Convertible bonds, like stocks, can be bought and sold by directly entering the code and amount. The face value of primary convertible bonds 100 yuan, primary convertible bonds 10 trading unit 1000 yuan.
It is worth noting that convertible bonds are T+0 transactions and can be bought and sold on the same day. This has an advantage over stocks. In addition, there is no limit to the rise and fall of convertible bonds.
2. Share conversion
There are two types of convertible bonds: Shanghai convertible bonds and Shenzhen convertible bonds. Shanghai convertible bonds have a separate conversion code, while Shenzhen convertible bonds have no separate conversion code. Generally, the conversion should be completed in the trading software. Regarding the specific operational issues, Baidu is very simple and will not go into details.
Convertible bonds are converted into shares with face value 100 yuan/current conversion price to obtain integer shares, and the insufficient part is returned to the stock account in cash.
For example, the current conversion price is 9 yuan, the current share price is 10 yuan, and the convertible bond price is 1 15 yuan. If the shares are converted, you can get 1 1 share (100/9) and 1 yuan cash (the remainder of 100/9 is 1).
3. Pledge repurchase
Convertible bonds, like bonds, can be leveraged by pledge repurchase and borrowing at a market interest rate of about 4%.
Regarding leveraged trading, it is not recommended that you try it easily. First of all, you should thoroughly understand all the ordinary transactions, and then you can try to explore the leveraged trading of bonds yourself.
One more reminder: leverage is a double-edged sword. It may amplify the benefits and risks.
4. Placement, subscription and resale
Placement: Convertible bonds will be distributed according to the shareholding ratio. As long as the shares are held on the registration date, convertible bonds will be distributed. This is somewhat similar to the rights issue of public offering shares.
Subscription: you don't need to hold shares, and draw lots to decide whether to win the lottery. Similar to playing new shares, but playing new shares requires holding the market value of the stock, and there is no such restriction on buying convertible bonds.
Resale: As mentioned above, it rarely happens and is not worth participating in. It is worth noting that if you do not choose to sell back, you can continue to hold convertible bonds.
5. Redemption at maturity
This is a passive process. If the convertible bonds are not sold or converted on the registration date, the system will automatically execute them without manual operation.