Convertible bonds are traded by T+0, which can be sold on the day of purchase and traded in real time according to the market price. There is no price limit, but there is a temporary suspension mechanism. When the price of convertible bonds rises or falls by 20%, it will be suspended for 30 minutes, and when the price rises or falls by 30%, it will be suspended until 14:57. If the suspension time of convertible bonds exceeds 14: 57, it is 14.
Convertible bonds are bonds that bondholders convert bonds into common shares of the company at the agreed price at the time of issuance. The characteristics of convertible bonds are creditor's rights, equity and convertibility. The interest rate of this bond is generally lower than that of ordinary companies, and its holder also has the right to sell the bond back to the issuer under certain conditions, and the issuer also has the right to redeem the bond under certain conditions.
Basic income of convertible bonds: when convertible bonds lose their conversion significance, as a low-interest bond, they still have fixed interest income. If the share conversion is realized, investors will get the proceeds from selling ordinary shares or get dividend income.
The biggest advantage of convertible bonds: convertible bonds have both the attributes of stocks and bonds, and combine the long-term growth potential of stocks with the advantages of security and fixed income of bonds. In addition, convertible bonds have priority over stocks.
Convertible bond conversion formula: number of convertible bonds (shares) = number of convertible bonds * 100/ initial conversion price. When the company sends shares, issues new shares, issues shares or lowers the conversion price, it can adjust the initial conversion price. If the balance of the convertible bonds is not enough to convert 1 share, the Company will pay in cash through the registration and settlement company at the time of T+ 1 day delivery.