In light of the Chinese environment, raising capital via convertible bond plan is a great strategy as liquidity is foremost in this market. Such cheap funding do come with a price, which in this case is dilution of the existing shareholders as it expands the share base and also lower the overall book value per share. But overall this does give the company more flexibility and controls in this crucial period and will probably give the company many potential cheap acquisitions down the road.
Ping An Insurance Shares Drop in Wake of $3.5 Billion Convertible Bond Plan
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