Study On Financing Methods Of Convertible Bonds Of Listed Companies

With the development of China’s securities market,enterprises have begun to seek listing,hoping to use the power of capital market to solve the problem of financing.In recent years,the issuance of convertible bonds has increased rapidly in China.This financing method is gradually known by people,and now it has become the focus of refinancing of listed companies.The development of China’s convertible bond market lags far behind other advanced capital markets because of the late start of the domestic convertible bond market.For a long time to choose convertible bonds to refinance is not the mainstream way of financing.That has put off many growth-stage companies eager to raise capital,while hampering the development of the domestic convertible bond market.At present,China’s enterprises still have a certain degree of blindness in the choice of refinancing,choosing a suitable way of refinancing is the only way for enterprises to achieve rapid development.Xingsen Technology Co.,Ltd.,as one of the issuers with a large scale of convertible bond issuance,has found the characteristics and advantages of convertible bonds through in-depth analysis of its convertible bond financing methods,and summarized its issuing experience to provide reference for other listed companies to issue convertible bonds for financing.This paper mainly adopts the method of case study,selects Xingsen Technology as the research object,focuses on the financing background of the convertible bond market and the advantages and disadvantages of the listed companies’ convertible bond financing,and carries out a detailed and comprehensive analysis and research on the performance brought by the convertible bond financing with financial indicators.Through the interpretation of the refinancing policies of listed companies,to understand the applicable conditions of various refinancing methods,combined with the industry status,internal and external operating environment,capital structure and financial status of Xingsen Technology,the paper studies the financing methods of convertible bonds of Xingsen Technology.This paper analyzes the process of implementing convertible bond financing by Xingsen Technology,studies the issuing motive and feasibility of convertible bond,discusses its influence on listed companies,and then summarizes the enlightenment brought to us by the issuing of convertible bond financing by Xingsen Technology.The research shows that the convertible bond financing is a suitable financing method for Xingsen Technology,which solves the shortage of project funds and improves the capital structure of the company,expands the financing channels,and enhances the operation capacity and financial quality.Protecting the rights and interests of the original shareholders lays the foundation for the enterprise to create value and obtain sustainable competitive advantage.From the perspective of bondholders,issuing convertible bonds is beneficial to the protection of investors’ rights and accelerate the growth of China’s economic market.Based on the choice of enterprise convertible bond financing mode and the current situation of China’s capital market,this paper puts forward a series of countermeasures and suggestions to improve the effectiveness of enterprise’s implementation of convertible bond financing,and then promote the vigorous development of China’s financial market.