Yongji convertible bonds listed on May 17 soared 276%, breaking history.
The convertible bond rose by 50% at the opening and continued to soar to 276.16% in the last three minutes of the closing. Based on the closing price, investors can make a profit of about 3000 yuan. For the reasons for the surge, industry insiders said that the small circulation disk may be one of the main factors. The issuance scale of Yongji convertible bonds is only 146 million yuan. Considering the reasons for the restriction of sales by major shareholders, the circulation market in the final market may be only more than 80 million yuan. Before listing, Yongji convertible bonds were predicted to rise sharply.
On the whole, this year’s convertible bond market performed well and was relatively resistant to decline. “Since this year, the convertible bond market has followed the downward trend of the equity market, but the decline is significantly smaller, reflecting the debt characteristics of convertible bonds. In the bear market, the convertible bonds will be more resistant to decline than the positive stocks.” Some analysts said.
last three minutes of crazy pull, closing up 276.16%
Yongji convertible bonds were listed yesterday (May 17). After the call auction, the opening price was directly 50% higher and the price was 150 yuan, and then the trading was temporarily suspended.
At 2:57 pm yesterday, Yongji convertible bonds resumed trading. After the resumption of trading, the price instantly reached above 300 yuan, and the highest price even exceeded 400 yuan, an increase of more than 300%. As of the closing, Yongji convertible bonds closed at 376.16 yuan, an increase of 276.16%, and the increase in the last three minutes was as high as 150%. According to the closing price, investors who win the first signing of Yongji convertible bonds can make a profit of 276160 yuan.
According to the historical data of convertible bonds, the increase of 276.16% on the first day of listing set a new record. Only two of them increased by more than 100% on the first day. In addition to Yongji convertible bonds, the other is the aggregate convertible bonds listed on April 19 this year. Aggregate convertible bonds rose 133.52% on the first day.
from the transaction details of Yongji convertible bonds, a total of 2543 transactions were made during the call auction. Calculated at the price of 150 yuan, the transaction amount at 9:25 was 3.8145 million yuan. The total turnover of Yongji convertible bonds was 241.1 million yuan. Based on this calculation, the turnover of Yongji convertible bonds exceeded 210 million yuan in the last three minutes
It is understood that Guizhou Yongji Printing Co.Ltd(603058) issued about 1.46 million convertible corporate bonds on April 14, 2022, with a face value of 100 yuan each and a total issuance amount of about 146 million yuan. Industry analysts believe that the biggest highlight of the convertible bond is the small issuance scale, only 146 million yuan. In addition, according to the new regulations on convertible bonds, only the directors, supervisors and shareholders holding more than 5% of the convertible bonds are limited by short-term trading, and they cannot be sold within six months after buying, regardless of the shareholding ratio of directors, supervisors and senior shareholders. According to the shareholding situation of Guizhou Yongji Printing Co.Ltd(603058) shareholders, except the major shareholder Yongji holding (holding 41.52%), others are not subject to the reduction restrictions under the new regulations. Therefore, the actual circulation scale of the convertible bond in the first six months is about 85 million.
The reporter noted that the positive stock of Yongji convertible bonds Guizhou Yongji Printing Co.Ltd(603058) fell 3.17% yesterday, and the latest share price was 7.02 yuan / share. The conversion price of Yongji convertible bonds is 8.76 yuan. At present, the positive share price has been 20% off compared with the conversion price.
According to public information, Zhenggu Guizhou Yongji Printing Co.Ltd(603058) is a manufacturer specializing in trademark packaging and printing. The main business is the design, production and sales of cigarette labels and other packaging printed materials, and has long provided the printing supporting business of tobacco materials (cigarette boxes and strip packaging paper) for Guizhou China tobacco industry company.
convertible bonds performed well this year
In addition to the rise of Yongji convertible bonds on the first day yesterday, on the whole, the convertible bond market this year has performed well and is relatively resistant to decline.
Data show that as of May 17, the CSI convertible bond index fell by only 8.03%, far lower than the performance of major stock indexes such as the Shanghai Composite Index and the gem index.
“Since this year, the convertible bond market has followed the downward trend of the equity market, but the decline is significantly smaller, reflecting the debt characteristics of convertible bonds. In the bear market, the convertible bonds will be more resistant to decline than the positive stocks.” Some analysts said.
“From the beginning of 2022 to now, with the substantial adjustment of the price of regular shares, although the conversion premium rate has further increased passively, the protection attribute of the debt bottom is prominent, and the convertible bonds have a bottom. Even when the price of regular shares has fallen, the decline range of the price of convertible bonds is limited due to the support of the pure debt bottom, showing the characteristics of ‘retreat and defense’.” Debon securities analyst Gao Yuan said in an interview with Chinese reporters from securities companies.
In addition, Gao Yuan pointed out that when the price of positive shares decreases too much, the issuer may choose to revise the share price in order to promote the conversion. When the conversion price is lowered, the conversion premium rate of convertible bonds decreases rapidly, the internal value of convertible bonds is repaired, and the price of convertible bonds will be stronger.
In fact, recently, many listed companies have announced that the board of directors proposed to revise the share price. For example, the board of directors of Saiwu convertible bonds proposed to revise the conversion price of convertible bonds from 32.90 yuan / share to 19.2 yuan / share, Shandong New Beiyang Information Technology Co.Ltd(002376) , Jiangxi Zhengbang Technology Co.Ltd(002157) , Guizhou Gas Group Corporation Ltd(600903) and other listed companies have announced that the board of directors has proposed to submit the general meeting of shareholders to revise the conversion price of convertible bonds.
In addition to the small overall decline, the valuation of the convertible bond market is also at a high level. Zhang Yiye, the fund manager of Chunda fund’s convertible bond strategy, believes that the increase in the conversion premium rate in this round is more due to the asymmetric decline between the price of convertible bonds and the price of positive shares. The overall downward range of positive shares is much greater than that of convertible bonds, which makes the conversion premium rate rise passively. From another perspective, it can be considered that the market is gradually establishing the rising expectation after the sharp decline of the equity market, and the optimism for the future market is accumulating.
However, Gaoyuan believes that it is not very accurate to measure the overall convertible bond market by the arithmetic average of convertible bond to equity premium rate, and a few convertible bonds with high convertible bond premium rate may raise the overall average value. In the current market environment, there are still many high-quality convertible bonds with a conversion premium rate of less than 10%.
\u3000\u3000 “We should not only pay attention to the conversion premium rate of convertible bonds, but also pay attention to the absolute price of convertible bonds. In the hottest stage of the convertible bond market last year, there were no convertible bonds below 100 yuan, and there were many low-cost convertible bonds below 100 yuan in the current market. When the absolute price of convertible bonds fell near 100 yuan, the pure bond premium rate would be reduced to less than 10%. Unless the market expected that a certain convertible bond would have credit risk, the pure bond premium would be reduced The rate will basically be above 0. ” Gao Yuan said
