Zhejiang Jingxing Paper sees abnormal volatility in stock and convertible bonds

Zhejiang Jingxing Paper Joint Stock Company's shares experienced abnormal fluctuations, with the closing price deviation accumulating to 20% over three consecutive trading days from September 15 to September 17, 2025. Concurrently, its convertible bonds, "Jingxing Zhuanzhai," also showed significant volatility, with a cumulative closing price deviation of 30% over two trading days on September 16 and 17, 2025.

The "Jingxing Zhuanzhai" convertible bonds, issued on August 31, 2020, at a face value of 100 yuan per bond (totaling 1.28 bn yuan), began trading on September 18, 2020. As of September 17, 2025, the closing price for "Jingxing Zhuanzhai" was 220.400 yuan per bond, representing a premium of 120.40% over its face value and a conversion premium rate of 14.771%. The company notes a significant valuation risk due to this premium.

The company's stock has also seen its closing price at or above 130% of the current conversion price for 10 trading days since September 3, 2025. This indicates a potential redemption risk, as the company may exercise its right to redeem all or part of the unconverted bonds if the A-share stock price remains at or above 130% of the conversion price for at least 15 trading days within any 30-trading-day period.