The Study On The Cause And Effect Of Bank Of Ningbo Issuing Convertible Bonds

In recent years,some companies have over financing,the use of funds is divorced from the reality,and there is a phenomenon.which has no obvious effect on the formation of long-term effective allocation of resources.According to the imbalance of the refinancing structure,the regulators have made corresponding adjustments to the issue price,the benchmark date of pricing,the refinancing cycle and the refinancing financing,and the downturn of the stock market in the past two years has made it relatively difficult for the listed companies to issue additional financing.As a financing tool,convertible bonds have been paid more attention by the management and investors of the securities market And attach importance to.In addition,the CSRC has issued Measures on the administration of issuance and underwriting of securities,so that convertible bonds are mainly purchased by credit application and purchased directly according to the actual amount after the placement is confirmed.This led to a peak of convertible bonds after October 2017.In2016,the people's Bank of China implemented MPa(public relations Prudential evaluation system)for systemically important banks,and the CBRC has minimum requirements for core tier one capital adequacy ratio.For the expansion of the scale of bank credit business,the capital adequacy ratio also decreases.In order to meet the minimum limit of capital adequacy ratio in the Prudential evaluation system and relieve the pressure of capital,commercial banks choose the optimal capital replenishment plan in combination with the asset structure.In 2017,the two largest listed banks that issued convertible bonds were Everbright Bank and Bank of Ningbo.Although Ningbo Bank has established and adopted a more comprehensive risk management system,uncontrollable credit risk factors will lead to the bank's asset quality and loan impairment losses.In order to support the expansion of the bank's core business,supplement the core capital of Ningbo Bank and enhance its risk control ability,Ningbo Bank decided to issue convertible bonds.This paper introduces the concept and related theory of convertible bond financing and the option pricing model of convertible bonds.Taking the issue of convertible bond financing by Ningbo Bank in2017 as the background,it analyses the motivation and results of the issue of convertible bonds by Ningbo Bank.This paper studies the specific issuance terms of convertible bond financing scheme.After issuing convertible bonds,it analyses the market effect and financial effect separately,summarizes the financing effect of Ningbo Bank's convertible bonds comprehensively,finds out the problems in the financing of convertible bonds of listed banks,and puts forward countermeasures in turn.The effect has certain reference significance for internal and external risks.Although Ningbo bank has established and adopted a comprehensive risk management system,the uncontrollable credit risk factors will lead to the bank's asset quality and loan impairment loss.In order to support the expansion of the bank's core business,supplement the bank's core capital and enhance the bank's risk control ability,Bank of Ningbo decided to issue convertible bonds.This paper introduces the concept and theory of convertible bond financing and the option pricing model of convertible bond.Basedon the 2017 issue of convertible bond financing by Bank of Ningbo,this paper analyzes the behavioral motivation and results of the issue of convertible bond by Bank of Ningbo.This paper studies the specific terms of the convertible bond financing scheme,analyzes the market effect and financial effect respectively after the issuance of convertible bonds,comprehensively summarizes the convertible bond financing effect of Bank of Ningbo,finds out the problems in the convertible bond financing of listed banks and puts forward countermeasures in turn,which is of certain reference significance for the banking industry to effectively deal with internal and external risks.This paper analyzes the financial and market effects of Bank of Ningbo before and after issuing convertible bonds.The first part is to analyze the financial and operating conditions of Ningbo bank before issuing convertible bonds,including the main business distribution and capital flow of Ningbo bank;the second part is the implementation process of the issuance of the convertible bonds of Ningbo bank,including the terms of issuance and the issuing characteristics of the convertible bonds;the last part is to analyze the financial impact and stock price impact of the convertible bonds on Ningbo bank after issuance In depth analysis.In this process,this paper concludes that the financing cost of convertible bonds is relatively low,and the financing mode that can directly supplement the core capital of the bank and adjust the capital structure also has other favorable effects on the bank.The inflow of capital makes the bank expand its business scale,improve the profitability of the bank,and optimize the capital structure to a certain extent,but the issuance of convertible bonds is beneficial to the short-term market With the optimization of bank governance,the development of bank business and the expansion of loan scale by the management,the stock price of the bank will eventually have a positive effect.