Railway Bond Financing Research

China's Ministry of Railways put forward the strategic development of the railway by leaps and bounds in June 2003. The new strategy put forward needs for large-scale financing activities. The past financing methods can not meet the needs. So we must build on the existing foundation to broaden the financing channels and new financing methods. Of these, bond financing is an important object to study. The railway construction bonds are issued by Ministry of Railways and make the railway construction fund as collateral. They are not standardized corporate bonds. Moreover, the scope is limited in the domestic issue and smaller. This paper is under the guidance of the financing theories. My research will re-classify the railway construction bonds into financial bonds and corporate bonds. The former is the evolution of railway constructing bonds and the latter make the railway enterprises as the true issuer. Apart from the bonds, this paper will study the feasibility of offshore bonds and convertible bonds. This paper studies the issue cost, risk of the railway corporate bonds and the foreign exchange rate risk of the foreign bonds. Propose a solution to prevent and control major risks of bonds issued. Put forward the Preliminary issuing program of foreign bonds and convertible bonds under new management of listed companies to issue securities. Finally, bring forward the government and the enterprise level corresponding measures and policy recommendations.