Core Viewpoint - The convertible bond market has shown strong overall performance in recent months, but significant differentiation exists, with some bonds doubling in price while others have seen substantial declines, creating a "polarized" market environment [1][2]. Group 1: Market Performance - The convertible bond market has performed well, with the China Convertible Bond Index rising for two consecutive months in May and June, and a cumulative increase of 1.21% since July [2]. - Over 160 convertible bonds have seen a cumulative increase of over 10% this year, with more than 60 bonds rising over 20%, and nearly 20 bonds experiencing price increases exceeding 50% [2]. - Specific examples include the Sai Li Convertible Bond, which has a cumulative increase of 39.06% since July, and the Bo Hui Convertible Bond, which has increased by 37.02% during the same period [2]. Group 2: Notable Bonds - The Hui Cheng Convertible Bond has become the second convertible bond in history to exceed 2000 yuan, reaching a peak of nearly 2600 yuan, representing a more than 20-fold increase from its issuance price [3]. - The average increase of the top ten performing convertible bonds in July was 23.05%, while their corresponding underlying stocks saw an average increase of 32.32% [3]. Group 3: Market Differentiation - There has been a noticeable increase in differentiation within the convertible bond market, with over 130 bonds experiencing price declines since July, including several that have dropped over 10% [4]. - Year-to-date, multiple convertible bonds have seen cumulative declines exceeding 20%, with some, like Yuan Xin and Wei Long Convertible Bonds, experiencing declines over 40% [4]. - The decline in certain convertible bonds is often linked to weak performance of their underlying stocks, with the top ten declining convertible bonds all corresponding to stocks that have also decreased in value [4]. Group 4: Redemption Pressures - The strong redemption actions or pressures can significantly impact the secondary market prices of convertible bonds, with several bonds facing early redemption issues [4]. - For instance, the Lian De Convertible Bond is set for mandatory redemption at 101.70 yuan per bond if not converted by August 11, 2025, which could lead to substantial investment losses for holders [5]. - Similarly, the Quan Feng Convertible Bond has announced an early redemption at face value plus accrued interest, limiting investor options to either trading in the secondary market or converting at a specified price [6].

Core Viewpoint - The convertible bond market has shown overall good performance this year, but there is significant differentiation, with some bonds doubling in price while others have seen substantial declines, creating a "polarized" situation that investors need to be cautious about [1][2]. Market Performance - The convertible bond market has performed well, with the China Convertible Bond Index rising for two consecutive months in May and June, and a cumulative increase of 1.21% since July [3]. - Over 10 convertible bonds, including Sai Li Convertible Bond and Bo Hui Convertible Bond, have seen cumulative increases exceeding 10% since July [3]. - Notably, Sai Li Convertible Bond has a cumulative increase of 39.06% since early July, while Bo Hui Convertible Bond has increased by 37.02% [3]. - Year-to-date, over 160 convertible bonds have increased by more than 10%, with more than 60 bonds rising over 20%, and nearly 20 bonds have doubled in price [3]. Noteworthy Developments - The market has seen the emergence of the second convertible bond in history to exceed 2000 yuan, with Hui Cheng Convertible Bond reaching a price of nearly 2600 yuan, representing over 20 times its issue price [4]. - The strong performance of certain convertible bonds is often linked to the robust performance of their underlying stocks, with the top ten performing convertible bonds averaging a 23.05% increase, while their corresponding stocks averaged a 32.32% increase [5]. Market Differentiation - There is a noticeable increase in differentiation within the market, with over 130 convertible bonds experiencing price declines since July, including several bonds that have dropped over 10% [7]. - Year-to-date, multiple convertible bonds have seen declines exceeding 20%, with some, like Yuan Xin Convertible Bond and Wei Long Convertible Bond, dropping over 40% [7]. - The decline in many convertible bonds is often due to weak performance of their underlying stocks, with the top ten declining convertible bonds all corresponding to stocks that have also decreased in value [7]. Redemption Pressures - Strong redemption actions or pressures can significantly impact the secondary market prices of convertible bonds. Several bonds facing early redemption announcements have seen declines, such as Lian De Convertible Bond and Quan Feng Convertible Bond [8]. - Lian De Convertible Bond is set for mandatory redemption at 101.70 yuan per bond if not converted by a specified date, which could lead to substantial investment losses for holders [8].