuance of convertible bonds mainly focuses on empirical research.This article discusses the issue of portfolio financing through the private placement of Chint Electric Appliances and the issuance of convertible bonds by its controlling shareholder,Chint Group,as a case study.This article not only enriches relevant research on private placement and convertible bonds from the perspective of case analysis,It can also provide reference examples for companies that are about to issue exchangeable bonds and directional portfolio financing. |
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