The Advantage of Performance-price Ratio in Stock Market Shows the Positive Distribution of Bond Base and High-quality Convertible Bonds

category:Finance
 The Advantage of Performance-price Ratio in Stock Market Shows the Positive Distribution of Bond Base and High-quality Convertible Bonds


Since June, the convertible bond market has been on the upswing. Taking the Zhongzheng convertible bond index as an example, the index has increased by 4% in more than a month, and the average net value of the convertible bond fund has increased by nearly 3%. This shows that the convertible bond accounts for a small proportion of the positions of the relevant funds.

The funds second quarter report shows that the market value and position proportion of convertible bonds held by the convertible bond concept fund at the end of the second quarter are higher than those held at the end of the first quarter. According to Wind data, nearly 50 conceptual funds with convertible bonds have a market value of 9.952 billion yuan at the end of the second quarter, which is higher than 9.345 billion yuan at the end of the first quarter, and their positions have risen from 70.33% at the end of the first quarter to 74.70%. If the statistical object is locked in more than 30 funds with convertible bonds or convertible bonds in their names, the average holding ratio of convertible bonds is higher, which is about 88.35% at the end of the second quarter and 83.83% at the end of the first quarter.

Some funds increased their holdings in the second quarter. For example, the convertible bond holdings of the Guangdong Convertible Bond Fund established in November last year accounted for only 3.99% at the end of the first quarter of this year and reached 76.41% at the end of the second quarter; the convertible bond holdings of the Financing Convertible Bond Fund at the end of the first quarter were about 57.62%, and reached 96.22% at the end of the second quarter. At the end of the first quarter, only 48.72% of the convertible bond funds held positions, which reached 84.23% in the second quarter. In addition, the convertible bond positions of Yinhua China Securities Exchange Index Enhanced Index Fund, ICBC Credit Suisse Convertible Bond Optimal Fund and Central European Convertible Bond Fund increased considerably.

There were also many convertible funds that reduced their positions in the second quarter. For example, the Shen Wanling Convertible Debt Fund decreased from 102.21% at the end of the first quarter to 74.43% at the end of the second quarter, the Changxin Convertible Debt Fund from 92.29% at the end of the first quarter to 77.48% at the end of the second quarter, and the Dongwu China Securities Convertible Debt Fund from 93.89% at the end of the first quarter to 80.07% at the end of the second quarter.

For the future market opportunities of convertible bonds, Jiang Lijuan, Director of Fixed Income Investment, Taikang Asset Public Utilities Department, said that the current domestic stock market valuation is relatively low and there are long-term allocation opportunities. In contrast, the performance-to-price ratio of stocks is higher than that of bonds, so there is a long-term opportunity for convertible bonds. In the first half of this year, there are obvious differences in bond asset allocation between bond funds, and the position allocation of convertible bonds has a great impact on the yield of bond funds. For example, the performance of the products with higher convertible bond positions has been improved rapidly, which basically determines the performance of the whole year. Another convertible bond fund manager said that the medium and long-term growth potential and expected returns of the convertible bond market are considerable, so the overall position will remain unchanged. In convertible bond investment, we will adhere to the strategy of securities preference, attach importance to the basic prospects of individual bonds, and maintain the basic configuration of leading companies in finance, consumption and emerging growth direction. Source: Responsible Editor of Securities Times: Ren Hui_NBJ9607

For the future market opportunities of convertible bonds, Jiang Lijuan, Director of Fixed Income Investment, Taikang Asset Public Utilities Department, said that the current domestic stock market valuation is relatively low and there are long-term allocation opportunities. In contrast, the performance-to-price ratio of stocks is higher than that of bonds, so there is a long-term opportunity for convertible bonds. In the first half of this year, there are obvious differences in bond asset allocation between bond funds, and the position allocation of convertible bonds has a great impact on the yield of bond funds. For example, the performance of the products with higher convertible bond positions has been improved rapidly, which basically determines the performance of the whole year.

Another convertible bond fund manager said that the medium and long-term growth potential and expected returns of the convertible bond market are considerable, so the overall position will remain unchanged. In convertible bond investment, we will adhere to the strategy of securities preference, attach importance to the basic prospects of individual bonds, and maintain the basic configuration of leading companies in finance, consumption and emerging growth direction.