Category: Money tips Release Date: 2006-11-22
Wholeheartedly Editor:
I was involved in the bond market started in 2004 investment. The past two years, the handsome return on investment. The reason there is only one, and that is because I am a "China Securities News" of the faithful readers. The bond version of your newspaper I will peruse each repeated learning experience seriously. Such as "how to determine the investment value of convertible bonds," "individual investors how to participate in the bond market" and other articles, so I am enlightened, many investment and operating strategies are techniques come from the secondary school. There is a proposal and I hope your newspaper published some of the future more specific guidance on the meaning of ordinary investors have the article, it is best to open up this column. In addition, I have one on specific operational aspects of the problem: when the convertible bond holders to apply for share transfer, in the Shanghai Stock Exchange the circulation of convertible bonds, can directly enter the share transfer code, but in the Shenzhen Stock Exchange application for transfer of convertible bonds in circulation shares, they will not enter the code to deal directly, how is this going on?
Tianjin Renyanrenyan reader:
Hello! First, we are very grateful to the love you give this paper and suggestions to your question I ask newspaper editor Huang Xian Qi bonds answers are as follows:
Can be transferred is the convertible debt to equity holders of convertible bonds to raise the specification can be based on the conditions of the share transfer then in force in accordance with the prices of share transfer period, the "share transfer application time," apply at any time is converted to listed companies issuing convertible bonds circulation of shares. Convertible bond holders to apply for share transfer through the exchange's trading system, offer by way of the specific steps: In the share transfer period will be dedicated to set up an exchange under the ticker symbol for the convertible bond holders to apply for share transfer, the holder You can move your account to apply for all or part of convertible bonds into shares of our Company. Holders to submit share transfer application shall be in accordance with its holdings of convertible bonds face value of the share transfer then in force in accordance with the price of securities traded on its specified operating switching costs reported to the number of shares of company stock.
Related to a different exchange, transfer of part of debt-there are differences. For the Shanghai Stock Exchange the circulation of convertible bonds, the exchange will be dedicated to providing a share transfer with the corresponding code in convertible bonds, investors enter the share transfer code to the face value of convertible bonds for the transaction price, type of convertible bonds required for share transfer the number on it. As for the Shenzhen Stock Exchange-listed convertible bonds, require investors to open an account by the business application is made by sales department will use specialized equipment that apply to transfer to the exchange. In the process, the Shenzhen Stock Exchange trading code to provide for the convertible bonds are often their own code, enter the code, investors need the option to enter the share transfer through a certain process, and then the customer sales department need to convert the number of bonds in accordance with The share transfer current conversion price calculated by the number of shares, and declared to the Stock Exchange.
Note that with the share transfer apply for the corresponding total face value of convertible bonds must be an integer multiple of 1,000 yuan. Application share transfer of the shares shall be an integer unit, when the mantissa less than one share, the company will share transfer of the five trading days after a cash payment that part of the nominal amount of convertible bonds and interest. Share transfer application has been confirmed can not be withdrawals, he said. If the number of holders to apply for share transfer is greater than the holder's actual holdings of convertible bonds can be converted number of shares, the Shenzhen Stock Exchange will confirm its largest portion of convertible stock share transfer, apply for more than some be abolished.
In addition, holders of convertible bonds through a share transfer, the part of the convertible bonds can not enjoy the current interest rates, the increase in the stock will be automatically registered into the investor's stock account. Because the company can be transferred to the increase in debt-stock enjoyed the same rights and the original shares to participate in that year dividend distribution, can be found on the next trading day after the share transfer with the company's shares have been traded traded with the circulation.
When the exchange of the share transfer application for confirmation is valid, will be credited by (freezing and write-offs) the amount of the holder of convertible bonds, while Hutchison added the corresponding amount of shares the holder. Registration authorities will be based on a valid declaration of managed brokerage, the holder accounts holding shares and convertible bonds make the corresponding changes in the number of registration. Holders of share transfer made in the share transfer application for the second trading day for delivery confirmation handle their holdings due to share transfer and allotment of the Company's common stock will be traded. A result of share transfer and allotment of the Company's common stock with the company's issued outstanding ordinary shares rank pari passu. Related to taxes, the share transfer process related to taxes and fees borne by the holder, unless the company should pay such tax or the law explicitly stipulates that the Company has a withholding tax in respect of such payment of the obligation.
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