Since February 14, 2020, the CSRC has issued new refinancing regulations for two years. The structure of A-share refinancing market has been continuously optimized, and convertible bonds have gradually become one of the mainstream refinancing products of A-share listed companies. According to the statistics of wind, 42 listed companies have implemented fixed increase (according to the listing date of fixed increase shares) since this year, raising a total of 59.376 billion yuan; Three listed companies implemented share allotment (according to the equity registration date), raising a total of 25.616 billion yuan; Nine listed companies issued convertible bonds (according to the issuance date), with a total issuance scale of 12.517 billion yuan. So far, the total refinancing of listed companies is 97.509 billion yuan, and the financing scale of fixed increase, allotment and convertible bonds account for 60.89%, 26.27% and 12.84% respectively. The continuous development of convertible bonds also benefited from the promotion of policies. In February 2017, the CSRC adjusted the refinancing policy to encourage listed companies to refinance through convertible bonds and other products. Convertible bonds accounted for only about 20% of the total refinancing scale before 2021. From 2020 to 2021, the issuance scale of convertible bonds was 271.431 billion yuan and 289.712 billion yuan respectively, far exceeding the financing scale of share allotment in the same period. At the same time, among the top ten A-share refinancing projects last year, five were convertible bond projects, including Industrial Bank (50 billion yuan), Bank of Nanjing (20 billion yuan), Bank of Shanghai (20 billion yuan), Oriental Wealth (15.8 billion yuan) and Bank of Hangzhou (15 billion yuan). It can be found that the financial industry is the main force of convertible bond issuance. What are the advantages of convertible bond financing over fixed growth and share allotment, chief economist of Chuancai securities Chen Li, director of the Research Institute, said in an interview with the reporter of Securities Daily: "Convertible bonds have the dual attributes of stocks and bonds at the same time. Compared with pure bonds, the default risk of convertible bonds is lower. Compared with stocks, the issuance conditions of convertible bonds are more strict, and some high-quality companies are relatively selected. Therefore, convertible bonds can ensure relatively high-quality asset quality. Convertible bonds can make a better balance between risk and income. First, convertible bonds Because it is essentially a bond, the issuer is obliged to repay the principal and pay interest as agreed, so it is absolutely safe for the principal of investors. In addition, convertible bonds are also an option. Investors can decide whether to convert their bonds into stocks according to the comparison between the conversion price agreed in the early stage and the stock market price. Compared with other financing methods, the financing cost of convertible bonds is lower; For issuers, the longer term of issuing convertible bonds is more conducive to solving the problem of short-term capital shortage, and there is no need to consider the repayment pressure in a short time. " In recent years, the performance of the secondary market of convertible bonds has repeatedly exceeded expectations, which has further boosted the enthusiasm of investors in the primary market, and the online subscription volume of convertible bonds has repeatedly reached a new high. However, in 2022, the convertible bond market continued to fluctuate, and the CSI convertible bond index fell by 4.53%, including a decline of 3.01% on February 14. The overall performance of the convertible bond market is excellent, and the increase of public funds' holdings of convertible bonds has also been greatly improved. According to wind data, in the fourth quarter of last year, the scale of convertible bonds held by public funds was 260.51 billion yuan, with an increase of 41.82 billion yuan, with an increase of 19.12%. From the perspective of investors, Zhao Yayun, a researcher of CITIC reform and development research foundation, said in an interview with Securities Daily: "Although convertible bonds are bonds, they also have the nature of stocks. Compared with fixed increase and allotment, small and medium-sized investors have no lock-in period and are more flexible in buying and selling convertible bonds. However, if the valuation of convertible bonds is high, there will be some risks. Investors should pay attention to those convertible bonds with low valuation and good operation of the issuing company." As of February 16, there were no convertible bonds less than 100 yuan in the whole market. The average conversion premium rate of 391 convertible bonds was 35.12%. The premium rate of Blue Shield convertible bonds to shares was the highest, 289.64%, followed by Yokogawa convertible bonds, 247.42%. "We should pay attention to the risks in the process of convertible bond trading. The large fluctuation of positive shares is easy to cause the price fluctuation of corresponding convertible bonds. Some convertible bonds that deviate from the reasonable value range should be treated rationally." Chen Li said. (Xinhua News Agency)