Case Analysis Of Ningbo Marine Company Convertible Bond

Convertible bond is a kind of mixed financial derivatives which derived from bonds.In essence,the convertible bond is attached an option on the basis of the corporate bonds,which give the purchasers the power to convert the bonds to a company stock,It combines the characteristics of stocks and bonds,the issuer of the convertible bonds is able to obtain the funds required for the financing through the quality of the bonds and avoid the risks through the nature of the shares.In the background of the global economic slowdown,the approval procedures of China’s IPO become more time-consuming and prudent,which is not conducive for enterprise to get the funds needed for its operation and development.Convertible bonds have been paid more attention by more and more companies as a kind of financing instruments different from equity.Since the twentieth century,convertible bonds have developed rapidly and the scale and the number of convertible bonds issued has far exceeded the amount of new shares issued.But the domestic capital market is not very mature.The domestic research of the issuer of convertible bonds,terms of design and performance is not enough in-depth and comprehensive,which need to to have a clear understanding of its various impact to the company when listed company adopt this new financing tool.For the listed companies,by analyzing the problems of the listed companies in the issuance of convertible bonds and the specific circumstances of the issue to understand the impact of convertible bonds on all aspects of the company,so that financiers can make it easier to use this financial tools for the company financing;For investors,the reasons for convertible bonds financing should be disclosed closely to investors,so that investors can fully understand the risks and benefits of the derivative tools and then guide them to make rational investment decision.As a financial derivative which equipped the options,equity and creditor’s rights,convertible bonds have been innovated in the constant use and development.Now,they become a more mature and widely used financial instrument.First of all,this article roughly analyzes the circumstance of the domestic and foreign use of convertible bonds,select the specific issue of convertible bonds listed companies Ningbo Marine;through the case analysis of issued convertible bonds,by means of the case analysis of the motivations of Ningbo Marine issued convertible bonds and the changes of companies’ value after the issuance of convertible bonds,in order to prove that in the current domestic capital market,the financing efficiency and advantages of the new financing method,And provide some reference and guidance for refinancing of domestic listed companies.Next.Through a series of data analysis about different investors choose to convert or not convert the convertible bonds after the expiration to study whether the pricing of convertible bond is reasonable,through the market to determine some problem of convertible bond financing.Finally take example the existence of real problem and related recommendation of the convertible bonds of Ningbo Marine,improve China’s convertible bond market and provide experience for reference convertible bond issuers.