1. Report Industry Investment Rating No information provided regarding the industry investment rating in the report. 2. Core Views of the Report - In the first half of 2025, over half of the convertible bond issuers saw year - on - year revenue growth. It is advisable to focus on some industry targets with in - line mid - year reports and reasonable valuations, while avoiding targets with lower - than - expected mid - year reports and high prices and premiums. Also, pay attention to the repair market of individual bonds with marginal improvements in post - mid - year - report orders/ prices in the 'anti - involution' industries and track policy catalysts from the third quarter onwards [1][2][10][16]. - Currently, A - shares still show good allocation value in terms of risk premium. In the convertible bond market, considering the impact of refinancing policies, there is some support on the demand side under the background of supply contraction. However, as the current overall valuation of convertible bonds is at a relatively high level, caution should be exercised regarding correction risks. Attention should be paid to hot themes, the repair opportunities of low - level technology growth sectors, and industries with improved domestic demand and high - dividend sectors [18]. 3. Summary According to the Directory 3.1. Convertible Bond Weekly Special and Outlook 3.1.1. How were the Issuers' Performance in the First Half of 2025? - Among 440 convertible bond issuers, 269 and 218 issuers saw year - on - year increases in operating income and net profit attributable to shareholders, accounting for 61.14% and 49.55% respectively. There were 75 convertible bonds with a net profit growth rate of over 50% and 90 with a growth rate below - 50%. There were 12 convertible bonds with a revenue growth rate of over 50% and 5 with a growth rate below - 50% [10]. - At the industry level, the agricultural, forestry, animal husbandry, and fishery industry had the highest year - on - year growth rate of net profit attributable to shareholders, while the light manufacturing industry had the lowest. Six industries had positive median revenue and profit growth rates, and six had negative ones. Loss - making issuers were mainly concentrated in power equipment, computer, basic chemicals, and pharmaceutical biology industries [12]. - Among individual bonds, 169 issuers achieved year - on - year growth in both revenue and net profit attributable to shareholders, and 122 issuers saw year - on - year declines in both [16]. 3.1.2. Weekly Review and Market Outlook - This week, the A - share market fluctuated upward. Considering the risk premium, A - shares still have good allocation value. In the convertible bond market, supply contraction provides some support on the demand side, but high valuations pose correction risks. Industries worthy of attention include hot themes, low - level technology growth sectors, domestic - demand - oriented industries, and high - dividend sectors [17][18]. 3.2. Weekly Tracking of the Convertible Bond Market 3.2.1. The Equity Market Closed Higher - This week, major equity market indices closed higher, with a market style more inclined towards large - cap growth. Among the Shenwan industries, 15 rose and 16 fell, with communication, non - ferrous metals, and electronics leading the gains [22][25]. 3.2.2. The Convertible Bond Market Closed Lower, and the Premium Rate per 100 - Yuan Par Value Declined - The convertible bond market closed lower this week, with the average daily trading volume increasing. All 29 industries in the convertible bond market declined, with the automotive, social services, and non - banking finance industries leading the losses. Most individual bonds fell, and the median convertible bond price decreased [27][32][34]. - The weighted conversion value of the whole market increased, and the premium rate decreased. The current premium rate per 100 - yuan par value is above the 50th percentile since 2017 [39]. 3.2.3. High - Frequency Tracking of Different Types of Convertible Bonds 3.2.3.1. Classification Valuation Changes - This week, there was valuation differentiation in the convertible bond structure. The valuation of convertible bonds with a par value between 110 - 120 increased, while most others decreased. Since the beginning of 2024, the conversion premium rates of equity - biased and balanced convertible bonds have bottomed out and rebounded [49]. 3.2.3.2. Market Index Performance - This week, convertible bonds of all ratings and scales declined. Historically, high - rating AAA convertible bonds have shown stable performance, while low - rating convertible bonds have weaker downside resistance and greater rebound potential [60][61]. 3.3. Tracking of Convertible Bond Supply and Terms 3.3.1. This Week's Primary Market Issuance Plans - One new convertible bond was listed this week, and three were issued but not yet listed. There were 11 primary approvals this week, and Jinchengxin received approval from the CSRC to issue 2 billion yuan of convertible bonds [68]. 3.3.2. Downward Revision and Redemption Clauses - This week, 7 convertible bonds announced potential downward revisions, 7 announced no downward revisions, 1 proposed a downward revision, and Ou 22 Convertible Bond announced the result of a downward revision. Also, 7 convertible bonds announced potential redemptions, 4 announced no early redemptions, and 9 announced early redemptions. As of the end of this week, 3 convertible bonds were still in the put - option period, and 16 were in the company's capital - reduction repayment period [73][76][79].

Group 1 - The A-share market saw all three major indices rise in early trading, with the Shanghai Composite Index up 0.16% at 3849.76 points, the Shenzhen Component Index up 0.93%, and the ChiNext Index up 2.34%, reaching a new high since February 2022 [1] - The trading volume in the Shanghai, Shenzhen, and Beijing markets reached 18,752 billion yuan, an increase of 670 billion yuan compared to the previous day, with over 2,000 stocks rising across the market [1] - The 30-year government bond ETF (511130) experienced fluctuations, rising by 18 basis points during the day, with a trading volume exceeding 2.1 billion yuan and a turnover rate of over 11%, indicating active trading [1] Group 2 - Recent adjustments in government bond yields began after the close of government bond futures yesterday and continued today, suggesting that fixed-income funds are optimistic about equities and are waiting to increase their positions [1] - The sentiment in the equity market has shown a strong recovery, with a resurgence in bullish sentiment expected to continue in the short term following a brief adjustment period before September 3 [1] Group 3 - The 10-year government bond yield is currently fluctuating between 1.75% and 1.80%, while the 30-year yield is between 1.98% and 2.05%, indicating a potential key resistance level at 1.8% [3] - The 30-year government bond ETF (511130), established in March 2024, is one of only two long-duration bond ETFs in the market, tracking the "Shanghai Stock Exchange 30-Year Government Bond Index" [3] - The index reflects the overall performance of 30-year government bonds listed on the Shanghai Stock Exchange, with a duration of approximately 21 years, making it highly sensitive to interest rate changes [3]

1. Report Industry Investment Ratings No specific industry investment ratings are provided in the report. 2. Core Viewpoints - The A-share market is expected to enter a high-level oscillation phase, waiting for a direction decision. It is recommended to buy put options to protect long positions or partially take profits on previous positions [2]. - The bond market sentiment is expected to continue to stabilize, and it is advisable to lightly test long positions on bond futures during pullbacks [2]. - Gold is oscillating strongly, and it is recommended to buy gold options and construct a bull spread strategy. Silver long positions should be held above $38 [2]. - The container shipping index is weakly oscillating, and short positions on the October contract should be continued [2]. - For steel products, it is possible to try long positions as the apparent demand has stopped falling and rebounded. For iron ore, coking coal, coke, etc., it is recommended to go long at low prices [2]. - For non-ferrous metals, copper is expected to see inventory depletion near the peak season, and it is recommended to refer to the price range. For other non-ferrous metals, different trading strategies are given according to their respective fundamentals [2]. - In the energy and chemical sector, different trading strategies are provided for each variety based on their supply and demand, cost, and other factors [2]. - In the agricultural products sector, different trading strategies are recommended for each variety according to their market conditions [2]. - For special commodities, trading strategies such as taking partial profits on previous short positions and going short at high prices are proposed [2]. - In the new energy sector, it is recommended to wait and see for polysilicon and lithium carbonate [2]. 3. Summary by Relevant Catalogs Financial Sector - **Stock Index Futures**: A-share market is expected to enter high-level oscillation. It is recommended to buy put options to protect long positions or partially take profits on previous positions [2]. - **Bond Futures**: Bond market sentiment is expected to continue to stabilize. It is advisable to lightly test long positions on bond futures during pullbacks [2]. - **Precious Metals**: Gold is oscillating strongly. It is recommended to buy gold options and construct a bull spread strategy. Silver long positions should be held above $38 [2]. Commodity Sector - **Shipping Index**: The container shipping index is weakly oscillating, and short positions on the October contract should be continued [2]. - **Steel and Iron Ore**: For steel products, it is possible to try long positions as the apparent demand has stopped falling and rebounded. For iron ore, it is recommended to go long at low prices in the range of 770 - 820 [2]. - **Coking Coal and Coke**: Due to a sudden mine accident and partial coal mine shutdowns, coking coal futures are expected to rebound. It is recommended to go long at low prices. Coke is also recommended to go long at low prices as the coking profit continues to repair [2]. - **Non-Ferrous Metals**: Copper is expected to see inventory depletion near the peak season. Different trading strategies are given for other non-ferrous metals according to their fundamentals [2]. - **Energy and Chemicals**: Different trading strategies are provided for each variety based on their supply and demand, cost, and other factors, such as going long, shorting, or waiting and seeing [2]. - **Agricultural Products**: Different trading strategies are recommended for each variety according to their market conditions, such as going long, shorting, or waiting and seeing [2]. - **Special Commodities**: Trading strategies such as taking partial profits on previous short positions and going short at high prices are proposed [2]. - **New Energy**: It is recommended to wait and see for polysilicon and lithium carbonate [2].

Group 1 - The bond market has experienced significant adjustments in August, leading to pressure on the net value of many medium- and long-term pure bond funds due to rising interest rates and fund redemptions [1] - Fund managers are adopting different strategies in response to the current market conditions, with some actively positioning for what they see as a buying opportunity, while others are taking a more cautious approach by shortening duration and enhancing liquidity [1][2] - The 10-year government bond yield has fluctuated, dropping below 1.65% in early July and approaching 1.8% by late August, indicating a volatile bond market [2] Group 2 - Some fund managers, like Wang Peng, have begun to increase their positions in the bond market, believing that current yields present a good buying point, with expectations of a potential market rally by year-end [2] - Other managers, such as Hu Zhilei, suggest that the bond market's current pricing offers high value, and they recommend gradually increasing positions to capitalize on potential market recovery [2][3] - There is a cautious optimism among some fund managers regarding the bond market, with expectations of maintaining a low interest rate environment and continued monetary policy support, while also acknowledging the potential for short-term volatility [3]

The provided content does not contain any information about quantitative models or factors. The documents primarily discuss market performance, asset classes, fund performance, and other financial data, but there is no mention of quantitative models, factor construction, or related testing results.

1. Report Industry Investment Rating No relevant content provided in the report. 2. Core View of the Report - From January to August 22, 2025, the CSI Convertible Bond Index rose by +17.9%, slightly lower than the +18.3% increase of the CSI All-Share Index. Although the current valuation quantiles of convertible bonds are close to or exceed historical highs, with the equity market on the rise, the subsequent performance of convertible bonds is still worth looking forward to [1][4]. 3. Summary by Relevant Catalog Market Conditions - From August 18 to August 22, 2025, the CSI Convertible Bond Index rose by +2.8% (last week's increase was +1.6%), and the CSI All-Share Index rose by +3.9% (last week's increase was +2.9%). The convertible bond market continued to rise, and the increase was greater [1]. - By rating, high-rated bonds (rated AA+ and above), medium-rated bonds (rated AA), and low-rated bonds (rated AA- and below) rose by +3.2%, +3.3%, and +2.8% respectively this week, with low-rated bonds having the smallest increase [1]. - By convertible bond scale, large-scale convertible bonds (bond balance greater than 5 billion yuan), medium-scale convertible bonds (balance between 500 million and 5 billion yuan), and small-scale convertible bonds (balance less than 500 million yuan) rose by +2.5%, +3.2%, and +3.3% respectively this week, with small-scale convertible bonds having the largest increase [1]. - By parity, ultra-high parity bonds (conversion value greater than 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 less than 70 yuan) rose by +4.0%, +2.9%, +2.6%, +2.4%, and +4.2% respectively this week, with ultra-low parity bonds having the largest increase [2]. Current Convertible Bond Valuation Levels - As of August 22, 2025, there were 450 outstanding convertible bonds (456 at the close of last week), with a balance of 623.836 billion yuan (627.415 billion yuan at the close of last week) [3]. - The average convertible bond price was 134.42 yuan (131.58 yuan last week), with a quantile of 100%; the average convertible bond parity was 106.74 yuan (104.19 yuan last week), with a quantile of 96.9%; the average convertible bond conversion premium rate was 27.8% (28.6% last week), with a quantile of 56.0%. Among them, the conversion premium rate of medium-parity (conversion value between 90 and 110 yuan) convertible bonds was 32.2% (30.8% last week), higher than the median conversion premium rate of medium-parity convertible bonds since 2018 (20.2%) [3]. Convertible Bond Increase Situation - This week, the top 15 convertible bonds in terms of increase were Dongshi Convertible Bond, Jintong Convertible Bond, Huayi Convertible Bond, etc. The increase rates ranged from 11.64% to 90.12%, and the corresponding underlying stocks also had varying degrees of increase [24].

Core Viewpoint - The article discusses the implications of declining deposit rates and the potential reallocation of funds, particularly towards wealth management and insurance products, as well as the equity market, in light of significant deposit maturities in 2025 [2][8]. Group 1: Deposit Rate Changes - As of May 2025, the deposit rates for major banks like ICBC are set at 0.95% for 1-year, 1.05% for 2-year, and 1.25% for 3-year deposits, indicating a significant drop in rates [2]. - In 2025, approximately 52.4 trillion yuan of deposits from the six major banks will mature, with an estimated total of 108.3 trillion yuan across deposit-taking financial institutions [2][6]. Group 2: Fund Reallocation - The outflow of deposits is expected to primarily shift towards wealth management and insurance, with deposits decreasing by 4.3 trillion yuan, while wealth management and insurance premiums are projected to increase by 3.1 trillion yuan and 530 billion yuan, respectively, by June 2025 compared to June 2023 [8]. - Since 2022, the yields on real estate and fixed-income assets have declined, while the dividend yield of the CSI 300 index has surpassed the risk-free rate, indicating a growing advantage for equity assets [8][10]. Group 3: Market Dynamics - The current trend of deposit migration is different from previous cycles, as real estate yields have turned negative since 2021, prompting residents to seek higher-risk, higher-return assets [11]. - The equity market is showing signs of recovery, and if the profit-making effect spreads, it could lead to an influx of funds into the market, with the previous "stock-property seesaw" issue no longer a concern [11]. Group 4: Insurance Sector Impact - A recent government meeting proposed that insurance companies allocate 30% of new premiums to invest in A-shares, which could potentially bring in an additional 100 billion yuan annually to the equity market [15][19]. - The current investment ratio of insurance in stocks and funds is around 13%, indicating significant room for growth in equity investments [15].

Group 1: Market Overview - The equity market has shown strong performance in August, with the Shanghai Composite Index reaching a 10-year high and the total A-share market capitalization surpassing 100 trillion yuan [2] - In contrast, the bond market has faced significant adjustments, with the 10-year government bond yield rising from 1.72% to 1.79% within a few days, indicating a shift in investor sentiment [2][4] - The overall investment environment has led to a decline in the attractiveness of low-risk fixed-income products, prompting some investors to shift towards equities for potentially higher returns [1][6] Group 2: Fund Performance - Equity funds have performed exceptionally well, with an average total return of 21.87% year-to-date, a significant increase from -10.77% in the same period last year [3] - Conversely, bond funds have struggled, with an average total return of only 0.45% year-to-date, down from 2.44% the previous year, highlighting a stark contrast in performance [3][4] - Recent data shows that bond funds have even recorded negative returns in the short term, indicating a challenging environment for fixed-income investors [3] Group 3: Banking and Wealth Management - Bank wealth management products have seen a decline in yields, primarily due to a conservative investment approach focused on fixed-income assets, which are now under pressure from falling interest rates and market volatility [4][8] - The average annualized yield for cash management products dropped to 1.35%, while pure fixed-income products saw yields fall to 1.87%, reflecting the broader trend of diminishing returns in the fixed-income space [4] - There is a noticeable shift in resident savings, with a significant outflow from traditional savings accounts and fixed-income products towards equities, driven by the search for higher returns [6][7] Group 4: Investor Behavior - A growing number of young investors are entering the stock market, with some expressing confidence in sectors like military and robotics, while others are taking a more cautious approach focused on technology and consumer electronics [1][6] - Recent financial data indicates a substantial decrease in resident deposits, with a drop of 1.1 trillion yuan, suggesting a migration of funds towards the equity market [7] - Despite the bullish sentiment in the stock market, some industry professionals caution that investors should remain vigilant and assess their risk tolerance, especially given the increased market volatility [8]

Core Viewpoint - The A-share market is experiencing a significant rebound, leading to an increase in investor confidence and a surge in the number of new participants in convertible bond subscriptions [1][4]. Group 1: Market Trends - The number of new investors participating in convertible bond subscriptions has increased by over 820,000 in just two months, bringing the total to over 8.7 million [1][4]. - The A-share market has seen a notable increase in new account openings, with 1,456.13 million new accounts opened in the first seven months of 2025, a year-on-year increase of 36.88% [4]. - The financing balance in the A-share market reached 21,329.69 billion, an increase of over 340 billion since the end of May [5]. Group 2: Performance of Convertible Bonds - Newly listed convertible bonds have shown impressive performance, attracting new investors. For instance, the Ber25 convertible bond rose by 29.01% on its first day and has since increased by over 50% [8][10]. - The average price of convertible bonds has recently surpassed 130 yuan per share, indicating a preference among institutions for low-priced and mid-priced convertible bonds [12]. Group 3: Investor Sentiment - The recent surge in convertible bond subscriptions reflects a broader increase in investor confidence in the equity market, driven by positive market conditions [1][4]. - Analysts suggest that the current market environment, characterized by rising stock indices and a strong "money-making effect," is likely to continue attracting more capital into the A-share market [13][14].

Core Viewpoint - The investment landscape is shifting as low-risk fixed-income products lose their appeal, prompting investors to seek higher returns in the equity market amid a strong performance in stocks [1][2][7]. Group 1: Market Trends - In August, the equity market experienced a significant surge, with the Shanghai Composite Index reaching a 10-year high and A-share market capitalization surpassing 100 trillion yuan for the first time [2][3]. - The average total return of equity funds reached 21.87% year-to-date as of August 21, a substantial increase from the previous year's -10.77% [3][4]. - Conversely, bond funds have underperformed, with an average total return of only 0.45% year-to-date, down from 2.44% the previous year [4][5]. Group 2: Investor Behavior - Younger investors are increasingly entering the stock market, with some fully committing to sectors like military and robotics, while others adopt a more cautious approach focusing on technology and consumer electronics [2][8]. - There is a notable shift in investor sentiment, with funds moving from traditional savings and bond products to equities, driven by the low returns on fixed-income investments [7][9]. Group 3: Financial Products Performance - Bank wealth management products have seen a decline in yields, with cash management products yielding 1.35% and pure fixed-income products at 1.87%, both down from previous levels [5][6]. - The net loss rate for wealth management products rose to 3.04% in July, indicating increased pressure on fixed-income investments [5][6]. Group 4: Strategic Recommendations - Financial institutions suggest that investors consider "fixed income plus" strategies to balance their portfolios, especially in light of the current market volatility [10]. - For those still interested in bond investments, it is recommended to choose medium to long-term products with a closed period of 3-6 months to mitigate short-term market fluctuations [10].