Convertible bonds came to a halt yesterday
On June 21, the convertible bonds were temporarily suspended. Zhongchen Convertible Bonds, Zhongda Convertible Bonds, and Tongguang Convertible Bonds rose 30% for a second temporary suspension. As of the close, Tongguang Convertible Bonds rose 36.59%, and Zhongchen Convertible Bonds Bonds and profit convertible bonds both rose more than 20%.
■New Express reporter Tu Bo
Convertible corporate bonds are a kind of hybrid securities with both “stock” and “debt” properties. It provides diversified options for listed companies to raise funds. On June 17, new regulations were issued for the supervision of convertible bonds, and the Shanghai and Shenzhen Stock Exchanges issued the “Notice on Matters Related to the Suitability Management of Convertible Corporate Bonds”, adding “2 years of trading experience + 100,000 yuan in assets” and other access requirements. The “Notice” will come into force on June 18, 2022. It is worth noting that in the past, there was almost no threshold for opening convertible bonds. Investors can open them as long as they have their own stock securities accounts.
It is understood that, in view of the linkage between the price of convertible bonds and the underlying stock, in order to prevent the conversion of convertible bonds from deviating from the underlying stock speculation, the new regulations stipulate that the first day of matching transactions of convertible bonds issued to unspecified objects will be +57.3% and -43.3% % up and down, the ±20% up and down limit will be implemented from the next day. It is worth noting that, with the rebound of the A-share market on April 27, the net value of convertible bond funds has also rebounded from the situation of oversold by 20% or 30% during the year, and some rebounded by more than 10%.
The reporter learned that major securities companies have actively cooperated with the investment education and corresponding system upgrades in the implementation of the new regulations. Taking Ping An Securities as an example, as soon as the APP page is opened, a notification about the new regulations on convertible bonds will pop up. Investors can apply to open convertible bond investment rights through the APP. Investors who have opened convertible bond trading rights before the new regulations will not be affected.
Liu Yu, chief fixed income analyst at GF Securities, said that as more and more investors participate in convertible bond transactions, some speculative funds have also entered the market. The purpose of the new regulations is to strictly prevent excessive speculation in the convertible bond market. Therefore, convertible bonds with high price and premium rate may face greater adjustment pressure. In addition, Zeng Yu, chief fixed income analyst at China Securities, believes that since 2021, the average effective subscription amount for a single new convertible bond has continued to rise from 6.4 trillion yuan to 11 trillion yuan, which has led to the success rate of new bonds. The center fell to the current 0.002% or so. After the exchange adjusts the suitability management regulations, it is expected that the amount of new bond subscriptions will remain stable, and the continuous decline in the winning rate of new bonds may improve.
The top 10 convertible bonds that rose yesterday
Convertible bond abbreviation latest price (RMB) Convertible bond @ underlying stock abbreviation change (%)
Tongguang Convertible Bond 432.83 Tongguang Cable 36.59
Zhongchen Convertible Bonds 128 Zhongchen Shares 28
Zhongda Convertible Bond 151 Zhongli De 22.76
Profit Convertible Bonds 286 Profits 22.49
Hyflux Convertible Bond 165 Hyflux Electric 15.69
Actis Convertible Bonds 145 Actis Shares 9.83
Smart Convertible Bonds 135.8 Smart Self-Control 9.07
Luen Thai Convertible Bond 152.9 3 Luen Thai Environmental Protection 8.89
Tiandi Convertible Bond 249 Tiandi Digital 7.96
Lege Convertible Bonds 140.21 Lege Shares 7.67
Source: Straight Flush