A Study On Convertible Bonds Financing In Haima Company

With the continuous development of financing securities-orientation,the ways of refinancing have diversified among the listed companies.So it's a new challenge for enterprises in the management that how to choose multi-channel and low-cost financing ways to improve the capital structure,based on the conditions of market and enterprises themselves.Convertible bond is a kind of special debenture which could be converted to ordinary stock under a certain time or conditions and a compound financial instrument that different from fixed income bond and ordinary stock.It is very popular with fund raisers and investors because convertible debenture has the characteristics of both debt and equity.The dissertation is a research on Hainan Haima Group Co.,LTD which is a public company.After international financial crisis in 2008,Haima Company has been issued five-year convertible bonds based on consideration of multiple conditions and self-development.However,bonds were called after only one year.The process of raise funds was very intriguing and thought-provoking.Therefore,thesis begins with the theories,combining the methodology of literature analysis,case analysis,quantitative analysis and financial analysis etc to research.Starting from a case study on the convertible debenture financing of the Haima Company,the author introduces the basic situation of Haima Company's convertible debenture financing,describes the action with issue bonds then redeem them,analyzes the influence factors,financing motivation,financing operation and financing effect of company's convertible debenture financing.Author further explores deep causes of the convertible debenture financing and its strengths and weakness,and then some basic conclusions are shown.For any listed companies should choose long-term financing way when selecting convertible debenture financing and it should be based on the capital structure of themselves and market conditions.Duration of the convertible debenture financing also related to present state of the corporation.The time can also adjust flexibly.This mode helps to ensure that list companies would be in a better position in the future financial world and without detriment to the interest of investors in the meantime.No single company can make an absolutely perfect convertible debenture financing decision.They must pay very close attention to analysis for financing motivation,financing operations and financing effect of convertible bond,enhance the manager's decision-making.Nor any company's convertible debenture financing can work all the time.Therefore,we should take the view angle of development to treat the convertible debenture financing.