QILU BANK(SH:601665) Di Yi Cai Jing·2025-08-06 11:44Core Viewpoint - The A-share market has seen a significant number of convertible bonds delisted this year, primarily due to mandatory redemptions triggered by rising stock prices, indicating a strong bullish trend in the market [2][4]. Group 1: Convertible Bond Market Dynamics - As of August 6, 2023, a total of 71 convertible bonds have been delisted from the A-share market this year, with 51 of these delistings resulting from redemptions, accounting for approximately 71% of the total [2][4]. - The average price increase of A-shares has been 25.9% year-to-date, which has led to a surge in mandatory redemptions of convertible bonds as stock prices meet the conditions for forced redemption [2][5]. - The strong performance of underlying stocks is driving companies to redeem convertible bonds to reduce interest costs and optimize capital structure [2][5]. Group 2: Specific Cases of Redemption - The "Qilu Convertible Bond" will have its last conversion day on August 13, 2023, with a redemption price of 100.7086 CNY per bond, while its closing price was 124.498 CNY as of August 6, 2023 [3]. - The Qilu Bank's stock has risen by 16.83% this year, contributing to the bond's forced redemption, with at least four bank convertible bonds triggering mandatory redemptions this year [3][4]. - Other companies, such as Feilu Co. and Wenzhou Hongfeng, have also announced upcoming mandatory redemptions due to strong stock performance, with some stocks seeing increases of over 60% this year [4][5]. Group 3: Market Supply and Demand - The issuance of new convertible bonds has slowed, with fewer than 30 issued this year, leading to a significant decrease in the total supply of convertible bonds in the market [5][6]. - The demand for convertible bonds remains high due to institutional investors' rigid allocation needs and declining pure bond yields, creating a supply-demand imbalance [5][6]. - The Wind Convertible Bond Index has increased by 16.5% year-to-date, outperforming major stock indices, indicating a robust market for convertible bonds despite the declining supply [5][6]. Group 4: Investment Trends - The convertible bond market is experiencing a rotation similar to the stock market, with sectors like TMT and innovative pharmaceuticals showing high activity [6]. - Institutions are increasingly favoring convertible bonds in sectors with high growth potential, such as electronics, chemicals, and pharmaceuticals, as traditional bank bonds become scarcer [6]. - The scarcity of high-quality convertible bonds is pushing up their valuation levels, making investment in this space more challenging [6].