A Convertible-Bond Boom in China Isn’t All Good News for Shareholders

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A Convertible-Bond Boom in China Isn’t All Good News for Shareholders
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The surge in issuance of convertible bonds shows how Chinese companies are becoming more sophisticated in using capital markets to raise funds

The surge in issuance of yuan-based convertible bonds this year, alongside other instruments such as perpetual bonds, shows how companies are becoming more sophisticated in

using capital markets to raise funds. However, the blizzard of deals isn’t necessarily good news for existing shareholders, who could in time see their own holdings diluted.

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