The Characteristics,Effect And Enlightenment From Market-oriented Debt-to-equity Swap + Private Placement At A Locked Price Of China Railway Group Limited

At present,China is in the stage of industrial transformation of economic restructuring,but it is facing the problems of excessive leverage of the real economy and financial burden.The market-oriented debt to equity swap can play an important role in reducing the debt ratio of enterprises,at the same time,it can also optimize the financing structure and promote the reform of enterprises,so it has been greatly supported by the policy.Since October 2016,the government has issued a series of relevant policies to support enterprises to reduce leverage by means of market-oriented debt to equity swap,but in the process of promotion,there have been problems such as large signing volume and low capital landing rate.This is not consistent with the important task of preventing systemic financial risks in China.The implementation of market-oriented debt to equity swap involves the interests of enterprises,investors,banks and other demands.Therefore,the key to the successful implementation of market-oriented debt to equity swap lies in the selection of appropriate trading mode and balancing the interests of all parties.At the same time,China has been improving the relevant policies of equity refinancing for many years,encouraging enterprises to develop equity financing methods,and directional additional issuance is the most commonly used equity refinancing means.According to the economic situation,the state adjusts a series of requirements for targeted issuance,and relevant policies have gone through the process of relaxation,tightening and re relaxation.This paper selects the case of market-oriented debt to equity swap started in 2018 by China Railway as the object.Combined with the current domestic economic situation and the background of supply side reform,this paper explores the internal and external causes of this debt to equity swap of China Railway,and then reviews the implementation plan of this market-oriented debt to equity swap of China Railway,that is,the operation steps of "two steps" of debt to equity swap + lock price fixed increase.The combination of market-oriented debt to equity swap and fixed price increase solves the financial difficulties of unlisted subsidiaries.The second is to enable investors to obtain A-share circulation shares at a fixeddiscount price,so as to achieve a win-win situation.Then from the perspective of financial indicators and corporate governance,this paper analyzes the implementation effect of debt to equity swap,and verifies the positive role of market-oriented debt to equity swap.Combined with the Research Report of the mainstream securities companies,this paper estimates the yield range after the end of the one-year lock-in period of investors.Combined with the current national policy restrictions on the concentration of reduction after the fixed increase and lifting of the ban,it predicts that the possibility of large-scale concentration of reduction after the expiration of investors is relatively small from both subjective and objective aspects,and the probability of gradual exit is relatively high,on the one hand,it will not have a great impact on the stock price of China Railway,on the other hand,it will not bring great impact on the stock price of China On the one hand,the interests of small and medium-sized investors are protected.At last,the paper gives some suggestions for the development of market-oriented debt to equity swap.