Core Viewpoint - The article presents an optimistic outlook for the convertible bond market in 2026, emphasizing the potential for significant breakthroughs and extraordinary returns in this sector [2] Group 1: Market Overview - The convertible bond market is expected to experience substantial growth, driven by favorable market conditions and investor interest [2] - Key factors influencing the market include interest rate trends, corporate earnings, and overall economic performance [2] Group 2: Investment Opportunities - The article highlights specific sectors and companies that are likely to benefit from the convertible bond market's expansion, suggesting that investors should focus on high-growth industries [2] - It also mentions the importance of selecting convertible bonds with strong underlying equity performance to maximize returns [2] Group 3: Risk Factors - While the outlook is positive, the article acknowledges potential risks that could impact the convertible bond market, including market volatility and changes in interest rates [2] - Investors are advised to remain vigilant and conduct thorough research before making investment decisions in this space [2]

Report Summary 1. Industry Investment Rating There is no information about the industry investment rating in the report. 2. Core View The convertible bond market rose slightly this week while the equity market declined. Since the beginning of 2025, both the convertible bond market and the equity market have been on an upward trend, but the convertible bond market has underperformed the equity market. Currently, the issuance of new convertible bonds has not accelerated significantly, demand remains strong, high - quality convertible bonds are scarce, and prices are relatively high. Fine - tuned bond selection is needed, and it is recommended to comprehensively consider bond terms and underlying stock conditions, diversify investments, and balance risks and returns [4]. 3. Summary by Directory Market行情 - From November 10 to November 14, 2025 (5 trading days), the CSI Convertible Bond Index rose by +0.52% (last week's increase was +0.86%), and the CSI All - Share Index decreased by - 0.53% (last week's increase was +0.63%). Since the beginning of 2025, the CSI Convertible Bond Index has risen by +18.61%, and the CSI All - Share Index has risen by +23.61% [1]. - By bond rating, high - rated bonds (AAA), medium - high - rated bonds (AA+), medium - rated bonds (AA), medium - low - rated bonds (AA -), and low - rated bonds (AA - and below) rose by - 0.61%, - 0.38%, +0.56%, - 0.09%, and +0.17% respectively this week, with medium - rated bonds having the highest increase [1]. - By convertible bond size, large - scale convertible bonds (bond balance > 2 billion yuan), medium - large - scale convertible bonds (balance between 1.5 and 2 billion yuan), medium - scale convertible bonds (balance between 1 and 1.5 billion yuan), small - medium - scale convertible bonds (balance between 0.5 and 1 billion yuan), and small - scale convertible bonds (balance < 0.5 billion yuan) rose by - 0.41%, - 0.88%, +0.83%, +0.10%, and +0.32% respectively this week, with medium - scale convertible bonds having the highest increase [2]. - By conversion parity, ultra - high - parity bonds (conversion value > 130 yuan), high - parity bonds (conversion value between 120 and 130 yuan), medium - high - parity bonds (conversion value between 110 and 120 yuan), medium - parity bonds (conversion value between 100 and 110 yuan), medium - low - parity bonds (conversion value between 90 and 100 yuan), low - parity bonds (conversion value between 80 and 90 yuan), and ultra - low - parity bonds (conversion value < 80 yuan) rose by - 3.78%, +1.54%, - 0.64%, - 0.22%, +0.52%, +0.96%, and +0.30% respectively this week, with high - parity bonds having the highest increase [2]. Convertible Bond Valuation - As of November 14, 2025, there were 412 outstanding convertible bonds (411 at the end of last week), with a balance of 566.85 billion yuan (569.538 billion yuan at the end of last week). The average convertible bond price was 133.30 yuan (132.07 yuan at the end of last week), with a percentile of 99.28% (from the beginning of 2023 to November 14, 2025). The average conversion parity was 105.52 yuan (105.90 yuan at the end of last week), with a percentile of 95.81%. The average conversion premium rate was 27.12% (27.07% at the end of last week), with a percentile of 18.21% [3]. Convertible Bond Performance and Allocation Direction - The convertible bond market rose slightly this week while the equity market declined. Since the beginning of 2025, both markets have risen, but the convertible bond market has underperformed. With no obvious acceleration in new bond issuance, strong demand, and high scarcity of high - quality bonds, and relatively high market prices, fine - tuned bond selection is needed. It is recommended to comprehensively consider bond terms and underlying stock conditions, diversify investments, and balance risks and returns [4]. Convertible Bond Increase Ranking - The top 15 convertible bonds with the highest increases this week include Guocheng Convertible Bond (31.44%), Dazhong Convertible Bond (28.89%), Dongshi Convertible Bond (20.41%), etc. [22]

Group 1 - The issuance of convertible bonds has seen a recovery this year, with 36 companies completing issuances totaling 57.828 billion yuan, a year-on-year increase of 65.6% [1] - The China Convertible Bond Index has risen by 18% this year, indicating strong performance in the secondary market [1][3] - In the fourth quarter, there has been an acceleration in the issuance of convertible bonds, with 11 companies launching plans since October [1] Group 2 - Several companies are using convertible bonds for mergers and acquisitions, such as Xinbang Intelligent and Sunshine Nuohe [1] - Over 100 convertible bonds have been delisted this year due to price surges triggering forced redemptions and approaching maturities [2] - The market for convertible bonds is experiencing a reduction in outstanding bonds, with significant issuances like Daqin and Citic bonds being delisted [2] Group 3 - The market for convertible bonds is characterized by its "attack and defense" advantages, attracting investor interest [3] - The highest price for a convertible bond this year reached 2593.987 yuan, indicating strong demand and market activity [3] - Analysts suggest that the convertible bond market may enter a wide fluctuation range in the fourth quarter, with a focus on low-priced bonds with conversion demands [3]

Group 1: Report Industry Investment Rating - No industry investment rating information is provided in the report. Group 2: Core View of the Report - From October 19 to October 25, 2025, the convertible bond market recovered with the warming of the stock market. In the short term, it is still mainly characterized by structural rotation, with obvious style differentiation. The growth sector performed relatively strongly, with active trading in the power equipment and electronics sectors. Low - price and short - duration individual bonds showed prominent elasticity. The valuation of medium - and low - price varieties was slightly compressed, and the implied volatility rebounded slightly but remained high. The market is in a stage of shock and momentum accumulation, and investors can appropriately participate in trading opportunities in the rotation rhythm by combining the fundamentals and valuation of the underlying stocks. The supply in the primary market is stable, and clause games remain an important variable in the market [2][6]. Group 3: Summary According to the Directory 3.1 Market Confidence and Overall Situation - Since the end of August, the CSI Convertible Bond Index has entered a shock consolidation stage. The current market's expectation of the future has improved marginally, and some varieties show signs of market price repair. The market is in a shock and momentum - accumulating stage, and the style has not yet formed a dominant trend [9]. - The current implied volatility of the convertible bond market has a slight upward trend, while the 30 - day historical volatility of the Wind All - A Index is declining, indicating that investors' expectations of the future are being repaired, and the market may be accumulating power for a new round of trend - based market [15]. 3.2 A - share Market Performance - During the week, the A - share market rebounded as a whole, with major stock indexes generally rising. The ChiNext and the Science and Technology Innovation 50 performed relatively prominently. The outflow of main funds converged, and trading volume shrank, reflecting that market sentiment tended to be cautious. Structurally, the technology - growth sector continued to be strong, with communication, electronics, and media leading the gains, while the consumer sector performed relatively weakly. The electronics sector still had a high trading volume ratio, indicating that the technology direction still attracted capital attention. However, the valuation and congestion of some sectors are at a high level, and short - term callback pressure and capital game rhythm need to be noted [9]. 3.3 Convertible Bond Market Performance - During the week, the convertible bond market strengthened with the recovery of the equity market, and the small - cap style had better elasticity. The valuation structure was slightly stretched, and the valuation of medium - and low - market - price convertible bonds was slightly compressed, reflecting the strong performance of the underlying stocks. The implied volatility rebounded slightly and remained at a high level, and the median market price fluctuated strongly, indicating the repair of market expectations. In terms of industries, the growth direction led the gains, and trading was concentrated in sectors such as power equipment and electronics. Individual bonds generally rose, and some short - duration varieties had high gains, showing structural differentiation [9]. 3.4 Primary Market Supply - During the week, the supply in the primary market remained stable. One new convertible bond was listed, and 11 companies updated their issuance plans, with the overall issuance progress being steady [9]. 3.5 Clause Games - In terms of downward revisions, 5 convertible bonds announced that they were expected to trigger downward revisions, 6 announced no downward revisions, and 1 proposed a downward revision. In terms of redemptions, 6 convertible bonds announced that they were expected to trigger redemptions, 3 announced no early redemptions, and 2 announced early redemptions. Clause events were active, and clause games remained the focus of market attention [9].

Report Summary 1. Report Industry Investment Rating No industry investment rating information is provided in the report. 2. Core Views of the Report - The convertible bond market had a poor profit - making effect last week. Although the underlying stocks fell sharply, there was no panic selling in convertible bonds. The valuation declined, and it is likely to remain at the current level or slightly compress. [7][10] - In an environment where pure bonds are weak and the demand for convertible bonds exceeds the supply, convertible bonds are still relatively high - quality assets. The short - term structural opportunities are greater than the trend opportunities, and the instrumental attribute of convertible bonds has become stronger. The cashing pressure continues, and the key to the subsequent trend lies in the equity market. One should seize structural opportunities and buy on dips to bet on rebounds. [7][10] - This week, the market was significantly pressured by events such as Sino - US tariffs. The main stock indices closed down, and the capital style switched in the short term. The A - share market is expected to maintain an oscillating upward trend, and the slow - bull pattern remains unchanged. [7][10] - This week, convertible bonds followed the decline of the equity market. The average daily trading volume decreased significantly to 68.844 billion yuan. The CSI Convertible Bond Index fell 2.35%, the parity center decreased by 3.0% to 109.3 yuan, and the conversion premium rate center increased by 1.7% to 21.2%. AAA - rated convertible bonds performed well this week, while high - price and low - rated convertible bonds performed weakly. [7][18] 3. Summary According to the Directory 3.1 Convertible Bond Views: Cashing Pressure Remains, but the Correction is Still Controllable - The convertible bond market's current information is neutral. The subsequent trend depends on the equity market. One should grasp structural opportunities and buy on dips to bet on rebounds. The cashing pressure continues, but the correction is controllable. [7][10] 3.2 Convertible Bond Review: Convertible Bonds Followed the Equity Market Downward, and the Valuation Retracement was Limited 3.2.1 Market Overall Performance: Affected by Both Domestic and Foreign Factors, All Indices Closed Down - From October 13th to 17th, affected by both domestic and foreign factors, the main indices closed down. The Shanghai Composite Index fell 1.47%, the Shenzhen Component Index fell 4.99%, the CSI 300 fell 2.22%, the CSI 1000 fell 4.62%, the ChiNext Index fell 5.71%, the STAR 50 fell 6.16%, and the Beijing Stock Exchange 50 fell 4.91%. [15] - In terms of industries, banking, coal, and food and beverage led the gains, while electronics, media, and automobiles led the losses. The average daily trading volume decreased by 407.953 billion yuan to 2.19 trillion yuan. [15] - The top ten convertible bonds in terms of gains last week were Tongguang, Liugong, Yanpai, etc. In terms of trading volume, Guanchong, Yuguang, Huicheng, etc. were relatively active. [15] 3.2.2 Trading Volume Shrunk Significantly, and High - Rated Convertible Bonds Performed Well - This week, convertible bonds followed the equity market down. The average daily trading volume decreased significantly to 68.844 billion yuan. The CSI Convertible Bond Index fell 2.35%, the parity center decreased by 3.0% to 109.3 yuan, and the conversion premium rate center increased by 1.7% to 21.2%. [18] - In terms of style, AAA - rated convertible bonds performed well this week, while high - price and low - rated convertible bonds performed weakly. [18]

Core Viewpoint - The upcoming expiration of the 50 billion yuan convertible bonds from Shanghai Pudong Development Bank (SPDB) is drawing significant market attention, with a substantial portion yet to be converted into equity, raising concerns about potential cash payouts and capital adequacy [2][4][5]. Summary by Sections Convertible Bonds and Shareholding Changes - On October 13, SPDB announced that China Mobile converted 56.31 million convertible bonds into 450 million ordinary shares, increasing its stake from 17.00% to 18.18% [2]. - In June, Xinda Securities converted approximately 118 million SPDB convertible bonds into A-shares, representing 23.57% of the total issuance [2]. - As of now, 37% of the convertible bonds, amounting to about 18.6 billion yuan, remain unconverted, with a premium rate of around 8% [2][4]. Market Pressure and Stock Performance - SPDB's stock price rose by 5.66% to 12.51 yuan per share on October 13, followed by a 2.08% increase to 12.77 yuan on October 14, coinciding with the conversion price of the bonds [4]. - The remaining 18.6 billion yuan of convertible bonds must be converted within two weeks, creating significant pressure on the bank [4]. Capital Adequacy Concerns - As of the end of Q1, 99.9971% of the SPDB convertible bonds had not been converted, raising concerns about the bank's capital adequacy if a large cash payout is required [5][6]. - The core Tier 1 capital adequacy ratio is close to regulatory limits, making the conversion of bonds critical for maintaining capital levels [5][6]. Market Dynamics and Future Outlook - The convertible bond market is experiencing a significant reduction in size, with 121 bonds successfully delisted since 2025, indicating a trend of shrinking market scale [9]. - Despite the increase in new bond issuance, the lack of large-scale bank convertible bonds may lead to a continued decline in overall market size [10][11]. - Regulatory encouragement for banks to supplement capital through various debt instruments is expected to continue, with a focus on optimizing capital structures and enhancing risk resilience [12].

Core Insights - The convertible bond market is expected to experience short-term volatility due to external risks, but medium-term growth is anticipated, particularly in structural opportunities within the market [3][4][19] - The current valuation of convertible bonds is considered reasonable, driven by underlying stocks, with a potential decrease in supply due to an increase in new issuances [3][4][57] - The market is shifting towards a more passive investment approach, with a notable increase in ETF holdings, which may amplify short-term market fluctuations [80][82] Group 1: Market Performance - In September, convertible bonds underperformed compared to underlying stocks, with high-priced and small-cap convertible bonds leading the market [3][6][13] - The technology sector continued to outperform, while bank and non-bank convertible bonds recorded the worst performance of the year [13][19] - The overall market for convertible bonds is characterized by a strong stock nature, with high-priced and small-cap bonds performing better during the recent volatility [14][19] Group 2: Valuation and Supply Dynamics - The current median price of convertible bonds is at a historical high of 132 yuan, with a significant number of high-priced bonds in the market [45][44] - The supply of convertible bonds is expected to increase, with a notable rise in issuance proposals since July, indicating a potential easing of the tight supply situation [60][64] - The market is witnessing a decline in the number of low-priced bonds, with only two bonds priced below their debt floor [45][57] Group 3: Institutional Behavior - In September, insurance institutions and securities asset management firms significantly reduced their holdings in convertible bonds, returning to historical low levels [21][24][70] - Public funds have increased their holdings in convertible bonds, now accounting for approximately 39% of the total market, reflecting a significant rise since the beginning of the year [71][77] - The overall market size of convertible bonds has decreased, but the market value to face value ratio has increased, influenced by concentrated conversions of specific bonds [66][70]

Group 1 - The core viewpoint of the news is that Alibaba plans to issue zero-coupon convertible bonds maturing in 2032, aiming to raise $3.17 billion, which is expected to be the largest transaction of its kind this year [2] - The convertible bond ETF (511380) has seen a recent increase of 0.69%, with a latest price of 13.28 yuan, and a cumulative increase of 0.93% over the past week [2] - The trading volume of the convertible bond ETF was active, with a turnover rate of 16.52% and a transaction value of 10.546 billion yuan, indicating strong market activity [2] Group 2 - The latest scale of the convertible bond ETF reached 63.684 billion yuan, with a recent net outflow of 372 million yuan [3] - Over the past five trading days, there were three days of net inflow, totaling 827 million yuan, with an average daily net inflow of 165 million yuan [3] - The convertible bond market is significantly influenced by the interest rate environment and credit spread changes, with the current RMB exchange rate being supported by cross-border capital flows and rapid growth in domestic foreign exchange deposits [3]

Group 1 - The convertible bond market experienced strong momentum in August, with a notable acceleration compared to July, but faced a decline in late August due to adjustments in micro-cap stocks, leading to a "independent adjustment" in convertible bonds [4][10][35] - The adjustment in the convertible bond market has resulted in healthier overall valuations, with the current conversion premium rates for different types of convertible bonds indicating a significant decrease compared to historical levels [4][35][52] - The report suggests focusing on convertible bonds that have experienced significant adjustments, high dividend yields, and strong fundamentals, particularly in sectors with rich themes and emerging growth curves [4][35][39] Group 2 - The convertible bond market's excess returns in August were primarily driven by technology, high-priced, and low-premium rate styles, with high-priced and newly issued bonds being significant contributors to excess returns [39][42][46] - The market saw a notable decline in the median price of convertible bonds, dropping from 135 yuan to 130 yuan, with a significant decrease in the proportion of bonds priced above 130 yuan [46][49] - The report highlights that the adjustment in the convertible bond market has led to a significant decline in equity valuations, with conversion premium rates for different types of bonds showing a marked decrease [52][55]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In 2025Q2, the market value of convertible bonds held by public - funds decreased, with a 3.34% quarter - on - quarter reduction and a 1.02% year - on - year decrease. The proportion of convertible bond market value in bond investment market value and net value also declined. Different types of funds showed varying trends in convertible bond market value changes, with first - tier bond funds being the main growth driver [2][8][12]. - Convertible bond funds underperformed the index in terms of performance in 2025Q2, with a small - scale net redemption and a reduction in overall scale. However, the convertible bond position and leverage ratio increased simultaneously [4][8][11]. - In terms of industry allocation, banks remained an important underlying position for convertible bonds. Both public - funds and convertible bond funds mainly increased their positions in public utilities, non - banking, and chemical convertible bonds. Additionally, public - funds also increased their positions in pharmaceutical and biological industry convertible bonds, while convertible bond funds increased their positions in non - ferrous metal convertible bonds [8][11][41]. 3. Summary According to the Directory I. Public - funds' Convertible Bond Positions Decrease, with Increased Positions in Public Utilities and Non - banking Convertible Bonds (1) The Market Value of Convertible Bonds Held by Public - funds Decreases Quarter - on - Quarter, and Positions Decline - In 2025Q2, the market value of convertible bonds held by public - funds was 272.823 billion yuan, a 3.34% quarter - on - quarter and 1.02% year - on - year decrease. The proportion of convertible bond market value in bond investment market value and net value decreased by 0.14pct and 0.09pct respectively compared to 25Q1 [2][12]. - Most types of funds saw a decrease in the market value of convertible bonds held, mainly due to the overall contraction of the convertible bond market. Among them, first - tier bond funds continued to expand their convertible bond scale, while second - tier bond funds and convertible bond funds decreased their positions [13][14]. (2) The Proportion of Public - funds' Positions Decreases, while Securities Asset Management and Proprietary Trading Increase Positions - As of the end of 2025Q2, the total face value of convertible bonds held by the Shanghai and Shenzhen Stock Exchanges decreased by 5.90% quarter - on - quarter. Public - funds, insurance institutions, enterprise annuities, and general institutions all significantly reduced their positions, while securities proprietary trading and asset management increased their positions [33]. - The face value of convertible bonds held by public - funds decreased quarter - on - quarter, but there was a marginal improvement in July [37]. (3) Public - funds' Positions Mainly Increase in Public Utilities and Non - banking Convertible Bonds - In 2025Q2, the banking sector remained the primary layout, but the overall position market value decreased significantly due to the forced redemption of multiple bank convertible bonds. The market value of public utilities, non - banking, and other industries increased, while the market value of household appliances, banks, and other industries decreased [41]. (4) Industrial Bank Convertible Bonds Maintain the First - Ranked Heavy - Position Bond, but the Proportion of Banks Decreases - Industrial Bank Convertible Bonds remained the first - ranked heavy - position bond for public - funds. Among the top ten convertible bonds in terms of total position market value, the number of bank convertible bonds decreased compared to Q1. G Sanxia EB2 entered the top five, and the total position market value of Hebang Convertible Bonds increased by over 1 billion yuan [45]. II. Convertible Bond Funds Underperform the Index, with Simultaneous Increases in Convertible Bond Positions and Leverage Ratios (1) The Re - invested Unit Net Value Increases, with Overall Net Redemption - As of 2025Q2, there were 39 convertible bond funds in the market. Their performance underperformed the convertible bond index, with a small - scale net redemption and a 5.96% quarter - on - quarter reduction in scale [50]. - The average increase in the re - invested unit net value of 39 convertible bond funds was 3.44%, and the median was 3.34%. The net redemption amount was 3.272 billion yuan, and the net subscription rate was 30.77%, a 20.51pct decrease compared to 25Q1 [50][52]. (2) The Convertible Bond Position Increases Quarter - on - Quarter, and the Leverage Ratio Increases Slightly - In the second quarter of 2025, the proportion of convertible bond market value in the net value of 39 convertible bond funds increased by 0.64pct quarter - on - quarter, and the median position increased by 4.78pct. The average leverage ratio increased by 2.10 percentage points [64]. (3) Convertible Bond Funds Mainly Increase Positions in Public Utilities, Non - banking Finance, etc. - Most industries saw an increase in the number of times held by convertible bond funds in 2025Q2. Public utilities and non - banking finance had the largest increases in the proportion of position market value. Banks and public utilities remained among the top heavy - position industries [5][50]