New rules for convertible bonds, take notes

In the evening, two traders issued a document to revise some of the trading rules of convertible bonds:

Notice on matters related to the appropriateness management of convertible corporate bonds

Notice on Public Solicitation of Comments on the Implementation Rules for the Trading of Convertible Corporate Bonds of the Shanghai Stock Exchange (Draft for Comments)

Shenzhen Stock Exchange further strengthens the supervision of convertible bond transactions to effectively protect the legitimate rights and interests of investors

A few things I’m more concerned about:

1. The daily assets in the securities account and capital account in the 20 trading days before the opening of the application authority shall not be less than RMB 100,000 (excluding the funds and securities raised by the investor through margin financing and securities lending); participate in securities trading for 24 months above.

The provisions of the preceding paragraph do not apply to individual investors who have opened the trading authority for convertible bonds issued to unspecified objects before the implementation of this notice and have not closed their accounts.

After that, it will be more difficult to open a new account and open a new account. The new account is basically an empty account + a small thousand yuan to open a new account. Now it is difficult to have a new convertible debt account that meets the two-year experience in securities trading + 100,000 funds.

The next batch of new leeks of convertible bonds will have to wait for two years

The conversion rate of convertible bonds will be greatly improved. Some people will question: aren’t there so many existing accounts?

Compared with the number of new players, it will have a greater impact on the placement of convertible bonds, which will affect the enthusiasm for placement to a certain extent. The scale of subscriptions allocated to online new subscriptions will greatly increase, and the winning rate will gradually increase.

You may start to envy those Hundred Households involuntarily, but the new regulations mention that ordinary investors who participate in the subscription and transaction of convertible bonds issued to unspecified objects shall sign the “Issuance to Unspecified Objects” in paper or electronic form. Convertible Corporate Bond Investment Risk Disclosure Statement, if you need to sign after video certification , the actual participation in new convertible bond accounts will be greatly reduced.

The most important, the most important, the most important is: the implementation of the new regulations threshold is on the 18th (tomorrow), new account opening is definitely not enough, but now those who have a stock account can open the authority to convert bonds, take a certain securities as an example


For example, the GEM trading authority can be transferred to the B brokerage when it is opened in A brokerage. Today, some brokerages can still open the convertible bond trading authority.

2. [Last trading day] The first letter of the securities abbreviation on the last trading day of the convertible bonds issued to unspecified objects is “Z”. The listed company’s stock is terminated due to the forced delisting of trading, except for the situation where its convertible bonds issued to unspecified objects are terminated from the listing.

This article has the function of risk warning, but it does not play a practical role. It should be clearly stipulated on the date of announcement of forcible redemption of convertible bonds, and the statistical time of announcement of non-forcible redemption should be clearly stipulated.

3. [Price Ups and Downs Limits] If the transaction of convertible bonds issued to unspecified objects adopts the matching transaction method, the price ups and downs are restricted.

Convertible bonds issued to unspecified objects rose by 57.3% and fell by 43.3% on the first trading day after listing. After the first trading day of listing, the ratio of ups and downs was 20%.

The formula for the price change is: price change = previous closing price × (1 ± change ratio).

The calculation results are rounded to the smallest unit of price change.

On the first day of listing of convertible bonds issued to unspecified objects, the issue price of the bonds shall be taken as the previous closing price.

This is equivalent to the unified trading rules on the first day of listing in Shanghai and Shenzhen, with a maximum of 157.3 yuan.

The daily trading rule is directly the 20% daily limit, similar to the growth and decline of stocks on the ChiNext

In other words, speculation in demon bonds is not even more exciting. Some people are lining up to buy at the continuous daily limit.

The convertible bonds on hand are sold out at once, and there is no need to worry about insufficient liquidity.

I think the price limit is more suitable for speculation than the non-limit. There are many bad people who teach you to buy orders. The market will fall in the short term, but it will definitely be more crazy to speculate on small-scale listings after that, and the continuous one-word board will increase the limit. .

4. [Transaction disclosure information] On the first day of listing of convertible bonds issued to unspecified objects, the Exchange will announce the names of the five member securities branches with the largest buying and selling amounts on the day of matching transactions and their respective buying and selling positions. Amount to sell.

After the first day of listing, if any of the following circumstances occurs, the Exchange will announce the names of the five member securities branches with the largest buying and selling amount on that day and their respective buying and selling amounts:

(1) The top 5 convertible bonds whose closing price rose or fell by ±15% on the day;

(2) The top 5 convertible bonds whose price volatility reached 30% on the day;

The calculation formula of price amplitude is: price amplitude = (the highest price of the day – the lowest price of the day) / the lowest price of the day × 100%

(3) The deviation of daily closing price fluctuations within three consecutive trading days has accumulated to ±30%;

(4) Other circumstances determined by the China Securities Regulatory Commission or the Exchange to be abnormal fluctuations.

This article is very bad for big Vs and mouth guns. In the past, those big guys said that they bought a little bit. In the evening, the dragon and tiger list even had your name. The scene was awkward for a time.

Hahaha, I feel that there are some trading teams in the xx region that are going to be listed frequently. Overall, they are good. They know where the bad guys are. If they lose money, they will go to the sales department to confront them

5. Negotiated transaction, [Declared quantity] If the convertible bonds issued to unspecified objects are negotiated and concluded, the declared quantity shall not be less than 1 million yuan, and be an integer multiple of 1,000 yuan.

[Declared price range] On the first day of listing of convertible bonds issued to unspecified objects, the declared price for negotiated transaction shall be determined within the range of 30% above and below the issue price. Except for the first day of listing, the price of the negotiated transaction declaration is determined within the range of 20% above and below the previous closing price.

Similar to a large transaction, it has nothing to do with a small retail investor like me, just watch the show!

Similar issues are mentioned in Taiping Convertible Bonds. You can see what the major shareholders want to do by looking at the details of the block transactions. There must be something tricky about selling a lot at a low level.

That’s all I can think of right now, I’ll add more

The new opinion draft mainly reduces the number of new accounts opened and new participation in convertible bonds. The winning rate will be mentioned, liquidity has a little impact, and the probability of short-term convertible bonds killing the premium rate is relatively high, but it will be better tomorrow

The other is to suppress speculation about convertible bonds. Information is released mainly from a regulatory point of view. Changing the rules of price fluctuations may not be very effective in suppressing speculation. With reference to the fluctuations of stocks, it is still a continuous daily limit.

Suggestions for additional content:

There needs to be clear regulations on the time for forcible redemption of convertible bonds, to deter the illegal behavior of listed companies that infringe on investment, and to rebuild the bridge of trust between convertible bond investors and the company.
Listed companies should announce the use of special funds raised by convertible bonds in their regular reports to prevent major shareholders from misappropriating funds for various reasons.

When the convertible bonds are redeemed at maturity, it is clearly stipulated whether the additional compensation income should be withheld and paid for taxes

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