Separable tradable convertible bonds belong to the scope of corporate bonds with warrants (Bond with Warrants, or Warrant Bond). Corporate bonds with warrants refer to corporate bonds with warrants attached, and the holders are legally entitled to subscribe for company stocks at an agreed price (execution price) within a certain period, which is a product combination of bonds plus warrants.

Convertible bonds are bonds that the bondholder can convert into the company's common stock at a price agreed at the time of issuance. If the bondholder does not want to convert, he can continue to hold the bond until the repayment period expires to receive the principal and interest, or sell it in the circulation market for cash. If the holder is optimistic about the appreciation potential of the bond-issuing company's stock, he can exercise the conversion right after the grace period and convert the bond into stocks at the predetermined conversion price, and the bond-issuing company cannot refuse. The bond interest rate is generally lower than the bond interest rate of ordinary companies. The issuance of convertible bonds by companies can reduce financing costs. Convertible bond holders also have the right to sell the bonds back to the issuer under certain conditions, and the issuer has the right to compulsorily redeem the bonds under certain conditions.

If you need to know the stock market, you can log in to the Ping An Pocket Bank APP-Finance-Stock Futures-Securities Service to query the information.

Warm reminder:

①The above explanation is for reference only and does not make any suggestions. Relevant products are issued and managed by the corresponding platform or company, and our bank does not bear the responsibility for the investment, redemption and risk management of the products;

② Entering the market is risky, so investment needs to be cautious. Before making any investment, you should ensure that you fully understand the investment nature of the product and the risks involved. After understanding and carefully evaluating the product, you can make your own judgment on whether to participate in the transaction.

Response time: 2021-12-30. For the latest business changes, please refer to the official website of Ping An Bank.