First, the transformation value is low, and it is still possible to break it.

Because of the low conversion value, there is no possibility of correction, and the stock crash may still be broken. However, at present, the pre-tax annualized rate of return (ytm) of Shanghai Bank's convertible bonds is about 3.30%, and the debt base is well guaranteed. Even if it is broken, its range is extremely limited.

Second, the allocation demand of convertible bond funds is helpful to stabilize the price of convertible bonds.

Due to the large scale and high rating of convertible bonds issued by Shanghai Bank, both passive convertible bond ETF and active convertible bond fund will consider allocation. Therefore, after short-term selling in the market, the convertible bond price of Shanghai Bank will tend to be stable and close to a reasonable price.

Third, the allocation value of individual investors is not high

With the total collapse of convertible bonds in the early stage, many convertible bonds were wrongly killed, especially some convertible bonds with acceptable texture, low price and great fluctuation showed obvious allocation value. In contrast, as a representative of inert bonds, the price fluctuation is insufficient and the cost performance is not outstanding.

Extended data:

Judging from the company's texture, credit rating and issuance scale, the most comparable ones are CITIC Convertible Bonds, Pudong Convertible Bonds and Yin Su Convertible Bonds.

However, the bond conversion of Shanghai Bank has several shortcomings:

First, the credit rating is actually weaker than CITIC Convertible Bonds and Pudong Convertible Bonds;

Second, because the listing time is too short, the pure debt value of convertible bonds is lower than the other three, which is very important;

Third, the implied volatility of stocks is too low, which is also a very important factor.