1、 本科毕业论文外文翻译原 文 外文题目： Comparison of the Convertible Bond Market Development in China and Europe and the Enlightenment 出 处 : 2004年 第 9期 作 者： Shengchun Zhu 原 文 ： Comparison of the Convertible Bond Market Development in China and Europe and the Enlightenment Shengchun Zhu Shenzhen Graduate School, Harbi
2、n Institute of Technology ABSTRACT As a financing tool with the characteristics of debt, stock, and option, convertible bonds have achieved a great development in Europe. Chinas convertible bonds market faces a series of problems, including public issuing, policy support for traditional industries,
3、absence of short mechanism, and convergence of product design. China must summarize experiences from European market, apply support policies, and build a convertible market with sustainable development by means of perfecting the credit grading system, releasing the market entrance restrictions, enco
4、uraging innovations in product design and issuing ways. Keywords: Convertible bond, Product innovation, Credit grading, Policy support Convertible corporate bond, namely convertible bond for short, is issued in form of bond by legal procedures, and can be converted into stock under certain condition
5、s. As one of main financial tools in world capital market, convertible bond has already gained fast development in USA and Japan. Chinese and European enterprises have started to use this financial tool since 90s in 20th century. Therefore, to summarize and compare the development of convertible bon
6、d in China and Europe is meaningful in practice. 1. Compare the development of convertible bond market in China and Europe Europe is always one of main bond market in the world. Compared with USA and Japan, European investors emphasize on stable return. The coupon rate of convertible bond is lower t
7、han that of other bonds, which stops its development in Europe in a sense. Till early 80s in 20th century, American and Japanese enterprises begin to realize financing by issuing convertible bond in European bond market. Afterwards, England enterprises start this financing channel. But enterprises i
8、n Europe and China begin to use convertible bond as a financing tool in 90s in 20th century. Dortmunder Verein issues 390,000 convertible bonds for the first time, which pioneers the financing by convertible bonds in Europe. The deepening integration of European economy makes convertible bonds circu
9、late in EU market. The issuer of convertible bonds can get considerable capitals in a short period, which drives the prosperity of European convertible bonds. In 1997, the market scale of convertible bonds in Europe is 65.6 billion US dollars, accounting for 16% of global market shares. In 1999, the
10、 scale reaches 124 billion US dollars, accounting for 26.22% of global market shares. In 2000, the percentage reaches 31%. European convertible bond market becomes the No.2 in the world. As a most free financial market in the world, Europe has already become one of most important convertible bond ma
11、rket in the world, no matter what it is evaluated by the new bond circulation, the market depth, or the degree of specialization. European convertible bond market mainly centers in France, German, and Switzerland. Especially, France has issued the great amount of convertible bonds in Europe. Chinas
12、capital market starts too late. Its development is no more than 20 years. In China, the capital market is a product of financial innovation. But convertible bond almost accompanies and victims the growth of A share market. In 1992,Shenzhen Baoan Group issues the first A-share convertible bond, which
13、 signalizes the birth of convertible bond in China. In 1993, China Textile Machinery and CSG holding were formally approved to issue convertible bonds in foreign countries, which is the fist of connecting China and foreign capitals together with B share. Up to now, Chinas convertible bond experience
14、s the pilot stage (1992-2001), the re-start stage after approval (2001-2002), and the fast growth stage (2003-now). By analyzing its evolvement, we know that the prosperity of convertible bond in China associates closely with policies and regulations. On April 28th, 2001, China Securities Regulatory
15、 Commission releases the Issue of Convertible Bonds by Listed Companies Implementing Procedures, and later issues the Notice for Issue of Convertible Bonds by Listed Companies, loosing policy restrictions on the issue of convertible bonds. Afterwards, the issue of convertible bonds grows fast and tu
16、rns into the most important re-financing tool in domestic capital market. As a combination of common bond and call option, convertible bond has the characteristics of stock, bond, and option.For investors who hate risks but desire for interests from stocks, convertible bond is an attracting choice.
17、For Chinas listed companies, convertible bond supplies a re-financing way. Therefore, convertible bond has a wide development space in China. According to statistical data from WIND, till March 31st, 2009, China issues 61 convertible bonds. 44 of them have already exit from the market. Only 17 conve
18、rtible bonds still circulate in the market. These convertible bonds collect 114.437 billion RMB. Since early this year, along with the expansion of fluidity and the support of policy, Ashare market rebounds strongly. Driven by the rise of A-shares, convertible bond market rises fast. Holders arbitra
19、ry activities make the stock in convertible market to decrease significantly. The short of convertible bonds causes the rise of convertible bond price. It is predicted that convertible bond will be permitted to issue again in this year. 2. Main problems in Chinas convertible bond market 2.1 Converti
20、ble is issued by public offering, which stops the expansion of market space. At present, the issue of convertible bond in China is carried out by public offering. From the corporate board and shareholders conference, to media institutions, to various preparations, to final approval by China Securiti
21、es Regulatory Commission, the issue of convertible bond needs at least one year. It is time consuming on one hand. On the other hand, it may affect the effectiveness of some convertible bond items designed by enterprises in application. Whats more important, the financing only by public offering but no private offering excludes most non-listed companies, especially fast-growth companies, which is not good for the development of convertible bond market. Foreign countries adopt both public and private offering in
