Group 1 - The convertible bond market has recently experienced a significant downward adjustment after a strong performance earlier in the year, with over 90% of convertible bonds declining in the last seven trading days [1][2][3] - The China Securities Index for convertible bonds began its decline on August 26, with a notable drop of 2.82% on August 27, followed by three consecutive days of decline [3][5] - More than 400 convertible bonds have seen a decline, with around 230 bonds dropping over 5%, and over 50 bonds experiencing declines exceeding 10% [5][8] Group 2 - Specific convertible bonds such as Tianyuan Convertible Bond and Borui Convertible Bond have shown significant declines, with Tianyuan dropping over 20% from above 240 yuan to 191.7 yuan [5][7] - The overall market adjustment is believed to be influenced by the weak performance of the underlying stocks, as the A-share market has also seen a decline, with over 4,300 stocks dropping in the last seven trading days [8][9] - The average decline of the underlying stocks corresponding to convertible bonds that fell over 10% is more than 10%, indicating a strong correlation between the performance of convertible bonds and their underlying stocks [8][9] Group 3 - Research from Guojin Securities suggests that while the equity market is expected to maintain an upward trend, there is a short-term impulse for profit-taking in convertible bonds, with two convertible bond ETFs accounting for nearly 10% of the market [11] - The current market volatility may lead to increased trading activity, and the potential for further downward adjustment in convertible bond valuations is limited [11][13]

Summary of Key Points Core Viewpoint - The convertible bond market, which had shown strong performance earlier in the year, has recently entered a phase of continuous adjustment, with over 90% of convertible bonds experiencing declines in the last seven trading days [1][2]. Market Performance - Since reaching a peak on August 25, the convertible bond market has seen a downturn, with the China Convertible Bond Index entering a correction phase starting August 26, including a significant drop of 2.82% on August 27 [1][2]. - In the last seven trading days, more than 400 convertible bonds have declined, representing over 90% of the total, with nearly 230 bonds falling more than 5% and over 50 bonds dropping more than 10% [2][3]. Specific Bond Performance - Notable convertible bonds such as Tianyuan Convertible Bond have seen a price drop from over 240 yuan to 191.700 yuan, marking a cumulative decline of over 20% [3]. - The Borui Convertible Bond has also faced a decline, dropping from over 320 yuan to 260.457 yuan, with a cumulative decrease of 18.84% [5]. Market Influences - The recent adjustment in the convertible bond market is believed to be influenced by the weak performance of the underlying stocks. The Shanghai Composite Index has shown a slowdown, with a cumulative decline of 1.80% over the past seven trading days [7]. - The average decline of the underlying stocks corresponding to convertible bonds that fell over 10% is more than 10%, indicating a significant underperformance compared to the broader market [7][8]. Future Outlook - According to research from Guojin Securities, the overall probability of continued upward movement in the equity market remains high, but there is a short-term impulse for profit-taking in convertible bonds. The market is expected to experience increased trading activity and volatility [10][11].

Core Viewpoint - The convertible bond market, which had shown strong performance earlier in the year, has recently entered a phase of continuous adjustment, with over 90% of convertible bonds experiencing declines in the past seven trading days [1][2][3]. Market Performance - In the last seven trading days, more than 400 convertible bonds have declined, accounting for over 90% of the total convertible bonds available. Approximately 230 of these bonds have seen declines exceeding 5%, and over 50 bonds have dropped more than 10% [6]. - The China Securities Convertible Bond Index began its adjustment on August 26, with a significant drop of 2.82% on August 27. Although there was a slight increase of 0.26% on September 3, the market remains volatile and uncertain [4]. Individual Bond Performance - Specific convertible bonds have shown significant declines, such as: - Tianyuan Convertible Bond: Price dropped from over 240 yuan to 191.7 yuan, a decline of over 20% [6]. - Borui Convertible Bond: Price fell from over 320 yuan to 260.457 yuan, a cumulative decline of 18.84% [8]. - Other notable declines include: - Jinxian Convertible Bond: -18.83% - Outon Convertible Bond: -18.82% - Huamao Convertible Bond: -16.29% [12]. Reasons for Adjustment - The recent adjustment in the convertible bond market is believed to be influenced by the weak performance of the underlying stocks. The Shanghai Composite Index has seen a slowdown since August 26, with a cumulative decline of 1.80% over the past seven trading days [11]. - The average decline of the underlying stocks corresponding to convertible bonds that have dropped over 10% is also more than 10%, indicating a strong correlation between the performance of convertible bonds and their underlying stocks [11]. Market Outlook - According to recent research, the overall probability of the equity market maintaining an upward trend remains high. However, there is a short-term impulse for profit-taking in the convertible bond market. Two convertible bond ETF products now account for nearly 10% of the market, suggesting increased trading activity and potential for greater market volatility [12]. - The expectation is that the valuation of equity-oriented convertible bonds will have limited downward space, and if the market returns to the levels seen at the beginning of July, it could present a new opportunity for systematic accumulation [12].