On April 18, another convertible bond ushered in its last trading day.
Affected by the Jiangsu Changshu Automotive Trim Group Co.Ltd(603035) limit of positive shares, the convertible bonds of Changqi soared by more than 20% today, resulting in a large premium. As of the noon closing, the convertible bonds of Changqi rose 20.71% to 172.31 yuan / piece, with a premium rate of more than 10%.
It is worth mentioning that April 18 is the redemption registration date of Changqi convertible bonds. After today’s closing, all Changqi convertible bonds that have not been converted into shares will be frozen, trading and conversion will be stopped, and all bonds will be forcibly redeemed according to the face value of the bonds plus the accrued interest of the current period, totaling 100.5 yuan / piece.
Investors need to pay attention to the relevant trading rules when hyping convertible bonds at the end of the day. If investors chasing higher today do not operate in time, they may face a large loss. According to the midday closing price, the loss will exceed 40%.
another last 2 hours of doomsday convertible bonds
The doomsday round of ningjian convertible bonds and Trina Solar convertible bonds has just passed, and today there are convertible bonds to usher in the last trading day.
On April 16, Changqi convertible bonds issued the last prompt announcement on the redemption of convertible bonds. The redemption registration date was April 18, 2022, and the redemption price was 100.5 yuan / piece.
The company reminds investors that before the closing of the redemption registration date (15:00 on April 18, 2022), the holders of Changqi convertible bonds can choose to continue trading in the bond market or convert shares into shares of the company at the conversion price of 9.33 yuan / share.
After the closing of the redemption registration date (15:00 on April 18, 2022), the convertible bonds of Changqi that have not been converted into shares will be frozen, the trading and conversion will be stopped, and all bonds will be forcibly redeemed according to the face value of the bonds plus the accrued interest of the current period (totaling 100.5 yuan / piece). On April 19, 2022, the daily auto convertible bonds will be delisted in Shanghai Stock Exchange.
During the period from March 3, 2022 to March 23, 2022, the company’s stock price has met the requirements that the closing price of at least 15 trading days in 30 consecutive trading days is not lower than 130% (i.e. 12.13 yuan / share) of the current conversion price (9.33 yuan / share) of “Changqi convertible bonds”.
The fifth meeting of the Fourth Board of directors held on March 23, 2022 deliberated and approved the proposal on early redemption of “Changqi convertible bonds”, and decided to exercise the early redemption right of “Changqi convertible bonds”, and redeem all the “Changqi convertible bonds” registered after the closing of the redemption registration date according to the face value of the convertible bonds plus the accrued interest of the current period.
It is worth mentioning that listed companies have repeatedly reminded investors to convert shares, but 523400 convertible bonds have not been converted as of April 15. Today, affected by the sharp rise of Jiangsu Changshu Automotive Trim Group Co.Ltd(603035) share price, the convertible bond market of Changqi rose by nearly 20% at the beginning, up to 182 yuan / piece. As of the noon closing, the convertible bond of Changqi rose by 20.71% to 172.31 yuan / piece, with a premium rate of 10.95%. Investors may lose more than 40% if they do not operate in time.
ningjian convertible bond holder not operated
overnight loss of 6 million
Although listed companies continue to prompt that convertible bonds will be forcibly redeemed, many investors still forget to operate and suffer large losses overnight.
According to the data provided by China Clearing Shanghai Branch, the number of ningjian convertible bonds redeemed by the company this time is 129600, the total redemption amount is 130196 million yuan, and the redemption payment date is April 12, 2022.
As of the closing on April 11, the market value of convertible bonds held by non convertible investors was 190395 million yuan, but after the closing, the market value fell to 130196 million yuan, resulting in a direct loss of 6.0199 million yuan overnight, with a loss range of more than 30%.
Ningbo Construction Co.Ltd(601789) from January 21 to March 10, the closing price for 15 consecutive trading days shall not be lower than 130% of the current conversion price of ningjian convertible bonds, i.e. 6.19 yuan / share.
On March 10, the 21st Meeting of the board of directors and the 15th meeting of the 5th board of supervisors considered and approved the proposal on early redemption of ningjian convertible bonds, and decided to exercise the early redemption right of the company’s convertible bonds and redeem all ningjian convertible bonds registered on the redemption registration date.
However, there are also convertible bonds that can make money after being forcibly redeemed because the redemption price is higher than the closing price. However, this situation rarely occurs.
Trina Solar convertible bonds recently issued a convertible bond redemption announcement, saying that according to the data provided by zhongdeng Shanghai Branch, the number of convertible bonds redeemed by the company this time is 521775 million, the total amount redeemed is 523 million yuan, and the redemption payment date is April 13, 2022.
It is worth mentioning that the closing price of Trina convertible bonds on April 12 was 100.15 yuan / piece, which was lower than its forced redemption price of 100.2 yuan / piece, which was equivalent to making money when investors bought in the late trading.
It is worth mentioning that the positive stock Trina Solar Co.Ltd(688599) corresponding to Trina convertible bonds is the stock of the science and innovation board. Such a large number of investors did not convert shares at the end of the period, possibly because they did not open the trading authority of the science and innovation board. The company has repeatedly reminded investors that the company is a listed company on the science and innovation board. If the holders of Trina convertible bonds do not meet the requirements for the appropriateness management of stock investors on the science and innovation board, the holders of Trina convertible bonds cannot convert their convertible bonds into company shares. Investors need to pay attention to the risks and possible impact that their convertible bonds cannot be converted into shares due to their failure to meet the suitability management requirements of stock investors on the science and innovation board.
the absolute price of convertible bonds continued to decline
With the continuous adjustment of the positive stock market, the price of the convertible bond market also continued to decline, and the CSI convertible bond index continued to fluctuate around 400 points.
Driven by the correction of the equity market, the convertible bond market closed down, and the number and proportion of low-cost convertible bonds (the absolute price of convertible bonds is below 130) increased significantly. Minsheng Securities believes that due to the relatively small decline in the convertible bond market, the value of convertible bonds fell, and the premium rate of convertible bonds rose, returning to more than 40%. The current valuation level of convertible bonds has returned to a high point, increasing the vulnerability of the convertible bond market.
Everbright Securities Company Limited(601788) research points out that in the environment of market turbulence and lack of main line, investors tend to choose the convertible bonds with low price for layout to control the fluctuation. However, at present, the convertible bonds in the range of 100120 yuan generally have a high conversion premium rate, which can only be compressed through the rise of positive shares, which is difficult to achieve in the case of weak stock market. When the market is weak, we need to pay more attention to the safety margin, and subsequent investors can pay attention to: 1) pay attention to the investment opportunities of newly listed convertible bonds; 2) In the short term, the stable growth and post epidemic sectors are still the focus of the market, and investors can choose the best layout of relevant convertible bonds; 3) Choose the convertible bonds with good debt bottom protection and moderate conversion premium rate. Investors can adopt the double low partial debt strategy and double low balance strategy to select bonds.
China Industrial Securities Co.Ltd(601377) believes that the downturn in the equity market reflects the impact of the economic downturn on the performance of listed enterprises, and convertible bonds also reflect some signals that the sentiment is still weak, but the marginal signal has improved. Balance partial debt convertible bonds to obtain better valuation protection, and the valuation of new and old bonds tends to be consistent. Structurally, balanced convertible bonds show good resistance to decline in the process of positive stock decline, and this range of convertible bonds is dominated by some high-quality growth varieties, which also reflects that this kind of convertible bonds have good defense at this stage. If equity rebounds, convertible bonds are also expected to have some flexibility in valuation, and the elasticity of such convertible bonds will be enlarged with equity. In the case that there will be no big bad news in stocks and bonds, convertible bonds will show their own advantages.
