Research On The Motivation And Impact Of The Issuance Of Exchangeable Bonds

In 2008,in order to scientifically guide the “big and small” shareholders to reduce their stocks,thereby alleviating the negative effects of the large number of non-tradable shares on the market,the domestic market officially introduced exchangeable bonds.However,due to the lack of relevant regulations,the development of exchangeable bonds has been shelved.Since 2013,with the improvement of the corresponding regulations and the successful issuance of the first exchangeable bond “13 Fuxing Debt”,the exchangeable bonds have begun to receive widespread attention.After 2015,China’s exchangeable bond market has developed rapidly.During this period,many exchangeable bonds issued have exemplary significance.The “15 Shibao 01” and 16 Shibao bonds issued by Zhejiang Shibao Holding Group are this.A typical case of the period.“15 Shibao 01” timely revised the stock price during the stock swap period,and the underlying stocks went up all the way.The investors changed their shares and obtained considerable profits.The issuer also successfully realized the shareholding reduction.Motivation.The “16 Shibao Debt” designed the same issuance clause as the“15 Shibao 01”,except that its basic interest rate is lower and the issuer’s willingness to convert shares is more obvious.However,the underlying stock is in the market after the conversion period.Poor performance,stock prices continued to fall,even if the issuer repeatedly revised the conversion price,but the investor did not exercise the conversion rights because there is no conversion income,the issuer ultimately did not succeed in achieving its monetization motive.Therefore,there are It is necessary to conduct an in-depth case study on the motives and issuance effects of the two issues of exchangeable bonds issued by Shibao Holdings.This paper analyzes the case based on principal-agent theory and information asymmetry theory by referring to relevant literature at home and abroad.Firstly,from the perspective of the design of the terms of the “15 Shibao 01” and “16 Shibao Debt”exchangeable bonds,the financial status of the listed listed company,the cash flow and the performance of the underlying stock market,the issuer’s issuance motive is to reduce the shareholding..Secondly,it analyzes the reasons why Shibao Holdings uses the exchangeable bonds to reduce its shareholding.Then,based on the results of the two issues of exchangeable bonds issued by Shibao Holdings,the different impacts on the issuer,the underlying stock listed companies and investors were analyzed.Finally,the reasons for the different impacts of the two exchangeable bonds issued based on the samemotivation are analyzed,and relevant conclusions are drawn.This paper believes that reasonable terms design and appropriate timing are important factors to ensure that the issuer successfully issues exchangeable bonds and realizes its motives for issuing bonds.The issuance of exchangeable bonds by the issuer can not only avoid the loss of the underlying stocks,but also help to improve the governance structure of the listed listed companies.It should design reasonable bond terms and issue exchangeable bonds at the right time;Investors should raise awareness of risk prevention,scientifically analyze the issuer’s motives for issuing bonds,and make rational decisions;the supervisory layer should reasonably guide the issuance of exchangeable bonds of the company,but at the same time strengthen information disclosure to protect the interests of investors and prevent enterprises from using capital tools.And the advantage of information asymmetry harms the interests of small and medium investors.