Convertible bonds are now batch circuit breaker! Institutions say it is difficult to continue the speculation of individual coupons

category:Finance
 Convertible bonds are now batch circuit breaker! Institutions say it is difficult to continue the speculation of individual coupons


It is worth noting that the crazy market of convertible bond market has continued for many days

On October 20, under the leadership of Blue Shield convertible bonds, many convertible bonds rose sharply, and trading was suspended temporarily. On the same day, 13 convertible bonds triggered the circuit breaker. On that night, Blue Shield shares, Shenglu communication and molding technology released trading risk tips. The turnover rates of Blue Shield convertible bonds, Shenglu convertible bonds, Kailong convertible bonds, Henghe convertible bonds and Wanli convertible bonds all exceeded 1000%, and the turnover rate of 16 bonds exceeded 10 times. The turnover rate of Blue Shield convertible bonds is more than 100 times. The turnover rate of Shenglu convertible bonds reached 3109.92%.

On October 21, convertible bonds continued to be hot, with Wanli convertible bonds, Jiuzhou convertible bonds, Xintian convertible bonds, blue Dun convertible bonds, start-up convertible bonds, Shangrong convertible bonds and other convertible bonds were temporarily suspended. The turnover rates of Henghe convertible bond and Shenglu convertible bond exceeded 3600%, and the turnover rate of Wanli convertible bond, Kailong convertible bond, Blue Shield convertible bond and molded convertible bond exceeded 2000%.

Blue Shield Co., Ltd. announced on the 21st that the company is not a quantum technology concept stock which is popular in the market recently, and the company has not carried out market business in the field of quantum technology and has no relevant business income. Moreover, not long ago, Blue Shield announced that the company, some subsidiaries and the controlling shareholders of the company, Ke Zongqing and Ke Zonggui, were included in the list of persons to be executed for breach of trust, which is commonly known as Lao Lai. Some bank accounts and assets of the company have been frozen / sealed up by the court because the litigation related matters have been applied for property preservation before litigation.

Since this year, a total of 98 convertible bonds have entered the period of stock conversion, among which 40 companies have issued the announcement of no early redemption of convertible bonds. Some companies may issue the announcement of no early redemption of convertible bonds in the early stage, but issue the mandatory redemption announcement in the later stage, so we should pay attention to the risk of individual bonds that meet the mandatory redemption conditions.

On the other hand, with the implementation of the new regulations on convertible bonds on October 26, it may not be conducive to the continuation of the speculation of individual convertible bonds. On July 24 this year, the Shanghai Stock Exchange and the Shenzhen Stock Exchange respectively issued the notice on the appropriateness management of investors of convertible corporate bonds issued to unspecified objects: since October 26, ordinary investors participating in the subscription and trading of convertible bonds shall sign the disclosure of investment risks of convertible corporate bonds issued to unspecified objects in paper or electronic form. The notice mainly supervises the authority of trading convertible bonds.

Bohai Securities also said that investment in convertible bonds still needs to pay attention to the fundamentals of listed companies, the positive stock trend and the intrinsic value of convertible bonds. For the convertible bonds with high premium rate, high turnover rate and high closing price, the risk should be avoided in time.

Source of this article: Yang Bin, editor in charge of CFA_ NF4368