Market Overview - The China Convertible Bond Index increased by 2.3% during the week of August 4 to August 8, 2025, following a slight adjustment the previous week, while the China All Share Index rose by 1.9% [6] - Year-to-date, the China Convertible Bond Index has gained 12.8%, outperforming the China All Share Index, which has increased by 10.7% [6][9] - Current valuations of convertible bonds are near or exceed historical highs, yet the equity market remains vibrant, suggesting a positive outlook for convertible bonds [6][10] Performance by Rating and Size - High-rated bonds (AA+ and above), medium-rated bonds (AA), and low-rated bonds (AA- and below) saw weekly changes of +2.14%, +2.26%, and +3.01% respectively, with low-rated bonds showing the highest increase [7] - In terms of bond size, large-scale bonds (over 5 billion) increased by +1.49%, medium-scale bonds (between 500 million and 5 billion) by +2.38%, and small-scale bonds (under 500 million) by +3.23%, with small-scale bonds again leading in growth [7] Price and Valuation Metrics - The average price of convertible bonds reached 130.4 yuan, up from 127.7 yuan the previous week, with a percentile rank of 99.5% [8] - The average conversion price was 103.18 yuan, an increase from 100.65 yuan, with a percentile rank of 93.5% [8] - The average conversion premium stood at 28.1%, up from 27.4% the previous week, with a percentile rank of 56.7% [8] Sector Performance - The top 30 performing convertible bonds were primarily from the machinery equipment (7 bonds) and chemical (6 bonds) sectors, while the worst performers were mainly from the pharmaceutical and biological (7 bonds) and chemical (4 bonds) sectors [7]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In the first week of August, convertible bonds rebounded strongly, recovering losses from the end of July and reaching new highs. High - priced bonds performed strongly, while low - priced bonds were mediocre. Tech and cyclical sectors led the gains, and the pharmaceutical sector declined. The industry theme showed high rotation. The strong performance of convertible bonds was supported by three factors: the resilience of the equity market, high bullish sentiment and continuous inflow of funds into the convertible bond market, and a high forced - redemption rate leading to an imbalance in supply - demand. The positive sentiment in the convertible bond market is expected to continue. It is recommended to pay attention to dividend - low - volatility convertible bonds such as bank convertible bonds and bottom - up opportunities of high - elasticity varieties [1][5]. 3. Summary According to Relevant Catalogs 3.1 Week's Viewpoint and Outlook - In the first week of August, convertible bonds rebounded strongly. Structurally, high - priced bonds were strong and low - priced bonds were mediocre. Tech and cyclical sectors led the gains, and the pharmaceutical sector declined. The industry theme had high rotation. The strong performance was due to the resilience of the equity market, high bullish sentiment and fund inflow, and a high forced - redemption rate. There are no obvious short - term negative factors, and the positive sentiment in the convertible bond market is expected to last. Attention should be paid to the cost - performance switch between pure bonds and convertible bonds, especially bank convertible bonds, and bottom - up opportunities of high - elasticity varieties. The future will shift from position - winning to structure - winning [1][5]. 3.2 Convertible Bond Valuation - This week, convertible bonds and underlying stocks rebounded, with valuations rising strongly and convertible bonds having strong follow - up ability. The 100 - yuan premium rate of the whole - market convertible bonds was 33%, up 1.68% week - on - week, and the latest quantile was at the 91.10% percentile since 2017. The valuation increase of high - and low - rated convertible bonds was similar this week, and the valuation quantile of high - rated convertible bonds was higher than that of low - rated ones. - This week, convertible bonds rose strongly following the underlying stocks, and the yield to maturity hit a new low since 2017, reporting - 5.60%. As of now, the conversion premium rate index, pure bond premium rate index, and yield to maturity were 42.35%, 39.35%, and - 5.60% respectively, changing + 0.29%, + 3.87%, and - 0.86% from last week, and their current quantile levels were at the 62.60, 68.90, and 0.00 percentiles since 2017 [4][6][9]. 3.3 Clause Tracking 3.3.1 Redemption - This week, Youzu, Baidian, Haopeng, Dongcai, Xince, and Longhua Convertible Bonds issued early - redemption announcements. Currently, there are 24 convertible bonds that have issued forced - redemption or maturity - redemption announcements and have not delisted, with a potential conversion or maturity balance of 5.1 billion yuan. There are 45 convertible bonds currently in the redemption process, and 10 are expected to meet the redemption conditions next week. Three convertible bonds issued non - redemption announcements this week [4][14][18]. 3.3.2 Downgrade - This week, Ou22 Convertible Bond proposed a downgrade, and Zhongzhuangzhuan 2 announced a downgrade to the bottom. As of now, 139 convertible bonds are in the non - downgrade period, 24 cannot be downgraded due to net - asset constraints, 1 has triggered the condition but the stock price is still below the downgrade trigger price without an announcement, 31 are accumulating downgrade days, and 4 have issued board - of - directors' plans for downgrades but have not gone to the general meeting of shareholders [4][21]. 3.3.3 Put - back - This week, Tianchuang Convertible Bond issued a put - back announcement. As of now, 2 convertible bonds have issued put - back announcements, 4 are accumulating put - back trigger days, 3 of which are in the non - downgrade period and 1 has proposed a downgrade [4][24]. 3.4 Primary Issuance - This week, Weidao Convertible Bond issued an issuance announcement. According to the latest announcement, there are no bonds to be listed next week. As of now, there are 6 convertible bonds in the approval - registration process, with a to - be - issued scale of 5.7 billion yuan, and 4 in the listing - committee - approval process, with a to - be - issued scale of 9 billion yuan [4][26][28].

Group 1: Report Industry Investment Rating - Not provided in the content Group 2: Core View of the Report - The current convertible bond valuations are close to or exceed historical highs, but the equity market is on the rise, so one can still be optimistic about convertible bonds [1][4] Group 3: Summary by Relevant Catalogs Market Conditions - From August 4 to August 8, 2025, the CSI Convertible Bond Index rose by +2.3% (last week's change was -1.4%), and the CSI All-Share Index changed by +1.9% (last week's change was -1.1%). Since the beginning of 2025, the CSI Convertible Bond Index has risen by +12.8%, and the CSI All-Share Index has risen by +10.7%, with the convertible bond market outperforming the equity market [1][4] - By rating, high-rated bonds (AA+ and above), medium-rated bonds (AA), and low-rated bonds (AA- and below) rose by +2.14%, +2.26%, and +3.01% respectively this week, with low-rated bonds having the highest increase. 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) rose by +1.49%, +2.38%, and +3.23% respectively, with small-scale convertible bonds having the highest increase. By 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) rose by +4.08%, +2.85%, +2.30%, +1.96%, and +1.86% respectively, with ultra-high parity bonds having the highest increase [2] - The top 30 convertible bonds in terms of increase are mainly from the machinery and equipment (7) and chemical (6) industries; the top 30 convertible bonds in terms of decline are mainly from the pharmaceutical and biological (7) and chemical (4) industries [2] Convertible Bond Price, Parity, and Conversion Premium Rate - As of August 8, 2025, there were 461 outstanding convertible bonds (463 at the end of last week), with a balance of 631.809 billion yuan (636.614 billion yuan at the end of last week). The average convertible bond price was 130.4 yuan (127.7 yuan last week), with a percentile of 99.5%; the average convertible bond parity was 103.18 yuan (100.65 yuan last week), with a percentile of 93.5%; the average convertible bond conversion premium rate was 28.1% (27.4% last week), with a percentile of 56.7%. Among them, the conversion premium rate of medium-parity convertible bonds (conversion value between 90 and 110 yuan) was 29.6% (27.6% last week), higher than the median conversion premium rate of medium-parity convertible bonds since 2018 (20.1%) [3] Convertible Bond Performance and Allocation Direction - The CSI Convertible Bond Index rose by +2.3% this week, continuing to rise after a slight adjustment last week; the CSI All-Share Index changed by +1.9%. Since the beginning of 2025, the CSI Convertible Bond Index has risen by +12.8%, and the CSI All-Share Index has risen by +10.7%, with the convertible bond market outperforming the equity market. Although the current convertible bond valuations are high, one can still be optimistic about convertible bonds due to the promising equity market [4] Convertible Bond Increase Situation - The top 15 convertible bonds in terms of increase this week include Jiejian Convertible Bond, Julong Convertible Bond, and Gaoce Convertible Bond, with increases of 23.15%, 21.65%, and 16.82% respectively [22]

1. Report's Investment Rating for the Industry The document does not mention the industry investment rating. 2. Core Viewpoints of the Report - The convertible bond market has a reasonable correction, and the bullish logic remains unchanged. Although there are concerns about high valuations and profit - taking emotions, there is no need for excessive worry. The convertible bond still has upward potential, and it can be appropriately bought at lower prices if the price continues to decline [5][8]. - The equity market is expected to be relatively certain before September. The valuation and pricing of convertible bonds are supported by the increasing demand for fixed - income plus products and the relatively low convertible bond positions. The upward channel of the market is clear, driven by the improvement of grass - roots governance capabilities and technological competitiveness [5][8]. 3. Summary According to the Directory 3.1 Convertible Bond Viewpoint: Convertible Bonds Have a Reasonable Correction, and the Bullish Logic Remains Unchanged - The convertible bond market has risen continuously in the past few weeks under the drive of the underlying stocks, and the valuation has continued to soar. The short - term fluctuations in the equity market have become an outlet for the market sentiment. However, there is no need to be overly concerned [5][8]. - The equity market reached 3636 points this week and then showed some fear of high prices, closing at 3560 points. The market heat has not decreased, and trading volume and margin trading remain high. Domestic meetings and Sino - US tariff negotiations have no unexpected content. The market is still bullish in the future [5][8]. - After 5 consecutive weeks of rising, the market reached a high and then declined this week. The convertible bonds fell significantly, with the average daily trading volume slightly decreasing to 77.217 billion yuan. The CSI Convertible Bond Index dropped 1.37%, the parity center dropped 1.1% to 105.8 yuan, and the conversion premium rate center dropped 0.3% to 21.8% [5]. 3.2 Convertible Bond Review: Convertible Bonds Significantly Corrected with the Underlying Stocks 3.2.1 Overall Market Performance: The Stock Market Reached a High and Then Declined, and the Convertible Bond Valuation Significantly Decreased - From July 28th to August 1st, after 5 consecutive weeks of upward movement, the equity market corrected. The Shanghai Composite Index fell 0.94%, the Shenzhen Component Index fell 1.58%, the CSI 300 fell 1.75%, the CSI 1000 fell 0.54%, the ChiNext Index fell 0.74%, the STAR 50 fell 1.65%, and the Beijing Stock Exchange 50 fell 2.70%. In terms of industries, medicine, biology, communication, and media led the gains, while coal, non - ferrous metals, and real estate led the losses. The average daily trading volume decreased slightly by 332.89 billion to 1.81 trillion yuan [13]. - The top ten convertible bonds in terms of gains last week were Qizheng, Dongjie, Tianlu, Jing 23, Haibo, Weixin, Titan, Huicheng, Taifu, and Songlin Convertible Bonds. In terms of trading volume, Tianlu, Saili, Dayu, Qizheng, Jing 23, Borui, Dongjie, Yingji, Sheyan, and Huicheng Convertible Bonds were relatively active [13]. 3.2.2 Slight Reduction in Trading Volume, Smaller Declines in High - priced, Medium - and Low - Rated Convertible Bonds - After 5 consecutive weeks of rising, the market reached a high and then declined this week. Convertible bonds fell significantly, and the average daily trading volume slightly decreased to 77.217 billion yuan. The CSI Convertible Bond Index dropped 1.37%, the parity center dropped 1.1% to 105.8 yuan, and the conversion premium rate center dropped 0.3% to 21.8%. In terms of style, high - priced, medium - and low - rated convertible bonds had smaller declines this week, while medium - and high - rated, large - cap, and low - priced convertible bonds had larger declines [5][15].

Core Viewpoint - The recent economic indicators and policy changes have led to a recovery in the bond market, with a notable decline in bond yields, particularly the 10-year government bond yield, which fell to approximately 1.70% [1][4][6]. Market Overview - The bond market experienced a general decline in yields across various maturities from July 25 to August 1, with the 10-year yield decreasing by 2.65 basis points [2][3]. - The issuance of government bonds totaled 672.435 billion yuan across 92 bonds, with significant demand for a 50-year special government bond issued at a competitive rate [8][9]. Economic Indicators - The manufacturing PMI for July was reported at 49.3%, indicating a slight decline, while the non-manufacturing index was at 50.1%, also down by 0.4 percentage points [19]. - The U.S. labor market showed signs of weakness, with non-farm payrolls increasing by only 73,000 jobs in July, significantly below expectations, which may influence the Federal Reserve's monetary policy [12]. Policy Changes - Starting August 8, a value-added tax will be reinstated on interest income from newly issued government bonds, which may lead to a short-term boost in bond market activity but could also shift funds towards credit bonds in the long term [1][20]. - The Central Bank conducted a total of 16.632 billion yuan in reverse repos during the week, maintaining liquidity in the market [15][17]. Institutional Perspectives - Analysts from Guojin Securities suggest that the new VAT on bond interest may lead to higher issuance rates for new bonds, creating a yield spread between new and existing bonds [21]. - Financial institutions anticipate continued monetary easing, with potential rate cuts expected to support the bond market, projecting that the 10-year government bond yield could trend towards 1.5% [21].

Core Viewpoint - The collaboration between public funds and insurance companies is increasing, with several public fund institutions announcing partnerships with specific insurance companies for product distribution, indicating a shift in sales strategies within the insurance industry [1][2][4]. Group 1: Collaboration Between Public Funds and Insurance Companies - On August 1, public fund institutions such as HSBC Jintrust, Rongtong, and Nuoan announced the inclusion of specific insurance companies, including Sunshine Life and China Life, as distribution partners for their products [1][2]. - The number of funds distributed by insurance companies is relatively low, with China Life leading among licensed insurance companies with 6,250 funds, compared to 11,114 by Shanghai TianTian Fund Sales [2]. - Recent announcements show a notable increase in the distribution of equity products by insurance companies, contrasting with their historical focus on fixed-income or money market funds [2][3]. Group 2: Changes in Insurance Sales Strategies - Insurance companies are adjusting their sales strategies due to a decline in the preset interest rates for traditional life insurance products, which have been reduced from 2.5% to 2.0% [4]. - The insurance industry is exploring diversified sales models, with some companies encouraging internal staff to transition to external sales roles and implementing more motivating assessment mechanisms [5][6]. - The complexity of insurance sales processes compared to the quicker sales cycles of funds has led companies to use funds as a primary sales tool, enhancing customer engagement and potentially boosting insurance sales [5][6].

Group 1: Report Industry Investment Rating - No relevant content provided Group 2: Core Viewpoints of the Report - From January to August 1, 2025, the CSI Convertible Bond Index rose by +10.3%, and the CSI All-Share Index rose by +8.6%. The convertible bond market outperformed the equity market. After five consecutive weeks of gains, the convertible bonds adjusted slightly this week. Fundamental trends and anti-involution policies are important influencing factors for the current convertible bond market. Investors can continue to focus on convertible bonds in areas such as boosting domestic demand and anti-involution [1][4] Group 3: Summary by Related Catalogs 1. Market Conditions - From July 28 to August 1, 2025, the CSI Convertible Bond Index fell by -1.4% (last week's increase was +2.1%), and the CSI All-Share Index changed by -1.1% (last week's increase was +2.2%). Since the beginning of 2025, the CSI Convertible Bond Index has risen by +10.3%, and the CSI All-Share Index has risen by +8.6%. The convertible bond market outperformed the equity market [1] - By rating, high-rated bonds (AA+ and above), medium-rated bonds (AA), and low-rated bonds (AA- and below) fell by -2.03%, -0.29%, and -0.93% respectively this week, with high-rated bonds having the largest decline. 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) fell by -1.66%, -0.85%, and -0.83% respectively this week, with large-scale convertible bonds having the largest decline. By parity, ultra-high parity bonds (conversion value greater than 130 yuan) rose slightly by +0.38% this week, while other types of parity bonds had varying degrees of decline [2] - By industry, the top 30 convertible bonds in terms of gains mainly came from machinery and equipment (6), pharmaceutical biology (4), and electronics (4); the top 30 convertible bonds in terms of losses mainly came from chemicals (5), non-ferrous metals (4), etc. [2] 2. Convertible Bond Price, Parity, and Conversion Premium Rate - As of August 1, 2025, there were 463 outstanding convertible bonds (468 at the close of last week), with a balance of 636.614 billion yuan (637.942 billion yuan at the close of last week) [3] - The average convertible bond price was 127.7 yuan (128.87 yuan last week), with a quantile of 97.7%; the average convertible bond parity was 100.65 yuan (101.20 yuan last week), with a quantile of 89.3%; the average convertible bond conversion premium rate was 27.4% (27.3% last week), with a quantile of 55.4%. Among them, the conversion premium rate of medium-parity convertible bonds (conversion value between 90 and 110 yuan) was 27.6% (29.0% last week), higher than the median conversion premium rate of medium-parity convertible bonds since 2018 (20.0%) [3] 3. Convertible Bond Performance and Allocation Direction - This week, the CSI Convertible Bond Index fell by -1.4%. After five consecutive weeks of gains, the convertible bonds adjusted slightly this week; the CSI All-Share Index changed by -1.1%. Since the beginning of 2025, the CSI Convertible Bond Index has risen by +10.3%, and the CSI All-Share Index has risen by +8.6%. The convertible bond market outperformed the equity market. Looking ahead, fundamental trends and anti-involution policies are still important influencing factors for the current convertible bond market. Investors can continue to focus on convertible bonds in areas such as boosting domestic demand and anti-involution [4] 4. Convertible Bond Increase Situation - The top 15 convertible bonds in terms of gains this week included Qizheng Convertible Bond, Bo 25 Convertible Bond, Dongjie Convertible Bond, etc. For example, Qizheng Convertible Bond had a convertible bond increase of 45.60% and an underlying stock increase of 39.99% [24]

Group 1 - The core viewpoint indicates that the liquidity and scale of the CSI 300 ETF have shown positive trends, with a significant increase in trading volume and net inflows from leveraged funds [3][4] - As of July 31, the CSI 300 ETF has seen a net value increase of 8.63% over the past six months, with a maximum monthly return of 25.64% since its inception [3] - The July PMI data reflects the resilience of China's economy, with production maintaining expansion despite seasonal negative impacts, while domestic demand is expected to recover due to policy support [3][4] Group 2 - The central political bureau meeting in July emphasized consolidating the economic recovery and addressing prominent issues in economic operations, while fostering new pillar industries without relying on debt-driven growth [4] - The top ten weighted stocks in the CSI 300 index as of June 30, 2025, include Kweichow Moutai, CATL, and Ping An Insurance, collectively accounting for 22.76% of the index [4][6] - Investors without stock accounts can access core A-share assets through the CSI 300 ETF linked fund (160724) for low-cost entry [7]

Group 1 - A-shares opened lower with the Shanghai Composite Index down 0.14%, Shenzhen Component down 0.08%, and ChiNext down 0.19% [1] - Sectors such as China Shipbuilding, fiberglass, and copper foil/copper-clad laminate saw significant declines [1] Group 2 - Everbright Securities noted a weakening "import rush" effect in Q2, with U.S. imports declining at an annualized rate of -30.3%, impacting net exports and contributing to the positive GDP growth [2] - Consumer confidence in the U.S. remains low, with personal consumption growth at 1.4%, the second-lowest since 2024, and private investment down to an annualized rate of -15.6% [2] - Everbright Securities predicts a high probability of the Federal Reserve restarting interest rate cuts in the second half of the year [2] Group 3 - Huatai Securities expects the lithium battery supply chain's capacity utilization to continue improving, driven by strong sales of new energy vehicles in China and Europe [3] - The profitability model for energy storage is gradually improving, supported by local policies, and demand is expected to remain strong [3] - Supply-side constraints are easing, with significant slowdowns in new capacity releases in battery and material sectors, leading to improved profitability [3] Group 4 - Galaxy Securities remains optimistic about the equity market, focusing on technology, consumer sectors, and "anti-involution" areas [4] - July's PMI indicates resilience in China's economy, with production maintaining expansion despite seasonal impacts [4] - The central political bureau's meeting emphasized consolidating economic recovery and fostering new pillar industries without relying on debt-driven growth [4]

银河证券研报表示，7月份的PMI一方面展现了我国经济的韧性，生产端在季节的负面影响下依然保持 扩张区间；内需虽然下滑，不过有前期"618"透支的因素，未来在以旧换新以及生育补贴等扩内需政策 的带动下或继续回升。另一方面，外需在长期"抢出口"的影响下已经开始边际下滑；企业对长期的经营 信心仍没有恢复，生产、采购和库存水平均以即期订单为锚。7月中央政治局会议做出了部署，即巩固 经济回升向好态势，并解决经济运行过程中的突出问题。又加速培育新兴支柱产业，不走债务驱动增长 的老路。同时会议提到了"巩固资本市场回稳向好势头"，银河证券仍然看好权益市场，重点关注政策支 持的科技、消费以及"反内卷"领域。 ...