Another convertible bond will be redeemed in advance this week!
Today (April 18) is the registration date for the redemption of Changqi convertible bonds. If the convertible bond holder fails to convert shares or sell shares in time, he may suffer a loss of 30%.
Before the market closes at 15:00 today, hurry up!
or 30% loss
Recently, Jiangsu Changshu Automotive Trim Group Co.Ltd(603035) has issued announcements for many times, suggesting that the convertible bonds of Changqi will be redeemed in advance.
The announcement shows that the registration date of redemption of Changqi convertible bonds is April 18. After the closing of the market today, the convertible bonds of Changqi that have not been converted into shares will be frozen, the trading and conversion will be stopped, and they will be forcibly redeemed according to the redemption price of 100500 yuan each. After the redemption, they will be delisted from the Shanghai Stock Exchange.
Source: announcement of listed companies
Jiangsu Changshu Automotive Trim Group Co.Ltd(603035) said that the redemption price of convertible bonds may be quite different from the market price of Changqi convertible bonds, and specially reminded the holders to complete the transaction or share conversion before the closing of the market on April 18, otherwise they may face large investment losses.
On April 15, Changqi convertible bonds closed at 142.75 yuan. Based on this calculation, if the investor fails to sell or convert shares in time, resulting in the compulsory redemption of convertible bonds, each of them will lose 42.25 yuan, accounting for about 29.60%.
According to the data, as of April 15, the amount of Changqi convertible bonds that had not been converted into shares was 52 million yuan, accounting for about 5.27% of the total issuance of Changqi convertible bonds.
It is worth mentioning that Changqi convertible bond is the only convertible bond redeemed in advance in recent time. In addition, there are 50 convertible bonds in trading status that trigger redemption terms, but they all announce that they will not be redeemed, and the tide of early redemption of convertible bonds has come to an end.
only one convertible bond will be issued on Monday
According to the data, one convertible bond will be listed this week – aggregate convertible bonds will be listed on April 19, and Xiangjia convertible bonds will be issued on that day.
The issuance scale of Xiangjia convertible bonds is 640 million yuan, the rating is a +, and the initial conversion price is 42.56 yuan per share. On April 15, the closing price of Hunan Xiangjia Animal Husbandry Company Limited(002982) shares was 40.99 yuan, and the conversion value was 96.31 yuan Northeast Securities Co.Ltd(000686) research report pointed out that the valuation of Xiangjia convertible bonds refers to comparable muyuan convertible bonds and Longda convertible bonds. The premium rate of conversion on the first day of listing should be 12% to 17%, and the target price on the first day of listing should be 108 yuan to 113 yuan. It is recommended that investors actively apply for the purchase.
In addition, on April 13, Zheshang Securities Co.Ltd(601878) announced that the public issuance of convertible corporate bonds was approved by the CSRC, and the issuance scale reached 7 billion yuan. Since the beginning of this year, there has been an issuance of convertible bonds of securities companies – BOC convertible bonds issued by China Galaxy Securities Co.Ltd(601881) with an issuance scale of 7.8 billion yuan.
According to the data, as of April 15, there were 11 non bank financial convertible bonds in Shanghai and Shenzhen, and the issuance scale of securities companies’ convertible bonds was large. At present, the balance of existing securities companies’ convertible bonds was 40.064 billion yuan, accounting for about 5.57% of the total balance of the convertible bond market.
short-term convertible bonds may be difficult to value downward
Last week, the CSI convertible bond index fell 0.76% in a week, the Shanghai index fell 1.25% and the Shenzhen Component Index fell 2.60%.
“At present, compared with last year, the valuation of convertible bonds is at the level of early September last year. The currency is further relaxed, but the factors that suppress the risk appetite of the equity market are still there. The valuation of short-term convertible bonds may be difficult to press down to a lower position, and there is little upward momentum.” Haitong Securities Company Limited(600837) chief fixed income analyst Jiang Peishan said.
In terms of investment strategy, Jiang Peishan pointed out that last Friday, the central bank announced the reduction of the reserve requirement on April 25, which will help reduce the pressure on the liability side of banks, improve the interest rate spread, and create conditions for banks to make profits. Bank convertible bonds have attracted attention. In addition, the current risk appetite of the market is still not high. It is recommended to pay attention to steady growth, such as new and old infrastructure, undervalued financial and real estate related convertible bonds, and follow-up pay attention to performance, resumption of work and production, and the introduction of other steady growth policies.
Everbright Securities Company Limited(601788) chief fixed income analyst Zhang Xu said that we can pay attention to the investment opportunities of newly listed convertible bonds; Choose convertible bonds with good debt bottom protection and moderate conversion premium rate. Investors can choose bonds by using double low partial debt strategy and double low balance strategy.
