On June 17, 2022, 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” for investors who newly participate in convertible bonds Waiting for admission requirements. On June 19, Sinolink Securities launched the service for the activation of convertible bonds under the new regulations, supporting investors to log in to the Sinolink Commission Bao APP 7×24 hours to apply for the activation of convertible bond investment permissions.
The Shanghai and Shenzhen Stock Exchanges are basically the same on the “Implementation Rules for Convertible Corporate Bonds Trading (Draft for Comment)”, with the main changes as follows: First, the price limit is clarified. On the first day of listing of convertible bonds on the Shanghai Stock Exchange, a price increase and decrease mechanism of 57.3% and -43.3% is adopted, and a 20% price increase and decrease limit is introduced from the next day; The second is to clarify the criteria for abnormal fluctuations. Combined with the adjustment of price fluctuations, the standards for abnormal fluctuations and serious abnormal fluctuations in the price of convertible bonds have been added, and the verification and information disclosure obligations of listed companies in the case of abnormal fluctuations and serious abnormal fluctuations have been clarified. The third is to add the investor access requirement of “2 years of trading experience + 100,000 yuan in assets”, but set up a new and old separation arrangement, making it clear that the stock investors who have passed the authority will continue to participate and will not be affected. The fourth is to add a special logo. A “Z” mark is added before the securities abbreviation on the last trading day of the convertible bonds to fully remind investors of risks and effectively protect the legitimate rights and interests of investors. The fifth is to adjust the relevant terms according to the bond trading rules, such as “bidding transaction” to “matching transaction”. Sixth, Shenzhen Stock Exchange has done a good job in the connection with the “Bond Trading Rules”, and adjusted the declaration processing method of convertible bonds exceeding the price limit from “temporary storage transaction host” to “invalid declaration”, which is consistent with other bonds. The expression is adjusted.
The relevant person in charge of Sinolink Securities pointed out that the main purpose of the new regulations is to prevent excessive speculation, promote the smooth operation of the market, and further strengthen the protection of the legitimate rights and interests of investors, which will play a role in promoting the future development of the convertible bond market.
According to reports, on the evening of June 17, Sinolink Securities deployed relevant system upgrades and updated convertible bond-related service functions in accordance with the latest trading rules of the Shanghai and Shenzhen Stock Exchanges, and completed all service upgrades in the early morning of June 19. Starting from June 19, interested investors can apply for the opening of convertible bonds through the China National Gold Commission APP. Investors who meet the application conditions can participate in convertible bond trading on the trading day after the application is approved. Individual investors who have previously opened the trading authority for convertible bonds issued to unspecified objects and have not cancelled their accounts do not need to re-open, and can continue to participate in the subscription and transaction of convertible bonds.
“The company has upgraded the process of opening the authority for convertible bonds, and interprets the new regulations to investors through the customer terminal, the 5th-hour investment education base, the company’s self-media and other channels at the first time, so that investors can keep abreast of the changes in the new regulations and their own concerns. Influence.” The above-mentioned person in charge said that the risk rating of convertible bond investment business is high, and investors need to have a high risk tolerance and master business-related knowledge. It is the unshirkable responsibility of securities companies to carry out investor education work with the core content of popularizing convertible bond-related trading knowledge, establishing rational investment concepts, and publicizing risk prevention. It is also the implementation of the company’s “customer first” service concept.
In recent years, convertible bonds have gradually become an important financing tool for listed companies. Due to the “T+0” transaction system, low subscription threshold, and low transaction costs, they have become a new choice for individual investors.
The Shanghai and Shenzhen Stock Exchange stated that the relevant notification arrangements will be implemented from June 18, 2022. Relevant member units should conscientiously implement the requirements of the notice and complete the relevant technical transformation as soon as possible. Before the technical transformation is completed, the authorization of convertible bonds shall be opened in a reasonable manner to ensure that the rights of investors are not affected.
(Market risk, the investment need to be cautious)