The full name of convertible bonds is convertible corporate bonds, which are essentially bonds, but convertible bonds are different from ordinary bonds. Convertible bonds are called because the holders can convert their bonds into company stocks within a certain period of time, which means that convertible bonds have the nature of stocks. Of course, if the holder chooses to hold the bonds until maturity, then the convertible bonds in his hand are ordinary bonds and can enjoy the interest income of the bonds.
Because convertible bonds have the nature of stocks, their risks are lower than stocks, so they are loved by many investors. Compared with stocks, the subscription conditions of convertible bonds are lower. Investors can participate in the subscription of convertible bonds as long as they have securities accounts. However, the subscription of new bonds requires lottery, just like the subscription of new shares. After the convertible bonds are drawn, the purchaser needs to deposit the money into the securities account before the trading day 16, and then the system will automatically deduct the money.
The issue denomination of convertible bonds is fixed at RMB 100 each, the minimum transaction unit is 1 lot, 1 lot represents 10 convertible bonds, and the maximum number of convertible bonds that can be purchased is 10000 lot. That is to say, if you participate in the subscription of new shares, regardless of the handling fee,
If the investor fails to pay within the specified time after participating in the subscription of new bonds, it shall be deemed that the investor voluntarily gives up the subscription of new bonds. If investors fail to pay more than three times after applying for new bonds, they will not be able to participate in the subscription of new bonds and new shares in the next six months.
Convertible bonds usually take about two to four weeks from issuance to listing. After the convertible bonds are officially listed, investors can trade. Generally, the price of convertible bonds will rise on the first day of listing, so many people will choose to sell them on the first day of listing. Although the price of convertible bonds may continue to rise in the later period, it may also fall, so it is safest to choose to sell convertible bonds on the first day of listing.
Finally, I remind you that any investment and financial management is risky. I suggest you choose the investment method that suits you according to your actual anti-risk ability.