The Market Is Speculation That The News Of Debt To Equity Swap Is Good.

Debt to equity swap is coming.

It is reported that the State Council has convened a number of departments such as the national development and Reform Commission, the Ministry of finance, the central bank and the Banking Regulatory Commission to discuss the related issues of "debt to equity swap" and will introduce relevant implementation opinions.

According to a senior executive of CDB, the scale of the first "debt to equity swap" is 1 trillion yuan, and it is expected to dissolve the potential bad assets of banks of about 1 trillion yuan in three years or even less.

Stimulated by this news, A shares once stood on 3050 points after Qingming.

Obviously, the market is speculation that the news of debt to equity swap is good.

It should be said that "debt to equity swap" is a short-term positive for banks and enterprises.

Through the implementation of "debt to equity swap", the burden of enterprises has been reduced, and the debt ratio has also declined, and the ratio of bad assets of banks has also decreased.

However, in the medium to long term, the positive effect of debt to equity swap is relatively limited.

Because "debt to equity swap" has reduced the liabilities of enterprises and reduced the ratio of bad assets of banks, but this does not mean the improvement of the management level of enterprises and banks.

If we continue to follow the old road, the corporate debt and the bad assets ratio of the banks can be expected to rise again.

And the "debt to equity swap" may play a negative role, that is to encourage enterprises not to return bank loans, and to "deteriorate" bank loans artificially, and then take bank loans as own in the way of "debt to equity swap".

What kind of direct harm can "debt to equity swap" bring to public investors? I think there are several main points.

First, "debt to equity swap" as a kind of

It is very likely that public investors will become the ultimate buyers.

"Debt to equity swap" first pfers the risk of the enterprise to the bank or other financial institutions. Before the banks or other related financial institutions do not sell shares, the risk is borne by the bank or other related financial institutions.

Once the stock is sold, the risk is passed on to the public investor.

In this way, public investors are the ultimate buyers.

Two, "debt to equity swap" has brought the increase of the total share capital of listed companies.

Since debt to equity swap does not directly increase the efficiency of enterprises, the increase in total capital stock of such listed companies will naturally dilute the rights and interests of enterprises, such as earnings per share and net assets per share.

This naturally damages the rights and interests of public investors.

The three is "debt to equity swap".

Or related financial institutions to join the ranks of the size of the non.

In the case of the issue of restricted shares, which seriously troubled the healthy development of the A share market, "debt to equity swap" is undoubtedly adding to the A share market. The A share market will further become a bank or other related financial institutions ATM.

It is based on the harm that the debt to equity swap may bring to the public investors. Therefore, the debt to equity swap of listed companies must be strictly regulated.

First, the "debt to equity swap" of listed companies is mainly converted to preferred stock, and the preferred stock formed by "debt to equity swap" can never be converted into common stock, so as to avoid "debt to equity swap" exacerbating the issue of restricted shares in the A share market and avoid the stock market being reduced to the ATM of banks or other financial institutions.

Two, the listed companies that are going to convert into "ordinary shares" through "debt to equity swap", the price of "debt to equity swap" must be determined according to the two market share price when the "debt to equity swap" program is implemented, rather than determined by the par value of the shares, so as to reduce the harm of "debt to equity swap" on the interests of the public investors.

The three is to treat the common shares of banks or other financial institutions through "debt to equity swap" as restricted shares, and must be locked up for three years.

After the expiration of three years, the annual reduction of shares should not exceed 1/10 of the share of the debt to equity swap.

Avoid large scale cash in equity swap to impact the market.