Market Overview - In October 2025, the equity market experienced an overall upward trend, with the Shanghai Composite Index breaking through 3900 points and reaching a historical high of 3950.3, marking a monthly increase of 0.42% [5] - The bond market remained volatile, influenced by expectations of further monetary policy easing and high risk aversion due to the uncertain Sino-US trade situation. The yield on 10-year government bonds rose by 0.20 basis points to 1.849% by October 24 [5] - The convertible bond market saw a stabilization after an initial valuation compression, with the average price of convertible bonds decreasing by 3.00% to 114.34 yuan, and the median price dropping by 0.48% to 131.01 yuan [5][11] Convertible Bond Strategy - The report suggests a balanced approach to convertible bond investments, emphasizing the need for a wave-like strategy in asset management. It highlights the importance of selecting bonds with high potential for price appreciation while managing risks associated with high premiums and frequent redemptions [17] - The report identifies sectors with high win rates and high odds for convertible bond investments, including lithium batteries, semiconductor equipment, and agricultural chemicals, which are expected to benefit from recent price increases and market demand [17] "Top Ten Convertible Bonds" Portfolio - The report lists the "Top Ten Convertible Bonds" for November 2025, highlighting their respective industries, credit ratings, and reasons for recommendation. For instance, the "Xingye Convertible Bond" is recommended due to its attractive dividend yield of over 5% [19][20] - The portfolio includes bonds from various sectors such as banking, battery manufacturing, medical devices, and semiconductor industries, showcasing a diverse investment strategy aimed at capturing growth across different market segments [19] Sector-Specific Insights - The banking sector, represented by Xingye Bank, is noted for its stable revenue growth and strong asset quality, with a projected dividend yield of 4.6% [20][21] - The battery sector, particularly represented by Yiwei Lithium Energy, is experiencing rapid growth in energy storage battery shipments, positioning the company as a leader in the market [31][34] - The medical device sector, led by Yirui Technology, is benefiting from increased demand for digital X-ray detectors and core component breakthroughs, indicating strong growth potential [43][46] - The semiconductor sector, represented by Weier Technology, is capitalizing on the recovery in consumer electronics demand and the expansion of automotive electronics, leading to significant revenue growth [68][71] - The communication sector, represented by Zhongbei Communication, is seeing explosive growth in its intelligent computing business, driven by the increasing demand for AI-related services [80][83] Conclusion - The report emphasizes the importance of a strategic approach to investing in convertible bonds, focusing on sectors with strong growth potential and favorable market conditions. The "Top Ten Convertible Bonds" portfolio serves as a guide for investors looking to capitalize on these opportunities while managing associated risks [17][19]

Report Summary 1. Report Industry Investment Rating No information about the industry investment rating is provided in the report. 2. Core Viewpoints - The convertible bond market experienced a volume - shrinking decline on October 28, 2025, with compressed valuations. The CSI Convertible Bond Index decreased by 0.24% compared to the previous day, and the trading sentiment in the convertible bond market weakened. The total convertible bond market turnover was 57.096 billion yuan, a 14.27% decrease from the previous day [1]. - The convertible bond price center declined, and the proportion of high - priced bonds decreased. The overall weighted average closing price of convertible bonds was 133.05 yuan, a 0.25% decrease from the previous day. The proportion of bonds with a closing price above 130 yuan decreased by 2.07 percentage points [2]. - In the industry performance, more than half of the underlying stock industry indices declined. Among A - share markets, the top three declining industries were non - ferrous metals (-2.72%), beauty care (-1.51%), and steel (-1.35%); the top three rising industries were national defense and military industry (+1.07%), transportation (+0.24%), and textile and apparel (+0.19%) [3]. 3. Summary by Relevant Catalogs Market Main Index Performance - The CSI Convertible Bond Index closed at 484.03, down 0.24% for the day, up 2.01% for the week, up 1.05% for the month, and up 16.76% since the beginning of 2025. Other major indices also showed different degrees of decline or increase [7]. - In terms of market style, large - cap value stocks were relatively dominant. Large - cap growth decreased by 0.26%, large - cap value decreased by 0.25%, mid - cap growth decreased by 0.97%, mid - cap value decreased by 1.76%, small - cap growth decreased by 0.29%, and small - cap value decreased by 0.61% [1][8]. Market Fund Performance - The trading volume in the convertible bond market decreased, with a turnover of 57.096 billion yuan, a 14.27% decrease from the previous day. The total turnover of the Wind All - A index was 2.165307 trillion yuan, an 8.12% decrease from the previous day. The net outflow of main funds from the Shanghai and Shenzhen stock markets was 34.079 billion yuan, and the yield of the 10 - year treasury bond decreased by 2.44 basis points to 1.82% [1]. Convertible Bond Price and Valuation - The convertible bond price center declined. The overall weighted average closing price was 133.05 yuan, a 0.25% decrease from the previous day. The price median was 132.09 yuan, a 0.44% decrease from the previous day. The proportion of high - priced bonds above 130 yuan decreased by 2.07 percentage points [2]. - The convertible bond valuation was compressed. The fitted conversion premium rate of 100 - yuan par value was 30.23%, a 0.55 - percentage - point decrease from the previous day. The overall weighted par value was 101.66 yuan, a 0.22% decrease from the previous day [2]. Industry Performance - In the underlying stock market, 21 industries declined. The top three declining industries were non - ferrous metals (-2.72%), beauty care (-1.51%), and steel (-1.35%); the top three rising industries were national defense and military industry (+1.07%), transportation (+0.24%), and textile and apparel (+0.19%) [3]. - In the convertible bond market, 21 industries declined. The top three declining industries were non - ferrous metals (-1.97%), steel (-1.17%), and household appliances (-1.05%); the top three rising industries were building decoration (+0.14%), machinery and equipment (+0.14%), and national defense and military industry (+0.13%) [3]. - In terms of different sectors, the closing price of the large - cycle sector decreased by 0.61%, manufacturing decreased by 0.28%, technology decreased by 0.16%, large - consumption decreased by 0.30%, and large - finance decreased by 0.16%. The conversion premium rate, conversion value, and pure bond premium rate of each sector also showed different changes [3]. Industry Rotation - The national defense and military industry, transportation, and textile and apparel industries led the rise in industry rotation. The national defense and military industry had a daily increase of 1.07% in the underlying stock market and 0.13% in the convertible bond market; transportation had a 0.24% increase in the underlying stock market and a -0.34% decrease in the convertible bond market; textile and apparel had a 0.19% increase in the underlying stock market and a -0.04% decrease in the convertible bond market [61].

Report Industry Investment Rating No information provided in the content. Core Viewpoints of the Report - Policy support has significantly boosted the equity and convertible bond markets. The Shanghai Composite Index and the Wind Micro - cap Stock Index have reached new phased highs, but the style rotation is fast, with the technology and dividend sectors taking turns. Amid the intertwining of Sino - US tariff issues and domestic policy expectations, the equity market is highly volatile, but its downside risk is generally controllable. The convertible bond market is trending optimistically. In the short term, the impetus for the convertible bond market comes from the liability side, with the return of net inflows into convertible bond ETFs and the potential increased demand from the upcoming stock - bond constant ETFs. After a period of retracement and consolidation, a new round of market upswing is expected to start. [3][5] Section Summaries 1. Weekly Outlook - Policy support has strongly influenced the equity and convertible bond markets. The Shanghai Composite Index and the Wind Micro - cap Stock Index have hit new phased highs. The equity market is highly volatile due to Sino - US tariff and domestic policy expectations, but its downside risk is controllable. The convertible bond market is optimistic, and its short - term momentum comes from the liability side, such as the return of net inflows into convertible bond ETFs and potential demand from stock - bond constant ETFs. [3][5] 2. Convertible Bond Valuation - During the Fourth Plenary Session of the 20th CPC Central Committee, risk appetite was resilient, and the 100 - yuan valuation rose to around 36%. High - rated large - cap convertible bonds showed stronger valuation performance. The overall market's 100 - yuan premium rate was 35.7%, up 0.6% from the previous week, and its percentile since 2017 was 93.9%. High - rated convertible bonds had a larger increase in valuation than low - rated ones. - The conversion premium rate and the bottom - line premium rate increased across most parity ranges. The low - parity range below 80 yuan and the 110 - 120 yuan parity range showed relatively strong valuation performance, while the high - parity range above 140 yuan saw a slight decline. - The median price of convertible bonds was 131.80 yuan, up 2.07 yuan from the previous week, and the yield to maturity was - 6.47%, down 0.01%. Their percentile levels since 2017 were 99.20 and 0.60 respectively. [4][6][10] 3. Clause Statistics 3.1 Redemption - This week, Tongcheng Convertible Bond announced redemption, while Fuchun, Youfa, and Zhonghuan Zhuan 2 Convertible Bonds announced non - redemption, with a forced - redemption rate of 25%. There are currently 18 convertible bonds that have announced forced or maturity redemptions but have not yet delisted, with a potential conversion or maturity balance of 4.9 billion yuan. There are 34 convertible bonds currently in the redemption process, and 12 are expected to meet the redemption conditions next week. [4][13][16] 3.2 Downward Revision - This week, Lanfan Convertible Bond proposed a downward revision. As of now, 107 convertible bonds are in the non - downward - revision period, 23 cannot be downward - revised due to net - asset constraints, 2 have triggered the downward - revision condition but the stock price is still below the trigger price and no announcement has been made, 32 are accumulating days for downward revision, and 1 has issued a board - meeting proposal for downward revision but has not yet held a shareholders' meeting. [4][18] 3.3 Put Option - This week, Baocai Convertible Bond issued a conditional put - option announcement. As of now, 2 convertible bonds have issued put - option announcements, and 5 are accumulating days to trigger the put - option. Among them, 1 proposed a downward revision, 1 has triggered the downward - revision condition, 1 is accumulating days for downward revision, and 2 are in the non - downward - revision period. [4][22] 4. Primary Market Issuance - There were no new convertible bond issuances this week. Jin 25, Funeng, and Jinlang Zhuan 02 Convertible Bonds have been issued but not yet listed. Jin 25 Convertible Bond is scheduled to list on October 27, 2025. As of now, there are 7 convertible bonds awaiting registration, with a total issuance scale of 6.7 billion yuan, and 6 awaiting listing - committee approval, with a total issuance scale of 3.6 billion yuan. [4][26] 5. Appendix - The CSI Convertible Bond Index rose 1.47% this week. The technology and advanced manufacturing sectors showed significant recovery. Most industries saw gains, with the national defense and military industry, electronics, and computer sectors leading the way. [28][33]

1. Report Industry Investment Rating There is no information about the industry investment rating in the report. 2. Core Viewpoints of the Report - Last week, the equity market fluctuated and declined, with the market style shifting from growth sectors such as technology to low - valuation defensive sectors like banks and coal. The TMT and robotics sectors, which had significant previous gains, led the decline. The bond market strengthened, and the stock - bond seesaw effect was evident. The 10 - year Treasury bond yield closed at 1.82% on Friday, down 2.14bp from the previous week. Most convertible bonds ended lower, with the CSI Convertible Bond Index down 2.35% for the week, the median price down 1.95%, and the arithmetic average parity down 4.62%. The overall market conversion premium rate increased by 1.90% compared to the previous week [1][7][8]. - In the short term, coal, banks, and power and other dividend - paying sectors are recommended. The dividend yield of the dividend - paying sectors has significantly rebounded from the high in July. Considering the year - end layout of bank mid - term dividends (in January) by absolute - return funds such as insurance, the dividend - paying sectors are relatively dominant. Before the year - end important meetings, the market may start to bet on pro - growth policies, and pro - cyclical sectors such as banks are expected to benefit. For the subsequent market rebound, transformers, copper connections, pesticides, lithium batteries, and small household appliances with good performance are recommended [2][19]. 3. Summary by Relevant Catalogs Market Trends (2025/10/13 - 2025/10/17) Stock Market - The equity market fluctuated and declined. The market style shifted from growth sectors to low - valuation defensive sectors. The TMT and robotics sectors led the decline. Throughout the week, the performance of A - share indexes varied daily, with different sector performances. Most Shenwan primary industries ended lower, with banks (4.89%), coal (4.17%), food and beverage (0.86%), transportation (0.37%), and textile and apparel (- 0.31%) performing well, while electronics (- 7.14%), media (- 6.27%), automobiles (- 5.99%), and communications (- 5.92%) performed poorly [7][8]. Bond Market - The bond market strengthened. Affected by the tense Sino - US trade situation, market risk - aversion sentiment increased. With the significant correction in the equity market, the stock - bond seesaw effect was obvious. Coupled with loose liquidity and economic data generally in line with expectations, bond market sentiment was strong. The 10 - year Treasury bond yield closed at 1.82% on Friday, down 2.14bp from the previous week [1][7][8]. Convertible Bond Market - Most convertible bond issues ended lower. The CSI Convertible Bond Index was down 2.35% for the week, the median price was down 1.95%, and the arithmetic average parity was down 4.62%. The overall market conversion premium rate increased by 1.90% compared to the previous week. The arithmetic average conversion premium rates of convertible bonds in the parity ranges of [90,100), [100,110), and [110,120) changed by + 0.34%, - 3.24%, and - 0.18% respectively, at the 84%, 88%, and 84% percentile values since 2023. Most industries in the convertible bond market ended lower, with banks (+ 0.85%), coal (- 0.20%), food and beverage (- 0.52%), and environmental protection (- 0.78%) performing well, while automobiles (- 5.78%), electronics (- 5.45%), non - ferrous metals (- 4.89%), and communications (- 4.77%) performing poorly. The total trading volume of the convertible bond market last week was 344.218 billion yuan, with an average daily trading volume of 68.844 billion yuan, a decrease from the previous week [1][8][12]. - At the individual bond level, Huicheng (waste catalyst treatment), Tongguang (optical fiber and cable), Liugong Zhuan 2 (construction machinery), Yuguang (precious metals), and Yanpai (industrial filtering devices) convertible bonds led the gains; Xin 23 (robotics), Zhenhua (solid - state batteries), Jingda (controllable nuclear fusion concept), Zhonghuan Zhuan 2 (innovative drugs & change of actual controller), and Huicheng (display driver packaging and testing) convertible bonds led the losses [1][13]. Valuation Overview - As of October 17, 2025, for equity - biased convertible bonds, the average conversion premium rates of convertible bonds in the parity ranges of 80 - 90 yuan, 90 - 100 yuan, 100 - 110 yuan, 110 - 120 yuan, 120 - 130 yuan, and above 130 yuan were 44.07%, 32.51%, 25.47%, 18.51%, 10.95%, and 10.08% respectively, at the 93%/88%, 90%/85%, 90%/89%, 87%/82%, 71%/56%, and 88%/77% percentile values since 2010/2021. - For bond - biased convertible bonds, the average YTM of convertible bonds with a parity below 70 yuan was - 4.09%, at the 1%/2% percentile values since 2010/2021. - The average implied volatility of all convertible bonds was 40.06%, at the 77%/65% percentile values since 2010/2021. The difference between the implied volatility of convertible bonds and the long - term actual volatility of the underlying stocks was - 2.64%, at the 67%/68% percentile values since 2010/2021 [20]. Primary Market Tracking Last Week (2025/10/13 - 2025/10/17) - Jinlang Zhuan 02 announced its issuance, and no convertible bonds were listed. Jinlang Technology, the underlying stock of Jinlang Zhuan 02, is a high - tech enterprise in the new energy industry. The company's 2024 revenue was 6.542 billion yuan, a year - on - year increase of 7.23%, and the net profit attributable to the parent company was 691 million yuan, a year - on - year decrease of 11.32%. From Q1 - Q3 2025, the company's revenue was 5.663 billion yuan, a year - on - year increase of 9.71%, and the net profit attributable to the parent company was 865 million yuan, a year - on - year increase of 29.39%. The scale of the convertible bond issuance is 1.677 billion yuan, with a credit rating of AA, and it was announced for issuance on October 15. After deducting the issuance fees, the funds are planned to be invested in distributed photovoltaic power station projects, high - voltage and high - power grid - connected inverter new construction projects, medium - and high - power hybrid energy - storage inverter new construction projects, Shanghai R & D center construction projects, digital intelligence improvement projects, and working capital supplementation projects [28]. - Two companies, Tianzhun Technology and Xingyuan Zhuomei, were newly approved for registration, four companies including Yuhetian, Aiwei Electronics, Shenneng Co., Ltd., and Tonglian Precision were accepted by the exchange, one company, Haitian Co., Ltd., passed the shareholders' meeting, and three companies, Zhongqi Co., Ltd., Mankun Technology, and Huatong Cable, had board proposals. No companies passed the listing committee [30]. Future Week (2025/10/20 - 2025/10/24) - There are no announcements of convertible bond issuances, and Yingliu Convertible Bonds are expected to be listed. Yingliu Co., Ltd., the underlying stock of Yingliu Convertible Bonds, is an international well - known high - end equipment key parts manufacturing enterprise. The company's 2024 revenue was 2.513 billion yuan, a year - on - year increase of 4.21%, and the net profit attributable to the parent company was 286 million yuan, a year - on - year decrease of 5.57%. In H1 2025, the company's revenue was 1.384 billion yuan, a year - on - year increase of 9.11%, and the net profit attributable to the parent company was 188 million yuan, a year - on - year increase of 23.91%. The scale of the convertible bond issuance is 1.5 billion yuan, with a credit rating of AA +, and it is planned to be listed on October 22. After deducting the issuance fees, the funds are planned to be invested in blade gate processing coating projects, advanced nuclear energy materials and key parts intelligent upgrade projects, and working capital supplementation and bank loan repayment [29]. - As of now, there are 92 convertible bonds waiting to be issued, with a total scale of 138.26 billion yuan, including 3 approved for registration with a total scale of 2.32 billion yuan and 6 approved by the listing committee with a total scale of 3.98 billion yuan [30].

1. Report Industry Investment Rating No information provided in the content. 2. Core View of the Report - Under the disturbance of Sino - US tariffs, risk appetite declined, and the convertible bond market was significantly suppressed. The high - priced technology sector, which performed strongly in the early stage, had a large decline, while low - priced convertible bonds showed strong resilience. The net outflow trend of two convertible bond ETFs has eased. The median convertible bond price is still around 130 yuan, lacking cost - effectiveness. Short - duration may suppress convertible bond valuations, and external risks make the convertible bond structure fragile, with potential short - term correction risks. However, from a "slow - bull" perspective, corrections present opportunities, and attention should be paid to the opportunities of equity - biased convertible bonds with large pullbacks [2][5]. 3. Summary According to Relevant Catalogs 3.1 Weekly View and Outlook - Sino - US tariff disturbances led to a decline in risk appetite, suppressing the convertible bond market. The high - priced technology sector fell significantly, and low - priced convertible bonds were more resistant. The net outflow of two convertible bond ETFs slowed down. The median convertible bond price around 130 yuan lacks cost - effectiveness. Short - duration suppression on valuations is yet to be seen, and external risks make the structure fragile, with short - term correction risks. But corrections are opportunities for equity - biased convertible bonds [2][5]. 3.2 Convertible Bond Valuation - Due to tariff disturbances, the convertible bond market retreated, and the 100 - yuan valuation dropped to around 35%. High - rated convertible bonds saw a larger decline in valuations. The overall market's 100 - yuan premium rate was 35.1%, down 0.6% week - on - week, at the 92.8% percentile since 2017. High - rated convertible bonds had weaker valuation performance and a larger decline than low - rated ones [6]. - Compared with last week, the conversion premium rate and bottom - support premium rate in each parity range decreased overall. The 60 - 70 yuan, 100 - 110 yuan, and 120 - 130 yuan parity ranges had larger valuation declines, and the historical quantiles of the conversion premium rate in the 120 - 130 yuan and 130 - 140 yuan parity ranges were significantly low [4][10]. - The median convertible bond price was 129.73 yuan, down 2.64 yuan from last week, and the yield to maturity was - 5.81%, up 0.01%. They are at the 97.50 and 1.70 percentiles since 2017 respectively [4][12]. 3.3 Clause Tracking 3.3.1 Redemption - Five convertible bonds, including New Tai Convertible Bond, Chenfeng Convertible Bond, etc., issued early redemption announcements this week. There are 22 convertible bonds that have issued forced redemption or maturity redemption announcements but have not delisted, with a potential conversion or maturity balance of 14.7 billion yuan. Five convertible bonds announced non - redemption, and the forced redemption ratio this week was 50%. There are currently 34 convertible bonds in the redemption process, and 6 are expected to meet the redemption conditions next week [4][15][18]. 3.3.2 Downward Revision - One convertible bond announced a downward revision result, reaching the bottom. As of now, 112 convertible bonds are in the non - downward - revision range, 23 cannot be downward - revised due to net asset constraints, 1 has triggered the condition but the stock price is still below the trigger price without an announcement, and 33 are accumulating downward - revision days. No convertible bond has issued a downward - revision board plan but not held a general meeting of shareholders [21]. 3.3.3 Put Option - Taiping Convertible Bond issued a conditional put option announcement this week. As of now, 5 convertible bonds are accumulating put - option trigger days, including 1 that has triggered the downward - revision condition, 2 are accumulating downward - revision days, and 2 are in the non - downward - revision range [24]. 3.4 Primary Issuance - Jinlang Convertible Bond 02 was issued this week. Jin 25 Convertible Bond, Yingliu Convertible Bond, Funeng Convertible Bond, and Jinlang Convertible Bond 02 have been issued but not listed. Yingliu Convertible Bond will be listed on October 22, 2025. As of now, there are 5 convertible bonds at the approval - registration stage with a to - be - issued scale of 5 billion yuan, and 6 at the listing - committee - approved stage with a to - be - issued scale of 4 billion yuan [4][27].

Report Industry Investment Rating There is no specific industry investment rating provided in the report. Core Viewpoints - Amid repeated trade frictions, the convertible bond market may show strong resilience. Compared with the previous "tariff shock," the current market is in an upward - trending phase with higher trading activity. Although the current valuation is higher, the conversion premium rate is lower, and the implied volatility is higher, weakening the bond - like protection slightly, a market correction may present a layout opportunity [2][6][10]. - In the A - share market, cyclical sectors are relatively dominant, while the technology growth direction faces adjustment pressure. Investors should seize structural opportunities in pro - cyclical varieties and pay attention to the phased adjustment risks in the growth direction [10]. - The convertible bond market shows a slight upward trend, with both large - cap and small - cap bonds performing well. The market continues the structural repair trend, with cyclical and manufacturing sectors presenting more opportunities [10]. - The primary market supply is stable, and clause - based gaming is active. Attention should be paid to the marginal impact of downward adjustment and redemption expectations on the valuation structure and trading rhythm [10]. Summary by Directory Trade Frictions and the Evolution of the Convertible Bond Market - The previous "tariff shock" was an "amplifier" in the downward trend. Currently, the market is in an upward - trending phase, and the potential impact of repeated trade frictions may be more limited. The recent trading activity in the convertible bond market is higher, with an average trading volume of 723.9 billion yuan in the past 5 trading days, compared to 587.0 billion yuan in the previous period [17]. - The current market valuation is higher, the conversion premium rate is lower, and the implied volatility is higher than in the previous period. However, the potential downward space may be restricted by the loose liquidity environment [20]. - The previous "tariff shock" had a greater impact on high - price and small - cap convertible bonds, but they recovered faster. Different industries also showed different performances [33][38]. - Overall, the impact of recent trade frictions on the convertible bond market may be controllable. A significant market adjustment may provide a good buying opportunity [41]. Market Theme Weekly Review - In the week from October 9 to 11, 2025, themes related to non - ferrous metals in the equity market were strong, while technology - growth themes were weak. Indexes related to nickel mines, copper industries, and cobalt mines led the gains, while themes such as automobiles and electronics had significant pullbacks [42]. Market Weekly Tracking Main Stock Indexes and Cyclical Sectors - The A - share main stock indexes were differentiated. Only the Shanghai Composite Index rose, and the ChiNext Index was relatively weak. The CSI 2000 and CSI 500 performed better than the SSE 50 and STAR 50. The net outflow of main funds increased, reflecting the profit - taking and risk - aversion needs of some funds [45]. - Cyclical sectors such as non - ferrous metals, steel, coal, and public utilities were strong, while communication and media sectors were weak. Trading was concentrated in electronics, power equipment, and non - ferrous metals, indicating a divergence in market attention between technology and cyclical sectors [48]. - The market congestion was significantly differentiated. Sectors such as electronics, communication, and machinery had a high historical quantile of trading volume and PB, while sectors such as food and beverage, agriculture, forestry, animal husbandry, and beauty care had relatively low congestion [51]. Convertible Bond Market - The convertible bond market showed a slight upward trend. The CSI Convertible Bond Index was basically flat compared to the previous week. Large - cap and small - cap convertible bonds performed well, but the average daily trading volume decreased slightly [54]. - The valuation structure was differentiated. The median market price fluctuated downward but remained at a high level. The implied volatility increased slightly, indicating differences between bulls and bears [60]. - Cyclical sectors were strong, with non - ferrous metals, coal, and steel leading the gains. Trading was concentrated in power equipment, electronics, and basic chemicals [63]. - Most individual bonds showed an upward trend. Among the convertible bonds in the conversion period, the top five gainers were Guanzhong Convertible Bond, Zhonghuan Convertible Bond 2, Jize Convertible Bond, Haomei Convertible Bond, and Zhenhua Convertible Bond. The top five losers were Hengshuai Convertible Bond, Zhongqi Convertible Bond, Sheng 24 Convertible Bond, Tongguang Convertible Bond, and Huicheng Convertible Bond [65]. Convertible Bond Issuance and Clause Tracking Primary Market Issuance - No new convertible bonds were listed in the week from October 9 to 11, 2025. Six listed companies updated their convertible bond issuance plans, with a total scale of over 60 billion yuan in projects at the exchange - acceptance stage and later [10][70][71]. Clause - Based Events - Five convertible bonds announced potential downward adjustments, two announced no downward adjustments, one announced a potential redemption, and two announced early redemptions. Attention should be paid to the impact of these events on the valuation structure and trading rhythm [10].

Summary of Key Points from Conference Call Industry Overview - The conference call primarily discusses the bond market and its current dynamics, including investor sentiment, monetary policy, and fiscal measures in response to trade tensions and economic pressures [1][2][3][4]. Core Insights and Arguments - **Investor Sentiment**: Investors generally hold a bullish outlook on the bond market but are hesitant to make significant investments due to uncertainties surrounding tariff negotiations, economic downturn pressures, and the potential for monetary policy easing [1][2]. - **Policy Expectations**: There is low expectation for significant policy changes from the upcoming Politburo meeting at the end of April, with most investors anticipating a focus on maintaining economic stability and flexibility in policy implementation [1][3][5]. - **Tariff Impact**: Approximately 46% of investors believe that tariff impacts will ease in the third quarter, but overall sentiment regarding the annual outlook for tariff relief remains pessimistic [6][7]. - **Monetary Policy Outlook**: A majority of investors expect a reserve requirement ratio (RRR) cut in the next three months, with a smaller percentage anticipating interest rate cuts. The rationale for RRR cuts includes addressing liquidity gaps and supporting government bond issuance [9][10]. - **Bond Market Predictions**: Investors predict that the 10-year government bond yield will fluctuate between 1.5% and 1.8%, indicating a slight downward adjustment in market expectations [11]. Additional Important Content - **Trade Policy Response**: The policy response to trade tensions includes stabilizing the market, maintaining exchange rate stability, and expanding domestic demand, with a focus on service consumption as a key driver [12][13]. - **Service Consumption Policies**: Recent policies in the service consumption sector include direct subsidies for hospitality, dining, and transportation, with expectations for further financial support to stimulate consumption [14]. - **Real Estate Sector Focus**: Key points of interest in the real estate sector include government attitudes towards market stabilization and the potential for policy shifts regarding property development and financing [15][16]. - **Credit Bond Market Regulation**: Recent regulatory changes in the credit bond market have tightened oversight on local state-owned enterprises, impacting their financing capabilities [24]. - **Local Government Financing**: Local governments, particularly in Guangdong, are actively issuing special bonds to support land reserve projects, with a focus on expediting the issuance process compared to previous years [25][37]. This summary encapsulates the essential insights and data points discussed during the conference call, providing a comprehensive overview of the current state of the bond market and related economic policies.

Report Industry Investment Rating No relevant content provided. Core Viewpoints - Today, convertible bonds followed the decline of underlying stocks, and the valuation compressed on a month - on - month basis [1]. - The trading sentiment in the convertible bond market heated up, while the overall market capitalization decreased [1]. - The large - cap value style was relatively dominant [1]. Summary by Related Catalogs Market Overview - Index performance: The CSI Convertible Bond Index decreased by 0.45% month - on - month, the Shanghai Composite Index decreased by 0.94%, the Shenzhen Component Index decreased by 2.70%, the ChiNext Index decreased by 4.55%, the SSE 50 Index decreased by 1.51%, and the CSI 1000 Index decreased by 1.49% [1]. - Market style: Large - cap growth decreased by 3.45%, large - cap value increased by 0.50%, mid - cap growth decreased by 2.74%, mid - cap value increased by 0.15%, small - cap growth decreased by 2.24%, and small - cap value increased by 0.13% [1]. - Fund performance: The trading volume of the convertible bond market was 70.395 billion yuan, a 7.69% month - on - month increase; the total trading volume of the Wind All - A Index was 2.534146 trillion yuan, a 5.15% month - on - month decrease; the net outflow of main funds from the Shanghai and Shenzhen stock markets was 92.96 billion yuan, and the yield of the 10 - year Treasury bond decreased by 0.06bp to 1.85% [1]. Convertible Bond Price - The central price of convertible bonds decreased, and the proportion of high - price bonds decreased. The weighted average closing price of convertible bonds was 132.54 yuan, a 0.45% decrease from yesterday. The closing price of equity - biased convertible bonds was 183.44 yuan, a 1.22% increase; the closing price of bond - biased convertible bonds was 118.86 yuan, a 0.06% decrease; the closing price of balanced convertible bonds was 128.15 yuan, with no change [2]. - The proportion of high - price bonds above 130 yuan was 57.97%, a 1.36 - percentage - point decrease from yesterday. The proportion of bonds in the 120 - 130 yuan range increased by 2.44 percentage points to 29.47%. There were no bonds with a closing price below 100 yuan. The median price was 132.31 yuan, a 0.37% decrease from yesterday [2]. Convertible Bond Valuation - Valuation compressed. The fitted conversion premium rate of 100 - yuan par value was 30.39%, a 0.17 - percentage - point decrease from yesterday; the overall weighted par value was 101.40 yuan, a 0.76% decrease from yesterday. The premium rate of equity - biased convertible bonds was 10.70%, a 0.02 - percentage - point increase; the premium rate of bond - biased convertible bonds was 86.97%, a 4.02 - percentage - point increase; the premium rate of balanced convertible bonds was 25.33%, a 0.52 - percentage - point increase [2]. Industry Performance - In the A - share market, 18 industries rose. The top three industries in terms of increase were building materials (+1.92%), coal (+1.37%), and textile and apparel (+1.30%); the top three industries in terms of decline were electronics (-4.71%), power equipment (-4.46%), and computer (-3.70%) [3]. - In the convertible bond market, 14 industries rose. The top three industries in terms of increase were beauty care (+2.25%), steel (+1.06%), and banking (+0.69%); the top three industries in terms of decline were environmental protection (-5.77%), communication (-3.12%), and electronics (-2.81%) [3]. - Closing price: The large - cycle sector decreased by 0.88%, the manufacturing sector decreased by 0.67%, the technology sector decreased by 2.27%, the large - consumption sector decreased by 0.10%, and the large - finance sector increased by 0.42% [3]. - Conversion premium rate: The large - cycle sector decreased by 0.79 percentage points, the manufacturing sector increased by 0.8 percentage points, the technology sector increased by 0.58 percentage points, the large - consumption sector increased by 0.34 percentage points, and the large - finance sector decreased by 0.15 percentage points [3]. - Conversion value: The large - cycle sector decreased by 0.50%, the manufacturing sector decreased by 0.97%, the technology sector decreased by 2.61%, the large - consumption sector increased by 0.28%, and the large - finance sector increased by 0.71% [3]. - Pure bond premium rate: The large - cycle sector decreased by 1.3 percentage points, the manufacturing sector decreased by 0.93 percentage points, the technology sector decreased by 3.6 percentage points, the large - consumption sector decreased by 0.19 percentage points, and the large - finance sector increased by 0.49 percentage points [4]. Industry Rotation - Building materials, coal, and textile and apparel led the rise. For example, building materials had a daily increase of 1.92% in the underlying stock market and 0.64% in the convertible bond market; coal had a daily increase of 1.37% in the underlying stock market and 0.37% in the convertible bond market; textile and apparel had a daily increase of 1.30% in the underlying stock market and - 0.10% in the convertible bond market [59].

1. Report Industry Investment Rating No relevant information provided. 2. Core View of the Report - From the beginning of 2025 to October 10, the convertible bond market underperformed the equity market, with the CSI Convertible Bond Index rising by 17.1% and the CSI All-Share Index rising by 23.3%. In the long term, convertible bonds remain relatively high-quality assets due to the persistent pattern of strong demand exceeding supply. However, the current valuation level is relatively high, so attention should be paid to structural opportunities [1][4]. 3. Summary by Relevant Catalogs Market Conditions - From October 9 to 10, 2025 (2 trading days), convertible bonds first rose and then fell. The CSI Convertible Bond Index had a change of 0% (previous trading cycle: +1.6%), and the CSI All-Share Index changed by -0.3% (previous trading cycle: +2.0%). Since the beginning of 2025, the convertible bond market has underperformed the equity market [1]. - By rating, high-rated bonds (AA+ and above), medium-rated bonds (AA), and low-rated bonds (AA- and below) had changes of +0.45%, +0.50%, and -0.31% respectively this week. Low-rated bonds performed poorly [1]. - By convertible bond size, large-scale convertible bonds (bond balance > 5 billion yuan), medium-scale convertible bonds (balance between 500 million and 5 billion yuan), and small-scale convertible bonds (balance < 500 million yuan) had changes of +0.32%, +0.12%, and -0.16% respectively this week. Large-scale convertible bonds performed the best [1]. - By conversion parity, ultra-high parity bonds (conversion value > 130 yuan), high parity bonds (conversion value between 110 and 130 yuan), medium parity bonds (conversion value between 90 and 110 yuan), low parity bonds (conversion value between 70 and 90 yuan), and ultra-low parity bonds (conversion value < 70 yuan) had changes of +0.03%, -0.17%, +0.03%, +0.14%, and +0.15% respectively this week. High parity bonds closed down [2]. Convertible Bond Price, Parity, and Conversion Premium Rate - As of October 10, 2025, there were 420 outstanding convertible bonds (423 at the close on September 30), with a balance of 587.832 billion yuan (589.024 billion yuan at the close on September 30). The average convertible bond price was 132.67 yuan (131.41 yuan at the close on September 30), the average parity was 105.35 yuan (100.18 yuan at the close on September 30), and the average conversion premium rate was 27.6% (27.1% at the close on September 30) [3]. - The conversion premium rate of medium parity convertible bonds (conversion value between 90 and 110 yuan) was 30.1%, higher than the median conversion premium rate of medium parity convertible bonds since 2018 (20.3%) [3]. Convertible Bond Performance and Allocation Directions - This week, convertible bonds first rose and then fell, and the CSI Convertible Bond Index had a change of 0%. Since the beginning of 2025, the convertible bond market has underperformed the equity market. Given the persistent pattern of strong demand exceeding supply in the convertible bond market, convertible bonds remain relatively high-quality assets in the long term. Currently, the overall valuation level is high, so attention should be paid to structural opportunities [4]. Convertible Bond Increase Situation - The top 15 convertible bonds in terms of increase this week include Zhonghuanzhuan 2, Guanzhong Convertible Bond, Haomei Convertible Bond, etc. The increase rates of these convertible bonds range from 6.01% to 20.00% [22].

1. Report Industry Investment Rating No information provided in the content. 2. Core View of the Report - On September 25, 2025, most convertible bond industries rose, and the valuation increased month - on - month. The CSI Convertible Bond Index rose 0.46% month - on - month, while the Shanghai Composite Index fell 0.01% month - on - month. The market style favored large - cap growth stocks. The trading sentiment in the convertible bond market weakened [1]. - The convertible bond price center increased, and the proportion of high - price bonds rose. The overall closing price weighted average of convertible bonds was 130.63 yuan, up 0.41% from the previous day. The valuation also increased, with the 100 - yuan parity fitted conversion premium rate rising 0.29 pct [2]. - In the A - share market, more than half of the underlying stock industry indices declined, with 23 industries falling. In the convertible bond market, 21 industries rose [3]. 3. Summary by Relevant Catalogs 3.1 Market Main Index Performance - The CSI Convertible Bond Index closed at 479.01, up 0.46% daily, down 0.09% in the past week, down 1.99% in the past month, and up 15.55% since the beginning of 2025. Other convertible bond - related indices and major A - share indices also showed different trends in daily, weekly, monthly, and year - to - date changes [6]. - In terms of style indices, large - cap growth stocks performed well, rising 1.28% daily, while large - cap value stocks fell 0.57% daily [7]. 3.2 Market Fund Performance - The trading volume of the convertible bond market was 7.7368 billion yuan, a 12.25% month - on - month decrease. The total trading volume of the Wind All - A Index was 239.1771 billion yuan, a 1.90% month - on - month increase. The net outflow of main funds from the Shanghai and Shenzhen stock markets was 23.6 billion yuan, and the yield of the 10 - year treasury bond decreased 1.82 bp to 1.88% [1]. 3.3 Convertible Bond Valuation - After excluding convertible bonds with a closing price > 150 yuan and a conversion premium rate > 50%, the 100 - yuan parity fitted conversion premium rate was 28.71%, up 0.29 pct, at the 96.90% quantile since 2019. The overall weighted average parity was 100.56, down 0.14%. The price median was 130.2, down 0.01%, at the 98.10% quantile since 2019 [15][19]. - The conversion premium rates of convertible bonds classified by stock - bond nature all increased, with the conversion premium rate of equity - biased convertible bonds rising 1.15 pct [27]. 3.4 Industry Rotation - In the A - share market, the top three industries with the largest declines were Textile and Apparel (- 1.45%), Agriculture, Forestry, Animal Husbandry and Fishery (- 1.22%), and Household Appliances (- 1.07%). The top three industries with the largest increases were Media (+ 2.23%), Communication (+ 1.99%), and Non - Ferrous Metals (+ 1.87%). - In the convertible bond market, the top three industries with the largest increases were Environmental Protection (+ 2.46%), Non - Ferrous Metals (+ 1.62%), and Automobile (+ 1.22%). The top three industries with the largest declines were Building Decoration (- 0.49%), Basic Chemicals (- 0.21%), and Light Industry Manufacturing (- 0.19%) [3][55].