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The Analysis of Bonds with Warrants in Listed Companies Fiancing

Financing is an important thing to the financial managers of a company, and it is also an important guarantee to the strategy especially.With the promotion of reform and opening-up and the development of the economy, the market-oriented eco
Submitted On: 04-01-2010 | Views:	Article Tools:

Financing is an important thing to the financial managers of a company, and it is also an important guarantee to the strategy especially.With the promotion of reform and opening-up and the development of the economy, the market-oriented economy has been changed perfectly, the role of the government has been reduced gradually with the development of the economy. In 2006, the state commercial banks run in the domestic capital market after finishing share reform. To the public, the banks will be no longer mysterious, they will be supervised by the masses of shareholders. While the transparency is strengthened , it indicates that the banking is getting rid of the simple fund-supplier for state-owned enterprise. All of the banks will follow the rule of the market, all of the operations will guarantee shareholder's profit maximization.Since Shanghai Stock Exchange was set up in 1990, and Shenzhen Stock Exchange was set up in 1990, the stock market of our country had developed more than ten years , it has already become the third largest security market in Asia at present, the stock listed and traded has already risen to more than 1500 from 13, at the end of 2006, the total market value in stock market of Shanghai and Shenzhen is up to 8940,389 million yuan. The stock market have offered financial support for the company, especially the large or middle scale state-owned enterprise, it also makes enormous contributions to the construction of the national economy, and it will be playing an important role sostenuto.However, compared with the money borrowed from the banks, the fund provided to the enterprises from the stock market aren't enough, these measures couldn't improve the proportion of direct financing and reduce the risk of the banking. The fund of stock market is limited in capacity, the quality of listed company is different, the participants of the market are apt to speculate, the market hide enormous risk too, the function of financing is influenced by many factors.As another direct financing way, the bond market seems more desolate and developing slowly, the trade is less in variety. To set up a multilevel financing channel, it is very urgent to develop the bond market. The appearance of the Bonds with Warrants will be an opportunity . The Bonds with Warrants combine both the advantages of convertible bond and stock, it will be more and more popular in our capital market, because of its leverage and regulations, the Bonds with Warrants will be welcomed by more and more investors.

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