After two consecutive trading days of speculation, Yongji convertible bonds regarded by some investors as “demon bonds” have been suspended for verification since May 19.
Yongji convertible bonds attracted attention because of its shocking market performance after listing. On the one hand, it once rose to 421 yuan on the first day of listing, up 321% from the issue price, setting the largest intraday increase record of convertible bonds in recent years. If calculated at this price, the profit of playing a new hand in new bonds will exceed 3000 yuan. On the other hand, the trading volume of Yongji convertible bonds in the first two trading days after listing was huge. Among them, the trading volume in one day on May 18 was as high as 8.99 billion yuan, which exceeded the trading volume of any A-share on that day. The cumulative turnover rate in the first two days was as high as 160261%, which means that the chips were changed 16 times in two days.
There are two factors why Yongji convertible bonds have been so rarely hyped.
A small amount of money itself can be used to “pry” a small amount of money. Statistics show that the total issuance of Yongji convertible bonds is only about 146 million yuan, which is the smallest convertible bond issued this year and one of the smallest convertible bonds in history. Since the beginning of the year, several small-scale convertible bonds and many new bonds have also been stir fried in the market. Now, the price of aggregate convertible bonds listed in April also rose to 300 yuan on the first day of listing. The cumulative turnover rate in the first two days exceeded 1100%, and its issuance scale was only 204 million yuan. In contrast, the sector of Yongji convertible bonds is smaller, which is easier to become the object of speculation.
Second, many relatively radical investors recognize the relatively flexible trading system of convertible bonds. Different from the T + 1 trading system adopted by a shares, convertible bonds adopt the T + 0 trading system, which can be traded back and forth many times in a day. Moreover, unlike a shares, the restrictions on the rise and fall of convertible bonds are much looser, and they can rise several times a day in many cases, which provides great trading convenience for radical investors, and many people participate with a fight mentality.
It should be pointed out that convertible bonds are a kind of securities with the dual attributes of bonds and stocks. In theory, the trend of convertible bonds and their positive stocks should be positively correlated, and the trend will not deviate too far in the long run. Some of the recently hyped convertible bonds obviously deviated from the trend of positive stocks. For example, the closing price of Yongji convertible bonds increased by 290.96% on May 17 and 18, while its positive stock Guizhou Yongji Printing Co.Ltd(603058) share price fell by 1.38% in the same period, and the two trends were even opposite.
From the historical and past cases, many short-term speculation convertible bonds still failed to “carry” in the long run, and suffered a deep decline in the follow-up. For example, in the first quarter of last year, the original one-day transaction of liantai convertible bonds was only several million yuan. Since March of that year, the one-day transaction has surged to hundreds of millions of yuan, or even more than 1 billion yuan. The price has more than tripled in just half a month to more than 400 yuan. However, since then, the convertible bonds have continued to decline, and the current price has returned to the level of more than 100 yuan again.
In addition, compared with stocks, convertible bonds are a relatively complex investment variety, involving many terms such as stock conversion and forced redemption. If investors do not study carefully, it is very easy to step into the pit. It is not uncommon for some investors to lose money due to their failure to convert or sell shares in time before forced redemption in recent years.
Generally speaking, the trading behavior of convertible bonds in the secondary market based on rules is a market phenomenon. If there are no illegal behaviors, it has nothing to say. It should be noted that under the temptation of huge interests, illegal acts such as market manipulation may breed, and such acts need to be severely punished.
For investors, they need to do their homework, keep in mind the principle of “self responsibility for profits and losses”, and do not run naked without fully understanding the rules and risks.
