During the convertible bond trading, if the closing price is higher than the current conversion price 130% for 30 consecutive trading days, the compulsory redemption condition will be triggered. The occurrence of forced redemption has little effect on the stock price because the quantity is limited. Only when the compulsory redemption condition is triggered will it have an impact on investors holding convertible bonds.

Matters needing attention in investing in convertible bonds

Stock price trend: It should be noted that the fluctuation of convertible bonds is closely related to the fluctuation of stock price, and the income of convertible bonds depends largely on investors' prediction of stock price.

Convertible bond interest rate: The lower the interest rate, the better the credit status of listed companies behind convertible bonds, and the better the fundamental status of convertible bonds.

Term: The longer the term, the greater the possibility of stock appreciation and the greater the investment value of convertible bonds.