Following the early redemption of four convertible bonds such as biyin convertible bonds last week, another four convertible bonds were forcibly redeemed this week.
Among them, on February 28, that is, today, Dongcai Zhuan 3 and Aorui convertible bonds entered the last trading day. On March 1, Tongde convertible bonds and Baichuan convertible bonds will also usher in the final trading period. After the redemption registration date, the trading of four convertible bonds will be suspended successively for redemption. After the redemption is completed, they will be delisted from the exchange.
It is worth mentioning that when the deadline for share conversion is approaching, the balance of non converted shares of Dongcai Zhuan 3 still exceeds 1 billion yuan, and many investors have not converted shares. If investors do not operate in time, they may directly face a loss of 10%.
dongcaizhuan 3. The operation window of Aorui convertible bonds is only 2 hours left
Dongcai Zhuan 3 and Aorui convertible bonds ushered in the last trading day today. After the closing this morning, in fact, there are only the last two hours left for investors to operate.
The forced redemption price of Dongcai Zhuan 3 is 100.18 yuan / piece, and the closing price as of noon today is 113142 yuan / piece. If investors do not operate in time, they may lose 11.46%. As of February 25, the non convertible balance of Dongcai Zhuan 3 was still 1.067 billion yuan, accounting for 6.75%.
On February 26, China stock market news issued the last prompt announcement before the compulsory redemption of dongcaizhuan 3. As the company is a gem stock, China stock market news also specially reminds investors that if dongcaizhuan 3 bondholders convert shares, they need to open the gem trading authority. Investors who do not meet the requirements for the appropriateness management of GEM stocks and have not opened the trading authority of gem cannot convert their dongcaizhuan 3 into stocks.
On April 7, 2021, China stock market news issued 158 million convertible corporate bonds to unspecified objects – dongcaizhuan 3, with a face value of 100 yuan each and a total issuance amount of 15.8 billion yuan.
On October 13, 2021, dongcaizhuan 3 entered the stock conversion period and triggered the conditional redemption clause for the first time on November 2, 2021. At that time, the company decided not to exercise the early redemption right of dongcaizhuan 3 and not to redeem dongcaizhuan 3 in advance in 2021
However, recalculated on the first trading day after January 1, 2022, the closing price of China stock market news for 15 consecutive trading days from January 4, 2022 to January 24, 2022 is not less than 130% of the current conversion price of dongcaizhuan 3, triggering the conditional redemption clause. The company decides to exercise the redemption right of dongcaizhuan 3 and redeem all dongcaizhuan 3 registered on the redemption registration date at the price of face value of convertible bonds plus accrued interest in the current period
Aorui convertible bonds also entered the last trading day with dongcaizhuan 3. According to the arrangement, Aorui convertible bonds that have not been converted into shares after the closing of the market on February 28, 2022 will be forcibly redeemed at the price of 100.05 yuan / piece.
As of today’s noon closing, Aorui convertible bonds were reported at 127.71 yuan / piece. If investors do not operate in time, they may lose 21.66%. As of February 25, the non convertible balance of orri convertible bonds was 278564 million yuan, accounting for 2.56%.
Tongde convertible bonds and Baichuan convertible bonds will welcome the last trading day tomorrow
Tomorrow (March 1), Tongde convertible bonds and Baichuan convertible bonds will also enter the final trading date. According to the arrangement, Tongde convertible bonds that have not been converted into shares after the closing of the market on March 1, 2022 will be forcibly redeemed at the price of 100.56 yuan / piece, and Baichuan convertible bonds will be forcibly redeemed at the price of 100397 yuan / piece. As of the noon closing today, the prices of Tongde convertible bonds and Baichuan convertible bonds were 165 yuan / piece and 232.3 yuan / piece respectively. Based on this calculation, if investors do not operate in time, they may lose 39.05% and 56.78%.
Shanxi Tond Chemical Co.Ltd(002360) publicly issued 1442800 convertible corporate bonds on March 26, 2020, with a face value of RMB 100 each and a total issuance amount of RMB 144.28 million.
The closing price of the company’s shares for 15 consecutive trading days from January 4, 2022 to January 24, 2022 is not lower than 130% of the current conversion price, triggering conditional redemption terms.
As of February 25, 568959 million yuan of Tongde convertible bonds had not been converted into shares, accounting for 39.43%.
Jiangsu Baichuan High-Tech New Materials Co.Ltd(002455) issued 5.2 million convertible corporate bonds on January 3, 2020, with a face value of 100 yuan each and a total issuance amount of 520 million yuan.
From January 4, 2022 to February 7, 2022, the closing price of Jiangsu Baichuan High-Tech New Materials Co.Ltd(002455) for 20 consecutive trading days shall not be lower than 130% of the current share conversion price reproduced by Baichuan, triggering conditional redemption terms. The company decided to exercise the conditional redemption right of Baichuan convertible bonds and redeem all the unconverted Baichuan convertible bonds registered in Shenzhen Branch of China Securities Depository and Clearing Co., Ltd. after the closing of the redemption registration date at the price of bond face value plus accrued interest of the current period.
As of February 25, the balance of Baichuan convertible bonds not converted into shares was 476789 million yuan, accounting for 9.17%.
focus on this matter
The so-called forced redemption of convertible bonds is usually a clause written directly in the announcement of convertible bond issuance. Simply put, it is to redeem convertible bonds at the price of face value + interest. Then, if the relevant listed companies have issued a mandatory redemption announcement, investors will have to convert shares or sell their convertible bonds directly before the deadline, otherwise they may face huge discounts and losses and can only obtain the principal plus the agreed meager interest.
According to regulatory requirements, convertible bond issuing companies will repeatedly prompt the situation of forced redemption before the last trading day, but from the actual operation, there is always a loss due to the non operation of funds before the end of the day.
For example, the redemption results of Zhengyuan convertible bonds that have completed the forced redemption today show that after the closing of the market on February 17, 2022, there are 74400 Zhengyuan convertible bonds that have not been converted into shares. The number of redeemed bonds this time is 74400, and the redemption price is 100.67 yuan / piece. The redemption price after tax is subject to the price approved by the clearing company. The redemption company has paid a total of 7492900 yuan.
The closing price of Zhengyuan convertible bonds on February 17 was 162.88 yuan / piece. Investors who did not convert shares suffered a direct loss of 38%, with a loss of more than 4.5 million yuan.
Although listed companies have frequently reminded before, many investors still suffer losses due to non operation.
The reporter saw from Zhengyuan convertible bond stock bar that many investors were directly facing losses because they did not open the permission of gem and did not sell in time. China stock market news, the positive stock corresponding to Dongcai Zhuan 3, which ushered in the last trading day today, also belongs to GEM stocks. Investors need to pay attention to whether to open the trading authority of the sector during the doomsday operation, otherwise the conversion may fail due to authority reasons and bear losses in vain.
