Chinalco abandons convertible bonds? The small bull market creates the additional tide

When the stock market is in good condition, the listed company will tend to the directional additional financing rather than the issuance of convertible bonds, Chinalco (601600) may be the latest example.　　As the resolution expires, Chinalco's 10 billion-dollar corporate bond issuance programme is still slow to start, but news from underwriters and brokerages shows that the company's four-quarter directional issuance program is still in the making, and is expected to be realized by the end of the year. "The convertible bond market after the early days of ICBC, BOC and other large market debt issued, the four-quarter market debt will not be very optimistic, and from the market environment, upward the market is more suitable for additional issues rather than transfer debt."　　Hao, an analyst at Hongyuan Securities, said.　　China aluminum spare tire convertible bonds before National Day, Jiaozuo Wanfang issued a notice, the company's controlling shareholder Chinalco (601600) through a large amount of trading to reduce the company 20.79 million shares, accounting for 4.33% of total equity.　　The reduction of cash, which is understood by many market insiders as the "lack of money" symptoms of Chinalco, and only from the debt financing tool to be repaid, listed companies Chinalco currently has 24 billion yuan of debt, including corporate bonds 2 billion, medium-term paper 12 billion and short-term financing coupons 10 billion. "As far as we know, Chinalco's current financing needs are more urgent, the four-quarter aluminum financing plan is very likely to come out, but can not determine whether the issuance of convertible bonds or targeted additional."　　"An analyst who has long been concerned about Chinalco told reporters. However, the reporter from the listed companies in China Aluminum shares and the parent company in the relevant underwriters of aluminum, but at least until October, Chinalco did not start the relevant convertible bonds financing, debt financing, the relevant underwriters are still operating in the middle of the vote and other projects,　　Although the shareholders ' general meeting resolution for Chinalco's corporate debt has been limited. According to the October 2008 announcement of the aluminium industry in China, Chinalco will issue 10 billion yuan of corporate debt, because the said it will be possible to placing the shares, the market began to have Chinalco will issue 10 billion yuan of convertible bonds, when the overall scale of the convertible bond market has been hovering low, 10 billion of the Sino-aluminum convertible bonds in ICBC, BOC and so on before　　, gave the market to the imagination of debt transfer. However, according to the validity of the announcement, the validity of the Sino-aluminium issue of the convertible bonds is 24 months from the date of approval of the regulatory authority, and 36 months after the resolution of the general meeting, but more than 2 years have passed, during which the listed companies issued a number of medium-term bills and short-term financing　　But the China Aluminum Shareholders General Assembly resolution adopted by the convertible bond scheme has not been seen to start.　　In 2009, Chinalco announced plans for Non-public offerings, as well as a lack of substance to start this year, according to the August announcement, which extended the 1-year validity period of the directional issuance resolution. "It is obvious that the directional issue of the secondary aluminum in the market environment and the company's share price downturn, and other reasons, has not been." "The foregoing analysts believe that Chinalco's financing plan has been slow to catch on, but in the announcement of targeted additional plans, Chinalco seems to be deliberately abandoned to turnDebt scheme.　　Supply in the quarter is not optimistic. However, in Hao's view, the convertible bond financing has long been a listed company's alternative financing options, similar to the Chinese aluminum industry such as through the scheme but may eventually not be implemented by a few companies. "In the case of good market, convertible bond premium space is limited, and targeted additional financing scale will likely be high."　　"Hao believes that in the four-quarter market upward situation, do not rule out more companies to abandon the convertible bond scheme." And before ICBC, BOC two large market of convertible bonds caused the supply peak, in the view of the respondents, there are contingency.　　If it is a simple allotment, Huijin Company's funds are limited, and if the pure debt financing, in the account of capital is not helpful, the convertible bond is always a better way to cushion. CICC's National day after the release of the four-quarter convertible bond market report that the supply side, the year may no longer have a large market transfer of debt supply, the new supply will be mainly small and medium transfer debt.　　The four-quarter bond market will remain stable supply, yanjing beer transfer debt is expected to be issued in October, long-term supply concerns remain. It is worth noting that, perhaps based on the scale of the consideration, some special transfer fund, has suspended a large subscription.　　Societe Generale Global Fund after the national Day of the latest announcement, the suspension of industrial transfer debt fund a single pen more than 30,000 of the purchase and conversion.　　After the completion of the transfer of loans to the stock market, the convertible bonds in the stock scale of about 78 billion, and in accordance with Sinopec before the release of the 23 billion-yuan convertible bond plan, the convertible bond market in the year to break the expectations of billions or not difficult to achieve. Hao that, the market to good, the convertible bonds of hundreds of billions of expectations is not positive, but the current trading opportunities for small and medium-scale convertible bonds is still better, compared to the beginning of the market has been quite active, which will promote more companies to join the convertible bond market.