| Abstract | This research has been conducted on the analysis of issuing of corporate bonds in China. The
analysis is derived from four case studies of the practical issuers of corporate bonds. These four
cases describe four kinds of corporate bonds. They are convertible bonds, mortgage bond, bearer
straight bond and registered straight bond. This study of issuing corporate bonds is aimed to enlarge
the base of players in corporate bond market, increase the understanding of issue on how the
companies issue, what the characteristics they had, and how much costs they had involved in
China.
Four case studies are considered in the same framework. In each case, the study starts with the
background of company and details of the issue. The scope of study covers the objectives and
alternatives of fund raising, issuer!E perspective, issuing process, roles of parties involved, taxation
issue, and the result of launching.
Next, the analysis is done through the framework of the issue analysis. It consists of the analysis of
issuing conditions, issuing process, and issuing cost in China. In conclusion, there are two main
factors, macro factors and micro factors, that the issuer should consider when they are making
decision to raise funds by issuing corporate bonds .The macro factors are market conditions for
issuing bonds, such as state policy, interest rate and the performance of stock market. The internal
factors are internal condition within the company, such as management mechanism, industry
background and financial situation.
Secondly, based on the analysis of issuing process of public offering, we try to find out the
characteristics of management process in China and provide some suggestions on the possible ways
to improve the issuing process. Finally, the analysis of issuing cost and its affecting factor.
There are many constraints in the development of the corporate bond issue in China. Therefore, the
recommendations to reduce the constraints could be addressed in terms of issuers, regulatory
authorities, credit ratings, and investors. This analysis and recommendations can be beneficial and
serve as guideline to develop Chinese bond issue in the future. |