Is it good or bad for listed companies to issue bonds for financing?

Not necessarily. It depends. If listed companies issue bonds for financing, they can improve their performance and develop well gradually. The performance benefits generated by listed companies are much higher than the interest of corporate bonds. Then, it will be beneficial to the stocks of listed companies and make the stocks of listed companies rise. If the company issues convertible bonds, investors can take advantage of this situation to arbitrage. After all, listed companies take issuing bonds as financing means, which has the advantages of longer repayment period, less additional restrictions and relatively low capital cost.

I. What is debt financing?

Debt financing is also debt financing, bond financing and stock financing are the same as direct financing, and credit financing is indirect financing. In direct financing, departments that need funds go directly to the market for financing, and there is a direct correspondence between borrowers and borrowers. In indirect financing, lending activities must be carried out through financial intermediaries such as banks, which absorb deposits from society and then lend them to departments that need funds. The approval document shall be issued within two months from the date of issuance.

Second, bond financing has a very good feature: the lowest interest rate, the most fixed in the market, long repayment period and controllable risks, so enterprises have control. In fact, the real estate market has also begun to have bond financing. The sale of real estate and buildings must have a property certificate. This is because buildings are sold as products, but assets can be operated, which makes the yield higher than the circulation process. Bond financing can reduce the company's anti-control, while equity financing can be discussed

Three, bond financing and stock financing are two ways of direct financing for enterprises. In the mature international capital market, bond financing is often favored by enterprises, and the amount of bond financing of enterprises is usually 3 ~ 10 times that of equity financing. The reason for this phenomenon is that corporate bond financing has many financial advantages over equity financing.

To sum up, we can know that bond financing refers to a kind of financing behavior that the project subject issues in accordance with legal procedures and promises to pay interest and principal to bondholders on schedule, and bond financing has played a very positive role.