The signs of recovery in the convertible bond market are gradually emerging

Release date 2024-12-09 14:00:42 Reading 1

　　used excavatorThe signs of recovery in the convertible bond market are gradually emerging, and fundraising is accelerating to adapt to the long-term development of enterprisesused excavator used excavator used excavator used excavator used excavator used excavator used excavator

　　Since the beginning of this year, although the overall supply of the convertible bond market has been weak, there have been signs of recovery in the convertible bond market since the market quickly recovered at the end of September. According to Wind data (source of full text data), in terms of the primary market, the issuance scale of convertible bonds in October was nearly 10 billion yuan, which is currently the highest monthly issuance record of the year; In terms of the secondary market, the share of convertible bond ETFs increased by more than 400 million in October, with a net inflow of over 5.3 billion yuan.used excavator used excavator

　　During an interview with Securities Daily, analyst Zhai Tiantian from the R&D department of Dongfang Jincheng stated that on the one hand, since September 24th, policies to boost the capital market and a package of incremental policies have significantly improved market sentiment. The rapid recovery of the equity market has led to a large area of positive stock prices rising, which has become a key force driving market recovery; On the other hand, a package of incremental policies has released a strong signal of stable growth, significantly improving the market's expectations for the macroeconomic situation in the fourth quarter, which is favorable for the bottom repair of low-priced convertible bonds. At the same time, the significant rise in low-priced underlying stocks has also eased the risk of convertible bonds delisting along with underlying stock trading, and the prices and valuations of low-priced convertible bonds have significantly recovered.

　　The issuance scale and project progress are both showing a positive trendused excavator used excavator used excavator used excavator

　　Since October, signs of recovery in the convertible bond market have gradually emerged. From the perspective of the primary market, both the issuance scale and project progress have shown a positive trend.used excavator used excavator used excavator used excavator used excavator

　　Specifically, in October, a total of 7 new convertible bond products were launched in the convertible bond market. Although the quantity decreased compared to August (the largest monthly issuance), the monthly issuance scale reached a new high for the year. The data shows that the total issuance scale of the seven convertible bonds mentioned above reached 9.551 billion yuan, accounting for 30.24% of the total issuance scale during the year. Among them, the largest issuance project of the year - Hebang Convertible Bonds, with an issuance scale of 4.6 billion yuan.used excavator used excavator used excavator used excavator

　　Meanwhile, in October, 12 listed companies updated their convertible bond issuance plans (second only to September), with a total planned issuance scale of 28.089 billion yuan. Among them, the issuance plan of Leading Intelligence Manufacturing has been approved for registration, Nanjing Pharmaceutical and Yinbang Shares have been approved by the Shanghai Municipal Party Committee, and related projects are about to be listed; Six other companies' contingency plans have been accepted by the exchange; The plans of the remaining three companies are still in the internal review stage.used excavator used excavator used excavator used excavator

　　Zhai Tiantian told Securities Daily reporters that since the second half of the year, the regulatory review of convertible bonds has accelerated, and the number of pre approved plans accepted by the issuance review committee has increased month by month. The pace of convertible bond supply has also accelerated, and it is expected that the continuous promotion of existing pre approved plans will lead to an increase in convertible bond issuance in the short term. With the improvement of macroeconomic and industry prosperity in the future, coupled with the continuous effectiveness of policies such as the "Eight Measures for Science and Technology" and the "Six Measures for Mergers and Acquisitions", it is expected to bring further volume increase in targeted convertible bond issuance.used excavator

　　In addition, from the perspective of the secondary market, the convertible bond market has also shown a clear trend of recovery. Data shows that in October, the shares of convertible bond ETFs increased by 454 million to 2.865 billion, and the net asset value increased by 5.332 billion yuan to 31.965 billion yuan.used excavator

　　Zhang Qi, a senior researcher at Zhongzheng Pengyuan, explained to a reporter from Securities Daily that the recent convertible bond market is mainly driven by the sharp rise in the stock market. The expectation of incremental policies has strengthened investors' confidence in the economic recovery and stock market. Although the market has rebounded after the National Day holiday, investors still have a positive outlook on the future market. In addition, stocks such as theme stocks and small and medium-sized bills have been relatively active and rising recently, driving the recovery of convertible bond market transactions.used excavator used excavator used

　　Strict supervision of fundraising use to ensure clarity of investment directionused excavator used excavator used excavator used excavator

　　In fact, convertible bonds, as a type of corporate refinancing tool that combines bond and stock characteristics, can provide flexible financing channels for enterprises and have always been favored by private enterprises.used excavator used excavator used excavator

　　Data shows that as of the date of issuance announcement this year, a total of 36 convertible bonds have been listed, of which 34 are issued by private enterprises, accounting for 94.44%, an increase of 7.45 percentage points compared to the same period last year's 86.99%.used excavator used excavator

　　In Zhai Tiantian's view, convertible bonds have a significantly lower coupon rate than credit bonds due to the addition of call options on the underlying stock. They only set a compensation rate in the last year, which helps to reduce the financial costs of convertible bond issuers; Moreover, the issuance period of convertible bonds is generally six years, which can better match the long-term funding needs of enterprises; At the same time, when convertible bonds have special clauses such as downgrading and early redemption, issuers can reduce the actual repayment pressure of convertible bond redemption by encouraging investors to execute bond to stock swaps when the convertible bonds are approaching maturity or early redemption.used excavator used excavator used excavator

　　In addition to the advantageous characteristics of convertible bonds for enterprise development, their strict restrictions on the use of raised funds also make them an effective tool for private enterprises to regulate their own fund use and improve corporate governance to a certain extent.used excavator used excavator

　　It is reported that there are strict regulatory restrictions on the use of funds raised from convertible bonds, which means that "the proportion of funds raised for supplementing working capital and repaying debts shall not exceed 30% of the total amount. For enterprises with light assets and high R&D investment characteristics, if the proportion of funds raised for supplementing working capital and repaying debts exceeds the above proportion, its rationality should be fully demonstrated, and the excess should be used for R&D investment related to the main business in principle.used excavator used excavator used excavator used excavator

　　Therefore, whether from the perspective of the flow of funds from issued projects or key areas of regulatory review, the funds for convertible bond projects are constantly flowing in a direction that is in line with the company's long-term development strategy. For example, on October 29th, the official website of the Shenzhen Stock Exchange announced that it had issued two rounds of inquiries regarding a company's plan to issue convertible bonds to unspecified targets. The company was requested to provide detailed information on the latest progress of customer verification and designated locations for the project, as well as clarify whether the verification period matches the completion time of the fundraising project, and whether it will have a significant adverse impact on capacity digestion.used excavator used excavator

　　used excavatorZhai Tiantian stated that the issuance plan of convertible bonds is generally closely related to the issuer's long-term investment plans such as expanding production or updating equipment. This to some extent ensures the rational use and clarity of the investment direction of the raised funds.used excavator used excavator

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The signs of recovery in the convertible bond market are gradually emerging

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