| Starting from Bao’an convertible bond in 1992,it will be 30 years since convertible bonds entered China’s financial market in 2021.After constant groping and attempts by the market,the regulations exclusively belonging to convertible bonds,"Management Measures for Convertible Corporate Bonds",have been issued.With the promulgation of the new regulations,the management of convertible bonds in China begins to enter the standardized ranks.The development of an enterprise cannot be separated from the support of capital.When capital is needed,what kind of financing tool an enterprise chooses will have an important impact on its future development.At the beginning of the establishment of enterprises,choosing IPO is a sign that enterprises can continue to grow bigger and stronger.However,with the increase of supervision,the change of IPO from audit system to registration system also makes China’s capital market begin to adjust with the strength of the market itself.With the issuance of Refinancing Rules in 2020,it is no longer convenient to expand the equity scale by means of additional issuance.At this time,convertible bonds become a new financing means to replace additional issuance of financing.The main research direction of this paper is what suggestions can be brought to us by the issuance of convertible bonds.In this paper,we use the method of case study research,this paper introduces the concept of the convertible bond,and then reviews the domestic and foreign literature on the study of convertible bonds,has drawn out the theoretical basis of convertible bond,this article,through introducing the theory of information asymmetry,pecking order theory of financing,signaling theory,principal-agent theory and the back door financing hypothesis theory of convertible bond financing.Based on the theoretical basis,this paper analyzes the financing process of Eastmoney,focusing on the financing decision-making process of enterprises’ final choice of convertible bonds.The development of convertible bonds in China is still short,and we still need to learn from foreign experience.There are still differences between China’s characteristic economic model and foreign model,so the study of local convertible bond issuance cases has more practical significance.In this paper,through the introduction of the development of the Eastmoney as the breakthrough point,which leads to the Eastmoney company’s main business,introduces the general case the company’s financial condition and the change of equity,which leads to the Eastmoney using general analysis of the convertible bond financing,and the Eastmoney paper summarizes the financing process,can get started with Eastmoney company consists of business financial information web site,Only by using a variety of financing methods did the company finally go public and become a securities company.Summarized in this article,through the financing course of Eastmoney,it is concluded that the development of the Eastmoney twists and turns,and Eastmoney to comply with the demand of times development,actively develop Internet financial business,its financing is in after entering the securities industry changes,through the process found that the convertible bond financing is the main means of financing,in recent years for convertible bond issuing scheme design and finance to analyze,by comparing the three issue of convertible bonds,convertible bonds can be concluded that the Eastmoney in design scheme adopting conservative strategy,basically adopt the provision design required by regulations,look from parts design,the issuer to issue convertible bonds on the basis of the original shareholders to buy,In this way to avoid the dilution of the original shareholders’ interests.Then,in terms of the design,the issuer basically controls the convertible bonds.The implementation conditions of the call provisions of the holders of the convertible bonds are relatively strict.The issuer is also aware of the high growth of its own company and its business is in a period of rapid development,so it does not worry that the convertible bonds will be eventually call under the influence of the equity.The case company can also draw the conclusion that selecting the business with development potential is the foundation of the company’s development.Later in this paper,the Eastmoney for issuing convertible bonds three times of event risk analysis,analysis the main content of the clause and the stakeholders in terms of the execution time and possible problems,and under the terms of the current design with the"Management Measures for Convertible Corporate Bonds" in the requirement of contrast,through the contrast can be concluded that the terms of the current design on whether there are omissions,Thus,the potential risks hidden by issuers in the process of issuance are summarized and suggestions for avoiding such risks are put forward.By reading the studies of other scholars,this paper sorted out and summarized the risks that convertible bonds may encounter at present.In terms of risk research,in addition to common risk analysis,such as issuance risk，stock conversion risk,call risk,debt repayment risk and redemption risk,this paper also analyzed the credit risks that the case company may encounter.Based on the above discussion and analysis,it is concluded that the issuance of convertible bonds cannot do without proper clause design.Convertible bonds are also a financing means with low financing cost at present.Issuers should focus on developing potential businesses,and the development of convertible bonds needs practical verification,and issuers should continue to pay attention to market changes after issuance.It is expected that the research results of this paper can provide some reference for issuers,investors,sponsors and regulators to continue to develop convertible bonds. |
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