Convertible bonds are corporate bonds issued by listed companies to unspecified objects and can be converted into shares according to agreed conditions within a certain period of time. Therefore, as a mixed financing tool with multiple attributes, investors should pay special attention to its characteristics such as bonds, equity and convertibility.

Two. Convertible bond trading rules

1 and 1 are different from T+ 1 trading of stocks. Convertible bonds are T+0 transactions, that is, they can be sold on the day they are bought, with good liquidity.

2. There is no price limit for convertible bonds, so the price of convertible bonds may fluctuate greatly on the same day, so the risk is relatively high. However, the declared price of convertible bonds must comply with the provisions of the "price cage".

3. The price of convertible bonds is positively related to the stock price, because the stock price is limited by the daily limit, so generally speaking, the price of convertible bonds should not fluctuate greatly on the same day. If there is a big price fluctuation, the market needs to be "calm". Suspension is limited to two times a day.

Third, be alert to the risks of convertible bonds trading.

Since there is no price limit and convertible bonds are T+0 transactions, investors need to be alert to the possible sharp price drop of high premium convertible bonds, and there is a risk of stock price fluctuation when investing in convertible bonds.

When the stock price falls below the conversion price, convertible bond investors will be forced to become bond investors. The interest rate of convertible bonds is generally lower than that of bonds of the same grade, and investors will face interest losses.

In addition, convertible bonds also face the risk of early redemption. Many convertible bonds require issuers to redeem bonds at a certain price after they are issued for a period of time, but early redemption limits investors' high returns.

note:

1. When the value of the converted shares exceeds the value of the converted bonds, investors can consider converting them into shares and selling them at a profit later.

2. Generally speaking, the number of declared convertible bonds can exceed the number of convertible bonds actually held.

3. Investors can entrust a large share conversion in advance, and then decide whether to buy. Avoid losses caused by late operation near the close. 1. What is convertible bond?

Convertible bonds are corporate bonds issued by listed companies to unspecified objects and can be converted into shares according to agreed conditions within a certain period of time. Therefore, as a mixed financing tool with multiple attributes, investors should pay special attention to its characteristics such as bonds, equity and convertibility.