Reporter of the Economic Business: Wang Haimin 未分类: Zhao Yun
On the evening of October 17, Guotai Junan issued an announcement stating that the company's board of directors decided not to exercise the right to lower the conversion price of "Guojun convertible bond" this time, and in the next 6 months, if the downward correction clause of the conversion price of "Guojun convertible bond" is triggered again, there will be no downward correction plan.
" Daily Economic News " reporter found that from August 29 to October 17 this year, Guotai Junan A shares stock closed price for 15 trading days for 30 consecutive trading days, which triggered the revised terms of the conversion price of "Guojun Convertible Bond".
According to statistics, in the past two months, in addition to Guotai Junan, Huaan Securities , Caitong Securities , and Changjiang Securities have successively issued announcements claiming that it will not lower the conversion price of its own convertible bonds. Among them, Huaan Securities has decided not to lower the conversion price. These brokerages have basically the same reasons for not revising the stock price, that is, they believe that the recent performance of stock prices "failed to reflect the company's long-term intrinsic value."
Data source: Compiled by reporter Visual China Picture Yang Jing mapped
Guotai Junan's stock price fluctuated recently
From August 29 to October 17, Guotai Junan's A-share stocks closed for 15 trading days less than 80% of the current conversion price, triggering the downward revision of the conversion price of "Guojun Convertible Bond". Currently, the conversion price of "Guojun Convertible Bond" is 17.77 yuan per share. As of the closing on October 18, the company's share price was 13.87 yuan per share.
Regarding the reasons for not lowering the stock price, Guotai Junan stated in the announcement that recently, the company's stock price has fluctuated due to factors such as macroeconomic , market environment, etc., which has not fully reflected the intrinsic value of the company's long-term development. The company's board of directors comprehensively considers the company's fundamentals , stock price trend, market environment and other factors. In order to safeguard the interests of all investors, the 11th extraordinary meeting of the 6th Board of Directors was held on October 17, 2022, and reviewed and passed the "Proposal on Submitting Deliberation Not to Amend the Conversion Price of "Kingjun Convertible Bonds" downward." The company's board of directors decided not to exercise the right to downwardly correct the conversion price of "Guojun Convertible Bonds" this time. At the same time, the announcement pointed out that in the next 6 months from the date of review and approval by the board of directors (i.e., October 18, 2022 to April 17, 2023), if the downward amendment clause of the conversion price of "Guojun Convertible Bond" is triggered again, a downward amendment plan will not be proposed.
According to statistics, as of now, Guotai Junan, Huaan Securities, Caitong Securities, Changjiang Securities, Zhejiang Securities , and China Galaxy 6 securities companies still have convertible bonds that have not matured.
Due to the continued sluggish performance of the securities sector this year, convertible bonds of Guotai Junan, Huaan Securities, Caitong Securities and Changjiang Securities have all triggered the downward revision of the conversion price. However, these four brokerages have recently issued announcements claiming that they will not lower the conversion price of their convertible bonds, among which Huaan Securities has decided not to lower the conversion price.
Regarding the reasons for the failure to lower the stock price, Huaan Securities, Caitong Securities, and Changjiang Securities also have statements similar to the company's stock price "failure to fully reflect the intrinsic value of the company's long-term development." For example, Changjiang Securities issued an announcement on October 14 this year stating that based on its confidence in the company's long-term development potential and intrinsic value, the board of directors decided not to correct the price of convertible bond to equities in downward in order to treat all investors fairly and safeguard the interests of all investors.
In addition, Changjiang Securities, Caitong Securities and Huaan Securities have also firmly stated recently that in the next few months, if the downward correction clause of convertible bond conversion price is touched again, there will be no downward correction plan.
Guojun convertible bond 5.63% convertible
"Daily Economic News" reporter saw on some online platforms that some investors have actually already had expectations for Guotai Junan's possible announcement on the conversion of convertible bonds to stock price adjustments.
Some investors interpreted the conversion price of convertible bonds as: "It means that the company thinks the decline in the stock price is unreasonable, and the conversion price of the company is reasonable, which means that the secondary market has not given the company a reasonable stock price.”
In the view of relevant persons from a bond investment institution, “Usually, when convertible bonds can be converted, the issuer basically encourages conversion of shares. The convertible bond holdings are still a few, and the coupon interest is too low. This time, Guojun convertible bonds will not be reduced to the conversion price, which is a kind of expectation guidance for the underlying stock price. "
, and a convertible bond analyst of a securities firm believes that the impact of no downward conversion of the stock price on the underlying stock is very small.
According to the non-bank team of Haitong Securities , as of October 14 this year, the average price-to-book ratio of the securities industry (not including Oriental Wealth ) was 1.2 times, and the valuation was at a low level.
It is worth mentioning that the public The information shows that the maturity date of Guojun convertible bonds is July 7, 2023. That is to say, Guojun convertible bonds will expire in more than 8 months, and Changzheng convertible bonds (convertible bonds issued by Changjiang Securities) are only more than a year away from the maturity date. As of now, the conversion ratio of Guojun convertible bonds is 5.63%, and the conversion ratio of Changzheng convertible bonds is 14.6%.
If these convertible bonds expire, the convertible bond holders will be higher than the conversion price. If the stock price is not converted, then the securities firm can only passively redeem the issued convertible bonds. According to the above-mentioned convertible bond analysts' calculations, taking Guojun convertible bonds as an example, if the convertible bond holders cannot complete the conversion when they expire in July 2023, the convertible bond holders will be able to cash out 105 yuan in cash each.
However, some analysts believe that buying the above-mentioned convertible bonds in the secondary market must give the seller accrued interest, and the price will definitely be higher than 100 yuan, so the arbitrage space will be very small.
For the convertible bonds of the above-mentioned securities firms, the convertible bond analysts told reporters that these convertible bonds of the securities firms are best able to convert stocks, but it doesn't matter if they don't convert stocks. After completing the redemption of the convertible bonds, these securities firms can completely consider issuing convertible bonds again. "In fact, it is quite easy for securities firms to raise funds. If this time does not work, you can come back next time. "He said.
Daily Economic News
