Convertible bonds are usually issued by companies because of insufficient funds, or in order to raise funds to operate projects (or simply call it circling money). Because convertible bonds are rarely sold back, because once they are sold back, the manpower, material resources and money invested in the previous convertible bonds will be wiped out and recovered at a price higher than the original issue price, which will seriously affect the cash flow of listed companies, and then have a certain impact on the overall performance of the company, thus causing the company's share price to fall, so what listed companies most want to see is debt-to-equity swap.
Of course, in order to avoid resale, listed companies sometimes try to prevent resale. Taking the convertible bonds of Tangshan Iron and Steel Company last year as an example, from the technical graphic point of view, the convertible bonds of Tangshan Iron and Steel Co., Ltd. were greatly raised near the date of reporting for resale, which was quite different from the resale price, thus avoiding the occurrence of large-scale resale.