Deep Analysis of Hehe Industrial's Convertible Bond Rights Offering and Placement Strategy

1. Target Selection Logic and Issuance Background
   Xianghe Industrial, as a potential target for convertible bond rights offering arbitrage, has core advantages in issuance certainty and market environment alignment. According to public information, the company’s convertible bond project received approval for registration from the China Securities Regulatory Commission on January 13, 2026. Following the market practice of “early issuance, early benefits,” its issuance window is likely within three months (before April). This time certainty provides investors with a clear planning cycle, avoiding risks associated with delays or cancellations.

In terms of issuance size, the small-scale 400 million yuan convertible bond inherently offers speculative advantages. Historical data shows that small-scale convertible bonds tend to trade at higher premiums on their first trading day compared to larger ones, providing a thicker safety margin for rights arbitrage strategies. Currently, the underlying stock price and conversion value ratio remain balanced at around 99%, neither showing significant premium-driven upside nor undervaluation that would weaken conversion motivation. This “price proximity” offers a buffer zone for subsequent stock price fluctuations.

2. Core Parameter Calculation and Cost Advantages
   In rights arbitrage strategies, “per 100 yuan of rights” is a key indicator of target quality. Xianghe Industrial’s 8.96% rights ratio means that holding 100 yuan worth of stock entitles you to sell 8.96 yuan of convertible bonds. If the convertible bond rises 70% on its first day, it effectively hedges a 6.27% return on the stock position. This hedging effect forms the safety cushion of the strategy.

For targets in the Shanghai market, investors can optimize capital efficiency through the “one-lot” strategy. Theoretically, to allocate one lot of convertible bonds, 832 shares of stock are needed, but the Shanghai market’s rounding rules allow investors to achieve the same allocation with about 70% of that amount (around 582 shares). To ensure successful allocation, practical advice is to buy in increments of 600 shares. At a stock price of 13.42 yuan per share, a stock holding of 8,000 yuan can secure a rights allocation for 1,000 yuan of convertible bonds. If the convertible bond yields 70% upon listing (700 yuan), the safety cushion reaches 8.75%, meaning the stock price can drop by 9% without incurring a loss.

3. Advanced Operations and Risk Hedging System
   Multi-account strategies are key to improving rights arbitrage efficiency. When the stock price falls below the safety cushion (e.g., from 13.42 yuan to 12.21 yuan), opening a new position of 600 shares in a family account can rebuild a 9% safety cushion. This dual-account operation is more cost-effective than adding positions in a single account: to allocate two lots of convertible bonds in one account, 1,664 shares are needed (832×2), whereas with two accounts, only 1,200 shares (600×2) are required, increasing capital efficiency by 35%.

Risk hedging operates on two levels: first, the listing gains from the convertible bond offset stock price declines, with a potential 700 yuan gain covering a 9% drop in an 8,000 yuan stock position; second, staggered building of positions across multiple accounts creates a dynamic safety cushion. When the first account’s cushion is breached, the second account’s new position can restore protection. This “attack when possible, defend when necessary” structure transforms a single-direction gamble into a probabilistic advantage game.

4. Strategy Validity Boundaries and Conditions
   The effectiveness of this strategy relies on three premises: first, the advantageous allocation rules in the Shanghai market; second, high premium expectations for small-scale convertibles; third, a reasonable valuation providing a price safety cushion. If extreme market conditions occur—such as a debut day of the convertible bond breaking below par, systemic declines in the underlying stock, or issuance delays beyond expectations—the strategy may fail. Therefore, investors should dynamically monitor changes in conversion value, market sentiment indicators, and company fundamentals, adjusting positions before the safety cushion is fully eroded.

From a macro perspective, rights arbitrage fundamentally exploits institutional policy benefits for probabilistic gaming. Precise calculations of rights ratios, safety cushions, and capital efficiency enable investors to convert uncertainty into controllable risk, which is the core reason this strategy remains attractive in volatile markets. The Xianghe Industrial case demonstrates a replicable framework for target selection and operational paradigms, rather than a single-stock investment recommendation.