Zheng Quan Shi Bao·2025-09-15 13:41Core Viewpoint - The surge in "zero-interest" convertible bonds in the Hong Kong stock market reflects a trend of innovative capital tools aiding high-quality development, with major companies like China Pacific Insurance leading the way in low-cost financing and strategic empowerment [1][2]. Group 1: Zero-Interest Convertible Bonds Issuance - China Pacific Insurance recently completed a record issuance of 155.56 billion HKD in zero-interest convertible bonds, marking the largest scale of such bonds in history and the first overseas convertible bond issuance by a state-owned financial enterprise [1][2]. - Other companies, including Baidu, Alibaba, and China Ping An, have also announced similar issuances, indicating a broader trend among Hong Kong-listed firms to utilize zero-interest bonds for capital structure optimization and strategic transformation [2][3]. Group 2: Market Dynamics and Investor Sentiment - The zero-interest design alleviates financial pressure on companies, particularly in the current low-interest-rate environment, and helps maintain stable equity structures by reducing immediate dilution effects compared to direct stock issuance [3][4]. - High conversion premiums associated with these bonds reflect market confidence in future stock price growth, with examples showing premiums of 25% for China Pacific Insurance and up to 48% for Alibaba's bonds [4][5]. Group 3: Impact on Economic Development - The funds raised through zero-interest convertible bonds are primarily directed towards emerging industries, enhancing companies' capital strength and supporting their valuation potential [6][7]. - The issuance of these bonds not only provides low-cost financing and strengthens core capital but also attracts international capital, thereby improving corporate governance and supporting the overall vitality and international appeal of the Hong Kong stock market [6][7].