Convertible bond "fuse wave" continues, experts remind investors not to blindly follow the trend
Our reporter Zhu Baochen
On the afternoon of October 23, Wang Bei (pseudonym), an investor from Beijing, re-signed the "Risk Disclosure Statement for Convertible Corporate Bonds Issued to Unspecified Objects" (hereinafter referred to as "Risk Disclosure Statement") through the APP of an account-opening brokerage firm. ").
On the same day, he received a short message from the sales department stating that according to relevant requirements, investors need to re-sign the "Risk Disclosure Letter" before October 26, 2020.
If it fails to sign, the securities company shall not accept its subscription or purchase entrustment, and investors who already hold the relevant convertible bonds may choose to continue to hold, convert to shares, sell back or sell.
Wang Bei is a senior investor.
However, it was only in the second half of last year that it began to participate in the renewal of convertible bonds.
He told the "Securities Daily" reporter that as long as there is a new convertible bond issuance, he will participate in the new market.
"I have been signed several times this year, and they were all sold on the day of listing."
"I have been creating new ones, four or five times in two years or so." Mr. Jin, an investor from Shanghai, told a reporter from the Securities Daily.
Like Wang Bei's operation, after each win, Mr. Jin also sold on the day of listing.
"In the past, the convertible bonds were sold on the day they went public, earning 300 yuan at a time, but later it became more than 100 yuan. The most recent one was only tens of yuan."
However, compared to the rationality of Wang Bei and Mr. Jin, convertible bonds have been repeatedly speculated this year, with prices fluctuating sharply, and the trading volume and turnover rate of some convertible bonds have soared.
On October 26, the “fuse” of convertible bonds continued. In the morning, a large number of convertible bonds had risen to 10% during the call auction period. After the market opened, they went straight to 20% to trigger the “fuse”.
Within two minutes of opening, many convertible bonds rose by 20% and were temporarily suspended.
However, in the afternoon, the trend diverged, and some convertible bonds had a "falling" circuit breaker. For example, smart convertible bonds rose by 20% in the morning and fell by 20% in the afternoon.
Kaiyuan Securities fixed income chief analyst Yang Weiyu told the "Securities Daily" reporter that this round of speculation of convertible bonds is mainly due to the lack of investment in the stock market and the abundant funding. Some idle funds rely on hot topics. The influx of T+0 transactions in the convertible bond market with no limit on the rise and fall, the group pushed up small-scale convertible bonds.
China Securities Convertible Bond analyst Gu Wei told the "Securities Daily" reporter that the reason is mainly due to the fact that many convertible bonds have small existing balances and are easy to use funds to drive speculation. At the same time, because convertible bonds are subject to T+0 , There is no price limit, which is more conducive to the operation of speculative funds.
"In fact, in the first half of this year, there was a batch of similar capital speculation related to the subject matter. Based on the successful experience in the first half of this year, the number and scale of convertible bonds were significantly increased this time, indicating that they entered the convertible bond market and speculated. The amount of funds is increasing." Gu Wei said.
Under the violent speculation, the transaction price of individual convertible bonds seriously deviated from the company's stock price, and the regulatory authorities had to make multiple moves.
On October 23, the China Securities Regulatory Commission publicly solicited opinions on the "Administrative Measures for Convertible Corporate Bonds (Draft for Comment)."
On the same day, the Shanghai and Shenzhen Stock Exchange announced that the Shanghai Stock Exchange said it would include convertible bond transactions into key monitoring; the Shenzhen Stock Exchange said that it would include abnormal changes in convertible bonds into key monitoring and take timely regulatory measures for abnormal transactions.
Gu Wei said that for this kind of behavior that deviates from the fundamentals and speculates, it seriously disrupts the normal order of the market and increases the volatility risk of normal convertible bond investors. If a strong redemption is triggered, small and medium investors who blindly follow suit In other words, losses are even more uncontrollable, so supervision is bound to introduce some measures to strengthen management.
Under the explosion, investors must be rational.
Yang Weizhen said that the current increase in some convertible bonds has seriously deviated from the company's fundamentals, and this divorce will eventually return.
Taking into account the lessons learned from the convertible bond speculation in March this year, investors should still pay attention to the relevant risks.
Gu Wei said that because some crazy convertible bonds are basically separated from the fundamentals and normal value of convertible bonds, it depends more on the willingness to manipulate funds. Investors are advised not to blindly follow the trend and chase the target of such convertible bonds.
(Securities Daily)