Research On The Pricing Of Convertible Bonds Of China Citic Bank

Since 2017,China’s convertible bond market has entered a relatively prosperous development period.Commercial banks,which have always been the intermediary of traditional capital financing activities,have also participated in the convertible bond market and become the largest industry in issuing convertible bonds for several consecutive years.The biggest significance of issuing convertible bonds for banks is to supplement tier one capital in order to meet capital requirements and prevent various risks in this novel way.Based on the theoretical basis of absolute pricing and relative pricing,this thesis studies the pricing of convertible bonds of commercial banks through the idea of comparative research.First of all,this thesis briefly summarizes and analyzes the development and pricing status of commercial banks’ convertible bonds.At the same time,it also describes the basic situation of the case.Next,the B-S-M model and the binary tree method are used to calculate the pricing of CITIC-to-bond bonds,and then consider the impact of the additional clauses of CITIC-to-bond bonds on pricing,two theoretical values are obtained.Finally,by comparing the theoretical value with the market price,we can explore whether the pricing results are reasonable and accurate.Through the research,this article draws the following conclusions and implications: First,by giving full play to the improvement of the development level of the convertible bond market itself,the establishment and development of supporting laws and regulations and facilities,and the strengthening of policy support and guidance,we will guide and promote the implementation and development of the convertible bond pricing compliance design system.Second,raise the threshold for the issuance of convertible bonds,appropriately improve the saturation of the market,reduce the impact on the value of convertible bonds,and be more conducive to the fair and reasonable pricing of convertible bonds.Third,strengthen the publicity of convertible bond related information,reduce the risk caused by information asymmetry,promote the healthy development of convertible bond market and lay a good foundation for reasonable pricing.