Dissertation > Economic > Industrial economy > China Industrial Economy > Industrial sector economy

Keno Technology Co. , Ltd. necessity to issue convertible bonds and its risk analysis

Author ZhaoZhiQiang
Tutor YuAnPing
School Nanjing University of Technology and Engineering
Course Business Administration
Keywords Financing Convertible Bond Risk
CLC F426.86
Type Master's thesis
Year 2006
Downloads 125
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Financing is the main issue that every enterprise should face and settle during its business development. As one member in the senior management, I have made thoughtful analysis on the financing issue of CANAL SCIENTIFIC AND TECHNOLOGICAL CO. , LTD. (CANAL).CANAL is in the textile & costume industry. With sound development for several years, its asset has grown fast with big profitability improvement. Its products enjoy good and famous reputation. Its corporate supervision has been enhanced much. In a word, overall competition ability of CANAL has been improved lot.China textile & costume industry is very competitive in international market and plays an important role in earning foreign exchanges. With the continuous increment of resident income, China textile & costume industry has very brand potential market. Despite of these positive factors, competition is very furious among textile & costume companies owing to prior marketilization. How to grow up in such furious competition is key point for every textile & costume companies.CANAL has accumulated rich management experience on textile & costume industry. It has to make more investment to extend its industry chain, enrich its products and enhance its competition ability for further development. Under such circumstance, financing is the principle issue that CANAL has to face with.There are many financing modes. Considering the own traits, competition ability and investors’ interests of the company, CANAL looks convertible corporate bond issuance as the best financing mode. Convertible corporate bond issuance takes full consideration of investors’ interests. Through convertible corporate bond issuance, it can grasp the good development opportunity in textile & costume industry so to improve core ability and bring heavy return to its investors.However, convertible corporate bond issuance of CANAL still has some risks, such as project investment risk, financial risk and bond holding risk, etc. But CANAL will take some measure to avoid and dissolve these risks.

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