Mkt Vol.; Hang Seng Energy, Conv. Bonds.

Hang Seng Energy Group's stock price has experienced a rollercoaster ride over the past few days.

The A-share market experienced narrow fluctuations at lower levels this morning, with the main indices showing little movement.

The convertible bond market has seen a general recovery, with the China Securities Convertible Bond Index rising slightly, breaking through 370 points during the session, and several convertible bonds experiencing consecutive significant increases, among which Yuanxin Convertible Bonds have doubled in price in just three days. However, it is worth noting that the single-sign profit differentiation after the listing of new bonds has increased significantly, and today saw another instance of new bonds breaking issue on their first day of listing.

The Hang Seng market also experienced narrow fluctuations this morning. In terms of individual stocks, Hang Seng Energy Group surged again this morning, with the intraday increase once exceeding 60%. The company's stock price has shown an astonishing range of fluctuations recently, plummeting by more than 98% on September 3, and then soaring by 78.46% on September 4.

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Narrow fluctuations in the A-share market

The A-share market experienced narrow fluctuations at lower levels this morning. In terms of industry sectors and tracks, the media, real estate, computer, and commercial retail sectors led the gains, while the coal, home appliances, and petroleum and petrochemical sectors were at the forefront of the declines.

In terms of concept sectors, the digital currency concept led the gains, with multiple stocks such as Feitian Honesty, Shens Electronics, and Chuangshi Technology hitting the daily limit during the session.

The banking sector fell again during the session, with Chengdu Bank and Qilu Bank leading the decline.

Several previously strong stocks have become active again, such as Dazhong Transportation, which touched the daily limit again this morning, and the stock was one of the strongest in the A-share market in July.

Dazhong Transportation recently released an announcement on the progress of share repurchase, stating that the company held the 17th meeting of the 10th Board of Directors on March 27, 2024, and passed the "Proposal on Repurchasing Company A-shares through a centralized bidding transaction method," agreeing to the company's repurchase of its A-shares through a centralized bidding transaction method with its own funds, and using the repurchased shares to implement an employee stock ownership plan. The total amount of repurchase funds is not less than RMB 50 million (inclusive) and not more than RMB 100 million (inclusive). The upper limit of the repurchase price is 150% of the average transaction price of the company's stock in the 30 trading days before the Board of Directors passed the repurchase resolution, and the repurchase price does not exceed RMB 3.96 per share (inclusive). As of August 31, 2024, the company had not yet implemented the repurchase.Convertible Bond Market Sees Overall Warm-up with One Doubling in 3 Days

The convertible bond market further warmed up this morning, with the China Securities Convertible Bond Index rising slightly and breaking through 370 points during the session, with multiple convertible bonds seeing consecutive significant increases.

Yuanxin Convertible Bonds surged by 20% in the morning, hitting the daily limit price of 226.512 yuan. The convertible bond was listed two days ago, closing with a surge of 57.30% on its first day, and then increased by another 20% yesterday, effectively doubling in just three days.

Data shows that Yuanxin Industry issued 286 million yuan in convertible bonds this time, with a face value of 100 yuan per bond, totaling 286,000 bonds, issued at par value. According to the online subscription results of this convertible bond disclosed in the announcement, the number of convertible bonds subscribed and paid for by online investors was 241,000, with a subscription amount of about 24.1 million yuan. The number of convertible bonds not subscribed and paid for by online investors was 6,064, with an amount of 606,400 yuan.

In terms of ratings, this convertible corporate bond has been rated by China Chengxin International Credit Rating Co., Ltd. According to the "Credit Rating Report on the Issuance of Convertible Corporate Bonds by Yuanxin Industry Co., Ltd. to Unspecified Objects" issued by China Chengxin International Credit Rating Co., Ltd., the credit rating of this convertible corporate bond is A, and the main body credit rating of Yuanxin Industry is A, with a stable rating outlook.

Additionally, several other convertible bonds such as Jingzhuang Convertible Bonds and Huicheng Convertible Bonds also saw significant increases this morning. It is worth noting that the convertible bond market also witnessed a new bond - Wankai Convertible Bonds, which broke issue on its first day of listing, becoming the first convertible bond to break issue on its first day of listing in 2024.

Shengneng Group's intraday gain once exceeded 60%

The Hong Kong stock market also fluctuated narrowly in the morning, with both the Hang Seng Index and the Hang Seng Technology Index slightly down by about 0.4% as of the midday close. Among the Hang Seng Index constituents, Wharf Real Estate, CK Hutchison, Cheung Kong Infrastructure, etc., performed relatively well, while Sinopec, PetroChina, Xinyi Solar, etc., led the decline during the session.

Among the constituents of the Hang Seng Technology Index, ZhongAn Online and Tongcheng Travel performed relatively well during the session, while NIO-SW was among the top losers.

Shengneng Group's stock price surged again this morning, with an intraday gain once exceeding 60%, and it was up by 58% as of the midday close. The company's stock price has experienced astonishing fluctuations recently, plummeting by more than 98% on September 3, and then soaring by 78.46% on September 4.Sunrise Energy Group released a supplementary annual report announcement last night, providing additional data regarding the non-competition commitments made by the controlling shareholder in the annual report. The announcement stated that the controlling shareholder entered into a non-competition deed on December 19, 2022, with the company as the beneficiary (for itself and as trustee for its subsidiaries from time to time). The controlling shareholder has issued a written declaration to the company, confirming that it has adhered to the non-competition commitments under the deed from January 17, 2023 (i.e., the listing date) to December 31, 2023 (the "Relevant Period"). The controlling shareholder also confirmed in the declaration that, during the Relevant Period, it has no interests in any businesses that directly or indirectly compete with or may compete with the group's business, except for the group's own business.

The announcement also indicated that the independent non-executive directors have reviewed the compliance with the non-competition deed and confirmed that they have not observed any breaches of any commitments or provisions under the deed by the controlling shareholder during the Relevant Period.

Earlier yesterday, Sunrise Energy Group announced that a total of 370 million shares held by Otautahi Capital Inc (approximately 36.64% of the company's total issued share capital as of the announcement date) were forcibly sold by a securities firm through a margin securities account in the open market on September 3. Following the completion of the forced sale and as of the announcement date, the number of shares held by Otautahi Capital Inc is 212.3 million, representing 21.02% of the company's issued share capital. The board of directors confirmed that the group maintains normal business operations, and there have been no significant changes in the group's business operations and financial condition.