Debt To Equity Swap Requires An Objective View Of The "Deification" Of Debt To Equity Swap.

The most basic function of debt to equity swap is to optimize the debt structure of enterprises, and can not improve and improve the management level of enterprises and banks.

The latter is the most important factor determining the development of enterprises and banks.

If the management level of enterprises and banks can not be improved, after the debt to equity swap, the business will still be in a predicament, the financial situation will still deteriorate and the bad loan rate will still rise.

Recently, the State Council issued the "opinions on actively and steadily reducing the leverage ratio of enterprises" and "guiding opinions on the conversion of creditor's rights to marketable banks".

In the first half of this year, the debt equity swap policy, which was widely concerned by the market, finally surfaced.

There is no doubt that debt to equity swap is conducive to optimizing the debt structure of enterprises.

Therefore, the opinions issued by the State Council on actively and steadily reducing the leverage ratio of enterprises have listed debt to equity units as an important measure to reduce the leverage ratio of enterprises.

Moreover, along with the "opinions on actively and steadily reducing the leverage ratio of enterprises", there are also "guiding opinions on the conversion of creditor's rights to marketable banks", which also shows the government's high hopes for reducing the leverage ratio by means of debt to equity swap.

Of particular concern is the current round of debt to equity swap.

He was also placed high hopes.

The guiding opinions on the conversion of creditor's rights to marketable banks explicitly stated that "allowing reference to the two level market trading price of stocks to determine the price of state-owned listed companies," and "debt to equity swap companies as listed companies, the equity swap of shares can be pferred and withdrawn according to law, and the securities regulatory requirements such as time limits should be observed in the pfer".

This means that the issue of debt to equity swap in the current round involves the issue of debt to equity swap of listed companies.

First, we must strictly implement the "negative list", and strictly prohibit "black four categories" enterprises.

Object.

That is to say, the "zombie enterprise" that has lost the prospect of loss and has lost the prospect of survival and development; the enterprise with malicious debt escaping behavior; the complex and unclear enterprise of debt and debt relationship; it is possible to encourage enterprises with excess capacity expansion and increase inventory.

Secondly, the listed company's debt to equity swap is mainly converted to preferred stock. After the performance of the company is improved (at the same time, the duration of the preferred stock is no less than 5 years), the preferred stock will be converted into common stock and the share price will not be lower than the two market price when the stock is pferred, so as to reduce the impact of the preference shares on the common stock market.

Third,

If the debt to equity swap is directly converted into common stock, priority should be given to the needs of the original shareholders of the listed company.

If the object of the stock pfer is determined as the original shareholder, the debt pfer share may be executed according to the rights issue clause.

The target of the stock pfer is determined as a specific object. The price of the convertible bond is determined as the two level market price when the debt to equity swap program is implemented, and the 5 day average price and the high price of the 20 day average price are determined as the final pfer price.

And to the specific object of debt to equity swap, lock up period of not less than three years.

After the expiration of three years, the annual reduction of shares should not exceed 1/4 of the share of the debt to equity swap.

Of course, the first time people in the industry have interpreted this and believe that debt to equity swap has a positive effect on the long-term development of the stock market.

It should be said that there is some truth in this statement.

Because the debt structure of enterprises can be optimized through debt to equity swap, and the financial cost will also be reduced, which will help to enhance the efficiency of enterprises.

Moreover, through the debt to equity swap, the non-performing loan ratio of listed banks can also be reduced, the quality of credit assets can be improved, and the investment value of their stocks will also increase.

Therefore, debt to equity swap is a win-win for enterprises and banks.

This is, of course, a positive effect to the stock market.

Moreover, debt to equity swap can easily bring harm to the public investors.

For example, after debt to equity swap, equity interests of listed companies increase, and shareholders' rights and interests will be diluted.

And the debt to equity swap will eventually be paid by public investors.

If enterprises fail to improve after debt to equity swap, this is actually pferring the risk of creditors to investors.

Therefore, the debt to equity swap of listed companies should attach great importance to the protection of public investors' rights and interests, and avoid or reduce the damage that public debt investors may bring to public investors.