The structure of A-share refinancing market has been continuously optimized, and convertible bonds are gradually becoming an important option for refinancing of listed companies. Data show that since this year, the issuance scale of convertible bonds has been on par with fixed growth, and far exceeds the allotment.
According to the data, according to the statistics of issuance date, since this year, 52 listed companies have implemented fixed increase, raising a total of 78.144 billion yuan; Three listed companies issued shares, raising a total of 25.575 billion yuan; 29 listed companies issued convertible bonds, with a total issuance scale of 77.672 billion yuan. That is, in the refinancing of 181391 billion yuan of listed companies, the financing scale completed through fixed increase, allotment and convertible bonds accounted for 43.08%, 14.1% and 42.82% respectively
In recent years, the proportion of the issuance scale of convertible bonds in the total refinancing scale has been increasing, and has exceeded 40% since this year, which is comparable to the fixed increase. Before 2017, the financing scale of convertible bonds accounted for only about 1% of the total refinancing scale; In February 2017, the CSRC adjusted the refinancing policy and encouraged listed companies to refinance through convertible bonds and other products, which gradually gained favor.
On this basis, convertible bonds have also been welcomed by investors. Recently, China Galaxy Securities Co.Ltd(601881) convertible bonds were finally issued online to public investors with 7.228 billion yuan, with a winning rate of 0.0638% The winning rate of China Galaxy Securities Co.Ltd(601881) convertible bonds is the highest since this year, while the winning rate of Bank Of Chongqing Co.Ltd(601963) convertible bonds is only 0.0301%. In addition, the winning rate of many convertible bonds is even less than 0.001%.
Dongxing Securities Corporation Limited(601198) non bank financial industry chief analyst Liu Jiawei said in an interview with the reporter of Securities Daily: ” convertible bonds give investors an additional option. If the performance of the equity market is poor, investors can give up the conversion and obtain coupon; otherwise, they can choose to convert shares to obtain capital gains.”
At present, the financial industry is the main force of convertible bond issuance. Among the top 10 A-share refinancing projects this year, 6 are convertible bond projects, of which 3 are from the financial industry, including Bank Of Chongqing Co.Ltd(601963) (13 billion yuan), Bank Of Chengdu Co.Ltd(601838) (8 billion yuan) and China Galaxy Securities Co.Ltd(601881) (7.8 billion yuan).
Securities companies are significantly accelerating the pace of financing through convertible bonds. In addition to the above China Galaxy Securities Co.Ltd(601881) , the issue of Zheshang Securities Co.Ltd(601878) convertible bonds not exceeding 7 billion yuan is under way this year, which will be held on March 28; China stock market news has issued convertible bonds three times since 2017, with a total financing scale of 27.75 billion yuan. All the funds are used for the development of securities business, which promotes the continuous growth of China stock market news’s securities business and becomes one of its main sources of income.
“in addition to the advantages of option, convertible bonds are also a better choice in accounting measurement than direct investment in equity assets, which can effectively reduce the volatility of investment income.” Liu Jiawei told reporters.
Last year, the overall performance of the convertible bond market was excellent, and the increase in the holdings of convertible bonds by public funds also increased significantly. Data show that in the fourth quarter of last year, the scale of convertible bonds held by public funds was 260.51 billion yuan, with an increase of 41.82 billion yuan, with an increase of 19.12%. However, in 2022, the convertible bond market continued to fluctuate. As of March 25, the CSI convertible bond index has decreased by 8.93% this year. From 2019 to 2021, the CSI convertible bond index maintained a three-year rise, with an annual increase of 25.15%, 5.26% and 18.48% respectively.
“From the perspective of investors, although generally speaking, convertible bonds’ have a bottom guarantee and no top cover ‘, investors still need to treat them rationally.” Liu Jiawei told reporters, “at present, we still need to pay attention to risks when investing in convertible bonds. Some convertible bonds are overvalued and the premium is serious. It is suggested to select the target.” at the same time, investors also need to know when applying for convertible bonds. Like new shares, the subscription of convertible bonds may have the risk of falling below the issue price after listing.
As of March 25, there was only one convertible bond less than 100 yuan in the whole market. The average premium rate of 390 convertible bonds is 40.35%. The premium rate of Blue Shield convertible bonds to shares was the highest, 322.4%, followed by Yokogawa convertible bonds, 319.6%.
Zhang Xu, chief analyst of Everbright Securities Company Limited(601788) fixed income, believes that investors will strengthen their confidence in steady growth and the market style will return to the track of steady growth and high growth. In the future, we can pay attention to three opportunities, one is the investment opportunities of stable growth related chains, such as convertible bonds in real estate, building materials and other related industries; Second, the performance price ratio of growth stocks in mainstream tracks is becoming more and more prominent, and convertible bonds related to photovoltaic, automotive electronics and wind power can be arranged; Third, pay attention to the investment opportunities of relevant convertible bonds with better performance than expected
