SFX(SH:600370) 证券时报·2025-12-17 12:07Core Viewpoint - The recent decline in the convertible bond market, highlighted by the first bond falling below par value, reflects concerns over credit risk and indicates a structural adjustment within the market [1][3]. Group 1: Market Dynamics - On December 16, the stock price of Sanfangxiang fell by 3.24%, leading to its convertible bond price dropping by 2.75% and falling below the par value of 100 yuan, marking it as the first convertible bond to do so in recent times [1][3]. - The decline in Sanfangxiang's convertible bond is part of a broader trend where several low-rated convertible bonds, such as Hongtu and Lanfan, have also seen significant price drops, with Lanfan's bond nearing par value [3][4]. - The market is currently experiencing a phase of adjustment, with weak credit quality bonds facing liquidity risks and a potential for further differentiation among bonds based on credit quality [3][6]. Group 2: Credit Risk and Valuation - The recent phenomenon of convertible bonds falling below par value is attributed to a combination of issuer credit risk pricing, equity market adjustments, and the failure of bond floor support [4][8]. - As of December 17, 130 convertible bonds rated below AA- accounted for 31.18% of the total, indicating a weakening trend in credit ratings compared to previous years [6][7]. - The decline in credit quality is linked to multiple factors, including industry-specific risks, policy adjustments, and the overall market environment, leading to a significant increase in rating downgrades since 2019 [7][8]. Group 3: Investor Considerations - Investors are advised to monitor the financial health of issuers, especially those nearing delisting thresholds, and to pay attention to bond terms such as conversion and redemption rights [10][11]. - The market is expected to see a decrease in the frequency of credit events following a concentrated risk clearing in 2024, with some bonds managing to convert or trigger strong redemptions [11].