Mass Delistings Lead to Supply-Demand Imbalance, Convertible Bond Market Urgently Needs "Thirst Quenching"

Since March, the convertible bond market has seen a wave of delistings. According to preliminary statistics, the number of delistings in the convertible bond market in March will exceed 20, and this trend is expected to continue into April. Concurrently, the issuance of new convertible bonds is accelerating again. The registration approval for the convertible bond issuance plans of four companies, including Shenergy and StarPower Semiconductor, has been granted. However, multiple market participants believe that the supply-demand imbalance in the current convertible bond market is still difficult to completely reverse, and they are looking forward to the issuance of more convertible bond varieties. Under the current landscape, the high valuations of convertible bonds will continue, and market pricing will predominantly reflect trading attributes. Convertible bonds on the Beijing Stock Exchange and the STAR Market, among others, are just beginning and have not yet met their respective allocation demands. (Shanghai Securities News)