The Practical Impact Of The New Deal On Refinancing And The New Regulation On Convertible Bonds On The Convertible Bond Market

With the strengthening of financial supervision,on February 17,2017,the China Securities Regulatory Commission issued a new policy on refinancing,regulating and guiding the rational financing of listed companies,which limits the traditional financing methods of domestic listed companies and encourages them to pass Convertible bonds to finance.On September 8th of the same year,the Shanghai Stock Exchange issued the new "Conditions for the Issuance of Convertible Corporate Bonds of Listed Companies on the Shanghai Stock Exchange",established a new subscription mechanism and specified a number of other regulations.Under the influence of the New Deal for Refinancing and the New Regulations for Converting Bonds,the convertible bond market in 2017 has undergone tremendous changes.In this context,this paper analyzes and studies the practical impact of the New Deal on Refinancing and the New Regulation on Convertible Bonds on the convertible bond market.This article mainly analyzes the following aspects:the situation of convertible bond financing and the change of terms;comparison of the financing effect of convertible bonds before and after comparison policy;the validity of the convertible bond pricing model before and after comparison policy.The logic of this paper is as follows.Through the statistical analysis of the market conditions of the convertible bond,this paper analyze the changes in the supply and demand of the convertible bond.From the perspective of the seller,this paper consider the changes in the contractual terms(interest rate clauses,return sale clauses,redemption clauses,etc.)resulting from tilting of the supply and demand relationship to one party,and the direction of change.Due to the change of policy,the financing effect obtained by the issuer through the financing of convertible bonds also changed.This article mainly considers the debt effect and dilution effect.By analyzing the changes in the financing effects before and after the policy,we discussed the benefits of the issuers.Finally,the validity of the convertible bond pricing model before and after policy comparison.This paper uses the B-S formula to calculate the value of the debt portion and the option portion of the coupon,and the option value included in some important terms of the option value.Before and after comparing policies,the degree of deviation of the pricing model on the first day of the listing from the actual market price is discussed to determine whether the policy has a positive effect on price discovery.Through empirical analysis,this paper gets the following perspectives:The refinancing of the New Deal and the new rules on convertible bonds will make the increase the supply and demand of convertible bonds and the demand for them,which will make the increase the pricing efficiency.This will,to a certain extent,reduce the impact of the convertible bonds on the issuer's stock price and help strengthen the issuance of issuers.The willingness to make the market more plentiful,while providing companies with a lower-cost financing channel,their bond properties also regulate their use of funds,and also provide the general investors with a lower-risk investment product.However,due to the excessive increase in the number of investors,it also affected the stability of the convertible bond market to some extent.The overall policy has promoted the development of the convertible bond market,made it completed,and obtained relatively good policy results.