Policy Support Measures Drive Up Convertible Bond Issuance

Recently, the disclosure of convertible bond issuance plans by listed companies has surged, with increases in both the proposed number and scale of issuances. As of April 7, 23 listed companies have released convertible bond issuance plans this year, with a total proposed issuance scale reaching 32.934 billion yuan. Among the 23 listed companies that disclosed these plans, Sugon, ZMJ, and STO plan to issue no more than 8 billion yuan, 4.35 billion yuan, and 3 billion yuan, respectively. Experts stated that the implementation of the new refinancing regulations is the main driving force behind the increase in convertible bond plans. Precise policy easing for sci-tech innovation enterprises and the simplification of approval processes, combined with robust financing demand in the technology sector, have significantly boosted the willingness of premium enterprises to raise capital. Furthermore, the pace of new bond issuances has accelerated notably, and the supply of convertible bonds is expected to see a moderate recovery within the year. (China Securities Journal)