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]

Core Viewpoint - The convertible bond market is experiencing increased activity and a shift in dynamics, with a notable rise in the number of bonds being redeemed and a tightening supply amid stable institutional demand [1][2]. Group 1: Market Performance - As of August 18, 2025, the China Convertible Bond and Exchangeable Bond Index rose by 0.96%, while the Convertible Bond ETF increased by 1.12%, reaching a price of 13.39 yuan [1]. - The Convertible Bond ETF has seen a cumulative increase of 1.81% over the past week, indicating a positive trend in the market [1]. - The latest scale of the Convertible Bond ETF reached 52.582 billion yuan, marking a new high since its inception [2]. Group 2: Liquidity and Trading Activity - The Convertible Bond ETF recorded a turnover rate of 10.04% during trading, with a transaction volume of 5.315 billion yuan, reflecting active market participation [1]. - Over the past week, the average daily trading volume of the Convertible Bond ETF was 9.659 billion yuan [1]. Group 3: Fund Flows and Leverage - The Convertible Bond ETF experienced a net outflow of 10.5628 million yuan recently, but over the past five trading days, there were three days of net inflows totaling 3.114 billion yuan [2]. - The net purchase amount of leveraged funds for the Convertible Bond ETF reached 8.275 million yuan this month, with the latest financing balance at 1.061 billion yuan [2]. Group 4: Performance Metrics - As of August 15, 2025, the Convertible Bond ETF achieved a 27.06% increase in net value over the past five years, ranking 16th out of 164 index bond funds [2]. - The ETF's maximum monthly return since inception was 6.61%, with the longest streak of consecutive monthly gains being seven months [2]. - The historical probability of profit for holding the ETF for three years is 76.17% [2]. Group 5: Risk and Tracking Accuracy - The Convertible Bond ETF has a Sharpe ratio of 2.12 over the past year, indicating strong risk-adjusted returns [3]. - The maximum drawdown for the ETF this year was 6.04%, with a recovery period of 79 days [3]. - The management fee for the Convertible Bond ETF is 0.15%, and the custody fee is 0.05% [4]. - The tracking error for the ETF over the past three months was 0.012%, demonstrating its close alignment with the underlying index [5].

Core Viewpoint - The convertible bond market has shown significant activity, with a notable increase in trading volume and interest from investors due to its unique characteristics that combine both bond and stock attributes [1][2]. Market Activity - In May, the trading volume of convertible bonds exceeded 1.37 trillion yuan, and in the first eight trading days of June, the total trading volume reached 702.19 billion yuan, averaging 87.77 billion yuan per day [1][2]. - As of June 13, the total outstanding convertible bonds amounted to 797.77 billion yuan, a decrease of 73.02 billion yuan since the beginning of the year [2]. - The average price of convertible bonds in the market was 121.99 yuan, with an average conversion premium rate of 70.75%, and 99 convertible bonds had a conversion premium rate exceeding 100% [2]. Performance Analysis - The CSI Convertible Bond Index has increased by 1.65% this year, while the Shanghai Composite Index has risen by 1.81% [2]. - The top ten active convertible bonds have seen an average daily trading volume of 2.81 billion yuan, with their underlying stocks averaging a gain of over 30% [3]. Future Outlook - Analysts predict that the convertible bond market will continue to expand in the second half of the year, driven by decreasing opportunity costs and favorable supply-demand dynamics [3][4]. - The focus for investors should be on high-quality companies and sectors with strong growth potential, including state-owned enterprises and industries related to emerging technologies [3][4]. Selection Criteria - Investors are advised to consider various factors when selecting convertible bonds, including stock market style, sector performance, and the underlying stock's financial metrics such as gross margin and return on assets [4]. - The importance of understanding redemption clauses, particularly conditional redemption, is emphasized, as 17 convertible bonds have undergone strong redemption this year [5].

Group 1 - The core viewpoint indicates that the convertible bond market is experiencing a decline in total inventory, which may lead to a contraction in the market size, but the performance of the convertible bond market is expected to improve as the number of "members" decreases [3][4] - As of July 29, 2025, the total inventory of the convertible bond market is 659.085 billion, a decrease of 74.537 billion since the beginning of the year [3] - The convertible bond ETF has seen a recent increase in scale, reaching 44.432 billion, marking a new high in nearly a year [4] Group 2 - The convertible bond ETF has experienced continuous net inflows over the past seven days, with a maximum single-day net inflow of 0.964 billion, totaling 4.039 billion, averaging 0.577 billion in daily net inflows [5] - Leveraged funds are actively positioning in the market, with a net financing purchase amount of 6.8178 million this month and a latest financing balance of 0.953 billion [6] - The convertible bond ETF has achieved a net value increase of 24.70% over the past five years, ranking 16th out of 156 in the index bond fund category [6] Group 3 - The maximum drawdown for the convertible bond ETF this year is 6.04%, with a relative benchmark drawdown of 0.41% [7] - The management fee rate for the convertible bond ETF is 0.15%, and the custody fee rate is 0.05% [8] - The tracking error for the convertible bond ETF over the past three months is 0.012%, indicating a close tracking of the index [8]

Group 1 - The last trading day for Quan Feng convertible bonds is July 24, along with other convertible bonds such as Jing Zhuang, Heng Hui, Wei Long, and Bei Lu [1] - Industry insiders believe that without a significant increase in new bond supply, the scale of the convertible bond market may gradually shrink to below 600 billion yuan in the second half of the year [1] - Looking ahead, the convertible bond market is expected to continue to rise due to the support from underlying stocks and the influx of new capital [1]

Report Industry Investment Rating No relevant information provided. Core Views - The convertible bond index may face pressure to rise significantly, but there is no systematic risk, and there are structural opportunities. Convertible bonds are still valuable assets. Although the current premium rate is not low and the median absolute price is high, considering the decline in yields of various fixed - income assets, the demand for fixed - income + allocation is strong, supporting the price of convertible bonds. Short - term callbacks may occur, but the amplitude is controllable, and opportunities outweigh risks [4]. - The current market is dominated by bulls. The improvement of grass - roots governance capacity has increased public confidence, leading to a rise in market risk appetite. The market is oscillating horizontally and strengthening step by step, with the financial and technology sectors being the focus [4][8]. - The year - on - year increase of CPI in June provides emotional support to the market. Anti - involution sectors are still under attention, and the real estate sector is expected to improve due to favorable policies [8]. Summary by Directory 1. Convertible Bond Views: Bullish on Convertible Bonds After Continuous Surges - The convertible bond market followed the equity market and rose significantly under the low - position condition, but this week it was relatively restrained with a slight valuation correction. There may be pressure for the convertible bond index to rise further, but there are still structural opportunities. Short - term callbacks are possible, but the amplitude is controllable [4]. - The current emotional source is the growth of public confidence due to the improvement of grass - roots governance capacity. The market is oscillating horizontally and strengthening step by step, and the financial and technology sectors will be the focus. The year - on - year increase of CPI in June provides emotional support to the market, and the real estate sector is expected to improve [8]. 2. Convertible Bond Review: Convertible Bonds Continue to Follow the Rise of Equities 2.1 Market Overall Performance: The Stock Market Continues to Rise, and Convertible Bonds Follow More Restrainedly - From July 7th to July 11th, the Shanghai Composite Index, Shenzhen Component Index, and other major stock indices all rose. The real estate, steel, and non - bank finance sectors led the rise, while the coal, banking, and automobile sectors declined. The leading convertible bonds performed weaker than the underlying stocks, and the momentum weakened slightly, but the upward trend of popular individual bonds continued [11]. 2.2 Trading Volume Increases, and Medium - High - Rated and Low - Priced Convertible Bonds Perform Well - This week, convertible bonds continued to rise, and the trading volume increased significantly to 6.8115 billion yuan. The CSI Convertible Bond Index rose 0.76%, the parity center rose 1.5% to 102.1 yuan, and the conversion premium rate center fell 2.2% to 23.1%. In terms of style, medium - high - rated and low - priced convertible bonds performed well, while large - cap and high - priced convertible bonds were relatively weak [4][17].

Group 1 - Wuxi Zhenhua (605319) issued convertible bonds named "Xizhen Convertible Bonds," which began trading on July 14, with a current stock price of 31.98 yuan and a conversion price of 31.98 yuan, resulting in a conversion value of 100 [1] - The subscription number for the convertible bonds was relatively low at 71,700, attributed to a small issuance scale of 520 million yuan and approximately 86.20% of the shares being allocated to existing shareholders [2] - The bonds received an AA- rating, indicating a strong position in the convertible bond market, with expectations that the bonds could rise above 300 yuan upon listing, potentially providing significant returns for investors [2] Group 2 - The current market for newly issued convertible bonds is experiencing high demand, often leading to price surges on the first trading day, comparable to the excitement surrounding new stock listings [5] - Many individual stocks are currently underperforming, while the market is seeing strong performances from bank stocks and active small-cap stocks, creating a disparity in market dynamics [5] - There is a significant amount of capital on the sidelines, waiting for market indices to break key resistance levels, which could trigger a wave of investment into the stock market, leading to a positive feedback loop of rising prices and increased buying [7]

Group 1 - The convertible bond market has shown strong performance in 2023, with the China Convertible Bond Index rising 8.28% year-to-date, reaching a nearly 10-year high, indicating its unique value as a balanced investment option [1] - Convertible bonds possess both "equity" and "debt" characteristics, providing upside potential during stock market rallies and relative stability during downturns [1] - The overall trend for convertible bonds has been a steady upward movement, with a significant rebound after a mid-March correction, outperforming major A-share indices [1] Group 2 - The emergence of high-performing convertible bonds, such as Huicheng Convertible Bond, which reached a price of 2,231.292 yuan on July 4 and exceeded 2,400 yuan shortly after, highlights the market's strength [2] - Huicheng Convertible Bond has surged 149.48% this year, following a 188.95% increase last year, largely driven by the strong performance of its underlying stock, Huicheng Environmental [2] - A total of 58 convertible bonds have been delisted this year, with 70% triggering early redemption clauses due to rising stock prices, indicating a tightening supply-demand dynamic in the market [2] Group 3 - Analysts attribute the strong performance of the convertible bond market to several factors, including the robust performance of small and mid-cap stocks and the increasing number of early redemption cases, which have tightened market conditions [2] - The Longcheng Fund's fixed income team believes that the strong performance is supported by structural factors in the underlying stock market and the low yields of pure debt assets, which have led to capital flowing into the convertible bond market [2] - Future performance of the convertible bond market will depend significantly on the trends of the underlying stocks, as current valuations appear elevated with insufficient downside protection [2][3]