Starting this week, convertible bonds will usher in another wave of "forcible redemptions".
On June 10, the New Year Convertible Bonds will be forcibly redeemed, opening the "forced redemption" mode of convertible bonds. Next, Skyworth Convertible Bonds, Rongsheng Convertible Bonds, and Jiaoke Convertible Bonds will also be forcibly redeemed.
If the holders do not understand the rules and do not operate in time before the "forcible redemption" of these convertible bonds, they may directly face losses of more than 20%.
The New Year Convertible Bond is about to usher in the redemption registration day
On the evening of June 7, Wuzhou New Year issued the first reminder announcement on the implementation of the redemption and delisting of the New Year Convertible Bonds. The company decided to exercise the right of early redemption of the New Year Convertible Bonds at the price of the face value of the convertible bonds plus the current accrued interest. , all the New Year Convertible Bonds registered after the market closes on the redemption registration day will be redeemed.
The redemption registration date is June 10, 2022, and the redemption price is 100.323 yuan/piece.
Before the close of the market on the redemption registration day (15:00 on June 10, 2022), holders of the New Year Convertible Bonds can choose to continue trading in the convertible bond market, or perform the conversion operation at the conversion price of 8.75 yuan per share, and convert to Zhejiang Wuzhou Xinchun Group Co., Ltd. A shares.
After the market closes on the redemption registration date (15:00 on June 10, 2022), all the New Year Convertible Bonds that have not been converted into shares will be frozen, trading and conversion will be suspended, and the face value of the bonds plus the current accrued interest (total 100.323 yuan per bond) ) are all mandatory redemptions.
At present, the price of New Year Convertible Bonds is 153.29 yuan per piece. If investors do not operate in time, they may lose 35% directly.
The company also reminds investors that the redemption price of the New Year Convertible Bonds this time may be quite different from the secondary market price, and the forced redemption may lead to the risk of investment losses. Before implementing the conversion or closing the transaction to avoid possible investment losses.
If the New Year Convertible Bonds held by investors are pledged or frozen, they need to release the pledge and freeze in advance to avoid the situation of being unable to trade and being forced to redeem.
These 3 convertible bonds will be "forcibly redeemed"
After the New Year Convertible Bonds are forcibly redeemed, Skyworth Convertible Bonds, Rongsheng Convertible Bonds, and Jiaoke Convertible Bonds will also be forcibly redeemed.
Among them, the Skyworth Convertible Bonds redemption registration date is June 28, 2022, and the redemption price is 100.31 yuan/piece.
The latest price of Skyworth convertible bonds is around 140 yuan. If investors do not operate in time, the loss may reach 30%.
Wind data shows that as of June 7, the unconverted balance of Skyworth convertible bonds was 660 million yuan, and the unconverted share reached 63.5%.
Investors who hold Skyworth convertible bonds need to pay attention. With the arrival of the convertible bond redemption registration date at the end of the month, there is not much time left for investors to operate.
The specific redemption registration date and redemption price of Rongsheng Convertible Bonds have not yet been determined, but the company mentioned in the latest announcement that it plans to moderately delay the implementation of the redemption of Rongsheng Convertible Bonds. The redemption registration date is planned to be in late June 2022. The return price is calculated based on the face value of the convertible bond plus the accrued interest for the current period.
The unconverted balance of Rongsheng convertible bonds is 149 million yuan, and the unconverted ratio is 45.22%. Nearly half of the convertible bonds have not been converted.
The redemption registration date of Jiaoke Convertible Bonds is July 7, 2022, and the redemption price is 100.21 yuan per bond.
The latest price of Jiaoke convertible bonds is around 137 yuan. If investors do not operate in time, the loss may exceed 27%.
As of June 7, the unconverted balance of Jiaoke convertible bonds was 770 million yuan, and the unconverted ratio reached 30.79%. Nearly 1/3 of the convertible bonds had not been converted.
Some investors may suffer losses because they do not understand the rules
Although listed companies will issue relevant reminder announcements many times before "forcible redemption" of convertible bonds, it is not uncommon for investors to suffer large losses due to failure to convert shares or sell convertible bonds in time.
Changqi Convertible Bonds previously issued an announcement on the redemption results of convertible bonds, showing that after the close of the redemption registration day, the balance of Changqi Convertible Bonds was 34.746 million yuan, accounting for 3.50% of the total issuance of Changqi Convertible Bonds.
The amount paid by the company for redeeming the convertible bonds was 34.9197 million yuan, and based on the closing price on the redemption registration day, the market value of this part of the bonds was 53.6687 million yuan. 35%.
CITIC Securities Research pointed out that with the continuous increase in the number of bonds in the convertible bond market, forced redemptions have also become a high-frequency event.
The redemption directly marks the end of the life cycle of the convertible bond, which has the greatest impact on the price of the convertible bond among the three clauses, and is closely related to the interests of investors.
When the equity market is in an upward channel, the redemption intensity will increase significantly.
The redemption clause triggered by the convertible bond means that its price has continued to be above RMB 130, and the redemption price is often set at RMB 100 + current interest. Therefore, if a forced redemption is triggered, investors may choose to sell or Swap is a better option.
CITIC Securities said that when the underlying stock market for convertible bonds is in a good trend, listed companies usually choose to redeem in advance. , can also make room for new debt issuance.
Institutions are optimistic about the return of convertible bonds
In the first quarter of this year, the new crown epidemic broke out, the market fell after the Spring Festival, and the convertible bond market also ushered in a wave of corrections, but then the policy of stabilizing growth continued to exert force, and the epidemic was gradually brought under control. The bond market also rebounded.
However, in this rebound in the market, the convertible bond index underperformed the underlying stocks, small and medium-cap stocks and growth stocks performed better, and large-cap stocks and value stocks relatively underperformed.
Convertible bonds underperformed the underlying stocks, mainly because during the previous market adjustment period, due to the protective nature of the debt bottom, the adjustment range of the convertible bonds was smaller than that of the underlying stocks. In addition, the valuation continued to be high, and the absolute price and conversion premium rate remained high. The recent performance Underperformed the positive stock.
Kaiyuan Securities believes that due to the impact of the epidemic, it was the worst period for the economy at that time, but the market went out of the upward trend.
Therefore, there is no need to wait for the bottom of corporate profits, and the convertible bond market may still reverse.
At present, the policy of stabilizing growth continues to increase, and the domestic and foreign environment continues to improve. There is no need to wait for the emergence of corporate profits. The market is expected to be positive, and we are optimistic about the future performance of the market, value and consumer convertible bonds.
Tianfeng Securities said that after the market initially stabilized, the combination of double lows and low prices with high valuations performed better than the market.
At present, the overall risk of redemption of convertible bonds is controllable, and the upside based on the combination of high cost performance and low valuation may be further opened, and it can be further optimistic in the follow-up rebound.