Investment Rating - The report assigns a "Buy" rating to the company [11]. Core Viewpoints - Beikong Water Group is a national leader in water services with stable dividend guarantees. The company is expected to achieve steady growth in its water supply and sewage treatment business as capacity utilization increases. The pressure on growth in the water environment management construction service has gradually been released. The company has turned positive in free cash flow since 2022, and the dividend per share has not been less than HKD 0.157 since 2021, indicating a strong dividend capability [4][11]. Summary by Sections Company Overview - Beikong Water Group, established in 2008, operates in sewage and reclaimed water treatment, water supply services, water environment management construction, technical and consulting services, equipment sales, and urban resource services. The company is actively expanding its light asset operation model, with engineering business continuously shrinking, leading to a decrease in gross profit contribution [7][19]. Shareholding Structure - As of the end of 2024, Beijing Enterprises holds 41.1% of the company's shares, with the actual controller being the Beijing State-owned Assets Supervision and Administration Commission. Other significant shareholders include China Three Gorges Corporation and its subsidiaries [7][35]. Highlights - The company has passed the peak of project construction, with capital expenditure expected to decrease to HKD 41.1 billion in 2024, down by HKD 28.9 billion year-on-year. The dividend per share is projected to yield a dividend rate of 6.22% in 2024 [7][40]. Water Services Sector - The demand for water supply and sewage treatment is expected to grow steadily, with a projected CAGR of 0.37% and 1.2% from 2025 to 2027. The company’s market share in water supply and sewage treatment is 1.8% and 8.2%, respectively, as of 2023. The company’s operational capacity is expected to reach 33.84 million tons per day by the end of 2024 [8][11]. Financial Analysis - The company has experienced profit fluctuations over the past three years due to factors such as the sale of joint ventures and impairment provisions. However, the increase in operational proportion is expected to enhance future earnings stability. As of the end of 2024, the cautious estimate of accounts receivable is HKD 20.85 billion, with 75.8% of service concession receivables due within one year [10][11]. Profit Forecast - The company is expected to achieve a net profit attributable to shareholders of HKD 16.6 billion, HKD 17.0 billion, and HKD 17.1 billion from 2025 to 2027, with dividends projected to grow by 3% annually from 2024 levels [11].

Investment Rating - The industry investment rating is "Positive" and maintained [11] Core Insights - The innovation chain in China's pharmaceutical industry is gradually improving, with a new cycle of investment in innovative drug research and development expected to begin [10][44] - The financing amount for China's biopharmaceutical sector is likely to rebound from its lowest point, supported by government policies and the establishment of regional investment funds [6][23] - The IPO channels for innovative drugs are widening, with significant fundraising for research and development from both Hong Kong and A-share markets [7][30][32] - The trend of increasing capital increases for pharmaceutical companies is evident, particularly among Hong Kong-listed firms [33] Summary by Sections Innovation Chain Improvement - The research indicates that the innovative drug R&D environment in China is becoming more favorable, with supportive policies leading to a rebound in investment [6][23] Financing and IPO Trends - The report highlights a resurgence in IPOs for innovative drug companies, with 62 companies listed in Hong Kong since 2019 and a significant increase in fundraising [26][30] - The reopening of the listing channel for unprofitable companies on the Sci-Tech Innovation Board is expected to provide additional funding sources for innovative drug firms [28][30] BD Payments as a Funding Source - The report notes that upfront payments from business development (BD) have become a major source of funding for R&D, with a significant amount of $1.73 billion in Q2 2025, surpassing the total biopharmaceutical financing amount [9][40] Increased Capital Increases - Pharmaceutical companies are increasingly raising capital through share issuances, particularly in the Hong Kong market, to strengthen their cash positions [33] Investment Opportunities - The report suggests focusing on companies with healthy cash flows and innovative capabilities, particularly in breakthrough therapies and technologies [49]

Investment Rating - The report maintains a "Buy" rating for the company [8] Core Views - The company is expected to achieve a net profit attributable to shareholders of 1.54-1.85 billion yuan in Q2 2025, representing a year-on-year growth of 38.50%-65.89%. The net profit for the first half of 2025 is projected to be 2.28-2.59 billion yuan, with a year-on-year increase of 41.14%-60.02% [2][6] - The forecasted net profits for 2025-2027 are 2.75 billion, 3.38 billion, and 4.30 billion yuan, corresponding to price-to-earnings ratios of 23, 19, and 15 times respectively [2] Summary by Sections Company Performance - The company has shown robust demand with a significant increase in enrollment numbers, contributing to revenue growth alongside price increases. The number of operational centers expanded from over 240 to more than 300, covering over 100 cities with more than 4,000 dedicated teachers [12] - The second quarter typically sees a peak in course consumption, and the increase in customer unit price has led to substantial revenue growth [12] Profitability - Improved utilization rates of teachers and classrooms, along with refined management and cost reduction strategies, have enhanced overall profitability. The repayment of loans has also reduced interest expenses, leading to significant improvements in gross and net profit margins [12] Market Position and Strategy - As a leading player in personalized education, the company benefits from a favorable market environment characterized by high demand. The strategy focuses on expanding its network to increase market share while leveraging its brand, research, and management capabilities to ensure steady business growth [12] - The company is expected to continue improving profitability through increased revenue from core operations and enhanced operational efficiency as new centers mature [12] Financial Forecast - The projected net profits for 2025-2027 are 2.75 billion, 3.38 billion, and 4.30 billion yuan, with corresponding price-to-earnings ratios of 23, 19, and 15 times, respectively [2][12]

Group 1: Report Highlights - The active bond phenomenon is caused by the differentiation between the allocation portfolio and the trading portfolio. New bonds go through a cycle of "liquidity accumulation → premium widening → switching to active bonds → premium continuing to widen → premium compression" after issuance. The new-old bond spread is an indicator of liquidity premium [4][7]. - For a new bond to become an active bond, it must meet three core conditions: longer maturity, larger scale, and continuous issuance. Other factors such as issuance timing and code convenience can also be considered [4][8]. - The shape of the new-old bond spread shows a divergent evolution trend among bond types. The spread center has shifted downward, the active bond cycle has generally shortened, and the time for the spread to reach its peak has also decreased. In the future, the active bond phenomenon may gradually weaken [4][9][10]. - The new-old bond spread arbitrage strategy can be divided into four stages, and the report calculates the arbitrage space and stop-profit indicators for each stage [4][11]. Group 2: Active Bond Phenomenon - The active bond phenomenon is driven by the pursuit of liquidity by market participants. Each new bond experiences a cycle of strong to weak liquidity, corresponding to the active bond lifecycle. The liquidity premium of active bonds is an important indicator of market sentiment and capital flow and creates multiple trading arbitrage opportunities [20]. - The active bond phenomenon is caused by the differentiation between the allocation portfolio (banks, insurance) and the trading portfolio (funds, securities firms, etc.). The allocation portfolio holds bonds until maturity, weakening the demand for liquidity, while the trading portfolio relies on price difference returns, strengthening the dependence on liquidity [21]. - The active bond is not permanent but changes over time. When a new bond is issued, it may gradually replace the old bond as the new active bond, a process called new-old bond alternation [22]. Group 3: Conditions for New Bonds to Become Active Bonds - Longer maturity: Active bonds need to have sufficient duration sensitivity to attract trading funds for band operations. Long-term bonds (such as 10Y/30Y) are suitable for trading to obtain capital gains due to their long duration and sensitivity to interest rate fluctuations [36]. - Larger scale: Scale is the cornerstone of liquidity. A single bond's circulation volume needs to exceed a certain scale threshold to accommodate high-frequency trading. Large-scale bonds can avoid being "bought out" by the allocation portfolio and provide capacity for short-term leveraged trading [37]. - Continuous issuance: Frequent issuance helps maintain market attention and prevent existing bonds from being marginalized. Interruptions in issuance can lead to a rapid decline in liquidity [43]. - Issuance timing: If a new bond is issued at a relatively high interest rate and continued to be issued during a period of rapid interest rate decline, the switching of active bonds may be hindered. An interest rate shock period is relatively favorable for new bonds to switch to active bonds [50][51]. - Code convenience: Complex codes may increase trading friction costs, while simple codes can improve trading efficiency. Bonds with convenient codes are more likely to attract trading [56]. Group 4: Patterns of New-Old Bond Spread Trends - The new-old bond spread shows regular fluctuations along with the active bond switching cycle, generally presenting an "M-shaped" trend. The spread first widens, then narrows, widens again, and finally converges [62]. - The shape of the new-old bond spread shows a divergent evolution trend among bond types. The 10-year CDB bond shows a trend of changing from an "inverted V-shaped" to an "M-shaped", the 10-year Treasury bond evolves in the opposite direction, and the 30-year Treasury bond maintains an "M-shaped" [9][64]. - The center of the new-old bond spread has shifted downward, and the maximum spread average of the three major bond types has been compressed to varying degrees. The driving factors include the allocation portfolio's continuous increase in holding existing old bonds, the diversion effect of special Treasury bonds on liquidity, and the enhanced consistency of the trading portfolio's pursuit of new bonds [80][83][85]. Group 5: Shortening of Active Bond Cycle and Spread Peak Time - The active bond cycle has generally shortened. The active bond cycles of 10-year Treasury bonds and CDB bonds have been shorter this year due to the faster switching rhythm. The cycle characteristics of 30-year Treasury bonds are mainly reflected in the shorter active cycle of special Treasury bonds [10][89]. - The spread peak usually lags behind the switching date. In recent years, due to the advancement of market expectations, the time for the peak to appear has shortened, reflecting a shift from long-term cyclical to short-term event-driven liquidity premium gaming [10][91]. Group 6: New-Old Bond Spread Arbitrage Strategy - The new-old bond spread arbitrage strategy can be divided into four stages: arbitrage of the primary-secondary market spread from the new bond's payment date to the listing date, arbitrage of the spread widening from the listing date to the "sub-maximum spread day" before the switching date, arbitrage of the spread widening from the switching date to the peak of the active bond spread, and trading of the spread convergence from the peak decline to the retirement of the active bond [11][92]. - From the payment date to the listing date of a new bond, the spread generally widens. A "long new bond, short old bond" strategy can be adopted on the payment date and closed on the listing date to complete short-term arbitrage [93]. - After the new bond is listed, the spread fluctuates in a pattern of "first widening, then a phased correction". A "long new bond, short old bond" strategy can be adopted on the listing date and stopped for profit on the "sub-maximum spread day" [98].

Investment Rating - The report assigns a "Buy" rating to the company, with an upgrade noted [10]. Core Insights - The company is a leading player in the domestic prestressed materials industry, with stable and increasing downstream demand in sectors such as water conservancy, highway bridges, and high-speed rail construction. The company leverages advanced technology to continuously launch high-performance prestressed products, enhancing the lifespan of downstream products while reducing construction costs, leading to an upgrade in product structure [3][6]. - The overseas market presents significant growth potential, with expectations for the company to achieve greater breakthroughs [3]. Company Overview - The company focuses on prestressed materials and rail transit supporting materials, serving downstream sectors including railways, water conservancy, bridges, and civil applications. Established in 1978 and listed in 2015, the company has shown stable performance with projected revenue of 3.05 billion yuan in 2024, reflecting accelerated growth. The net profit from 2012 to 2023 has remained between 100 million to 200 million yuan, with a forecasted profit of 237 million yuan in 2024, marking a 38% year-on-year increase [6][28]. Prestressed Materials - The demand for prestressed materials remains robust, particularly in traditional infrastructure projects, with structural growth observed in water conservancy investments maintaining over 10% growth annually. The company is positioned to benefit from this demand, especially in providing prestressed steel wires to PCCP enterprises [6][34]. - The industry has undergone a supply-side clearance, with many small enterprises exiting due to inefficiencies, allowing the company to potentially increase its market share, which is currently about 4.6% with a projected sales volume of 250,000 tons in 2024 [7][44]. High-Strength Product Development - The market for high-quality prestressed products is expanding due to increasing safety and quality requirements in construction. New standards have been introduced, raising the strength requirements for materials used in bridges and high-speed rail, which the company is well-positioned to meet with its high-strength prestressed materials [8][52]. - The company has developed high-strength products that are being utilized in major bridge and high-speed rail projects, contributing significantly to its expected performance in 2024 [8][67]. Rail Transit Sector - The demand for rail transit materials is on the rise, with fixed asset investment in railways expected to reach 850.6 billion yuan in 2024, a year-on-year increase of 11.3%. The company anticipates a 31% increase in revenue from rail transit products in 2024, amounting to 400 million yuan [9][73]. - The III-type track slab is gaining traction, with market demand projected to reach 4 billion yuan by 2028, doubling from 2024 levels. The company is a key player in the development of this product [9][78]. Financial Projections - The company is expected to achieve revenues of 350 million yuan and 530 million yuan in 2025 and 2026, respectively, with corresponding price-to-earnings ratios of 18 and 12 [10].

1. Report Industry Investment Rating No relevant content provided in the report. 2. Core View of the Report - The current adjustment of the dividend yield has alleviated the pressure of the over - valued bond market, and the odds have increased marginally. The current cost - performance advantage of bonds is gradually emerging, which may provide a more favorable valuation support environment for the phased layout of interest - rate bonds [7][18]. - The liquidity environment provides a relatively stable operating foundation for the bond market. The social financing growth rate may peak in the third quarter and then decline trend - wise, and the expected impact of structural changes on the bond market is limited. The bond market faces a relatively friendly liquidity environment [7][24]. - The central bank has clearly shown its attitude of protecting liquidity, and the money market is expected to return to a balanced and loose state. The yield of the 10 - year Treasury bond may decline to around 1.6%. It is recommended to pay continuous attention to the yield curve and various convex point opportunities, and the spread may continue to be flattened in late July. It is advisable to first focus on interest - rate bonds and Tier 2 capital bonds, and then on credit bonds [7][34]. 3. Summary by Relevant Catalogs Recent Bond Market Callback - From July 7th to July 16th, the yields of the bond market generally increased. The yields of the 10 - year and 30 - year Treasury bonds increased by 2bp and 3bp respectively, and the short - end yields increased more significantly. The adjustment of Tier 2 capital bonds was more obvious [5][12]. Bond Market Odds Gradually Rising - The adjustment of the dividend yield has alleviated the pressure of the over - valued bond market, and the odds have increased marginally. The decline of the CSI 300 dividend yield from the May average of 3.47% to 3.0% on July 14th is conducive to the inflow of funds into the bond market [7][18]. - The liquidity environment provides a stable foundation for the bond market. The social financing growth rate is expected to reach a high of about 9.0% in July and then decline to around 8.2% by the end of the year. The support of government bonds for social financing may weaken in the fourth quarter, and the substitution effect of special refinancing bonds on RMB loans will continue. The central bank will implement a moderately loose monetary policy, and the bond market's liquidity environment is friendly [7][24]. 10 - year Treasury Bond Has Certain Odds Above 1.65%, Recommend First Interest - rate and Tier 2 Capital Bonds, Then Credit Bonds - Due to the disturbance of the money market at the beginning of the quarter and the strengthening of the equity market, the Tier 2 capital bonds and credit bonds with previously compressed spreads have given back their gains, especially the medium - and long - term and some medium - and low - grade varieties. However, the core logic of Tier 2 capital bonds has not changed [33]. - Since July 10th, the central bank has shifted to net investment in open - market operations. The money market is expected to return to a balanced and loose state, and the yield of the 10 - year Treasury bond may decline to around 1.6%. It is recommended to seize the layout opportunities after the adjustment, with medium - and short - term varieties as the basis for coupon income, and medium - and high - grade 3 - 5 - year varieties having better elasticity in interest - rate band operations [34].

Investment Rating - The investment rating for the real estate industry is "Positive" and maintained [8] Core Insights - Since Q2 2025, the pressure on volume and price has continued to increase, approaching policy thresholds, posing new challenges to the goal of stabilizing the market. Expectations for policy easing are gradually strengthening, with significant meetings potentially serving as a buying window for the sector. The trading level in July is expected to be lower than in September [2][11] - The report suggests prioritizing high-quality real estate companies with relatively low inventory pressure and strong product capabilities. It also recommends considering companies undergoing marginal improvements and debt restructuring. In the context of low interest rates and asset shortages, leading enterprises in commercial real estate, property management, and brokerage with stable cash flows and potential high dividends remain medium to long-term investment opportunities [2][11] Summary by Sections Market Performance - From January to June 2025, national sales of commercial housing decreased by 5.5% in value and 3.5% in area year-on-year, with the decline in sales accelerating in June to 10.8% in value and 5.5% in area. The sales area decline aligns with trends in key cities and top 100 real estate companies [11] - In June, the price index for new and second-hand homes in 70 cities fell by 0.3% and 0.6% month-on-month, respectively, with the decline in first-tier cities also accelerating [11] Construction and Investment Trends - The year-on-year decline in new construction area from January to June 2025 was 20.0%, with a smaller decline of 9.4% in June. The completion area also saw a year-on-year decline of 14.8% [11] - The total funds available to real estate companies decreased by 6.2% year-on-year, with a notable decline in deposits and pre-sales [11] Future Outlook - The report anticipates that the most challenging period for the real estate industry may be nearing its end, with expectations of double-digit declines in construction and investment for the year 2025. Sales performance will depend on the effectiveness of future policies [11]

Investment Rating - The report maintains a "Buy" rating for the company [2][6]. Core Insights - As of the end of June, the company's PE ratio stands at 37.51x, which is at the 55th percentile historically since 2016, indicating a certain level of investment value. It is expected that with the continued enhancement of the mutual access policy in the Hong Kong capital market, liquidity in the Hong Kong stock market will continue to rise, leading to an increase in overall market activity and valuation. The company is projected to achieve revenues and other income of HKD 27.4 billion, 29.9 billion, and 32.4 billion for 2025-2027, with net profits attributable to shareholders of HKD 16.8 billion, 17.6 billion, and 19.4 billion, corresponding to PE valuations of 32.2x, 30.8x, and 27.9x respectively [2][48]. Market Environment - The Hong Kong stock market continued its upward trend in June, driven by domestic policy support, with the Hang Seng Index and Hang Seng Tech Index rising by 20.0% and 18.7% respectively compared to the end of 2024. The average daily trading volume (ADT) for the Hong Kong Stock Exchange in June was HKD 230.2 billion, reflecting a month-on-month increase of 9.4% and a year-on-year increase of 106.9% [11][17]. - The IPO scale in June saw 15 new stocks listed, totaling HKD 27.9 billion, which is a significant year-on-year increase of 606% despite a month-on-month decrease of 51% [27][28]. Business Segments - **Spot Market**: The overall Hong Kong stock market showed high trading activity, with the ADT for the Hong Kong stock market reaching HKD 230.2 billion in June, up 9.4% month-on-month and 106.9% year-on-year. Northbound trading ADT was HKD 162.9 billion, and southbound trading ADT was HKD 120.8 billion, reflecting increases of 7.5% and 27.9% month-on-month respectively [8][17]. - **Derivatives Market**: In June, the average daily volume (ADV) for futures was 57.3 million contracts, down 2.4% month-on-month and 8.4% year-on-year, while the ADV for options was 82.0 million contracts, up 1.9% month-on-month and 9.7% year-on-year [21]. - **Commodity Market**: The LME daily average trading volume in June was 749,000 contracts, reflecting increases of 6.0% month-on-month and 11.2% year-on-year [24]. - **Primary Market**: The number of new listings in the Hong Kong stock market for the first half of 2025 reached 43, with a total scale of HKD 1,067 billion, representing a year-on-year increase of 688.6% [27]. Investment Income - As of the end of June, the HIBOR rates for 6 months, 1 month, and overnight were 2.38%, 0.73%, and 0.03% respectively, showing a month-on-month increase while year-on-year rates have decreased [36].

Investment Rating - The industry investment rating is "Positive" and maintained [8] Core Insights - Recent updates of overseas large models have led to significant performance improvements, driving the AI application landing phase [4][5] - The demand for computing infrastructure is surging due to the increased usage of large models, indicating a high growth cycle for the computing infrastructure industry [5][28] - Domestic AI applications are growing but at a slower pace compared to overseas counterparts, with potential acceleration as domestic models close the performance gap [6][34] Summary by Sections Overseas Large Models and AI Application Growth - Continuous updates from major overseas model developers like xAI, Google, and Anthropic have enhanced model performance, leading to a substantial increase in AI application usage [4][16] - For instance, Google's AI Token monthly usage surged from 9.7 trillion in April 2024 to 480 trillion in April 2025, marking a 50-fold increase [25] Domestic AI Model Development - Domestic AI applications are experiencing growth, with notable MAU figures for various applications as of June 2025, such as Quark (15,618 million) and Doubao (12,594 million) [31][34] - The performance gap between domestic and overseas models is narrowing, particularly with advancements from companies like DeepSeek and Qwen [34] Investment Recommendations - Focus on infrastructure tailored to Chinese characteristics, emphasizing data, computing optimization, and adaptation, particularly in IDC and domestic computing supply chains [7][38] - Highlight significant application scenarios for AI, such as education, justice, and healthcare, where AI applications are expected to thrive [7][38]

Report Overview - Report Title: "How to View Photovoltaic Convertible Bonds under the Background of 'Anti-Involution' - Convertible Bond Weekly Report 20250712" - Report Type: Fixed Income Asset Allocation | Comment Report - Report Date: 2025-07-16 1. Report Industry Investment Rating The document does not mention the industry investment rating. 2. Report's Core View - From July 7 to July 12, 2025, the convertible bond market continued its mild recovery, with increased trading activity. Medium - sized and convertible bonds with expected elasticity performed relatively well. The equity market was highly differentiated, with low - valuation and cyclical manufacturing sectors becoming the main investment directions [2][6]. - The photovoltaic equipment sector has low market attention and congestion. Photovoltaic convertible bonds have cost - effective valuations. Driven by the "anti - involution" policy, the industry's fundamentals are expected to recover, and the holdings of active equity funds may gradually increase [2][6]. - The valuation of the convertible bond market is differentiated by the parity range. The low - parity range shows significant differentiation, while the valuation of the high - parity range has increased. The implied volatility has declined, and the market sentiment is cautious [2][6]. - The primary market supply of convertible bonds is steadily released, and the clause game shows intensified differences. It is recommended to focus on the layout opportunities in the low - valuation and high - safety - margin directions, taking into account the rhythm and rotation [2][6]. 3. Summary by Relevant Catalogs 3.1 Market Weekly Review - **Photovoltaic Equipment Sector**: The market attention and capital participation of the photovoltaic equipment sector are at a relatively low historical level. The allocation ratio of active funds has significantly decreased, and the turnover and trading volume are weak. There are signs of chip clearing, and the congestion is at a relatively low historical level. Under the "anti - involution" policy, the supply - side clearing is expected to repair the fundamentals. Photovoltaic convertible bonds have strong bond - bottom returns and valuation advantages, showing valuation repair and risk - return matching [9]. - **A - share Market**: The A - share market continued to rise in shock, with obvious style differentiation. Funds were concentrated on low - valuation and cyclical manufacturing sectors. The real estate, steel and other sectors led the gains, and the trading activity increased significantly, reflecting the strengthened expectation of valuation repair. There was increased differentiation within the growth direction, with some sectors maintaining high popularity and others experiencing a decline in trading. The trading rhythm of the market accelerated, and the rotation characteristics were enhanced [9]. - **Convertible Bond Market**: The convertible bond market continued to rise moderately, with increased trading activity. Medium - sized convertible bonds performed well, and the style slightly inclined to elastic varieties. The valuation of the convertible bond market showed a differentiated trend according to the parity range. The implied volatility fluctuated and declined, and the sentiment became more cautious. In terms of industries, the financial and pharmaceutical sectors attracted capital inflows, and the cyclical sectors were relatively strong [9]. - **Primary Market of Convertible Bonds**: The primary market of convertible bonds maintained a stable rhythm. One convertible bond was open for subscription, two new bonds were listed, and five companies updated their issuance plans. The issuance momentum is expected to continue to be steadily released. In terms of clause games, there were no proposals for downward revisions, and some bonds clearly stated not to revise downward. Multiple varieties announced forced redemptions, and some promised not to redeem in advance [9]. 3.2 Market Theme Weekly Review - **Equity Theme**: The A - share market continued its structural differentiation, with increased short - term trading activity. Gaming funds continued to concentrate on high - elasticity directions, and the financial technology theme was strong. The new energy sector was highly differentiated, and the digital economy showed a structural recovery. The overall market trading sentiment was high, and the theme rotation accelerated [24]. - **Convertible Bond Theme**: The convertible bond market continued to rise, with the increase rate moderately narrowing. The trading activity reached a recent high, and medium - sized convertible bonds performed better. The valuation of the convertible bond market was differentiated by the parity and market price ranges. The implied volatility declined, and the market sentiment was slightly cautious. The non - banking, coal, and pharmaceutical sectors led the gains, and the trading volume was concentrated in the pharmaceutical and biochemical sectors [27]. 3.3 Market Weekly Tracking - **Main Stock Indexes**: The main A - share stock indexes continued to strengthen, with small and medium - sized and science - innovation stocks performing prominently. The market capital showed a net outflow, but the scale of the net outflow decreased, indicating a marginal improvement in market sentiment [29][30]. - **Industry Performance**: The A - share market showed a structural market dominated by low - valuation sectors. The real estate sector led the gains, followed by the steel, comprehensive, and non - banking financial sectors. The automobile sector led the decline, and some previous hot sectors faced correction pressure. The market capital was concentrated on low - valuation cyclical sectors and also considered structural opportunities in the growth track [34]. - **Convertible Bond Market**: The convertible bond market continued to rise, with the increase rate moderately narrowing. Medium - sized convertible bonds performed better, and the trading activity reached a recent high. The valuation of the convertible bond market was differentiated by the parity and market price ranges. The implied volatility declined, and the market sentiment was slightly cautious. The non - banking, coal, and social service sectors led the gains, and the pharmaceutical, basic chemical, and power equipment sectors had the highest trading volume [45][55]. 3.4 Primary Market Tracking and Clause Game - **New Bond Issuance**: One convertible bond was open for subscription (Guanghe Convertible Bond), and two new bonds were listed (Huachen Convertible Bond and Luwei Convertible Bond). Five listed companies updated their convertible bond issuance plans, including three accepted by the exchange and two approved by the general meeting of shareholders [66][67]. - **Clause Game**: There were no proposals for downward revisions of convertible bonds during the week, and some bonds clearly stated not to revise downward. Multiple varieties announced forced redemptions, and some promised not to redeem in advance. There were 3 convertible bonds that announced they were expected to trigger downward revisions, 13 that announced no downward revisions, 2 that announced they were expected to trigger redemptions, 3 that announced no early redemptions, and 4 that announced early redemptions [75][80].