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Managing Expected Return Of Investors: Convertible Bonds In China

Author

Listed:
  • RUYAN YANG

    (School of Management, Graduate University of Chinese Academy of Sciences, Beijing 10080, China)

  • HUI MENG

    (Financial Stability Bureau of the People's Bank of China, Beijing 100032, China)

  • FENG XU

    (China Re Assets Management Co., Ltd., Beijing 100034, China)

Abstract

This article studies the market reaction surrounding the announcement of the convertible bonds issuance in Chinese market, and partly explains the difference of influence on underlying securities in mature market such as the US market and emerging market in China. Meanwhile, it reveals how insiders in Chinese market use convertible bonds as a tool to manage the expected return of external investors.

Suggested Citation

  • Ruyan Yang & Hui Meng & Feng Xu, 2007. "Managing Expected Return Of Investors: Convertible Bonds In China," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 6(01), pages 141-161.
  • Handle: RePEc:wsi:ijitdm:v:06:y:2007:i:01:n:s0219622007002393
    DOI: 10.1142/S0219622007002393
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