Crowdfunding is an exotic product, translated from the word crowdfunding abroad, that is, public fundraising or public fundraising. Crowdfunding is a mode of raising project funds from netizens in the form of group purchase and pre-purchase. It consists of sponsors, investors and platforms. Using the characteristics of Internet and SNS communication, small enterprises, artists or individuals can show their creativity to the public, win everyone's attention and support, and then get the needed financial assistance.
Crowdfunding has the characteristics of low threshold, diversity, relying on mass strength and focusing on creativity. It refers to an act of raising funds from the masses to support the initiated individuals or organizations. A research report once pointed out that 90% of the total funds raised in the world are concentrated in the European and American markets. The World Bank report even predicts that the total amount will exceed 96 billion US dollars in 2025, and the proportion of Asia will increase significantly. At present, there are many crowdfunding platforms around the world. The following are ten well-known and representative crowdfunding platforms.
1, Kickstarter: the biggest and most famous
Founded in 2009, Kickstarter is the largest and deadliest crowdfunding platform in the world. The operating mode of the platform is simple but effective: the client is a person with new ideas and eager to create and create; On the other hand, people who are willing to pay to help them realize their creative ideas, and then witness the emergence of new inventions, new creations and new products. The biggest feature of Kickstarter is that it is a purely popular charity website. Anyone can donate his own intentional project without any formalities, and the threshold can't be lower.
2. roll call time: the first crowdfunding platform in China.
Roll call time was founded in May, 20 1 1, and is known as the kickstarter of China. At present, more than 70 projects have obtained the target amount of funds through this platform. Roll call time supports every idea and thinks that every creative person is an interesting story.
3.Crowdcube: the first equity crowdfunding platform.
Crowdcube has created a new financing model for business operators, which is a stock-based financing platform, so it is described by the Bank of England as a subversive of the banking industry. On this platform, entrepreneurs can bypass angel investment and banks and get funds directly from the general public. Investors can not only get investment returns, communicate with entrepreneurs, but also become shareholders of the enterprises they support.
4. Everyone votes: The first batch of equity crowdfunding members of the China Securities Association are mainly physical stores.
Renren Investment is an equity crowdfunding trading platform based on physical stores. Targeted projects are mainly specialty stores around us, and investors are mainly grassroots investors. All Renren's investment projects must have physical chain experience stores with more than two stores. They are not only raising funds, but also escorting good projects.
5.LuckyAnt: Crowdfunding around you
LuckyAn broke the conventional unrestricted crowdfunding, saw the geographical advantages of crowdfunding, and tried every means to get users to support projects in the region. The website launches a local enterprise every week, and users get corresponding returns through sponsoring enterprises.
6.Gambitious: game crowdfunding
Gambitious in the Netherlands is a crowdfunding platform for game projects, which connects gamers and game developers. Gambitious allows gamers to sponsor their favorite video game ideas, create related topics before the game is released, and buy shares in supported games. If the game starts to make a profit, investors will participate in the share.
7.RockThePost: Crowdfunding+Socialization
RockThePost is the realization of crowdfunding and socialization, which integrates the concept of crowdfunding with social networks. In RockthePost, consumers can create online communities and get rewards by providing financial support, time, advice or material information to these enterprises. Users in the community can pay attention to each other and share the details of supported projects.
8. Appstoli: A crowdfunding platform for applications.
From the name of AppStori, it can be seen that the platform has an inseparable relationship with App. This is a subdivided crowdfunding and collaborative development platform for smartphone applications. AppStori was established to meet the market demand of lack of medical care and medicine, so that application developers and consumers can cooperate in the early stage of application production.
9. Jujube: Crowdfunding by Asian designers
ZaoZao, a Hong Kong startup, is committed to building a platform to help independent designers in Asia bring their works to market. Today, the platform has become the first crowdfunding platform for fashion products in Asia. These designers can set up their own pages on the website and upload their own works, but there is no guarantee that their works will eventually appear on jujube, because only the best works will be displayed online.
10, ZIIBRA: a crowdfunding platform for playing music.
ZIIBRA is headquartered in Seattle, Washington. ZIIBRA's philosophy is: tohelpkeepc creative yaliveandwell. ZIIBRA tells the story of the people behind the craft and builds tools and platforms, not only for creators who love music, but also for investors who want to support the creators. This website allows artists to upload songs that will be released in the near future for pre-sale.
Foreign crowdfunding platforms started earlier and developed slightly better than domestic ones. It is not difficult to find that LuckyAnt began to divide the field of crowdfunding, Gambitious aimed at game groups, RockThePost focused on the integration of crowdfunding and socialization, AppStori applied medical apps, ZAOZAO served independent designers in Asia, and ZIIBRA mixed with music. These well-known platforms are world-renowned for their directional advantages.
I. About Exchangeable private placement bond
(A) SME private placement bond
When it comes to exchangeable private placement bond, we have to explain small and medium-sized enterprises like private placement bond.
1 definition
On may 22nd, 20 12, Shanghai stock exchange issued the pilot measures for small and medium-sized enterprises in private placement bond (on may 23rd, 20 12, Shenzhen stock exchange issued the pilot measures for small and medium-sized enterprises in private placement bond).
According to the Pilot Measures for Small and Medium-sized Enterprises' Business in private placement bond, the private placement bond of small and medium-sized enterprises refers to the corporate bonds issued and transferred by small and medium-sized enterprises in China in a non-public way, and it is agreed to repay the principal and interest within a certain period.
2. Conditions to be met when issuing private debt for small and medium-sized enterprises
(1) The issuer is a limited liability company or a joint stock limited company registered in China;
(2) The issuing interest rate shall not exceed 3 times the benchmark interest rate of bank loans in the same period;
(3) The term is more than one year (including one year);
(4) Other conditions stipulated by the Exchange.
During the pilot period, private placement bond issuers of small and medium-sized enterprises are limited to small and medium-sized enterprises that are not listed on Shanghai Stock Exchange and Shenzhen Stock Exchange, excluding real estate enterprises and financial enterprises for the time being.
It should be noted that at present, the regulatory authorities also encourage qualified New Third Board enterprises to issue SME private placement bond. For example, Beijing Jiuhengxing Technology Co., Ltd., Tianjin Jin Shuo Information Technology Group Co., Ltd., Tianjin Chongqing Iron and Steel Machinery Equipment Co., Ltd. and many other new three-board enterprises have completed the private placement bond issuance of small and medium-sized enterprises.
3 SME private debt investors limit the number of
The issuer shall issue private placement bond to qualified investors with corresponding risk identification and bearing capacity in a non-public way, and shall not use advertising, public persuasion or disguised publicity.
The total number of private placement bond investors in each period shall not exceed 200.
At the same time, when private placement bond transfers in, the Exchange will confirm private placement bond's transfer in the order of filing, and will not confirm the transfer that leads to more than 200 private placement bond investors.
4 SME private debt registration and settlement institutions
Private placement bond's registration and settlement shall be handled by China Securities Depository and Clearing Co., Ltd. according to its business rules.
5. The filing and issuance time of private debt.
The Exchange will check the completeness of the filing materials. If the filing materials are complete, the Exchange shall issue a filing acceptance notice within 10 working days from the date of receiving the materials.
The issuer shall complete the issuance within 6 months after obtaining the notice of filing acceptance. If it is not issued within the time limit, it shall be re-filed.
6 private placement bond investors should meet the conditions.
(1) Shanghai Stock Exchange
1) QFII participating in subscription and transfer in private placement bond shall meet the following conditions:
(1) Financial institutions established with the approval of relevant financial regulatory authorities, including commercial banks, securities companies, fund management companies, trust companies and insurance companies;
(2) Financial products issued by the above-mentioned financial institutions to investors, including but not limited to bank wealth management products, trust products, investment-linked insurance products, fund products and asset management products of securities companies;
(3) An enterprise legal person with a registered capital of not less than RMB 6,543,800,000;
(4) A partnership enterprise in which the total capital contribution subscribed by the partners is not less than 50 million yuan and the total capital contribution paid in is not less than100000 yuan;
⑤ Other qualified investors recognized by this Exchange.
Where relevant laws, regulations or regulatory authorities have restrictive provisions on the above-mentioned investors' investment in private placement bond, such provisions shall prevail.
2) Qualified individual investors shall at least meet the following conditions:
① The total assets of various securities accounts, capital accounts and asset management accounts under an individual's name are not less than 5 million yuan;
(2) Having more than two years experience in securities investment.
③ Understand and accept the risks in private placement bond.
3) Directors, supervisors, senior managers and shareholders holding more than 5% shares of the issuer may participate in the subscription and transfer of private placement bond issued by the company.
Underwriters can participate in the issuance, subscription and transfer of private placement bond.
(2) Shenzhen Stock Exchange
1) QFII participating in subscription and transfer in private placement bond shall meet the following conditions:
(1) Financial institutions established with the approval of relevant financial regulatory authorities, including commercial banks, securities companies, fund management companies, trust companies and insurance companies;
(2) Financial products issued by the above-mentioned financial institutions to investors, including but not limited to bank wealth management products, trust products, investment-linked insurance products, fund products and asset management products of securities companies;
(3) An enterprise legal person with a registered capital of not less than RMB 6,543,800,000;
(4) A partnership in which the total capital contribution subscribed by the partners is not less than 50 million yuan and the total capital contribution paid in is not less than 654.38 yuan+00 million yuan;
⑤ Other qualified investors recognized by this Exchange.
Where relevant laws, regulations or regulatory authorities have restrictive provisions on the above-mentioned investors' investment in private placement bond, such provisions shall prevail.
2) Directors, supervisors, senior managers and shareholders holding more than 5% shares of the issuer may participate in the subscription and transfer of private placement bond issued by the company.
Underwriters can participate in the issuance, subscription and transfer of private placement bond.
7 advantages and disadvantages of small and medium-sized enterprises issuing private placement bond
(1) Advantages
(1) Private debt of small and medium-sized enterprises is a more efficient and convenient financing method. Small and medium-sized enterprises take the lead in implementing the "filing" system in the issuance audit, and the time period from the acceptance of materials by the exchange to the approval of filing is within 10 working days.
② There is no limit to the proportion of private debt to net assets. As long as the subscribers are willing to subscribe, they can decide the scale of fund-raising independently according to the needs of enterprises.
(3) From the issue period, the term of bonds can be divided into short-term (1 ~ 3 years), medium-long-term (5 ~ 8 years) and long-term (10 ~ 15 years). Bonds can also provide options such as redemption right, coupon rate option and design warrant. In the design of credit enhancement link, third-party guarantee, mortgage/pledge guarantee and so on can be provided.
④ Compared with trust funds, private lending and other financing methods, the comprehensive financing cost of SME private debt is relatively low.
⑤ The use of funds raised by SME private debt is relatively flexible. Small and medium-sized enterprises' private debt has no clear agreement on the use of raised funds. The issuer can set the reasonable use of the raised funds according to its own business needs, such as repayment of loans, replenishment of working capital, investment in fundraising projects, equity acquisition, etc.
(2) Disadvantages
① In view of the small scale of bond issuers, the bond issuance scale is generally small. Due to the weak solvency of bond issuers and high default risk, there is great uncertainty about whether bonds can actually be sold.
(2) In view of the fact that the issuers are small and medium-sized enterprises, their credit ratings are generally low, they are non-publicly issued, the investor groups are limited, and the issuance interest rate is higher than the existing corporate bonds and corporate bonds in the market.
(2) Exchangeable private placement bond.
1 definition
2065438+On May 30, 2003, Shenzhen Stock Exchange issued the Notice on Matters Related to the Pilot Business of Small and Medium-sized Enterprises Trading in private placement bond. According to the Notice, exchangeable private placement bond refers to private placement bond, a small and medium-sized enterprise, which is issued by small and medium-sized enterprises in a private way according to the Pilot Measures for private placement bond Business of Small and Medium-sized Enterprises of Shenzhen Stock Exchange (hereinafter referred to as the Pilot Measures) and can be exchanged for shares of listed companies within a certain period of time according to the agreed conditions.
Conditions to be met by issuing exchangeable private placement bond.
An exchangeable private placement bond filed in Shenzhen Stock Exchange shall meet the following conditions in addition to the conditions stipulated in the Pilot Measures:
(1) The shares to be exchanged shall be A shares listed in this Exchange;
(2) Before the issuance of this bond, there should be no other rights restrictions such as judicial freezing except the pledge guarantee issued this time;
(3) There are no restrictions on the sale of the shares to be exchanged when they are exchangeable, and the transfer of these shares does not violate the issuer's commitment to the listed company;
(4) Other conditions stipulated by this Exchange.
3. Special provisions on stock trading
(1) Before the issuance of the exchangeable private placement bond, the shares to be exchanged and the fruits thereof shall be pledged to the trustee, so as to provide guarantee for the bondholders to exchange shares and repay the principal and interest of the current bonds.
The number of pledged shares shall not be less than the number of exchangeable shares of bondholders, and the specific pledge ratio, maintenance guarantee ratio, additional guarantee mechanism and default disposal shall be negotiated by the parties and agreed in the prospectus.
(2) Exchangeable private placement bond shares can only be exchanged for shares to be exchanged after six months from the date of issuance.
The exchange price of exchangeable private placement bond shall not be lower than 90% of the closing price of exchangeable shares on the trading day before the issuance date and 90% of the average closing price of the previous 20 trading days.
The specific term, price and price adjustment mechanism of share exchange shall be negotiated by all parties and agreed in the prospectus.
(3) Exchangeable private placement bond holders can choose to exchange shares or not during the exchange period. Those who apply for securities trading shall report the securities trading instructions to this Exchange through securities companies.
Investors will be transferred to the exchangeable private placement bond on the day of T, and they can declare the share exchange on the day of T, and they can get the shares from the share exchange on the day of T+/KLOC-0.
4 the relationship between exchangeable private debt and private debt
It should be said that the exchangeable private debt of small and medium-sized enterprises is completely derived from the private debt of small and medium-sized enterprises, and it is completely consistent with the private debt of small and medium-sized enterprises in terms of filing process, investor suitability management and transfer service. Only in the process of bond credit enhancement can small and medium-sized enterprises exchange private bonds, require issuers to pledge their A shares of listed companies in Shenzhen in the background of settlement, and allow bondholders to choose to exchange their bonds with shares of listed companies for credit enhancement. Exchangeable private debt continues the marketization characteristics of private debt. As long as the stock exchange price is not less than 90% of the closing price of the underlying stock before the issue date 1 trading day and 90% of the average closing price of the previous 20 trading days, and the number of pledged shares is not less than the number of exchangeable shares of bondholders, the specific stock exchange price and its adjustment mechanism, share pledge ratio, additional guarantee mechanism and other issues can be completely determined by market participants through consultation.
Firstly, SMEs can exchange private debt.
The first exchangeable private debt for small and medium-sized enterprises was issued by the third largest shareholder of Fuxing Chengxiao, a listed company on the Growth Enterprise Market, with an issuance scale of 256.5 million yuan, with coupon rate accounting for 6.7%. The Issuer provides guarantee for bondholders to exchange shares and repay the principal and interest of the bonds with 65,438+0,000 shares to revive Cheng Xiao and its fruits. Six months after the issuance of the bond, it entered the exchange period, and the initial exchange price of the underlying stock was 25.65 yuan/share.
Second, about exchangeable corporate bonds.
1 definition
On June 5438+1October 65438+1October 7, 2008, the China Securities Regulatory Commission issued the Trial Provisions on the Issuance of Exchangeable Corporate Bonds by Shareholders of Listed Companies. According to this regulation, exchangeable corporate bonds refer to corporate bonds issued by shareholders of listed companies in accordance with the law and can be exchanged for their shares in listed companies in a certain period of time according to agreed conditions.
Shareholders holding shares of listed companies may, with the support of sponsors, apply to the China Securities Regulatory Commission for the issuance of exchangeable corporate bonds.
(2) Relevant legal documents applicable to the issuance of exchangeable corporate bonds.
(1) Company Law and Securities Law
(2) Measures for the Administration of Corporate Bond Issuance and Trading (20 15 to 15 came into effect, and the Pilot Measures for Corporate Bond Issuance shall be abolished at the same time).
(3) Trial Provisions on Issuing Exchangeable Corporate Bonds by Shareholders of Listed Companies
(4) Standards for Contents and Formats of Information Disclosure of Companies Offering Securities to the Public No.23-Prospectus for Offering Bonds to the Public.
(3) Requirements for applying for issuing exchangeable corporate bonds
(1) The applicant shall be a limited liability company or a joint stock limited company that complies with the provisions of the Company Law and the Securities Law;
(2) The company's organizational structure is sound and running well, and there are no major defects in its internal control system;
(3) The net assets of the company at the end of the latest period are not less than 300 million yuan;
(four) the company's average annual distributable profit in the last three fiscal years is not less than one year's corporate bond interest;
(5) The accumulated balance of corporate bonds after this issuance shall not exceed 40% of the net assets at the end of the latest period;
(6) The amount of the bonds issued this time shall not exceed 70% of the market value of the shares to be exchanged according to the average price of the 20 trading days before the announcement date of the prospectus, and the shares to be exchanged shall be set as collateral for the issuance of corporate bonds this time;
(7) The credit rating agency has a good credit rating on the bonds;
(8) There is no circumstance that corporate bonds cannot be issued as stipulated in Article 8 of the Pilot Measures for the Issuance of Corporate Bonds. (After the cancellation of the Pilot Measures for the Issuance of Corporate Bonds, there shall be no circumstances that prohibit the issuance of corporate bonds as stipulated in Article 17 of the Measures for the Administration of the Issuance and Trading of Corporate Bonds. )
4 The stocks of listed companies to be exchanged shall meet the following requirements:
(1) The net assets of the listed company at the end of the latest period are not less than RMB/kloc-0.5 billion yuan, or the weighted average return on net assets in the last three fiscal years is not less than 6% on average. The net profit after deducting non-recurring gains and losses is compared with the net profit before deducting, and the lower is used as the basis for calculating the weighted average return on equity;
(2) The shares to be exchanged are unrestricted shares at the time of application for issuance, and the transfer of the shares by the shareholders during the agreed share exchange period shall not violate their commitments to the listed company or other shareholders;
(3) Before the issuance of this exchangeable corporate bond, there were no property rights restrictions such as seizure, seizure and freezing, and there were no ownership disputes or other situations that could not be transferred or guaranteed according to law.
As can be seen from the provisions of "3" and "4" above, compared with exchangeable private placement bond, the issuance of exchangeable corporate bonds needs to meet more stringent conditions.
5. Term and price of exchangeable corporate bonds, etc.
Exchangeable corporate bonds have a minimum term of one year and a maximum term of six years, each with a face value of RMB 65,438+000. The issue price is determined by the shareholders of listed companies and sponsors through market inquiry.
The prospectus may stipulate a redemption clause, stipulating that shareholders of a listed company may redeem convertible corporate bonds that have not been converted according to the conditions and prices agreed in advance.
The prospectus may stipulate the resale clause, stipulating that the bondholders may resell their bonds to the shareholders of the listed company according to the conditions and prices agreed in advance.
6 Relevant provisions on the conversion of convertible corporate bonds into company stocks
Exchangeable corporate bonds can only be exchanged for shares to be exchanged after 12 months from the date of issuance, and bondholders have the option to exchange shares or not.
The price of corporate bonds exchanged per share shall not be lower than the average price of the company's shares in the 20 trading days before the announcement of the prospectus and the average price of the previous trading day. The prospectus shall specify in advance the exchange price and its adjustment and modification principles. If the exchange price is adjusted or modified, resulting in the number of shares exchanged being less than the number of shares to be exchanged for all issued exchangeable corporate bonds, the company must replenish the shares to be exchanged in advance, set up a guarantee for these shares, and go through relevant registration procedures.
7 Special Provisions on Issuing Exchangeable Corporate Bonds by State-owned Shareholders of Listed Companies
On June 24th, 2009, the State-owned Assets Supervision and Administration Commission of the State Council issued the Notice on Regulating the Issues Concerning the Issuance of Exchangeable Corporate Bonds by State-owned Shareholders of Listed Companies and the Issuance of Securities by State-controlled Listed Companies, which made some special provisions on the issuance of exchangeable corporate bonds by state-owned shareholders.
(1) The price of exchangeable corporate bonds issued by state-owned shareholders of listed companies per share shall not be lower than the highest average price of shares of listed companies 1 trading day, the first 20 trading days and the first 30 trading days before the announcement of the prospectus.
(2) State-owned shareholders issue exchangeable corporate bonds. If the shareholder unit is a wholly state-owned company, the board of directors of the company shall be responsible for formulating the bond issuance plan, and the state-owned assets supervision and administration institution shall make a decision in accordance with legal procedures; If the state-owned shareholders are other types of corporate enterprises, the bond issuance plan shall be submitted to the state-owned assets supervision and administration institution at or above the provincial level for review in accordance with the prescribed procedures not less than 20 working days before the company's general meeting of shareholders (shareholders' meeting) after deliberation by the board of directors, and the state-owned assets supervision and administration institution shall issue a reply five working days before the company's general meeting of shareholders (shareholders' meeting).
If the state-owned shareholder is the central unit, the central unit shall report it to the state-owned assets supervision and administration institution of the State Council for examination through the parent company of the group; If the state-owned shareholders are local units, the local units shall report to the provincial state-owned assets supervision and administration institution for examination through the parent company of the group.
8 Special Provisions on Issuing Exchangeable Bonds by Controlling Shareholders of Listed Companies and Increasing Investors' Holdings
Where a shareholder who has the control right of a listed company issues exchangeable corporate bonds, it shall reasonably determine the issuance plan and shall not directly transfer the control right to others through this issuance. Where an investor holding exchangeable corporate bonds increases his shareholding in a listed company due to the exercise of the right to exchange shares, or the shareholders who have control over the listed company change due to the exercise of the right to exchange shares by an investor holding exchangeable corporate bonds, the relevant parties shall fulfill their obligations as stipulated in the Measures for the Administration of the Acquisition of Listed Companies (Order No.35 of the CSRC).
Requirements for applying for listing of exchangeable corporate bonds in this Exchange
201On June 7, 4, the Shanghai Stock Exchange issued the Detailed Rules for the Implementation of the Exchangeable Corporate Bond Business of Shanghai Stock Exchange (20 1 1, and on August 6, 2065438, the Shenzhen Stock Exchange issued the Detailed Rules for the Implementation of the Exchangeable Corporate Bond Business). According to the detailed rules, the issuer applies for exchangeable bonds at the exchange.
(1) approved by China Securities Regulatory Commission and publicly issued;
(2) The term of the bond is more than one year;
(3) The actual issue amount is not less than 50 million yuan;
(4) It still meets the statutory conditions for issuing exchangeable bonds when applying for listing;
(5) Other conditions stipulated by the Exchange.
10 specific provisions on securities trading
The issuer shall disclose the relevant matters of stock trading three trading days before the start of stock trading of exchangeable bonds, including the starting and ending dates of stock trading, the current stock trading price, stock trading procedures, etc.
After the convertible bonds enter the conversion period, investors can declare the conversion on the day they buy the convertible bonds.
Where an exchangeable bondholder applies for a share swap, he shall issue a share swap order to the exchange, which shall be regarded as a guarantee release order recognized by the bond trustee and the issuer. The minimum unit of convertible bonds is one share, and the minimum unit of underlying stocks is one share.
After the stock trading is completed, the exchanged stocks can be traded on the next trading day.
20 trading days before the end of the trading period of convertible bonds, the issuer shall issue at least three suggestive announcements to remind investors about the suspension of trading of convertible bonds.
1 1 About Guarantee and Trust
2065438+On July 29th, 2004, China Securities Depository and Clearing Co., Ltd. issued the Business Rules for the Registration and Settlement of Exchangeable Corporate Bonds of China Securities Depository and Clearing Co., Ltd., according to which:
Before the issuance of exchangeable corporate bonds, the trustee shall sign a guarantee trust contract with the issuer, stipulating that the shares to be exchanged and their fruits shall be the guarantee trust property, so as to ensure that investors can complete the stock trading or get paid off. The trustee holds the bonds in the name of guarantee and trust property, and the investors who buy the bonds are guarantors and trust beneficiaries, and register the guarantees and trusts with the Company.
The trustee shall sign a guarantee and entrustment contract with the issuer. The issuer is the trustor of the trust contract, the trustee is the trustee and the bondholder is the beneficiary. The underlying stock is trust property, which is independent of the issuer's and trustee's own property, and is deposited in the special account of the guarantee trust to guarantee stock trading and repay the principal and interest of bonds.
12 exercise of voting rights of stocks to be exchanged
The property of the guarantee trust in the special account of the guarantee trust shall be held in the name of the trustee. The trustee shall enjoy the relevant rights of the securities holder according to law. When exercising the relevant rights of securities holders such as voting rights, the trustee shall solicit the opinions of bondholders of exchangeable companies in advance and act according to their opinions, but shall not harm the interests of bondholders.
13 the practical significance of issuing exchangeable corporate bonds
(1) financing
Because the issuer of exchangeable corporate bonds can be a non-listed company, it is an effective means of financing for non-listed companies. At the same time, because exchangeable bonds give investors the right to exchange shares of listed companies, the interest rate is lower than that of ordinary bonds with the same term and credit rating, which provides a low-cost financing tool for fundraisers.
(2) Reduce inventory
For example, shareholders of listed companies sell shares directly, although they get funds faster, but when they hold a large number of shares, they are easy to impact the stock price. Therefore, for large-scale reduction and direct sale in the secondary market, it will take longer and cost more, which will also have a certain negative impact on the corporate image. One of the main functions of exchangeable corporate bonds is to reduce shares in an orderly manner by issuing exchangeable bonds, and issuers can obtain cash by issuing bonds. At the same time, because the stock conversion is a continuous process, the reduction has little impact on the market, which can avoid the impact of a large number of related stocks on the stock price.
(3) Enhance the company image and effective market value management.
As exchangeable corporate bonds lock the future stock price in advance, this feature determines that most of its holders are investment institutions with long-term optimism about the company, recognition of the stock price and valuable judgment ability, which is conducive to enhancing the company's image and stabilizing and effectively raising the company's stock price.
(4) It provides new investment channels for investors.
For investors who can exchange bonds, they have the option to enjoy interest according to coupon rate and exchange shares at the exchange price, which is beneficial to strengthen the connection between the stock market and the bond market. Exchangeable bonds provide investors with new fixed-income investment products.
Summary of normative legal documents related to exchangeable bonds 1, Company Law 2, Securities Law 3, Measures for the Administration of Issuance and Trading of Corporate Bonds 4, Trial Provisions on Issuing Exchangeable Corporate Bonds by Shareholders of Listed Companies 5, Detailed Rules for the Implementation of Exchangeable Corporate Bonds Business of Shanghai Stock Exchange 6, Detailed Rules for the Implementation of Exchangeable Corporate Bonds Business of Shenzhen Stock Exchange 7, On Regulating the Issuance of Exchangeable Corporate Bonds by State-owned Shareholders of Listed Companies Notice of Shenzhen Stock Exchange on Matters Related to Pilot Business of Exchangeable Small and Medium-sized Enterprises in private placement bond 10, Guidelines on Pilot Registration and Settlement Business of Exchangeable Small and Medium-sized Enterprises in private placement bond 1 1.