Analysis of The Status Quo and Problems of Convertible Bond Financing of Listed Companies in China

Convertible bonds have become an important refinancing method for listed companies because they can be converted into ordinary stocks at specific time and conditions, with low financing costs, large financing scale, and lighter performance pressure for issuing companies[1]. However, listed companies will have some problems when using convertible bonds to raise funds. Therefore, it is necessary to analyze the size of the convertible bond market and the financing incentives and financing efficiency of listed companies based on the data of convertible bond financing of listed companies in China. This paper uses literature research method, typical case study method and data analysis method to analyze the current situation of convertible bond financing of listed companies in China from four aspects: the issue of convertible bonds, the distribution of bond issuers, the credit rating and the design of convertible bonds. The analysis will focus on the small scale of the convertible bond market at the current stage, the lack of accelerated expansion of the convertible bond market, the uneven distribution of the convertible bond industry, the low short-term financing efficiency, the convertible bond stocks and the debt imbalance. According to the internal and external aspects of the listed companies, I put forward the optimization suggestions for constructing a good development environment for convertible debt financing and correctly guiding the issuers of convertible bonds.