But whether to sell or not depends on the market. If the stock market is good and stocks rise, the convertible bonds will rise by about 20% on the first day of listing, and the convertible bonds of 10 will be obtained, earning 200 yuan. If the stock market continues to rise, convertible bonds will continue to rise.
For the successful bidder, if it is conservative, it is most appropriate to sell on the first day of listing, because it can lock in profits. If you don't sell, the stock market will fall, convertible bonds will fall, and the income will shrink. Even when the market is bad, convertible bonds will fall below 100 yuan, resulting in losses.
Matters needing special attention in convertible bonds
It should be noted that convertible bonds have a trigger redemption mechanism. If the closing price of the underlying stock is not lower than 130% (including 130%) of the current conversion price for at least 20 consecutive trading days, the company has the right to redeem all or part of the unconverted convertible bonds at the redemption price of 103% (including the current interest-bearing annual interest).
At this point, the listed company will issue an announcement to remind investors to convert shares. At this time, investors can choose to convert convertible bonds into shares of listed companies or sell convertible bonds. However, if they don't convert their shares or sell them, listed companies will be forced to redeem their shares. For example, the convertible bonds of 120 yuan will make investors lose money. Therefore, if you hold convertible bonds, you need to pay attention to the announcement of listed companies in time to avoid eating dumb losses.
The above information comes from Baidu Encyclopedia-Convertible Bonds.