Report Industry Investment Rating The document does not provide the industry investment rating. Core Viewpoints - On September 17, 2025, most sectors in the convertible bond market rose, and the valuation increased compared to the previous day. The CSI Convertible Bond Index rose 0.57%, and the trading sentiment in the convertible bond market heated up [1]. - The convertible bond price center increased, with the proportion of high - price bonds rising. The valuation also increased, with the conversion premium rate and overall weighted parity showing certain changes [2]. - In the stock market, more than half of the underlying stock sectors rose. The top three rising sectors in the A - share market were power equipment, automobiles, and household appliances, while the top three falling sectors were agriculture, forestry, animal husbandry and fishery, commercial and retail, and social services. In the convertible bond market, the top three rising sectors were light manufacturing, power equipment, and electronics, and the top three falling sectors were transportation, beauty care, and household appliances [3]. Summaries by Directory Market Main Index Performance - The CSI Convertible Bond Index closed at 479.44, up 0.57% daily, 0.42% weekly, 1.79% monthly, and 15.65% since the beginning of 2025. The Shanghai Composite Index closed at 3876.34, up 0.37% daily, 1.81% weekly, 5.72% monthly, and 15.65% since the beginning of 2025. The Shenzhen Component Index closed at 13215.46, up 1.16% daily, 5.63% weekly, 15.40% monthly, and 26.89% since the beginning of 2025. The ChiNext Index closed at 3147.35, up 1.95% daily, 9.74% weekly, 27.44% monthly, and 46.96% since the beginning of 2025 [7]. - In terms of market style, large - cap growth stocks were relatively dominant. Large - cap growth stocks rose 1.15%, large - cap value stocks fell 0.03%, mid - cap growth stocks rose 0.98%, mid - cap value stocks rose 1.02%, small - cap growth stocks rose 1.07%, and small - cap value stocks rose 1.15% [1][8]. Market Fund Performance - The trading volume in the convertible bond market was 80.992 billion yuan, a 3.63% increase compared to the previous day, and the total trading volume of the Wind All - A Index was 2402.924 billion yuan, a 1.51% increase compared to the previous day. The net out - flow of the main funds in the Shanghai and Shenzhen stock markets was 32.839 billion yuan, and the yield of the 10 - year Treasury bond decreased by 1.78bp to 1.83% [1]. Convertible Bond Valuation - The weighted average closing price of convertible bonds was 131.07 yuan, a 0.69% increase compared to the previous day. The closing price of equity - biased convertible bonds was 183.62 yuan, up 7.66%; the closing price of bond - biased convertible bonds was 118.21 yuan, up 0.24%; and the closing price of balanced convertible bonds was 126.68 yuan, up 0.73% [2]. - The conversion premium rate of the 100 - yuan parity fitting was 29.21%, a 0.38pct increase compared to the previous day. The overall weighted parity was 102.13 yuan, a 0.38% increase compared to the previous day. The conversion premium rate of equity - biased convertible bonds was 11.14%, up 2.39pct; the conversion premium rate of bond - biased convertible bonds was 83.79%, up 0.43pct; and the conversion premium rate of balanced convertible bonds was 21.80%, down 0.47pct [2]. Industry Rotation - In the A - share market, the top three rising sectors were power equipment (+2.55%), automobiles (+2.05%), and household appliances (+1.64%); the top three falling sectors were agriculture, forestry, animal husbandry and fishery (-1.02%), commercial and retail (-0.98%), and social services (-0.86%). In the convertible bond market, the top three rising sectors were light manufacturing (+2.70%), power equipment (+2.05%), and electronics (+1.83%); the top three falling sectors were transportation (-0.28%), beauty care (-0.19%), and household appliances (-0.12%) [3]. - In terms of different sectors: - Closing price: The large - cycle sector rose 0.66%, the manufacturing sector rose 1.91%, the technology sector rose 1.36%, the large - consumption sector rose 0.18%, and the large - finance sector rose 0.55% [3]. - Conversion premium rate: The large - cycle sector rose 0.5pct, the manufacturing sector rose 0.034pct, the technology sector rose 0.49pct, the large - consumption sector fell 0.1pct, and the large - finance sector rose 0.32pct [3]. - Conversion value: The large - cycle sector rose 0.44%, the manufacturing sector rose 1.72%, the technology sector rose 1.01%, the large - consumption sector fell 0.46%, and the large - finance sector rose 0.31% [3]. - Pure bond premium rate: The large - cycle sector rose 0.8pct, the manufacturing sector rose 2.7pct, the technology sector rose 2.0pct, the large - consumption sector rose 0.19pct, and the large - finance sector rose 0.63pct [4].

Group 1: Report Industry Investment Rating - No relevant content provided Group 2: Core Views of the Report - The convertible bond market was mainly volatile this week (0908 - 0912), with valuations hovering at high levels. High - priced bonds were better than medium - priced ones, and medium - priced were better than low - priced. Small - cap bonds were better than mid - cap ones, and mid - cap were better than large - cap [1][35] - The opportunities in the current convertible bond market are highly structured, rooted in the highly structured equity market. The technology - themed (core is AI computing power) market has not effectively driven the rotation and supplementary rise of the cyclical sectors due to the relatively lagging marginal improvement of the overall economic fundamentals [1][35] - The market index may show a pattern of grinding at the top and oscillating. The CSI Convertible Bond Index has risen by more than 30% since the low in August 2024, and the parity premium rate has increased by about 8 - 12 pct during the same period. In the short term, the rise of medium - and low - priced cyclical targets is slow and the elasticity is low, and the strong redemption demand of high - priced thematic targets will suppress the further rise of the index. In the long term, the index's oscillation center may move up [1][36] - In the short - term strategy, it is still not recommended to significantly reduce positions, but the structure needs to be adjusted. Reduce high - volatility technology - themed targets and increase the proportion of balanced targets to control drawdowns, and increase the allocation proportion of cyclical sectors such as non - ferrous metals, lithium batteries, and chemicals in the medium - and low - price ranges [1][36] Group 3: Summary According to the Directory 1. Week - on - Week Market Review 1.1 Equity Market Overall Rise, Most Industries Rise - From September 8th to September 12th, the equity market overall rose. The Shanghai Composite Index rose 1.52%, the Shenzhen Component Index rose 2.65%, the ChiNext Index rose 2.10%, and the CSI 300 rose 1.38%. The average daily trading volume of the two markets decreased by about 2708.96 billion yuan to 22986.80 billion yuan compared with last week, a week - on - week decrease of 10.54% [6][9] - Among the 31 Shenwan primary industries, 25 industries closed up, with 11 industries rising more than 2%. Electronics, agriculture, forestry, animal husbandry and fishery, media, non - ferrous metals, and steel led the gains, rising 6.15%, 4.81%, 4.27%, 3.76%, and 3.72% respectively. Banking, petroleum and petrochemicals, pharmaceutical biology, social services, and household appliances led the losses [13] 1.2 Convertible Bond Market Overall Rise, Some Industries Rise - From September 8th to September 12th, the CSI Convertible Bond Index rose 0.43%. Among the 29 Shenwan primary industries, 13 industries closed up, with 3 industries rising more than 2%. Food and beverage, non - ferrous metals, electronics, communications, and agriculture, forestry, animal husbandry and fishery led the gains, rising 5.78%, 3.12%, 2.52%, 1.72%, and 1.51% respectively. Media, petroleum and petrochemicals, non - bank finance, household appliances, and banking led the losses [15] - The average daily trading volume of the convertible bond market this week was 869.91 billion yuan, a significant reduction of 59.05 billion yuan, a week - on - week change of - 6.36%. The top ten convertible bonds in terms of trading volume had an average trading volume of 102.49 billion yuan, and the first - ranked one reached 174.00 billion yuan. About 53.29% of individual bonds rose, about 25.17% of individual bonds rose in the 0 - 1% range, and 18.14% of individual bonds rose more than 2% [15] - The overall market conversion premium rate continued to decline this week, with an average daily conversion premium rate of 36.11%, a decrease of 0.59 pct compared with last week. In terms of price ranges, except for bonds below 90 yuan, the average daily conversion premium rates of bonds in other price ranges widened. In terms of parity ranges, the situation was similar [21] - 20 industries' conversion premium rates widened, with 9 industries widening by more than 2 pcts. Household appliances, media, petroleum and petrochemicals, national defense and military industry, and pharmaceutical biology led the widening. 23 industries' parity increased, with 17 industries increasing by more than 2% [25][29] 1.3 Comparison of Stock and Bond Market Sentiments - This week, the weekly weighted average and median of the convertible bond and underlying stock markets were positive, and the underlying stocks had a larger weekly increase. The trading volume of the underlying stock market increased more significantly and was at a higher quantile level. More underlying stocks closed up, and the individual underlying stocks could achieve higher returns. Overall, the trading sentiment of the underlying stock market was better this week [32] - On different trading days, the trading sentiment of the underlying stock market was better on Monday, Tuesday, and Wednesday, while the trading sentiment of the convertible bond market was better on Thursday and Friday [33] 2. Outlook and Investment Strategy - The convertible bond market may show a pattern of grinding at the top and oscillating in the short term, and the oscillation center may move up in the long term [1][36] - In the short - term strategy, do not significantly reduce positions, but adjust the structure. Reduce high - volatility technology - themed targets and increase the proportion of balanced targets and the allocation of cyclical sectors in the medium - and low - price ranges [1][36] - The top ten convertible bonds with the highest predicted downward - revision probability next week are Lanfan Convertible Bond, Dongshi Convertible Bond, Baolai Convertible Bond, etc. The top ten high - rated, medium - and low - priced convertible bonds with the greatest potential for parity premium rate repair next week are Pufa Convertible Bond, Fenghuo Convertible Bond, Jinneng Convertible Bond, etc. [1][36]

Report Summary 1) Report Industry Investment Rating No information provided on the industry investment rating in the report. 2) Core Viewpoints - The convertible bond market showed positive trends on September 12, 2025, with more than half of the industries rising and the valuation increasing. The trading sentiment in the convertible bond market also heated up, and small - cap growth stocks were relatively dominant [1]. - The central price of convertible bonds increased, while the proportion of high - price bonds decreased. The overall valuation of convertible bonds rose, with the conversion premium rate of various types of convertible bonds increasing [2]. 3) Summary by Related Catalogs Market Overview - Index Performance: The CSI Convertible Bond Index rose 0.17% month - on - month, while the Shanghai Composite Index, Shenzhen Component Index, ChiNext Index, and Shanghai 50 Index all declined. The CSI 1000 Index rose 0.31% [1]. - Market Style: Small - cap growth stocks were relatively dominant. Among them, small - cap growth stocks rose 0.32%, while large - cap growth and value stocks declined [1]. - Capital Performance: The trading volume in the convertible bond market reached 82.886 billion yuan, a 7.82% increase month - on - month. The total trading volume of the Wind All - A Index was 2.548312 trillion yuan, a 3.40% increase. The net outflow of main funds from the Shanghai and Shenzhen stock markets was 37.278 billion yuan, and the yield of the 10 - year Treasury bond decreased by 0.73bp to 1.87% [1]. Convertible Bond Price and Valuation - Price: The weighted average closing price of convertible bonds was 131.41 yuan, a 0.17% increase. The proportion of high - price bonds (above 130 yuan) decreased by 0.29pct, and the proportion of bonds in the 110 - 120 yuan range increased by 1.0pct. There were no bonds with a closing price below 100 yuan [2]. - Valuation: The conversion premium rate of 100 - yuan par - value convertible bonds was 29.94%, a 0.38pct increase. The overall weighted par value decreased by 0.52%. The conversion premium rates of all types of convertible bonds (including partial - equity, partial - debt, and balanced) increased [2]. Industry Performance - Stock Market: Among A - share industries, the top three decliners were communication (-2.13%), beauty care (-1.52%), and banking (-1.52%); the top three gainers were non - ferrous metals (+1.96%), real estate (+1.51%), and steel (+1.41%) [3]. - Convertible Bond Market: 18 industries in the convertible bond market rose. The top three gainers were environmental protection (+2.86%), non - ferrous metals (+1.51%), and communication (+1.37%); the top three decliners were machinery and equipment (-2.08%), media (-1.56%), and agriculture, forestry, animal husbandry, and fishery (-0.48%) [3]. - Different Industry Indicators: In terms of closing price, large - cycle industries rose 0.89%, while manufacturing industries declined 0.22%. In terms of conversion premium rate, all industries increased to varying degrees. In terms of conversion value, large - cycle industries rose 0.87%, while manufacturing industries declined 1.60% [3].

Report Investment Rating No investment rating information for the industry is provided in the report. Core Viewpoints - On September 11, 2025, the convertible bond market rose following the underlying stocks, with increased valuations. The trading sentiment in the convertible bond market heated up, and all industries in the A - share and convertible bond markets generally rose, except for the environmental protection industry in the convertible bond market, which declined [1][3]. Summary by Directory 1. Market Main Index Performance - The CSI Convertible Bond Index rose 1.23% compared to the previous day, the Shanghai Composite Index rose 1.65%, the Shenzhen Component Index rose 3.36%, the ChiNext Index rose 5.15%, the SSE 50 Index rose 1.48%, and the CSI 1000 Index rose 2.35% [1]. - In terms of market style, large - cap growth stocks were relatively dominant. Large - cap growth stocks rose 3.28%, large - cap value stocks rose 0.75%, mid - cap growth stocks rose 2.11%, mid - cap value stocks rose 1.19%, small - cap growth stocks rose 2.70%, and small - cap value stocks rose 1.33% [1]. 2. Market Fund Performance - The trading volume of the convertible bond market was 76.871 billion yuan, a 6.11% increase from the previous day. The total trading volume of the Wind All - A Index was 2464.593 billion yuan, a 22.99% increase from the previous day. The net inflow of main funds in the Shanghai and Shenzhen stock markets was 10.309 billion yuan, and the yield of the 10 - year Treasury bond decreased by 2.49bp to 1.87% [1]. 3. Convertible Bond Price and Valuation - Convertible bond prices: The weighted average closing price of convertible bonds was 131.22 yuan, a 1.22% increase from the previous day. The closing price of equity - biased convertible bonds was 170.61 yuan, a 0.18% increase; the closing price of bond - biased convertible bonds was 119.13 yuan, a 0.52% increase; the closing price of balanced convertible bonds was 127.02 yuan, a 0.54% increase. The proportion of high - price bonds above 130 yuan was 57.89%, a 5.03 - percentage - point increase from the previous day. The price median was 132.38 yuan, a 1.16% increase from the previous day [2]. - Convertible bond valuation: The conversion premium rate of the 100 - yuan par - value fitted convertible bonds was 29.56%, a 0.51 - percentage - point increase from the previous day. The overall weighted par value was 102.76 yuan, a 1.36% increase from the previous day. The premium rate of equity - biased convertible bonds was 9.77%, a 1.56 - percentage - point increase; the premium rate of bond - biased convertible bonds was 81.22%, a 0.95 - percentage - point increase; the premium rate of balanced convertible bonds was 21.49%, a 0.01 - percentage - point increase [2]. 4. Industry Performance - In the A - share market, the top three industries in terms of gains were communication (+7.39%), electronics (+5.96%), and computer (+3.71%). In the convertible bond market, 27 industries rose, with the top three being communication (+4.98%), electronics (+4.23%), and non - ferrous metals (+3.00%), while the only declining industry was environmental protection (-0.35%) [3]. - For different sectors in the convertible bond market: - Closing price: The large - cycle sector rose 1.03%, the manufacturing sector rose 1.74%, the technology sector rose 2.92%, the large - consumption sector rose 1.09%, and the large - finance sector rose 0.94% [3]. - Conversion premium rate: The large - cycle sector increased by 0.072 percentage points, the manufacturing sector decreased by 0.18 percentage points, the technology sector decreased by 0.12 percentage points, the large - consumption sector decreased by 0.13 percentage points, and the large - finance sector decreased by 0.34 percentage points [3]. - Conversion value: The large - cycle sector rose 0.90%, the manufacturing sector rose 1.68%, the technology sector rose 2.72%, the large - consumption sector rose 0.75%, and the large - finance sector rose 1.64% [3]. - Pure - bond premium rate: The large - cycle sector increased by 1.5 percentage points, the manufacturing sector increased by 2.5 percentage points, the technology sector increased by 4.3 percentage points, the large - consumption sector increased by 1.4 percentage points, and the large - finance sector increased by 1.1 percentage points [3]. 5. Industry Rotation - Communication, electronics, and computer industries led the rise. For example, the communication industry in the underlying stock market rose 7.39% in a single day, and 36.52% from the beginning of the year to the present; in the convertible bond market, it rose 4.98% in a single day and 47.99% from the beginning of the year to the present [57].

Report Industry Investment Rating No information provided in the content. Core Viewpoints - The convertible bond market showed weak performance on September 10, 2025, with compressed valuations. The CSI Convertible Bond Index decreased by 0.63% compared to the previous day, while the Shanghai Composite Index, Shenzhen Component Index, ChiNext Index, Shanghai 50 Index, and CSI 1000 Index all showed varying degrees of increase [1]. - The large-cap growth style was relatively dominant. The large-cap growth index increased by 0.49%, while the large-cap value, mid-cap growth, mid-cap value, small-cap growth, and small-cap value indices all decreased [1]. - The trading sentiment in the convertible bond market weakened. The trading volume of the convertible bond market was 72.447 billion yuan, a decrease of 1.82% compared to the previous day; the total trading volume of the Wind All A Index was 2.003952 trillion yuan, a decrease of 6.88% compared to the previous day; the net outflow of the main funds in the Shanghai and Shenzhen stock markets was 1.294 billion yuan, and the yield of the 10-year treasury bond increased by 3.51bp to 1.90% [1]. Summary by Relevant Catalogs Market Overview - **Index Performance**: The CSI Convertible Bond Index decreased by 0.63% compared to the previous day, while the Shanghai Composite Index increased by 0.13%, the Shenzhen Component Index increased by 0.38%, the ChiNext Index increased by 1.27%, the Shanghai 50 Index increased by 0.37%, and the CSI 1000 Index increased by 0.06% [1]. - **Market Style**: The large-cap growth style was relatively dominant. The large-cap growth index increased by 0.49%, while the large-cap value index decreased by 0.10%, the mid-cap growth index decreased by 0.79%, the mid-cap value index decreased by 0.65%, the small-cap growth index decreased by 0.03%, and the small-cap value index decreased by 0.51% [1]. - **Fund Performance**: The trading sentiment in the convertible bond market weakened. The trading volume of the convertible bond market was 72.447 billion yuan, a decrease of 1.82% compared to the previous day; the total trading volume of the Wind All A Index was 2.003952 trillion yuan, a decrease of 6.88% compared to the previous day; the net outflow of the main funds in the Shanghai and Shenzhen stock markets was 1.294 billion yuan, and the yield of the 10-year treasury bond increased by 3.51bp to 1.90% [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 129.71 yuan, a decrease of 0.64% compared to the previous day. Among them, the closing price of equity-oriented convertible bonds was 169.95 yuan, a decrease of 1.05% compared to the previous day; the closing price of bond-oriented convertible bonds was 118.52 yuan, a decrease of 0.67% compared to the previous day; the closing price of balanced convertible bonds was 126.34 yuan, a decrease of 0.67% compared to the previous day [2]. - From the distribution of convertible bond closing prices, the proportion of high-price bonds above 130 yuan was 52.86%, a decrease of 3.23pct compared to the previous day; the range with the largest change in proportion was 110 - 120 (including 120), with a proportion of 14.42%, an increase of 3.61pct compared to the previous day; there were 0 bonds with a closing price below 100 yuan. The median price was 130.86 yuan, a decrease of 0.56% compared to the previous day [2]. Convertible Bond Valuation - Valuations were compressed. The fitted conversion premium rate of the 100-yuan parity was 29.05%, a decrease of 0.29pct compared to the previous day; the overall weighted parity was 101.38 yuan, a decrease of 0.48% compared to the previous day. The premium rate of equity-oriented convertible bonds was 8.21%, a decrease of 0.72pct compared to the previous day; the premium rate of bond-oriented convertible bonds was 80.27%, an increase of 0.98pct compared to the previous day; the premium rate of balanced convertible bonds was 21.48%, a decrease of 0.10pct compared to the previous day [2]. Industry Performance - In the A-share market, the top three industries with the largest declines were power equipment (-1.18%), basic chemicals (-0.94%), and non-ferrous metals (-0.87%); the top three industries with the largest increases were communication (+3.49%), electronics (+1.78%), and media (+1.68%) [3]. - In the convertible bond market, 27 industries declined, and the top three industries with the largest declines were beauty care (-1.56%), automobile (-1.38%), and machinery and equipment (-1.31%); the only industry that rose against the trend was communication (+0.91%) [3]. - **Closing Price**: The large-cycle sector decreased by 0.67%, the manufacturing sector decreased by 1.15%, the technology sector decreased by 0.20%, the large-consumption sector decreased by 0.87%, and the large-finance sector decreased by 0.55% [3]. - **Conversion Premium Rate**: The large-cycle sector decreased by 0.52pct, the manufacturing sector decreased by 0.49pct, the technology sector decreased by 1.2pct, the large-consumption sector decreased by 0.51pct, and the large-finance sector decreased by 0.69pct [3]. - **Conversion Value**: The large-cycle sector decreased by 0.18%, the manufacturing sector decreased by 0.61%, the technology sector increased by 0.68%, the large-consumption sector decreased by 0.34%, and the large-finance sector decreased by 0.08% [3]. - **Pure Bond Premium Rate**: The large-cycle sector decreased by 0.95pct, the manufacturing sector decreased by 1.7pct, the technology sector decreased by 0.34pct, the large-consumption sector decreased by 1.1pct, and the large-finance sector decreased by 0.65pct [3]. Industry Rotation - The communication, electronics, and media industries led the rise. In the stock market, the daily increase rates of communication, electronics, and media were 3.49%, 1.78%, and 1.68% respectively; in the convertible bond market, the daily increase rate of communication was 0.91%, while other industries showed varying degrees of decline [56].

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].

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].

1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report - Today, the convertible bond market showed a trend of increasing in price with decreasing trading volume, and the valuation increased compared to the previous day. The CSI Convertible Bond Index rose by 0.36%, the Shanghai Composite Index rose by 1.04%, the Shenzhen Component Index rose by 0.89%, the ChiNext Index rose by 0.23%, the SSE 50 Index rose by 1.23%, and the CSI 1000 Index rose by 0.86%. The mid - cap growth style was relatively dominant. The trading sentiment in the convertible bond market weakened, with the trading volume of the convertible bond market at 81.547 billion yuan, a 16.74% decrease from the previous day, and the total trading volume of the Wind All - A at 2.448414 trillion yuan, a 7.28% decrease from the previous day. The net outflow of the main funds in the Shanghai and Shenzhen stock markets was 33.57 billion yuan, and the yield of the 10 - year treasury bond rose by 0.95bp to 1.78% [1]. - The central price of convertible bonds increased, and the proportion of high - price bonds increased. The weighted average closing price of convertible bonds was 132.22 yuan, a 0.37% increase from the previous day. The valuation of convertible bonds also increased. The 100 - yuan par - value fitted conversion premium rate was 31.69%, a 0.89pct increase from the previous day [2]. - In the industry performance, most underlying stock industries rose. In the A - share market, the top three rising industries were Beauty Care (+2.42%), Petroleum and Petrochemicals (+2.36%), and Electronics (+2.32%), while the only declining industry was Medicine and Biology (-0.07%). In the convertible bond market, 20 industries rose, with the top three rising industries being Beauty Care (+1.68%), Non - Ferrous Metals (+1.40%), and Petroleum and Petrochemicals (+1.38%) [3]. 3. Summary According to Relevant Catalogs Market Overview - **Index Performance**: The CSI Convertible Bond Index rose by 0.36%, the Shanghai Composite Index by 1.04%, the Shenzhen Component Index by 0.89%, the ChiNext Index by 0.23%, the SSE 50 Index by 1.23%, and the CSI 1000 Index by 0.86% [1]. - **Market Style**: The mid - cap growth style was relatively dominant. The large - cap growth rose by 1.06%, the large - cap value by 0.82%, the mid - cap growth by 1.72%, the mid - cap value by 1.04%, the small - cap growth by 1.37%, and the small - cap value by 0.96% [1]. - **Fund Performance**: The trading sentiment in the convertible bond market weakened. The trading volume of the convertible bond market was 81.547 billion yuan, a 16.74% decrease from the previous day; the total trading volume of the Wind All - A was 2.448414 trillion yuan, a 7.28% decrease from the previous day; the net outflow of the main funds in the Shanghai and Shenzhen stock markets was 33.57 billion yuan, and the yield of the 10 - year treasury bond rose by 0.95bp to 1.78% [1]. Convertible Bond Price and Valuation - **Convertible Bond Price**: The weighted average closing price of convertible bonds was 132.22 yuan, a 0.37% increase from the previous day. The proportion of bonds with a closing price above 130 yuan was 60.22%, a 0.13pct increase from the previous day. The price median was 133.94 yuan, a 0.42% increase from the previous day [2]. - **Convertible Bond Valuation**: The 100 - yuan par - value fitted conversion premium rate was 31.69%, a 0.89pct increase from the previous day; the overall weighted par value was 101.21 yuan, a 0.87% increase from the previous day [2]. Industry Performance - **Underlying Stock Industry**: 29 industries in the A - share market rose, with the top three rising industries being Beauty Care (+2.42%), Petroleum and Petrochemicals (+2.36%), and Electronics (+2.32%); the only declining industry was Medicine and Biology (-0.07%) [3]. - **Convertible Bond Market**: 20 industries in the convertible bond market rose, with the top three rising industries being Beauty Care (+1.68%), Non - Ferrous Metals (+1.40%), and Petroleum and Petrochemicals (+1.38%); the top three declining industries were Building Materials (-1.57%), Environmental Protection (-1.09%), and Computer (-0.94%) [3]. - **Index Changes in Different Sectors**: In terms of closing price, the large - cycle decreased by 0.03%, manufacturing increased by 0.38%, technology increased by 0.09%, large - consumption increased by 0.48%, and large - finance increased by 0.15%. In terms of conversion premium rate, the large - cycle decreased by 0.62pct, manufacturing increased by 0.023pct, technology decreased by 0.91pct, large - consumption decreased by 0.18pct, and large - finance decreased by 0.54pct. In terms of conversion value, the large - cycle increased by 0.14%, manufacturing increased by 0.17%, technology increased by 0.72%, large - consumption increased by 5.27%, and large - finance increased by 0.73%. In terms of pure bond premium rate, the large - cycle increased by 0.0079pct, manufacturing increased by 0.49pct, technology increased by 0.11pct, large - consumption decreased by 0.12pct, and large - finance increased by 0.18pct [3].

Report Industry Investment Rating - Not provided Core Viewpoints of the Report - In the second half of 2025, with a series of policies taking effect, the economy is likely to remain stable and inflation is expected to rise continuously. The seesaw effect between core assets and dividend assets may switch, and the two are expected to enter a stage of resonant growth. The convertible bond market is expected to continue its upward trend, and the style may shift to core assets [3][4][6]. Summary by Relevant Catalogs Economic Possibilities in the Second Half of 2025 - **Scenario 1: Economic stability and inflation recovery** - In this scenario, the heavy - weight stocks of various industries are expected to benefit from economic stability and inflation recovery, and core assets are likely to have an upward trend. If market liquidity is abundant, core assets and small - cap stocks may rise in resonance; if liquidity is limited, funds may rotate from small - cap stocks to core assets. For example, from 2016 - 2017, the economy was stable and inflation recovered, but market liquidity was limited, resulting in the rise of core assets and the decline of small - cap stocks [7]. - **Scenario 2: Economic slowdown and no inflation recovery** - Similar to the period from 2022 to September 2024, small - cap stocks may lead the rise initially, but they will experience a supplementary decline later because their rise cannot deviate from the economic fundamentals for a long time. For example, in April 2022, February 2024, and August - September 2024, small - cap stocks showed such trends [8]. - **Scenario 3: Economic slowdown, inflation decline, but market expectation repair** - Similar to the second half of 2014, core assets are expected to follow up and rise, like from November to December 2014 [2]. Seesaw Effect between Core Assets and Dividend Assets - From 2019 to April 2025, there was an obvious seesaw effect between core assets and dividend assets. From 2019 to January 2021, core assets rose while dividend assets fluctuated; from February 2021 to April 2025, dividend assets continued to rise while core assets declined significantly. However, in the second half of 2025, the seesaw effect may switch, and the two may rise in resonance [3][4]. - The rise of dividend assets from 2022 to April 2025 was mainly due to the certainty of high dividend yields. But as the valuation repair is gradually completed, the driving logic of dividend assets may shift to the profit factor. For example, the coal industry stopped rising after 2024, and the bank's yield has been low since July 2025, indicating a shift in the market's focus to the profit logic [4]. Convertible Bond Views - Considering that the economy is expected to remain stable in the second half of 2025 and inflation is expected to rise under the anti - involution policy, convertible bonds are expected to continue their upward trend. In terms of style, the economic stability in the second half of 2025 is conducive to the rise of core assets. Also, as the logic of dividend assets may change, dividend assets, as leading companies in some fields, are expected to become generalized core assets, and the two types of assets may rise in resonance [6]. Small - Cap Stock Market - The small - cap stock market is mainly driven by industrial trends. For example, in the new energy industry from 2021 - 2022, despite a short - term adjustment in the first quarter of 2022, it rose significantly again later due to the good development of the industrial trend. However, the industry began to decline continuously after the supply - demand pattern changed in the fourth quarter of 2022 [5].

Group 1: Domestic Market Developments - The Ministry of Finance and the Ministry of Education issued a revised "Management Measures for Supporting the Development of Preschool Education Funds," emphasizing budgetary supervision and prohibiting the use of funds for non-educational expenditures [4] - The Central Clearing Company announced the simplification of investment processes for foreign central bank institutions in the interbank bond market, removing the requirement for a compliance commitment letter [3] - The People's Bank of China conducted a 112 billion yuan reverse repurchase operation, resulting in a net withdrawal of 432.8 billion yuan due to the maturity of 544.8 billion yuan in reverse repos [7][9] Group 2: International Market Insights - U.S. Treasury Secretary Becerra indicated that most trade negotiations with countries lacking agreements are expected to be completed by the end of October, following the implementation of new tariffs [5] - The international crude oil futures prices continued to rise, with WTI and Brent crude oil prices closing at $63.96 and $66.63 per barrel, respectively [6] Group 3: Bond Market Dynamics - The bond market experienced a significant decline as market risk appetite increased, with the yield on the 10-year government bond rising by 2.65 basis points to 1.7175% [10] - The secondary market saw notable price deviations, with the "H0 Zhongnan 02" industrial bond increasing by over 60% and the "19 Yushan Holdings Bond 02" decreasing by over 49% [12][13] - The convertible bond market followed the equity market's upward trend, with major indices rising and a total trading volume of 841.24 billion yuan [17]