Study On Pricing In CNEG's Debt-to-equity Swap

Debt-for-equity,a kind of government intervention in economy,plays an important role in dissolving non-performing assets of banks and reducing the leverage ratio of corporate sector.Under the current situation,debt-for-equity has important practical significance.This round of debt-to-equity swap emphasizes "marketization",and involved in a larger and more complex situation.The key point is how to determine the conversion price in debt-to-equity swap trading.And it's also the key factor to determine the success of debt-to-equity swap.This article first review the existing debt-for-equity related literature,at present,the scholars of our country mainly focus on the principle of debt-to-equity swap,the significance of debt-to-equity swap and the implementation conditions of debt-to-equity swap.The pricing of debt-to-equity swap is less involved,and most of them focus on the evaluation of company value.Based on its mature capital market,the calculation parameters such as the discount ratio in the pricing of debt-to-equity swap are studied,and more researches are made on the market-oriented debt-to-equity swap.Then defines the related concepts involved in the debt-to-equity swap,and review the steps,stages and types of debt-to-equity swap,and so on.This paper analyzes the factors that affect the pricing of the debt-to-equity swap from the two aspects of the transferee and the creditor in the different stages of the pricing of the debt-to-equity swap.As a large-scale state-owned enterprise,CNEG debt-to-equity swap is representative.This paper attempts to explore whether this swap model has the promotion significance.Selecting CNEG as the research object,after studying its annual reports and financial reports for 2014-2018,we found that after the debt-to-equity swap,CNEG promised to turn its losses into profits within two years.However,only the second year after the swap profit and the main source of income from non-operating income.From the point of view of the pricing of debt-to-equity swap,this paper explores the case of joint restructuring of CNEG,and explores whether the transaction pricing is fair or not,whether it leads to the loss of small and medium-sized investors undefined interests or the loss of state Using the method of case study and literature study,using the DCF valuation model and B-S model to estimate the actual value of the debt-to-equity occurrence,to explore whether the transaction is affected by other factors.At the same time,it explores whether the pricing of CNEG debt-to-equity swap conforms to the law of market value and whether the pricing is fair.After calculation,the price of CNEG debt-to-equity swap is fairly priced,and the reasonable range of pricing for each stage of debt-to-equity swap is determined at the same time.When choosing the counterparty,it has the platform advantage to select the listed company as the swap enterprise,which can make up for the concessions made by the two sides of the debt-to-stock swap by enlarging the asset profitability with the help of the shell value of the listed company.This mode of debt-to-equity swap has practical significance in the implementation of the same type of state-owned enterprises.