Morning Commentary: Pinduoduo’s convertible notes drop below par in early trading

By Abigail W. Adams

Portland, Me., July 6 – It was a quiet return from the extended holiday weekend in the convertibles secondary space.

However, China-based companies were in focus as China accelerated its clampdown on its tech sector following Didi Global Inc.’s IPO last week.

Pinduoduo Inc.’s 0% convertible notes due 2025 again dropped below par as the e-commerce company’s equity sank more than 5% in early trading.

The notes dropped about 3 points outright to 98.5 early in the session.

Pinduoduo’s stock traded as low as $111.25 early Monday and was changing hands at $113.55, a decrease of 4.75%, shortly before 11 a.m. ET.

Following what was hailed as a blockbuster IPO, China launched a review of Didi Global and found that the ride-sharing company was allegedly committing violations in relation to the collection and use of data on its customers.

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