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[Introduction] The central bank took action, with over 570 billion reverse repurchases! A-shares suddenly pulled up, and securities and insurance companies soared! For the first time in history, state-owned enterprise convertible bonds defaulted!

China Fund News reporter Jiang You

The central bank has recently launched a reverse repurchase operation of 577.7 billion yuan.The MLF that expires today will be rolled over on August 26.

In the morning of August 15, the major A-share indices opened low and then quickly rose to positive, with the Shanghai Composite Index rising by more than 1%. Coal, securities, insurance and other sectors led the gains.

The central bank conducted a reverse repurchase operation of 577.7 billion yuan today.

On August 15, the central bank issued an announcement to maintain a reasonable level of liquidity in the banking system to offset the impact of factors such as the expiration of the medium-term lending facility (MLF), the peak tax season, and government bond issuance payments.Today, a reverse repurchase operation of 577.7 billion yuan was carried out by bidding at a fixed rate and quantity. The MLF that expires today will be renewed on August 26.

Financial and energy stocks rose

In today's morning session, financial stocks and energy stocks led the gains, with financial sectors such as insurance, securities, and banks and energy sectors such as coal and oil rising significantly.

Brokerage stocks, known as the "bull market flag bearers", performed well. Guosheng Financial Holdings rose more than 6% during the session, while Haitong Securities, Pacific Securities, Tianfeng Securities, and China Merchants Securities also saw good gains.

Lingnan convertible bonds defaulted, the first state-owned enterprise convertible bond default in history

Last night, Lingnan Shares announced that as of August 13, 2024, the remaining amount of "Lingnan Convertible Bonds" was 489 million yuan, and the company's existing monetary funds were unable to repay the "Lingnan Convertible Bonds", and the "Lingnan Convertible Bonds" could not be redeemed on schedule. The controlling shareholder of Lingnan Shares, the issuer of Lingnan Convertible Bonds, is the state-owned assets of Zhongshan City, Guangdong Province. Lingnan Convertible Bonds also became the first convertible bond with state-owned assets to default on maturity in the history of convertible bonds.

August 14 is the last conversion date for Lingnan convertible bonds and also the expiration date. The latest data from the exchange shows that as of August 14, the par value of Lingnan convertible bonds that have not been converted is 456 million yuan.

Recently, two convertible bonds, Soute and Landun, whose underlying stocks have been delisted, have defaulted. Lingnan shares, the underlying stock of Lingnan convertible bonds, is still listed and traded on the A-share market. This is also the first convertible bond whose underlying stock is still listed and defaulted. Yesterday, Lingnan shares closed at 0.93 yuan, below the par value of 1 yuan.

After declaring a substantial default, Lingnan Shares' share price plummeted at the opening today. As of press time, the decline was 3.23%.

Editor: Huang Mei

Review: Xu Wen

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