On that day, the electricity convertible bonds finally closed at 225.04 yuan. Even without share transfer, compared with the subscription price of 100 yuan/piece in February 2006, the subscriber obtained a risk-free income of more than 120%.
Strangely, three fund companies hold electrified convertible bonds, but they have made an own goal.
The final result shows that the three fund companies did not sell or convert their shares on the last trading day, and five funds under the three fund companies were redeemed by listed companies, resulting in a total loss of fund assets of 22 million yuan.
On September 5th, the Fund Management Department of the China Securities Regulatory Commission officially issued a document on this matter to the fund companies and custodian banks, saying that this matter "reflects issues worthy of attention and deep thought".
Self-swinging oolong
"Our work is enough. During the one-month period from July 13 to August13, we issued eight announcements about the redemption of' electrified convertible bonds'. "A person from the securities affairs department of Shanghai Electric Power (Love Shares, Quotes, Information) (60002 1, SH) said that the convertible bonds were not sold or transferred.
Du, a researcher on convertible bonds of BOC International, told reporters that convertible bonds are an investment product that can be attacked and retreated. "If the market is not good, investors can hold bonds. Although the interest rate is not high, they will not suffer a sharp drop in the face value of bonds; If the market is good and the company's share price rises, investors can convert it into stocks to obtain income in the secondary market and sell bonds in the secondary market. "
Benefiting from the booming market, the electrified convertible bonds listed in June 65438+February 65438+February 2006 brought considerable benefits to investors.
As of August 14, 2007, the closing price of power convertible bonds was 225.04 yuan, and compared with the subscription price of 16 February 100 yuan/piece, the subscriber obtained a risk-free income of more than 120%.
"More investors will choose to convert shares." Du Dui said: According to the agreement of the company, the conversion price of Shanghai Electric Power Company's convertible bonds is 4.43 yuan/share, while the closing price of Shanghai Electric Power Company in August is 10. 12 yuan/share. Between buying and selling, the stock conversion income is also above 120%.
If we miss this last point, convertible bonds will be redeemed by listed companies. According to relevant regulations, the company will redeem all unconverted electrified convertible bonds at the price of 102.76 yuan/piece. 102 yuan to 225 yuan, which is really a long distance.
According to the data provided by Shanghai Branch of China Securities Depository and Clearing Corporation, as of August 14, 2007, 972,876,942.64 yuan of "electrified convertible bonds" had been converted into A shares of the company, totaling 21961048 shares, accounting for the beginning of "electrified convertible bonds".
The amount of convertible bonds redeemed by Shangdian Power Company is 27 1 190, and the principal is 27 1 19000 yuan, accounting for only 2.7 1% of the total issued amount of/kloc-0.00 billion yuan.
Unfortunately, in this redemption share of only 2.7 1%, five funds under the three fund management companies are impressively listed, and the total loss of their fund assets is as high as 22 million yuan.
Management concern
When the "electricity-to-debt" incident came out, four investors were amazed.
On September 5th, the Fund Management Department of CSRC issued the Notice on the Failure of Some Fund Management Companies to Operate Power Convertible Bonds on Time to Fund Companies and Custody Banks.
The circular pointed out that this incident is one of the major cases in which managers failed to perform their duties diligently and improperly in recent years, reflecting that the relevant investment managers have weak sense of responsibility and risk control ability, and their professional quality and skills are unqualified. At the same time, at the time of the incident, some staff of the custodian bank were not responsible enough to meet the requirements of the fund custody business.
A fund manager who did not want to be named said that convertible bonds, as a highly professional investment target, occasionally happen that investment institutions or listed companies violate relevant regulations. However, from the past, it was mostly because investors were not professional enough. This time, it was unexpected that a fund company famous for its professionalism made such a low-level mistake.
The deputy general manager and investment director of a large fund company told the reporter that the investment risk control of fund companies generally has to go through three barriers. "Researchers in related industries should always pay attention to the company and remind fund managers of relevant trends at any time. Trading room staff should remind them of recent transactions, and fund managers should keep track of their investment goals at any time. "
In addition, the company also has special risk control personnel to monitor the investment varieties.
The bond swap incident exposed the internal control of affiliated companies in name only.
A person close to the management said that in addition to the responsibility of the relevant personnel, the rapid expansion of the fund scale made the fund industry face a talent bottleneck, which was an important reason for the incident. "Some companies' researchers are responsible for multiple industries, and their physical and mental strength will be overdrawn." He pointed out that at the level of system construction, the risk control process design of some fund companies is also unreasonable.
Risks do not only appear inside fund companies.
After the incident of electrified convertible bonds, the regular supervision of custodian banks has also attracted the attention of the regulatory authorities. In the notice, the CSRC requires banks to "increase system investment with the increase of custody business, and timely supplement knowledgeable and responsible business personnel. In principle, each accountant cannot operate more than four funds. "
"Although the three companies made mistakes in the operation of electricity-to-debt swaps, we did not have systemic risks in risk control." The management stressed that the management quickly found the existing problems and handled them properly, which did not bring substantial losses to the fund holders.
The above-mentioned people told reporters that the cause and details of this incident will be disclosed in future fund statements.
Fund company pays the bill
After the power-on convertible bond incident, the three fund companies incurred related losses, which did not affect the calculation of the fund's net value and the purchase and redemption on that day.
According to the circular, the three fund companies have used risk reserves to make up for all losses of fund property, actively rectified potential loopholes, and seriously dealt with relevant responsible persons.
According to the Notice on Issues Concerning the Withdrawal of Risk Reserves by Fund Management Companies issued on August 14, 2006, fund companies withdraw risk reserves from the fund management fee income every month, and the withdrawal ratio is not less than 5% of the fund management fee income. If the balance of risk reserve reaches the net asset value of the fund 1%, it may not be withdrawn.
Risk reserve is used to compensate fund property or fund share holders for losses caused by fund companies' violation of laws and regulations, fund contracts, technical failures and operational errors.
However, many people in the industry are skeptical about the statement that the risk reserve is paid in full. The inspector general of a fund company believes that the risk reserve drawn from 2006 is not enough to make up for this loss. "Most of the compensation is the company's own capital.