Research On The Implementation Path Of "Two Step" Marketization Of Debt To Equity Swap

As an important tool for effectively stabilizing the structure and reducing leverage,market-oriented debt to equity swap can not only alleviate the debt pressure of enterprises and enhance capital strength,but also optimize financing structure and accelerate enterprise reform,attracting enterprises to invest in the wave of market-oriented debt to equity swap.However,in practical operation,it faces problems such as a large number of debt to equity swap contracts but low capital landing rate,and how investors can smoothly exit in the later stage,Making the implementation path of debt to equity swap a hot topic in economic market research.With the continuous improvement of equity refinancing policies,enterprises are exploring financing methods,and the "two-step" market-oriented debt to equity swap provides a more convenient exit channel for debt to equity swap through the issuance of shares on listed platforms.In order to sort out the implementation path of the "two-step" market-oriented debt to equity swap,this article selects CREC,the state-owned enterprise with the largest successful implementation and volume in the "two-step" market-oriented debt to equity swap plan,as the research object.It conducts an in-depth analysis of its debt to equity swap implementation path,with the intention of enriching the research on the implementation path of market-oriented debt to equity swap and promoting the development trend of market-oriented debt to equity swap,It also provides a successful paradigm for enterprises to design and implement a "two-step" market-oriented debt to equity implementation path.Through literature review,it was found that research on market-oriented debt to equity swaps mainly focuses on implementation effectiveness and risks,and lacks research on implementation paths.This article is based on the research on the implementation path of the "two-step" market-oriented debt to equity swap.It selects CREC,a representative and typical example,and relies on balance theory,game theory,principal-agent theory,and signal asymmetry theory as theoretical guidance.After gaining a preliminary understanding of the implementation subject,path,and motivation of CREC’s "two-step" market-oriented debt to equity swap,it is understood that the implementation of this project is actively promoted by national policies The situation in the infrastructure industry is severe,and CREC Corporation’s financial burden is increasing.When comparing the financial data before and after CREC’s market-oriented debt to equity swap,the event study method,financial index analysis method and factor analysis method are used for comprehensive analysis.It is found that the short-term market response after debt to equity swap is good,which improves the financial performance of enterprises,further optimizes the equity structure,and improves the business management ability of enterprises.At the same time,the highlights of the "two-step" market-oriented debt-to-equity swap model are summarized:combining market-oriented debt-to-equity swap with fixed price increase,on the one hand,finding the right medicine to promote the successful implementation of market-oriented debt-to-equity swap projects,improving the financing rate of enterprises,and resolving the financial crisis of non listed subsidiaries;On the other hand,exchanging tradable shares of listed companies for reasonable and compliant discount prices has innovated the mixed reform path of reducing leverage and stabilizing growth for enterprises,revitalizing market confidence.Finally,research conclusions were drawn and practical suggestions were proposed.It is hoped to provide reference ideas for our treasury bond to equity swap enterprises to formulate the implementation path of debt to equity swap,and help enterprises optimize their asset structure and achieve sustainable development.Looking back at the entire study,the main contributions of this article are twofold:firstly,providing ideas for enterprises to use market-oriented debt to equity swaps to alleviate debt pressure and optimize capital structure;The second is to provide methods for enterprises to expand financing channels and enhance financing capabilities through market-oriented debt to equity swaps.