The Motivation Of Convertible Bond Financing In Commercial Banks And Its Impact On Business Performance

This thesis analyzes the 40 billion yuan convertible bonds issued by CITIC Bank in2019,and makes a detailed analysis and exploration on the convertible bond financing of commercial banks.Looking at the current development situation,the supervision is more and more strict,and the industry competition is more severe.Give play to the effectiveness of convertible bond financing theory to explore and draw relevant conclusions;To control the refinancing background of commercial banks and understand their actual situation,at the same time,it is also necessary to play a positive role in data analysis,take a series of research methods to explore the actual operation status and performance of CITIC Bank,so as to promote the development and progress of convertible bond financing market of commercial banks in a better direction,maintain market order and improve market health.Based on the internal and external development and actual demand of CITIC Bank,understand the main reasons for its convertible bond financing.From the perspective of environment,the external supervision has become more and more strict,and the expansion of business needs to be promoted by various factors.The bank decided to achieve the financing goal by issuing convertible bonds to meet the financing needs as much as possible.At the same time,we should understand the actual effect of convertible bond financing,analyze whether convertible bond financing has a positive correlation effect on the business performance of commercial banks,use factor type empirical analysis,take business performance indicators as variables that cannot be ignored,and make empirical analysis to understand that convertible bond financing and business performance have a very close relationship,which will play a positive role,and then analyze that after the issuance of CITIC convertible bonds,Changes in the operational performance of CITIC Bank.Finally,the problems and challenges faced by CITIC Bank in the process of convertible bond financing are sorted and summarized,and relevant experiences are summarized,so that other banks can gain inspiration and learn from these experiences in the development process.Studying the main reasons and significance of CITIC Bank’s convertible bond financing can reveal that through this means,its funds are more abundant,its level of risk resistance has been greatly improved,and it can control risks within a reasonable range and reduce the harm caused by risks;At the same time,the capital structure has also been adjusted and optimized,with a more scientific structure and a higher level of profitability;However,due to the volatility and competitive pressure caused by the impact of the epidemic,the conversion rate of convertible bonds has been affected.The market effect is relatively significant in a short period of time,but it cannot have an impact in a long period of time.Therefore,commercial banks need to demonstrate their own advantages in convertible bond financing,promote a significant increase in equity conversion rates,reduce operational risks,enhance stability,and enable sustainable development and progress.