Investors who know about convertible bond transactions know that as long as they have a securities account, they can apply for it. Unlike stocks, it does not require a single market securities market value of more than 10,000 yuan in the 20 trading days before T-2 to apply for new shares in the corresponding market. But did you know? The Shanghai and Shenzhen Stock Exchanges have issued a notice that since October 26, all investors who participate in the purchase and trading of convertible bonds need to open the trading rights of convertible bonds and re-sign the risk disclosure letter. The purpose is to create a more healthy and stable The trading environment of convertible bonds.
In order for everyone to master the relevant knowledge of convertible bond trading and participate in investment rationally, let's take everyone into the convertible bond knowledge class, and pay attention to the blackboard!
Convertible debt knowledge classroom
1
What is a convertible bond?
Issuing convertible bonds is a common way for listed companies to refinance. The full name of convertible bonds is convertible corporate bonds, which are special corporate bonds that can be converted into common stocks at a specific time and under specific conditions. And the dual attributes of equity.
2
How to purchase convertible bonds?
There is no threshold requirement for the purchase of convertible bonds, as long as there is a securities account, investors can apply for convertible bonds according to the prompts of the brokerage trading software. Note that after the purchase of convertible bonds is successfully signed, full payment is required. If there are 3 consecutive successful bids but not paid in full in 12 consecutive months, it will be recorded in the new blacklist, and it will not be possible for 6 months. Participate in the online purchase of new shares, convertible bonds, deliverable bonds and depositary receipts.
3
How to distinguish between convertible bond allotment and subscription?
Many investors are puzzled about the issue of the same convertible bond with allotment bonds and subscriptions. We can distinguish this: subscription is open to all investors, as explained in point 2 above, and allotment bonds are prior to the original shareholders. , Look down.
Convertible bond allotment refers to when a listed company wants to issue convertible bonds, if investors still hold the company's stock after the equity registration date, then they can obtain the priority right to place convertible bonds according to the allocation ratio. The right to distribute the debt will automatically be displayed in the investor's position. It should be noted that the distribution bonds will not be automatically paid, and investors need to manually buy the distribution bonds to complete the distribution bond payment, and the distribution bonds have a time limit, generally on the day of the issuance and purchase of the convertible bond Last allotment date.
4
Trading rules for convertible bonds
There is no ups and downs in convertible bond trading, and T+0 reversal trading is implemented. When the corresponding underlying stock has abnormal fluctuations, the convertible bond may also experience a sharp rise and fall. Therefore, we must pay attention to rational participation in convertible bond transactions.
transaction hour
Shanghai Stock Exchange: The opening call auction time is from 9:15 to 9:25 on the trading day, and the continuous auction time is from 9:30 to 11:30 and from 13:00 to 15:00.
Shenzhen market: the opening call auction time is from 9:15 to 9:25 on the trading day; the continuous auction time is from 9:30 to 11:30 and 13:00 to 14:57; the closing call auction is from 14:57 to 15:00 time.
Filing restrictions
Shanghai Stock Exchange:
At the stage of call auction: the highest transaction declaration price is not higher than 150% of the previous closing price and not lower than 70% of the previous closing price.
Continuous bidding stage: The transaction declaration price is not higher than 110% of the lowest selling price revealed in real time and not lower than 90% of the highest buying price revealed in real time; at the same time, it is not higher than the average of the highest and lowest declared prices mentioned above 130% and not less than 70% of the average.
Shenzhen:
Call auction stage: the effective bidding range of the opening call auction on the first day of listing is 30% of the issue price, and the effective bidding range of the opening call auction on the first day of non-listing is 10% of the previous closing price.
Continuous bidding and closing call auction segment: The effective bidding range is 10% of the latest transaction price.
Non-cancellable time
Shanghai Stock Exchange: Non-cancellable orders from 9:20 to 9:25 on the trading day.
Shenzhen market: trading day 9:20-9:25; 14:57-15:00 non-cancellable orders.
Requester
The purchase of convertible corporate bonds through auction trading shall be declared at 1 lot (10) or an integer multiple thereof. When selling convertible corporate bonds, if the balance is less than 1 lot (10 sheets), the sale shall be declared at one time.
Temporary suspension requirements
Shanghai Stock Exchange:
1. The intraday trading price of convertible bonds is higher or lower than the closing price of the previous trading day by more than 20% (inclusive) for the first time. Trading needs to be temporarily suspended for 30 minutes; if the first temporary suspension reaches 14:57 Trading will resume if it is less than 30 minutes.
2. When the increase or decrease exceeds 30% (inclusive), a second temporary suspension will be carried out, and the second temporary suspension will continue until 14:57.
3. No declaration will be accepted during the temporary suspension period.
Shenzhen:
1. The temporary suspension of trading of convertible bonds can be implemented in the following situations:
(1) The intraday transaction price rose or fell for the first time by 20% or more than the previous closing price;
(2) The intraday transaction price has risen or fallen for the first time by 30% or more than the previous closing price.
2. The duration of a single intraday temporary suspension is 30 minutes, and the specific time is subject to the Shenzhen Stock Exchange announcement. If the trading suspension time exceeds 14:57, trading will be resumed at 14:57 on the same day, and a resumption call auction will be conducted on the accepted declarations, and then a closing call auction will be conducted.
3. During the temporary trading suspension period, investors can declare or cancel the declaration. At the time of resumption of trading, a resumption call auction will be implemented for the accepted declarations.
Suspension regulations
Trading in the underlying stocks of convertible corporate bonds is suspended and resumed, trading in the convertible corporate bonds shall be suspended and resumed simultaneously, except for those that require separate suspension and resumption of trading in convertible corporate bonds due to special reasons.
5
About Convertible Bond Conversion
The convertible bonds can be converted into company stocks only six months after the date of completion of the issuance, and the conversion period shall be determined by the company based on the duration of the convertible bond and the company's financial status. Under normal circumstances, investors can convert their convertible bonds into stocks within the conversion period specified in the Prospectus.
What are the benefits of converting convertible bonds into stocks? In fact, the conversion of shares mainly depends on the value of conversion and the premium rate of conversion.
Conversion value refers to the stock value corresponding to the conversion of convertible bonds into stocks at a certain point in time; conversion premium rate refers to the premium level of the market price of convertible bonds relative to its conversion value, that is, conversion premium rate = conversion Share premium / conversion value. For example, the current bond price of a convertible bond is 160 yuan, the agreed conversion price is 4 yuan, the face value of 100 yuan convertible bond can be converted into 25 shares, and the underlying stock price is 6, then the conversion value It is 6*25=150 yuan, and the conversion premium rate is (160-150)/150*100%=6.67%.
Usually, the convertible bond conversion premium, which is popular in the market, is relatively high. Sometimes there are a few listed companies that issue convertible bonds in the market that have excessive speculation. Once the market's popularity decreases, the price of the underlying shares will drop significantly, and the price of convertible bonds will also fall simultaneously. Some convertible bonds with higher premiums The price drop may far exceed the underlying stock. Investors should face up to the risks of convertible bond transactions, pay attention to announcements related to the conversion in a timely manner, and invest rationally.
6
Mandatory redemption of convertible bonds
The mandatory redemption clause for convertible bonds is the "conditional redemption clause" referred to in the Prospectus. Conditional redemption clauses generally stipulate that during the conversion period of convertible bonds, the closing price of the underlying shares shall not be less than 130% of the conversion price for at least 15 of the 30 consecutive trading days, and the listed company shall have the right to increase the face value of the bond. The price of accrued interest redeems all or part of the convertible bonds that have not been converted. Once the mandatory redemption clause is triggered, the listed company chooses to redeem the convertible bond. If the investor does not convert the equity within the agreed period, the convertible bond can only be redeemed, so that part of the convertible bond can be purchased at a high premium For investors, they may face larger losses. Therefore, investors should pay attention to announcements such as redemptions and risk warnings in a timely manner, especially the mandatory redemption risks of high-premium convertible bonds. Investment decisions must be made cautiously to avoid investment losses.
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risk warning
1. The risk tolerance is more than stable, and investors whose investment products include equity are suitable to participate.
2. Individuals, institutions, and product investors can apply online.
3. Please fully understand the risks of convertible bond transactions and participate in investment prudently