Become a Bo silly game! Convertible bonds: a half day rise of 40percent

category:Finance
 Become a Bo silly game! Convertible bonds: a half day rise of 40percent


On the morning of October 21, Wanli convertible bond (123032) rose by 40.16%, Shangrong convertible bond (128053) by 20%, Blue Shield convertible bond (123015) by 18.23%, Jiuzhou convertible bond (123030) by 14.21%, start-up convertible bond (113576) by 13.16%, Tongguang convertible bond (123034) by 10.91%, Baihe convertible bond (113520) by 9.78%, Xintian convertible bond (128091) by 8.6%, and convertible bonds jumped one after another Different scenery.

According to the trading rules of Shenzhen Stock Exchange and the notice on matters related to temporary suspension of trading of convertible bonds during the trading period, it is precisely because of the booming trend of convertible bonds that many of the targets were suspended on the morning of October 21.

Source: exchange website

Convertible bonds are bonds that bondholders can convert bonds into common stocks of the company at the price agreed upon at the time of issuance. If the bondholders do not want to convert, they can continue to hold the bonds until the maturity of repayment to collect the principal and interest, or sell them in the circulation market for realization. If the holder is optimistic about the stock appreciation potential of the issuing company, he can exercise the conversion right after the grace period and convert the bond into stock at the predetermined conversion price, and the issuing company shall not refuse.

Originally, convertible bond is a financing method that issuers can choose. The bond interest rate is generally lower than the bond interest rate of ordinary companies. Enterprises can reduce the financing cost by issuing convertible bonds. The holders of convertible bonds also have the right to sell back the bonds to the issuers under certain conditions, and the issuers have the right to compulsorily redeem the bonds under certain conditions. However, with the gradual evolution of the market, due to the characteristics of convertible bonds with no price limit, convertible bonds are sought after by hot money. This also has the convertible bond speculation God, the rise is far more than the status quo of stocks.

For example, wanlima (300591. SZ), the main stock of Wanli convertible bond, rose 10.75% in the morning of October 21, the main stock of Blue Shield convertible bond (300297. SZ) rose 3.1% in midday trading, and the main stock of Shangrong convertible bond, Shangrong medical (002551. SZ), rose 1.96% at noon. For example, the highest increase of 54% in the morning of October 21, such as Wanli convertible bond, is still a Wizard. Before March, molding convertible bond (127004) had a record of 90% rise in one day. In fact, in March, the convertible bonds represented by Yokogawa convertible bonds (123013) set off a evil wind against the background of the weakening market, resulting in the rapid expansion of convertible bond market transactions. But this kind of hype is also accompanied by risks.

On the one hand, convertible bonds can rise or fall sharply. Many convertible bonds scale down to 100 million or even lower to 30 million, which are easily controlled by hot money of hot money. On the other hand, the relationship between demonized convertible bonds and stocks has been broken, and the capital chasing after paper interests naturally ignores the risk of positive shares. For example, Blue Shield shares recently disclosed a series of risks, trying to calm the overheated convertible bond trading.

Blue Shield said that novel coronavirus pneumonia was affected by the new crown pneumonia in the first half of 2020 after the huge loss of 937 million yuan in 2019. The government and its clients delayed the resumption of work and resumed production. The pace of purchase slowed down, the companys original orders were pushed back, the entry of the project personnel was restricted, the implementation of the orders and the delay in acceptance were delayed, resulting in a decrease in the companys network information security business income than the same period last year. At the same time, the companys wholly-owned subsidiary Zhongjing Huitong e-commerce Co., Ltd. suffered a lot of performance losses due to limited business development, which led to the decline of the companys overall profitability. In the half year of 2020, the companys operating revenue was 498.8151 million yuan, a year-on-year decrease of 48.92%; the net profit attributable to shareholders of listed companies was - 67.5281 million yuan, a year-on-year decrease of 146.5%.

At the same time, some of the shares pledged by the controlling shareholder of Blue Shield shares are at risk of breach of contract and involved in litigation. All the shares of the company held by the controlling shareholder and the persons acting in concert have been frozen, and they have been listed as the person to be executed for breach of faith. This issue has a certain impact on the stability of the companys control right. If the shares pledged and frozen by the controlling shareholders and their persons acting in concert fail to take effective measures to deal with them, the subsequent judicial disposal will not exclude the change of the companys control right. Even according to the announcement on September 28, the amount of overdue debts of Blue Shield shares and some subsidiaries was 1.566 billion yuan; according to the announcement on October 16, the company, some subsidiaries and the controlling shareholders of the company, Ke Zongqing and Ke Zonggui, who failed to fulfill the obligations of determining the effective legal documents due to litigation related matters, have been listed in the list of persons subjected to execution for breaking faith. Fuse tide reappearance source: interface news editor: Yang Bin_ NF4368

At the same time, some of the shares pledged by the controlling shareholder of Blue Shield shares are at risk of breach of contract and involved in litigation. All the shares of the company held by the controlling shareholder and the persons acting in concert have been frozen, and they have been listed as the person to be executed for breach of faith. This issue has a certain impact on the stability of the companys control right. If the shares pledged and frozen by the controlling shareholders and their persons acting in concert fail to take effective measures to deal with them, the subsequent judicial disposal will not exclude the change of the companys control right.

Even according to the announcement on September 28, the amount of overdue debts of Blue Shield shares and some subsidiaries was 1.566 billion yuan; according to the announcement on October 16, the company, some subsidiaries and the controlling shareholders of the company, Ke Zongqing and Ke Zonggui, who failed to fulfill the obligations of determining the effective legal documents due to litigation related matters, have been listed in the list of persons subjected to execution for breaking faith.

Fusing tide reappearance