There is no price limit for convertible bonds trading, and T+0 trading is implemented. However, in order to reduce market volatility and control risks, Shanghai Stock Exchange has established a fuse mechanism for convertible bond trading. However, according to the regulations of Shenzhen Stock Exchange, the quotation range of call auction bonds on the first day of listing must be within 30% of the issue price. This is also the reason why many convertible bonds in Shenzhen Stock Exchange started at the lowest price 130 yuan and never traded at this price again.
Simply put, convertible bonds are a kind of bonds, that is, they can be converted into shares of bond issuing companies, and the coupon rate is usually lower. In essence, convertible bonds are an option attached to the issued corporate bonds, allowing buyers to convert their purchased bonds into shares of designated companies within a specified time range.
Converting bonds:
Convertible bonds are called convertible bonds. In the current domestic market, it refers to bonds that can be converted into company stocks under certain conditions. Convertible bonds have the dual attributes of creditor's rights and options, and their holders can choose to hold bonds until maturity to obtain the company's principal and interest; You can also choose to convert it into stocks within the agreed time and enjoy dividends or capital appreciation.
Convertible bonds are called convertible bonds. In the current domestic market, it refers to bonds that can be converted into company stocks under certain conditions. Convertible bonds have the dual attributes of creditor's rights and options, and their holders can choose to hold bonds until maturity to obtain the company's principal and interest; You can also choose to convert it into stocks within the agreed time and enjoy dividends or capital appreciation.
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. It can be said that convertible bonds are stocks that guarantee the principal for investors.