What is the general listing price of convertible bonds, and whether the conversion price will be low

Convertible bonds are generally sold at face value, 100 yuan a piece. The ** of a convertible bond is made up of two parts. One part is ordinary bonds, and he gets interest every year for holding them.

The other part is call options. The sum of the two is the ** of the convertible bond. Because the value of the call option fluctuates dramatically with the changes in the company's operations.

At the same time, the ever-changing cost of funds in society also leads to fluctuations in the bond part. As a result, convertible bonds fluctuate dramatically, sometimes much below par or much higher than par. When I opened a position, I liked to allocate convertible bonds the most.

Conversion prices are generally adjusted over time. For example, after dividends and shares, the conversion price also decreases accordingly; The general meeting of shareholders of the company also has the right to revise the conversion price. For specific terms, you can refer to the prospectus of the convertible bond.

Let's talk briefly for your reference.

A convertible bond is a bond in which the holder can convert a certain percentage or a certain amount of another bond for a certain period of time. Convertible bond is the abbreviation of convertible corporate bond, also referred to as convertible bond, which is a special corporate bond that can be converted into ordinary ** at a specific time and under specific conditions. Convertible bonds have the characteristics of both debt and equity.

Convertible bonds have the dual characteristics of debt and equity.

Convertible bonds have the characteristics of both bonds and **, and have the following three characteristics:

1. Creditor's rights.

2. Equity.

3. Convertibility.

Convertible bonds are characterized by a double option. On the one hand, investors can choose whether to convert into shares, and bear the cost of the lower interest rate of the convertible bonds. On the other hand, the issuer of the convertible bond has the option of whether or not to implement a redemption clause and is required to pay a higher interest rate than a convertible bond without a redemption clause. Double option is the most important financial feature of convertible corporate bonds, its existence makes the risk and return of investors and issuers limited to a certain range, and can use this feature to hedge the value of ** and obtain more certain returns.

When convertible bonds are converted into **, it may increase the price of the underlying stock** or the price of the underlying stock**, but the impact is limited.

Theoretically, the conversion of convertible bonds into ** will increase the ** in circulation, so it will make the stock price **, but in fact, many convertible bonds are redeemed on the conversion date, and the stock price of the underlying stock is not affected much.

Extended information: Stock price refers to the transaction of **, and the value of ** is a relative concept. The true meaning is the value of the assets of the business. The value of the share price is equal to earnings per share.

Multiply by the P/E ratio.

In terms of **, in a nutshell, the factors that affect stock price changes can be divided into: individual factors and general factors. Individual factors include:

The operating conditions of listed companies, their industry status, income, asset value, income changes, dividend changes, capital increases, capital reductions, development of new products and technologies, supply and demand, changes in shareholder composition, shareholding ratios of major institutions (such as ** companies, securities companies, QF, etc.), performance in the next three years**, price-earnings ratio, mergers and acquisitions, etc. General factors are divided into: extra-market factors and intra-market factors.

Factors outside the market mainly include: political and social situation; social events; Sudden events; Macroeconomic.

economic trends and international economic trends; Monetary and fiscal policy.

Exchange rates, prices, and expected "news" or even "news" out of nowhere, etc. The factors in the market mainly include: market supply and demand; Trends of institutional corporations and individual investors; the movement of brokerages and foreign investors; ** Exercise of executive power; share price policy; Taxes and so on.

In terms of individual factors that affect the stock price movement, the quarterly, semi-annual and annual reports of the listed company can probably determine whether it is worth investing in the stock and the profit expectation. There are several data that are necessary to understand for investors who lack general financial knowledge, and they are: the total and outstanding share capital of the listed company, the return rate for the previous three years.

and the next three years, dividends and capital increases over the years.

situation, major shareholder situation, etc. These are the elements that should be considered when picking stocks.

As far as the general factors that affect the stock price change are concerned, in addition to the impact on the ** stock price change, it can mainly be used as a judgment on the direction of the market, and the market reacts more positively and sensitively to the general factors outside the market, because any factors outside the market are either good for the market or bad for the disadvantages.

market, which means that the rise and fall of stock prices is not only the factor of the listed company itself, but also the short market or the long market.

The judgment comes from many factors that affect the entire market.

The rise and fall of the convertible bond is not determined by the convertible bond, the rise and fall is determined by the supply and demand, the amount of funds, the performance, the policy, the news and other factors, on the contrary, the rise and fall may affect the rise and fall of the convertible bond.

It should be noted that after the convertible bond is converted into equity, the outstanding shares in the market will increase, so the stock price will decrease, but the total capital remains unchanged, and it can be converted into ** after 6 months of listing.

Extended Information: Convertible Bonds.

It is a bond in which the bondholder can convert the bond into the company's ordinary ** according to the agreement at the time of issuance. If the bondholder does not want to change the bond, he or she can continue to hold the bond until the repayment period expires to receive the principal and interest, or liquidate it in the liquid market**.

If the holder is optimistic about the potential of the bond issuer to increase its value, he or she can exercise the right to convert the bond into ** according to the predetermined conversion after the grace period, and the bond issuer shall not refuse.

The interest rate of the bond is generally lower than the interest rate of the bond of ordinary companies, and the issuance of convertible bonds by enterprises can reduce the cost of financing. Holders of convertible bonds also have the right to sell the bonds back under certain conditions.

The right to the issuer, the issuer has the right to redeem the bond compulsorily under certain conditions.

Convertible bonds have the dual characteristics of debt and equity.

Convertible bonds have the characteristics of both bonds and **, and have the following three characteristics:

Creditor's rights. Like other bonds, convertible bonds have a specified interest rate and maturity, and investors can choose to hold the bonds to maturity and receive principal and interest.

Equity. Convertible bonds are pure bonds before being converted into **, but after being converted into **, the original bondholders have changed from creditors to shareholders of the company, and can participate in the company's business decisions and dividend distribution, which will also affect the company's share capital structure to a certain extent.

Convertibility. Convertibility is an important sign of a convertible bond, and the bondholder can convert the bond into ** according to the agreed conditions. Conversion is an option that investors enjoy that is not available in ordinary bonds.

Convertible bonds are expressly agreed at the time of issuance, and bondholders can convert the bonds into ordinary bonds of the company in accordance with the ** agreed at the time of issuance**. If the bondholder does not want to convert, they can continue to hold the bond until the repayment period expires to receive the principal and interest, or liquidate it in the liquid market**. If the holder is optimistic about the potential of the bond issuer to increase its value, he or she can exercise the right to convert the bond into ** according to the predetermined conversion after the grace period, and the bond issuer shall not refuse.

Because of its convertibility, the interest rate of convertible bonds is generally lower than that of ordinary corporate bonds, and the issuance of convertible bonds by enterprises can reduce the cost of financing.

The conversion price of the convertible bondIt is a very important part of the company's formulation of convertible bond redemption or equity conversion, the main reason why convertible bonds can only be lowered by converting bonds into equity:

1.The purpose of the issuance of convertible bonds by listed companies is to raise funds, and the smaller the cost of financing, the better, and raising the convertible bonds to equity is not good for the company;

3.Listed companies hope that investors can convert shares or redeem convertible bonds with a very low **, so that the company can maximize its interests.

There are many ways to play convertible bonds, investors can hold the maturity to get interest when playing convertible bonds, they can also frequently buy and sell to get the difference, and at the same time, they can also transfer shares arbitrage, listed companies are also more flexible in dealing with convertible bonds, they can be forced to redeem or let investors convert shares in accordance with the agreement, after convertible bond financing, they pay the lowest cost, the largest profit benefit, the flexibility of convertible bonds is actually a game between investors and listed companies.

1. The reduction of the price of convertible bonds is very beneficial to listed companies

Convertible bonds have the dual characteristics of bonds and **, which is also its flexibility, if we convert convertible bonds into shares, then listed companies can save a lot of interest, the main reason for the downward adjustment of convertible bond stock prices is that investors can carry out arbitrage transactions, everyone converts convertible bonds into shares, and the company does not have to give these people interest, and it is beneficial for the company to reduce the convertible bonds.

Second, raising the convertible bond to equity swap will increase the cost of enterprises

If the convertible bond to equity is raised, investors will be unprofitable or have no way to arbitrage, they will choose to hold, and the company will have to pay their interest when it expires, which is something that the listed company is unwilling to accept, which increases the cost of the company, so they will only reduce the convertible bond to equity**, so that investors can be profitable at the same time, they can also save costs.

3. Risk points of convertible bond investment

Speculation will be risky, and general investors should be cautious about participating.

I haven't understood, because the conversion of bonds cannot be raised, only lowered.

I don't know much about this. It can only be lowered because the purpose of issuing convertible bonds is to raise funds, and the increase is not good for the company, and the cost paid by the company will be higher.

Not much is known, and the reason why it can only be lowered is because it is used for financing.

Adjust up to 3 times.

According to the Administrative Measures for the Issuance and Trading of Corporate Bonds, the conversion price of convertible bonds of listed companies shall not be adjusted more than three times. Specifically, the first adjustment should be made within 6 months after the issuance, the second adjustment should be made within 6 months after the first adjustment, and the third adjustment should be made within 6 months after the second adjustment. If the adjustment is not completed within the specified period, no further adjustment can be made.

At the same time, the adjustment formula for equity conversion ** and the corresponding equity conversion ratio shall also be followed when adjusting.

The adjustment of the stock price of the convertible bonds of listed companies needs to be approved by the relevant regulatory authorities and announced to investors. If, after the adjustment of the conversion of shares**, some of Hu Heng's investors have converted or redeemed the convertible bonds, then these investors should convert or redeem them in accordance with the original conversion of shares**.

The vast majority of investors have participated in the subscription of convertible bonds, and only one ** account is required to complete the subscription of convertible bonds, and for most of the past, positive returns can basically be achieved. For a long time in the past, convertible bonds were regarded as a risk-free arbitrage investment channel. Considering the high cost of issuing new shares, convertible bond subscriptions are indeed very suitable for most investors.

In fact, as a well-known investment tool for investors, convertible bonds are not limited to profit-taking on the first day of listing, but can also have a variety of ways to make profits. Of course, compared with the risk-free arbitrage strategy of buying and selling alone, other convertible bond investment methods also have certain investment risks.

For example, when the convertible bonds of a listed company are about to be issued and subscribed, investors can purchase the underlying bonds in advance and obtain the qualification of convertible bonds. Compared with the pure subscription model, the success rate of this strategy is basically guaranteed, and it has good layout advantages. However, given these shortcomings, it is necessary to pay attention to the volatility of the underlying **.

If the price of the underlying stock is substantially higher after the issuance of the convertible bonds**, the investment income of the convertible bonds may not be able to compensate for the loss of the underlying stock. Another example is that when investors are optimistic about a listed company, they can pay attention to the performance of the convertible bonds corresponding to the listed company from a safety perspective. In fact, if the performance of the underlying ** continues to be active, the performance of the convertible bond** will not be worse.

They even use the rules of convertible bonds to hype up the ** of convertible bonds.

It is worth mentioning that if the ** of the convertible bond is not too high and close to the value of the convertible bond, even if the **** of the convertible bond is not too high in the short term, the investor is safe. In fact, convertible bonds have a trading cycle and a time to pay interest each year. As a result of these years, as long as investors hold these bonds, those who are around par value or even conversion value** will eventually have the opportunity to retain their principal.

In addition, convertible bonds themselves also have the trading advantage of T+0, which is different from the trading rules of the ** market. At the same time, there is no limit to the rise and fall. The market, if the underlying is still active, then it is a relatively prudent investment strategy to participate in convertible bonds to invest in the corresponding underling.

However, convertible bonds are not without their risk, and the greatest trading risk comes from their high speculative nature. When the redemption clause of some convertible bonds is reached, it means that the listed company may adopt an early redemption strategy. Investors who are unable to sell or convert in a timely manner** will incur significant losses on their investment.

If used correctly, this can be achieved through bull-bear investment objectives. However, if you are not familiar with the rules, but blindly chasing up, so far the value of the convertible bond has been overdrawn, there is naturally a huge investment risk, behind the crazy performance of the convertible bond, investors do need to be very vigilant, on the convertible bond ** impact of the redemption clause, should be profit-taking as soon as possible, to minimize unnecessary losses.