Hot turnover in convertible bond market

category:Finance
 Hot turnover in convertible bond market


On October 19, due to the concept of quantum communication fermented over the weekend, Blue Shield shares were blocked by funds. Along with the companys convertible bonds, Blue Shield convertible bonds also fluctuated significantly. A large number of hot money poured into the market, resulting in several temporary stops. The market closed up more than 64% and the turnover reached 5.611 billion yuan.

In the morning trading yesterday, after two rounds of upward temporary suspension, the Blue Shield convertible bond rose by 65% at one time, then fell back after shock, and finally increased by 13.07%. Whats more, the turnover rate of Blue Shield convertible bonds reached 12570%, with a turnover of 12.62 billion yuan, exceeding the total market value of its principal shares. At present, the price of Blue Shield convertible bonds is 320 yuan, which is 2.2 times of the book value premium. This means that if the price is converted into shares or redeemed, the actual value of Blue Shield convertible bonds is very little, and the result of either way will face a huge loss.

As for the sharp fluctuation of convertible bonds yesterday, Blue Shield shares announced in the evening that the price of Blue Shield convertible bonds has seriously deviated from the relationship between the companys share price and has deviated from the reasonable value range, and has nothing to do with the market macro environment, industry situation and operation conditions, mainly due to the influence of market funds. In addition, for the concept of quantum communication, the company announced that it has not carried out market business in the field of quantum technology and has no relevant business income.

Recently, Blue Shield shares, some subsidiaries and controlling shareholders of the company have been listed in the list of persons who have been executed due to dishonesty. Blue Shield shares said that due to some overdue debts, the company and its related subsidiaries were faced with lawsuits, payment of relevant liquidated damages, overdue fine and penalty interest, and being listed as the person to be executed for breach of trust, which had a certain impact on the companys net profit; in addition, due to the litigation related matters being applied for property preservation before litigation, some bank accounts and assets of the company have been frozen and sealed up by the court.

10 convertible bonds trigger temporary suspension

In addition to the Blue Shield convertible bonds, many stocks in the convertible bond market increased by more than 10%, including Shenglu convertible bond, molding convertible bond, Henghe convertible bond, Tongguang convertible bond, Jinnong convertible bond, Jingrui convertible bond, etc. Shenglu convertible bonds, which had the highest increase, rose more than 63% in the intraday trading yesterday, and closed up 32.29% at the end of the day. The latest price was 336 yuan, which was 2.36 times of the book value premium.

Yesterday, the convertible bond market triggered temporary suspension for 15 times, Shenglu convertible bond, molding convertible bond, Yokogawa convertible bond, Blue Shield convertible bond, Baihe convertible bond triggered two temporary stops, Tongguang convertible bond, radio and television convertible bond, Wanli convertible bond, Kailong convertible bond, and Kyushu convertible bond triggered one temporary stop.

Judging from the transaction situation, there were 17 convertible bonds with a turnover of more than 1 billion yuan yesterday, including Blue Shield convertible bonds, Shenglu convertible bonds, molding convertible bonds, Yokogawa convertible bonds, radio and television convertible bonds, etc. Blue Shield convertible bonds ranked first with a turnover of 12.62 billion, which exceeded the turnover of any a share yesterday. Due to the large volume of transactions, more than one convertible bond chips were exchanged at least once yesterday. Data show that the turnover rate of 35 convertible bonds is more than 100%, among which 16 convertible bonds are more than 10 times.

Why is convertible bond crazy? Analysts in the industry believe that the market has been flat recently, but on October 19, the Blue Shield convertible bond rose 64% to make money, and all kinds of funds switched to convertible bonds, which led to the craze of convertible bonds. Secondly, convertible bonds are more flexible than the normal stock trading mode, which adopts T + 0 trading mode without limit of rise and fall, and has the function of financing and leverage through pledge repurchase, It is favored by short-term funds.

Convertible bond hot stocks

It fell back yesterday afternoon

Convertible bond itself is a kind of bond, but it has the function of converting into stock, so it has both the security of bond and the high yield of stock. It is a convertible bond issued by listed companies. As a bond, it has the right to receive fixed annual interest at maturity. When converted into shares, they enjoy the same rights as shareholders.

The characteristics of convertible bonds are: T + 0 trading; like bonds, there is no limit on the rise and fall; there is an additional source of income than ordinary bonds, which can be sold into stocks to earn stock gains; bear markets can be held as bonds, which are defensive; bull markets can be converted into stock bills and sold with strong aggressiveness.