Kinwong(SH:603228) Hua Xia Shi Bao·2025-09-12 04:11Core Viewpoint - The convertible bond market experienced a significant decline from late August to early September, mirroring the performance of the Shanghai Composite Index, but has shown signs of stabilization since then [1]. Market Performance - The Wind convertible bond equal-weight index reached a historical high of 242.59 points on August 26, followed by a sharp decline over eight trading days, with the largest single-day drop of 3.21% on August 27, erasing gains made since early August [1]. - As of September 11, the index closed at 233.07 points, down less than ten points from its historical high [1]. - The largest convertible bond ETF, Bosera Convertible Bond ETF, saw its scale exceed 63.2 billion yuan this year, but experienced its first net outflow since June [1]. Institutional Behavior - Institutions are showing signs of profit-taking in the fixed-income + strategy, primarily due to several listed companies redeeming their convertible bonds or converting them into stocks [2]. - The decline in institutional convertible bond scale is not necessarily negative, as it reflects profit realization rather than losses [2]. Market Dynamics - The convertible bond market has been buoyed by strong performance in the equity market, with nearly 20 billion yuan net inflow into Bosera Convertible Bond ETF this year [3]. - The recent market adjustment is attributed to high profit-taking pressure, as convertible bond prices had significantly exceeded the past decade's highs [3]. - The market is experiencing increased trading activity, although demand for allocation remains strong [3]. Future Outlook - The total remaining scale of the convertible bond market is reported to be below 610 billion yuan, with expectations of a rapid decline below 600 billion yuan due to upcoming redemptions [4]. - The market is anticipated to undergo adjustments unless there are large-scale new bond issuances within a month [4]. Specific Company Insights - Jingwang Electronics announced unusual trading fluctuations in its convertible bonds, with the "Jing 23 Convertible Bond" experiencing a cumulative price deviation of over 30% [6]. - The bond's closing price was reported at 292.577 yuan, reflecting a premium of 192.58% over its face value [6]. - The company has shown steady revenue growth, with a compound annual growth rate of 15.7% from 2020 to 2024, and a 20.93% year-on-year increase in revenue for the first half of 2025 [8]. Investment Strategy - The current high valuation of convertible bonds suggests a need for structural adjustments, with a focus on finding opportunities during equity market fluctuations [9]. - The market's potential for growth remains significant, despite recent profit-taking, as the overall scale of fixed-income + strategies surged by 240 billion yuan in the first half of the year [9].