Research On Financing Risk And Performance Of Convertible Bond Issued By Sany Heavy Industry

In February 2017,China Securities Regulatory Commission(CSRC)issued new regulations on refinancing,which promoted the development of China’s convertible bonds while restricting additional issuance and allotments,ushering in a boom in the issuance of convertible bonds in China.Convertible bonds originated in Europe and the United States and have been popular in overseas capital markets since their emergence.However,in China’s capital market,nonpublic offering of shares is subject to fewer restrictions,so the majority of listed companies in China choose non-public offering of shares as their first choice for refinancing.China’s convertible bond market is still in the stage of development,most of the listed companies do not have enough understanding of the financing risk of convertible bond.At present,scholars mostly use empirical methods to study convertible bonds from the perspectives of pricing model,issuing motivation and issuing performance,etc.,but seldom study convertible bonds in the form of cases.Even rarer are the case studies that analyze the financing risks of convertible bonds from the perspective of the issuer.In this context,this paper selects Sany Heavy Industry,which issued convertible bonds in 2016 and achieved good financing results,as the case study object to study the financing risk and performance of Sany Heavy Industry’s issuance of convertible bonds.This paper first analyzes the basic situation of Sany Heavy Industry,the financing process of Sany’s issuance of convertible bonds and the internal and external environment of Sany’s issuance of convertible bonds,and explores the motivation of Sany’s issuance of convertible bonds.Secondly,the paper identifies the financing risks of Sany’s issuance of convertible bonds,measures and evaluates them by using the fuzzy analytic hierarchy process,and analyzes the risk control strategies adopted by Sany in the process of financing convertible bonds based on the measurement and evaluation results.Thirdly,it analyzes the influence of issuing convertible bonds on Sany’s financing performance,market performance,financial performance and governance performance.Finally,the conclusion is drawn that the convertible bond financing of Sany Heavy Industry is more successful,and based on the case of Sany Heavy Industry’s issuance of convertible bonds,relevant suggestions are put forward for other companies that issue convertible bonds.This paper aims to make the listed company have more understanding of the financing risk and control strategy of the convertible bonds through the case of Sany Heavy Industry issuing convertible bonds and achieving good financing effect,and have more understanding of the impact of issuing convertible bonds on performance.