What authority should be opened for convertible bonds, and how to open an account for convertible bo

According to the relevant regulations of the Shanghai and Shenzhen Stock Exchanges, from October 26, 2020, ordinary investors who have not signed the "Convertible Corporate Bonds Issued to Unspecified Objects" cannot subscribe for or ** convertible corporate bonds issued to unspecified objects (hereinafter referred to as convertible bonds), and investors who already hold relevant convertible bonds can choose to continue to hold, convert to shares, sell back, or sell.

To put it simply, from October 26, 2020, you must first open the trading authority of convertible bonds, otherwise you cannot participate in the new or ** convertible bonds, and investors who have previously held convertible bonds can continue to exercise relevant rights.

It's okay to open it after October 26, but in order not to affect everyone's new play, it is recommended that you open it early.

The sudden request for permission is because in the first half of this year, the popularity of convertible bonds has attracted the attention of many investors, convertible bonds allow T+0, no limit on the rise and fall of the trading characteristics to provide speculation for the capital, the uncertainty of the market increases, some investors who do not understand the relevant rules and trading risks of convertible bonds are facing greater investment risks.

1. The subscription of convertible bonds must open the trading authority of the Science and Technology Innovation Board.

2. Convertible bonds are bonds that can be converted into **, and can be converted into the GEM company ** after a certain period of time.

3. No matter how many accounts you use to subscribe for the same new bond, only the first subscription is valid in the end. Everything else is void.

4. However, it is not impossible to achieve multi-account playing, many people will use the accounts of family and friends to participate in the new play, and some people even have more than a dozen different names.

If you want to know more about convertible bonds, we recommend consulting IFC**. IFC** currently holds Guojin ** Co., Ltd., IFC Dingxing Investment, IFC Innovation Investment, IFC State Street Investment Services, and IFC Financial Holdings (Hong Kong). Up to now, the company has 8 branches and 68 first-class business departments, distributed in important central cities in 23 provinces (municipalities and autonomous regions) across the country, with strong strength and trustworthiness.

There is no threshold for convertible bond subscription, as long as there is a ** account, you can subscribe for convertible bonds.

2. Investment is risky, and you need to be cautious when entering the market.

What does it mean to open convertible bond permissions.

There are two ways to open an account for convertible bonds, namely online account opening and offline account opening. To open an account for convertible bonds, it is recommended to have 6 special services: 7x24 account opening service; Account-specific financial management solutions; Accurate matching services for wealth management products; Higher Quality** Consulting; Fast Transaction & Service; Richer user engagement services.

Offline account opening: investors bring their ID cards, bank cards (debit cards) and mobile phones to the selected ** company to open an account; Online account opening: Users only need to **select** the company's official platform, prepare their ID cards and bank cards, and then fill in the information according to the instructions of the account opening process to complete the quick account opening.

**The process of opening an account is roughly like this, investors need to fill in the information, set the transaction payment password, make a return access volume, submit the information, verify the review, SMS Qingchen notification, establish a third party, conduct risk monitoring, and wait until all the steps are completed and pass the review of Xiangyu Liquid Zen Pass, that is, the official account opening is successful.

If you want to learn more about convertible bonds, it is recommended to consult the National Finance Association**. IFC** has always adhered to the principle of the supremacy of the interests of customers, thinking from the customer's standpoint, serving customers wholeheartedly, continuing to create value for customers, solving customers' problems, and making customers worry-free.

Operating environment: Brand model: OnePlus 10pro

3. Click on the convertible bond authority to enter and open it.

4. Select "Ordinary Account Convertible Bond Authority" as the account type.

5. Both Shanghai and Shenzhen stocks click the button, open it, and then click Next.

6. Click Next may prompt "Your risk assessment has expired or the risk level does not meet the requirements of business management" may appear as shown in the figure, at this time, it may really be caused by the expiration of your risk assessment, just enter Step 3 to do a new assessment, of course, it may also be your risk level.

The result is robustness, and opening convertible bond access requires aggressiveness, which requires you to re-evaluate.

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 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.

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

1. 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.

2. 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.

3. 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, he can continue to hold the bond until the repayment of the principal and interest is collected at the end of the period, or the banquet is realized in the circulating 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.

1. There is no threshold for the opening of the convertible bond trading authority, and investors can open it directly through the ** trading software, and the specific operation steps are as follows:

On the business processing page in the trading software, click the option of "Convertible Bond Trading Permission Activation";

Complete a knowledge assessment;

Signed 2 agreements, namely "xx** Financial Products (Services) Suitability Risk Warning and Customer Confirmation" and "Investment Risk Disclosure of Convertible Corporate Bonds Issued to Unspecified Objects";

After reading and agreeing to the above agreement, click Submit, and the activation is successful.

In addition to online activation, customers can bring their identity documents to the counter of the sales department.

Since October 26, 2020, if you want to trade convertible bonds, you must open the trading authority of convertible bonds, and sign a risk warning letter, otherwise you cannot subscribe and trade convertible bonds. However, if you are an investor who already holds convertible bonds, you can choose to continue to hold, convert into shares, or sell them.

2. Different from the T+1 transaction of **, the convertible bond implements T+0 trading, that is, the ** can be sold on the same day, and the liquidity is very good.

Convertible bonds are not limited by luck, so there may be very large fluctuations in the convertible bonds on the same day, so the risk is relatively high, however, the application of convertible bonds must comply with the provisions of the "cage".

3. In addition, the ** of convertible bonds is positively correlated with the underlying stock.

Because the underlying stock has a limit on the day, generally speaking, the volatility of the convertible bond should not be very large. If there is a large ** volatility, the market needs to "calm down". Trading is suspended up to two times a day.

Because there is no limit on the rise and fall of the convertible bond, and the convertible bond is a T+0 transaction, investors need to be wary of the possibility of a sharp decline in the high premium convertible bond, and investing in convertible bonds has the risk of stock price fluctuations.

From June 18, 2022, the new rules for convertible bond sheds will be released:

In the lower column of the account opening business, look for the "Convertible Bond Agreement Signing" as early as possible.

According to the new issuance rules, starting from June 18, 2022, individual investors participating in the subscription and trading of convertible bonds issued to unspecified targets shall meet the following conditions at the same time:

1) In the 20 trading days prior to the opening of the application authority, the assets in the ** account and the capital account shall not be less than RMB 100,000 per day (excluding the funds and ** invested by the investor through margin trading and securities lending);

2) Participated in ** trading for more than 24 months.

However, this is only for new users, and old customers who can play new and trade before do not need to re-open, but have not opened a chain stimulus through the bond conversion account, and then need to be implemented in accordance with the new regulations on bond conversion.

**、To subscribe for convertible bonds issued to unspecified objects, the Bureau of the Blind needs to sign a risk disclosure letter and open relevant authority (excluding allotment of bonds), and investors who have held relevant convertible bonds can choose to continue to hold, convert shares, sell back or sell. To open the convertible bond authority, the following conditions must also be met:

1. In the 20 trading days prior to the opening of the application authority, the average daily asset transfer in the ** account and capital account shall not be less than RMB 100,000 (excluding the funds and ** invested in margin financing and securities lending);

2. Participated in ** trading for more than 24 months.

Customers who meet the conditions can open the convertible bond trading authority to conduct relevant transactions.

To do a good job in the transaction of convertible bonds, you need to understand convertible bonds**:

1.Bonds: Convertible bonds are affected by the supply and demand of the bond market, generally speaking, when the supply of the market is greater than the demand, the convertible bonds will be, and conversely, when the market demand is greater than the supply, the convertible bonds will be.

2.Market interest rates: When market interest rates rise, convertible bonds** fall because investors are more inclined to buy new bonds if the interest rate on existing bonds is lower than the market rate.

3.Performance of the issuing company: The performance of the convertible bond is also affected by the performance of the issuing company. If the company's performance is good, the stock price will be **, and the convertible bond ** will also**; Conversely, if the company's performance is not good, the stock price will be **, and the convertible bonds **will also**.

4.Conversion value: The ** of convertible bonds is also affected by the conversion value. Convertible bonds are boosted when the conversion value of the convertible bond is higher than the current market value, and vice versa.

In short, the ** of convertible bonds is not only affected by market supply and demand and market interest rates, but also by the performance of the issuing company and the conversion value of the bond itself. Investors need to consider these factors comprehensively to analyze the convertible bonds**. Guotai Junan Co., Ltd. is mainly engaged in wealth management business, investment banking business, institutional and trading business, investment management business and international business.

The company's predecessors, Guotai and Junan, were one of the largest, strongest and most influential companies in China at that time. Since the establishment of the merger, the company has adhered to the existing fine tradition, steady operation, continuous innovation, and comprehensive competitiveness has always been at the forefront of the industry. In recent years, the company has insisted on promoting innovation and transformation, and its comprehensive strength has been steadily improved, and its competitive advantage has been further improved.

**Account opening is preferred, Guotai Junan**].