Investors can directly or indirectly participate in convertible bond investment in several ways:

First, they can directly subscribe for convertible bonds just like they subscribe for new shares. During the specific operation, enter the code, price, quantity, etc. of the convertible bond respectively, and finally confirm.

The face value of the convertible bonds is 100 yuan, and the minimum unit for subscription is 1 lot (10 pieces). Industry insiders said that because subscribing for one lot of convertible bonds requires less funds, the number of allotments obtained is larger, and the probability of winning one lot is higher than when subscribing for new shares.

Second, in addition to direct subscription, investors obtain priority allotment rights by purchasing underlying shares in advance. Since the issuance of convertible bonds generally gives priority to old shareholders, investors can buy the underlying shares before the equity registration date, and then exercise the allotment rights on the placement date to obtain convertible bonds.

Third, in the secondary market, investors can buy and sell convertible bonds as long as they have a stock account. The specific operation is similar to buying and selling stocks.

Extended information:

Transaction method:

Convertible bonds implement T+0 transactions, including entrustment, trading, custody, transfer of custody, market disclosure, and trading. The time is based on the A-share processing time. Convertible bond trading will be terminated ten trading days before the end of the conversion period, and the exchange will make an announcement one week before the termination of trading. It can be transferred to custody, please refer to the A-share rules.

Transaction fees:

1. Shenzhen Stock Exchange: Investors should pay a commission to the securities firm, the standard is 2‰ of the total transaction amount. If the commission is less than 5 yuan, it will be charged at 5 yuan.

2. Shanghai Stock Exchange: Investors entrusting securities firms to buy and sell convertible corporate bonds must pay a handling fee of RMB 1 per transaction in Shanghai and RMB 3 per transaction in other places. After the transaction is completed, the investor should pay a commission to the securities firm when handling the transaction. The standard is 2‰ of the total transaction amount. If the commission is less than 5 yuan, it will be charged at 5 yuan.

Investors should pay full attention to the following risks when investing in convertible bonds:

1. Investors in convertible bonds must bear the risk of stock price fluctuations.

2. Risk of interest loss. When the stock price falls below the conversion price, convertible bond investors are forced to become bond investors. Because the interest rate of convertible bonds is generally lower than the interest rate of ordinary bonds of the same grade, it will cause interest losses to investors.

3. Risk of early redemption. Many convertible bonds provide that the issuer can redeem the bond at a certain price after a period of issuance. Early redemption limits the maximum rate of return for investors. Finally, casting risks.

Baidu Encyclopedia-Convertible Bonds