Study on Financing Issues of Convertible Bonds in the Listed Real Estate Companies in China

摘要

In recent years, with the obvious growth rate of China's investment in real estates, the state has increased the intensity of macroeconomic regulation and control on real estates. Bank credit has been fully tightened. Hence, lack of funds becomes the biggest problem which hinders the development of China's listed real estate companies. From my viewpoint, the vigorous issuance of convertible bonds can not only solve the problem of a shortage of funds of real estate companies, promote their development, and reduce their business risks;it may also reduce the financial risks due to their excessive dependence on bank credit. Nevertheless, troubled by many factors, it has always been difficult for China's listed real estate companies to achieve a major breakthrough in financing of convertible bonds. Based on a historical review of issuing convertible bonds of listed real estate companies in China, this paper makes a detailed analysis of the factors leading to the difficulty of issuing bonds in the real estate companies. Finally, from different perspectives, it puts forward a number of strategies and insights on how to make better use of convertible bonds to finance in the listed real estate companies in China.