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In recent years, I will continue to promote market-oriented reforms in mergers and acquisitions, and actively support various types of enterprises, such as state-owned holdings and private holdings, to grow and develop through capital market mergers and acquisitions. In March 2014, the State Council issued the “Opinions on Further Optimizing the Market Environment of Enterprise Mergers and Reorganizations” (Guo Fa  No. 14), clarifying “allowing eligible enterprises to issue preferred shares and issue convertible bonds as merger and reorganization payment methods”. ". In order to implement the State Council's deployment, in June 2014, I will revise and issue the “Administrative Measures for Major Asset Restructuring of Listed Companies”, which stipulates that listed companies can issue convertible bonds to specific objects for asset purchase or merger with other companies.
The listed company's targeted issuance of convertible bonds as a payment instrument in mergers and acquisitions is conducive to increasing the flexibility of M&A transaction negotiations and providing a more flexible interest game mechanism for transactions, which is beneficial to effectively alleviate the cash pressure of listed companies and the risk of dilution of major shareholders' equity. M&A and restructuring financing channels. Recently, in light of market conditions, a number of listed companies have actively studied the introduction of targeted convertible bonds during mergers and acquisitions, and some companies have proposed practical solutions. In light of the specific circumstances of the company, I will actively promote the pilot of the transferable debts as a payment and reorganization transaction payment instrument, and support all types of enterprises including privately-held listed companies to become better and stronger through mergers and acquisitions.
In the next step, I will continue to play the role of the market mechanism, continue to research and adapt to the demands of market entities, create conditions to support all types of enterprises to optimize resource allocation through mergers and acquisitions, and achieve high-quality development.
Under strict supervision, the banking industry is facing greater capital replenishment pressure, so the “blood-filling” action is frequent. Data show that as of October 19, A-share listed banks also have CITIC Bank (40 billion yuan), Jiangsu Bank (20 billion yuan), Ping An Bank (26 billion yuan), and Shanghai Pudong Development Bank (50 billion yuan) convertible bonds plan. Approved by the China Securities Regulatory Commission, the total number of issuances pending review is about 136 billion yuan. However, in the banks that completed the issuance of convertible bonds this year, many banks frequently revised down the conversion price, but the investor's willingness to convert shares is still not high, and the conversion rate is low.
100 billion convertible bonds to be approved
On October 16, the Bank of Communications issued a notice stating that the bank's public offering of A-share convertible corporate bonds of not more than 60 billion yuan has been approved by the China Insurance Regulatory Commission. After the conversion, it will be included in the core Tier 1 capital according to relevant regulatory requirements.
According to the 2018 mid-year report, the capital adequacy ratio of Bank of Communications is 13.86%, the Tier 1 capital adequacy ratio is 11.69%, and the core Tier 1 capital adequacy ratio is 10.63%, down 0.14 percentage points, 0.17 percentage points and 0.16 percentage points respectively from the end of the previous year. .
In fact, in the context of continuous strengthening of supervision, compliance with regulatory trends, how to meet the regulatory requirements of capital adequacy ratio, and further consolidate the capital base have become strategic issues that domestic commercial banks must consider and resolve. The IPO, fixed-income, and convertible bonds after conversion are an important way for commercial banks to supplement core Tier 1 capital.
A banking analyst believes that for banks, the cost of convertible bonds is relatively low, and the choice is relatively large. “In general, the interest on convertible bonds is relatively low, and it can also reduce the dilution of equity of the company by equity expansion. In addition, the issuance of convertible bonds does not require a credit rating and saves various costs. The issuing bank can also Mandatory conversion when there are favorable conditions, and convert the debt to equity," the source said.
The reporter found out that this year, China CITIC Bank, Jiangsu Bank, Ping An Bank and other listed banks have disclosed the convertible bond issuance plan, which is intended to supplement capital through it.
The data shows that in addition to the RMB 2.5 billion convertible bond issuance application approved by the China Securities Regulatory Commission and the RMB 60 billion convertible bond approved by the China Securities Regulatory Commission on October 16, the A-share listed bank also has CITIC Bank (40 billion). Yuan), Jiangsu Bank (20 billion yuan), Ping An Bank (26 billion yuan), and Shanghai Pudong Development Bank (50 billion yuan) convertible bonds plan are subject to approval by the China Securities Regulatory Commission. The total issuance of pending is about 136 billion yuan.
Investors vote with their feetConversion price has been lowered several times
Generally speaking, the initial conversion price of the convertible bonds is not less than the 30 trading days before the announcement of the prospectus, the average price of the A shares of the company and the trading of the A shares in the previous trading day. Price, and the latest audited net assets per share and stock face value.
After the issuance of convertible bonds, the company may, as the case may be, due to the distribution of stock dividends, the transfer of share capital, the issuance of new shares or the allotment of shares, the change of shares of the company and the distribution of cash dividends, or the repurchase, merger, and separation of shares. Adjust the price of the conversion.
At the same time, during the period of the convertible bonds, when the closing price of A shares of common stocks on 15 consecutive trading days is less than 80% of the current conversion price, the company can also propose to convert shares. The price is revised downwards and submitted to the general meeting of shareholders for consideration and voting.
The reporter noted that many banks have lowered the price of the conversion. Wuxi Bank issued RMB 3 billion convertible bonds in January this year, and can convert shares from August 6th. The initial conversion price is 8.9 yuan/share. But the bank quickly revised the price down twice, eventually 6.7 yuan / share. As of October 19, the data showed that Wuxi Bank's latest closing price was 4.97 yuan / share, compared with its initial conversion price of about 44%. Changshu Bank issued 3 billion yuan of convertible bonds in February this year, and can convert shares from July 26, the initial conversion price is 7.61 yuan / share, followed by two downward revisions to 5.76 yuan / share. As of October 19, Changshu Bank's closing price was 5.68 yuan / share, which is about 25% less than the initial conversion price. Jiangyin Bank revised the price three times, from the initial price of 9.16 yuan / share, down to 5.67 yuan / share. As of October 19, Jiangyin Bank's closing price was 4.86 yuan / share, about 47% less than the initial conversion price. (Source: Investment Express)
(Article source: SFC website)
The reasons are as follows: We will classify the stock market funds first, and then use the exclusion method to make a multiple choice question. A classification: 1 Huijin 2 industry capital 3 securities 4 insurance funds 5 brokers self-operated disk 6 public fundraising 7 private equity 8 foreign capital 9 Northbound funds 10 hot money 11 retail. Second exclusion option: Huijin