Travel Fund Push Convertible Bond Market Staged A Crazy Market, The Exchange Quickly Feedback Focus On The Object.

The market for convertible bonds is still crazy.

In March 20th, there were a few more convertible bonds such as the Kay fat convertible bond and the British Union convertible bond. There was a sharp rise in the number of convertible bonds, which rose by more than 30% on a single day. On the other side, there were also a number of large companies falling, such as the decline of new day debt, Tong Guang convertible bonds and Thai Jing convertible bonds, all over 20%.

It is worth noting that Tae Jing debt has just completed a 38% jump in March 19th, that is to say, on the two trading day, the price of bungee jumping appeared in the company's share price.

In fact, the frenzied market of convertible bonds originated in the A market in February. Some investors can not buy stocks that are skyrocketing, and buy back convertible bonds with convertible terms. In the short term, a large number of investors will be able to activate the atmosphere of the convertible bond market.

If the upswing of the convertible bond market is related to the trend of the positive stock market, it is the projection of the positive stock in the convertible bond market. Then, the convertible bond market has been separated from the positive stock and the fundamentals for a period of time, forming an independent market.

Under such circumstances, some market investors are more likely to be able to quote convertible bonds for nearly a period of time. The market has been ups and downs, and the warrant market has been wildly hyped, and behind the dramatic rise and fall of the convertible bonds is not so promising. In twenty-first Century, the economic news reporter found that there was a phenomenon of hot money behind the hot.

Off speculation

The rollercoaster boom of the convertible bond market has been going on for several weeks. This situation is not only on individual convertible bonds, but in the market of convertible bonds. Such as Tai Chi convertible bonds which collapsed in March 20th, the market has not experienced such a big fluctuation before.

Convertible bonds with fluctuating market share also have similar characteristics, namely hot topics, small size, light plates, and A shares, which are also the targets of short-term speculation.

The price of convertible bonds is also accompanied by high turnover and turnover. In March 20th, a number of convertible bonds with sharp rise and fall also had huge trading volume, for example, the largest increase in the day was about 4 billion of the trading volume of the Kay fat convertible bonds, while 7 billion 800 million of the 24% of the convertible bonds were convertible.

It is worth noting that on March 19th, the biggest trading volume was through optical transports, involving the concept of ultra-high voltage, and the turnover reached 8 billion 790 million. This turnover is also in the first position in the A share market.

"The T+0 of the convertible bonds and the restriction of no rise or fall have stimulated the enthusiasm of short-term funds. Investors are looking at such a trading mechanism, making quick money and closing opportunities within the day, so the turnover rate is high and the volume of transactions is large. Ze Hao investment partner Cao Gang told reporters.

The nature of convertible bonds determines that its inflation is positively related to positive stocks. In recent years, convertible bonds, which are volatile, are also performing well. But this week, some signals made the market find that the hype of convertible bonds has gone to a more exaggerated stage, that is, it has begun to break away from the stock market and become self-contained.

Take Henghe mould in March 19th as an example, the stock market in Henghe increased by only 3.57%, and the turnover was 28 million 460 thousand, but its convertible bond jumped 72.04%, turnover 876 million and turnover rate 23 times.

A private equity fund official said: "some convertible bonds have broken away from the positive stocks, and more are emotional games. Basically short term operation, selling arbitrage within 1-2 days. "

Another signal from the positive stock market is the high premium of the equity swap. With the recent hot market, the premium premium of some convertible bonds is high. For example, the premium rate of convertible bond conversion is 251.07%, the premium rate of sub drug convertible bond conversion is 182.78%, and the premium rate of Hong Tao convertible bond conversion is 170.63%.

A fixed income analyst at Guotai Junan said, "we see that some stocks have not yet been trading, but the price increase of convertible bonds is far more than that of positive stocks. The premium rate of equity swap has risen to a very exaggerated level. This is a very unreasonable phenomenon. The main funds behind the T+0 transaction are hot money and individuals. It is difficult for them to take part in the market because of strict restrictions on warehousing standards and trading rules.

Some market participants say that the Current hype of convertible bonds and its departure from the fundamentals and the severe premium rate remind everyone of the previous warrant market.

"I don't know how many people remember the warrant market for 2006-2007 years. In big bull market, most of the warrants are obviously a piece of waste paper, but there are so many people who hyped up at high prices. The most incomprehensible one is the doomsday warrant, and the warrant with a closing price of 0 is actually bought at a price of more than a few cents. Today's convertible bonds are a bit of a warrant. A market participant with long-term concern about convertible bonds said.

Idle money looms

As mentioned by the foregoing people, hot money plays a central role in the market of convertible bonds.

"Compared with A shares, hot money has found a market which is easier to be hyped. Before that, the convertible bond market is small in number of individual investors and mainly in institutions, so it is difficult to make a big fluctuation. But with the popularity of convertible bonds, individual investors are increasing, and they have the soil of the hot money market. At the same time, with the further escalation of the market, more and more retail investors are involved in the speculation of convertible bonds. In action. Cao Gang told reporters.

In twenty-first Century, the economic news reporter found that there were a lot of articles or advertisements that induce investors to conduct convertible bonds in the Internet and WeChat end recently. High yield and T+0 are two core publicity elements, and retail investors are easily induced.

In addition, some of the hot money have more means, such as hot money or first convertible bonds, and then use capital to pull up the stock market.

A small private equity fund official said: "the most common manipulation of idle capital is to buy its corresponding convertible bonds before manipulating the stock market, and then raise the stock price with capital, and the convertible bonds will basically follow the positive stocks, and then they will be able to throw profits. However, usually the stock is chosen as the target of small cap stocks, so the cost of capital raising is not too high.

A brokerage group in Shanghai also said: "convertible bonds are derivatives with equity debt, and the fundamentals of the company are the basis of research. At the same time, 1-2 years after the listing of convertible bonds, investors can make use of the lower clause and the terms of sale. But now everyone has started to make a casino here, and get in and out quickly.

The crazy market also attracted the attention of regulators. In March 20th, the Shanghai and Shenzhen Stock Exchange issued the latest regulatory measures for convertible bonds trading.

The Shanghai Stock Exchange said that the transaction of convertible bonds could be included in key monitoring, and self regulatory should be implemented in a timely manner in order to influence the normal trading order of the market and mislead investors' trading decisions. The Shenzhen Stock Exchange indicated that the new day transfer bonds, Henghe convertible bonds and moulded convertible bonds, which are unusual in recent decline and turnover, continue to be monitored and monitored in a timely manner.

Sun Binbin team of Tianfeng securities also pointed out that as the premium rate of equity swap continues to expand, the cost performance of convertible bonds is gradually decreasing. In particular, with high price and high premium varieties, with the coming of the stock swap period, such bonds will trigger a strong redemption, which will lead to a fall in the price of convertible bonds. In the current market of high volatility seesaw war, it is the first choice to return to medium and long term and high cost effective convertible bonds.

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