*The corporate bond redemption crisis of ST Rui Electric (Huarui Wind Power) has not been resolved. At the "Rui01 Suspension" and "Rui02 Suspension" bondholders' meetings held on the 17th, * ST Ruidian's proposal to partially repurchase Rui01, which is about to expire at the end of this year, at a price of 87.27 yuan per sheet was rejected by bondholders attending the meeting. This means that the first discount redemption plan in the history of the public bond market has failed, and these two corporate bonds will still face significant default risks in the future.

These two unsecured corporate bonds were suspended from listing in May. On August 29th, * ST Ruidian announced that its subsidiary Jiangsu Huarui plans to use no more than 700 million yuan to suspend the repurchase of Rui01, and will hold a shareholder meeting on September 17th to vote. Jiangsu Huarui plans to purchase Rui01 temporarily at a price of 87.27 yuan per sheet, with interest paid at the annual coupon rate of 6% for this bond and after calculation of the interest period. The upper limit of the amount that a single account can sell does not exceed 500000 yuan, and the upper limit of the proportion does not exceed 10% of the face value held by a single account. The upper limit of the amount or proportion is either high or low.

At the shareholder meeting on the 17th, 13910900 bonds voted against this "80% off" partial repurchase plan, accounting for 49.68% of the total number of bonds in this period. Those who voted in favor and abstained accounted for a total of 1.23%, resulting in the repurchase proposal not being passed. On the same day, another proposal regarding * ST Ruidian suspending additional guarantees for Rui01 was passed by a high proportion in the voting at the shareholders' meeting.

Hu Yuexiao, Chief Analyst of Shanghai Securities Research Institute, said that in the context of the continuous default events in the credit bond market in the past two years, considering that Huarui Wind Power still has the ability to continue operating, bondholders may be willing to continue waiting* The discounted repurchase plan proposed by ST Ruidian provides holders with the option to sell back at a discounted price, which is a positive market-oriented solution.

Senior analysts in the bond market pointed out that although these two bonds have won additional guarantees from * ST Ruidian, holders will still face the risk of redemption uncertainty. Since the beginning of this year, the default cases of credit bonds such as super Japanese bonds have shown that for some issuers whose fundamentals have seriously deteriorated or even fallen into bankruptcy reorganization, early discount redemption is actually a more rational choice. With the approaching peak of principal and interest repayment for various high-yield bonds such as private equity bonds of small and medium-sized enterprises at the end of the year, the credit bond market is expected to once again usher in a tumultuous period. It is not ruled out that early discount redemption will become a normalized compromise solution for future technical defaults.

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