author: Figure Finance, title figure from: Vision China
At the end of 1992, convertible bonds began to enter the Chinese securities market, and it has been 27 years now. When you see this, you may be wondering: Why haven’t you heard of it before?
It is true that convertible bonds have never been the focus and luck of the market in China’s securities market before, and they have never been able to become a configurable investment variety on a large scale-the reason is very simple. Converting debt financing will be more difficult.
However, the stock market has been sluggish in the past two years, and the regulatory approach has gradually tightened the financing methods for listed companies to issue additional shares. It gradually degenerated into a conventional investment method, and the number of its issuance began to blow out.
And when the market is not good, investors can hold the debt to maturity and collect principal and interest; when the market is good, they can be converted into stocks and enjoy the dividends and rising profits of the stock. The observable attributes are also favored by many small partners.
However, Tu Ye still reminds everyone to avoid blind investment, there are risks in entering the market, and investment needs to be cautious!