The company has a sudden double whammy of stock and debt, and more than 40 convertible bonds are at risk of forced redemption

category:Finance
 The company has a sudden double whammy of stock and debt, and more than 40 convertible bonds are at risk of forced redemption


Listed only seven months on mandatory redemption, shares and bonds fell sharply yesterday

Affected by this, the shares and convertible bonds fell sharply on Monday. According to market data, Yutong convertible bonds fell sharply at the beginning of the 30th day, falling by more than 10%. By the end of the day, Yutong convertible bonds fell by 14.43% to 112.10 yuan, the largest one-day decline since the convertible bonds were listed. At the same time, the trading volume increased sharply, with a turnover of 515 million yuan in the whole day, more than 10 times the average daily turnover of last week.

On Friday, the announcement released by Yutong technology showed that the closing price of the shares in 15 consecutive 30 trading days from October 13, 2020 to November 23, 2020 was no less than 130% (30.21 yuan / share) of the current conversion price of Yutong convertible bonds (23.24 yuan / share), triggering the agreed conditional redemption clause, and the board of directors and the board of supervisors of the company agreed to exercise the Yutong convertible bonds in terms of terms The redemption right shall be made in full at the price of face value plus accrued interest of the current period.

According to the data, the redemption price of Yutong convertible bonds is 100.30 yuan / piece (including the current accrued interest, the current annual interest rate is 0.4%, and the current interest includes tax). The redemption registration date is January 4, 2021, and the stop trading date and the stop conversion date are both January 5, 2021.

According to the preliminary calculation, even at the closing price of 112.10 yuan yesterday, assuming that the investor is redeemed by the company at 100.30 yuan, the investor will still lose 10.53%; if calculated by the closing price of 131.00 yuan on the announcement day (last Friday), if the investor has been holding the waiting for forced redemption, it will lose 23.44% substantially.

It is worth noting that Yutong convertible bond was listed on April 28 this year, and now it is just seven months after it was listed that it was forced to redeem.

Yutong convertible bonds fell sharply on the same day, the main shares of Yutong technology also fell sharply, hit the limit once in the session, and closed at 26.27 yuan, down 9.69%, at the same time trading volume released.

02

More than one announcement of forced redemption of convertible bonds fell sharply

In addition to Yutong convertible bonds, there have been a number of forced redemption cases of convertible bonds since this year. Most of the prices have fallen after the announcement of forced redemption, and some of them are extremely tragic.

For example, the Wanli convertible bond fell by 24.56% the next day after it announced the exercise of its early redemption right on the evening of November 2. Since then, it has continued to fall further. As of the closing of the 30th day, Wanli convertible bond was at 120.36 yuan, a sharp drop of 48.12% compared with the closing price of 232.00 yuan on November 2.

In fact, before the announcement of early redemption by listed companies, Wanli convertible bonds had experienced a boom. Some investors ignored the potential risk of forced redemption, and the price of convertible bonds once exploded to 507 yuan on October 22. If we compare the current price of Wanli convertible bond with the highest price at that time, it has fallen by 76.26% in just one month.

Zhende convertible bond, one of this years star convertible bonds, also fell continuously after the announcement of forced redemption.

According to the data, due to the impact of the new crown epidemic, the medical industry companies are sought after by the market this year. The main shares and convertible bonds of Zhende convertible bonds have experienced several rounds of speculation in the market. Zhende convertible bonds once rose to more than 800 yuan in July this year, more than 8 times the issuance price.

There are also convertible bonds in the announcement of early redemption news, the short-term price is less affected. For example, Longpan convertible bonds also announced early redemption, which fell sharply on Monday, but closed down only 2.91%.

However, on the whole, with the day of stopping trading and the day of stopping stock conversion approaching, it has entered a long bear Road, which still contains great risks.

According to wind data, there are currently 44 convertible bonds triggering the mandatory redemption clause of convertible bonds. Investors need to pay attention to whether they will be forced to redeem in the future. If a forced redemption has been announced, they need to pay attention to the progress of forced redemption.

Source: Securities Times editor in charge: Yang Bin_ NF4368