Case Analysis Of Muyuan Industrial Group’s Issuance Of Exchangeable Bonds And Privately Issued Portfolio Financing Arbitrage

Compared with other equity refinancing methods in my country’s refinancing market,private placement is favored in the equity refinancing market because of its low threshold and high efficiency.Exchangeable bonds are an innovative financial tool that emerged as an innovative financial tool to overcome the problem of "big and small" lifting the ban after the split share reform.As a bond with rights,it can achieve the purpose of passively reducing the issuer’s stock holdings,and use the available The reduction of holdings by exchanging bonds has little impact on the stock price,the issuance process is simple and convenient,and can avoid certain market risks,and is also widely welcomed by shareholders of listed companies.With the gradual development of exchangeable bonds as a financial product,a new financing arbitrage model that combines exchangeable bonds with private placement has begun to appear in my country’s market,that is,major shareholders first participate in the company’s private placement,and receive corresponding allocations at low prices.Then,through the issuance of convertible bonds,high-priced stock exchange is carried out to reduce the holdings,and under the condition of controllable risks,arbitrage is realized.Although this arbitrage model can help issuers obtain certain capital gains,it will damage the legitimate interests of market investors and be detrimental to the stability of the capital market order.Therefore,the financing arbitrage model of the combination of exchangeable bonds and private placement is worthy of in-depth study,and the motivation behind it and its impact are also worthy of further discussion.This paper studies the case of Muyuan Industrial Group’s use of "exchangeable bonds + private placement" model for portfolio financing arbitrage.First,it uses literature analysis to sort out the research status,basic concepts and related theories of exchangeable bonds and private placement at home and abroad.On the other hand,find out the part of the two design principles that conform to the arbitrage theory and analyze it,and get the mechanism of how to carry out arbitrage between exchangeable bonds and private placement.Then,it analyzes the actual case of Muyuan Industrial Group through the case analysis method,introduces the development,financial status and equity structure of the arbitrage party and its holding company in this case,and sorts out the arbitrage process into three stages.And analyze the possible hidden purposes behind the Muyuan Industrial Group at each stage,and then analyze the root cause of the arbitrage behavior in this case from the internal and external perspectives of the company,and the various stakeholders in the arbitrage process.Changes and financial conditions were ultimately affected,and it is concluded that Muyuan Industrial Group took advantage of its controlling position and loose regulatory policies on exchangeable bonds to design exchangeable bonds and private placements.There is arbitrage space between the fixed increase prices.This arbitrage not only effectively improves the financial status of Muyuan Industrial Group,but also does not cause much impact on its equity.In addition to the arbitrage Fang Muyuan Industrial Group,the holders of exchangeable bonds are also the ultimate beneficiaries,but the interests of other small and medium shareholders have been damaged in the arbitrage process.Therefore,in order to protect the interests of small and medium shareholders and investors,this paper finally gives corresponding countermeasures from three aspects: strengthening internal control mechanism,increasing information disclosure and improving relevant regulatory policies.It is hoped that this will improve the ability of small and medium shareholders and ordinary investors to identify arbitrage behaviors and their own risk identification capabilities,and effectively protect their own interests.long-term development.