Abstract
In 2022, the Shanghai Stock Exchanges and Shenzhen Stock Exchanges (SSE and SZSE) made a series of amendments to the convertible bond trading rules and self-regulation of listed companies. In addition to this, SSE and SZSE made more detailed requirements on the time and process for listed companies to exercise their rights for convertible bond redemption in advance. By summarizing and analysing the data of convertible bonds listed by the Shanghai Stock Exchanges and Shenzhen Stock Exchanges in China in the past 10 years, this paper introduces the background of the convertible bond market, analyses the characteristics of convertible bonds redeemed early and the impact of early redemption of convertible bonds on listed companies, and explores what kind of forced redemption effect has been produced by the new changes of convertible bond regulations. The paper also explores the implications of the forced redemption effect on investors by considering the changes in the convertible bond market since its inception.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Advances in Economics, Management and Political Sciences
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
