Morning Commentary: Ctrip.com convertibles edge up with shares; Weibo underperforms

By Rebecca Melvin

New York, Oct. 10 – Trade continued to be the big story in financial markets on Thursday, with convertibles trending mostly in line with equities, which were up again on expectations that the talks between U.S. and Chinese officials on Thursday are paving the way to a trade agreement.

U.S. president Donald Trump said that he would meet with Chinese vice premier Liu He on Friday after Liu met with U.S. trade representative Robert Lighthizer and treasury secretary Steven Mnuchin early Thursday.

Ctrip.com International Ltd.’s 1% convertibles due 2020 traded at 97.875 on Thursday, which was up 0.125 point to 0.25 point on the day. Shares of the Chinese online travel agency traded up 1.6% to $29.50. The company announced that it has inked another agreement with Japan’s JR Kyushu Railway Co., which investors hope will support Ctrip.com’s efforts to boost inbound tourism in Japan.

Some issues didn’t keep pace with their underlying shares, however.

Weibo Corp.’s 1.25% convertibles due 2022 pared their Wednesday gains, trading at 99.75 early Thursday against a 2% gain in the underlying shares of the Beijing-based social network company to $47.79.

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