Core Viewpoint - Despite the impact of the U.S. "reciprocal tariffs" on global capital markets since April, the domestic convertible bond market has shown overall stability and resilience, highlighting its defensive and offensive characteristics [1][2]. Group 1: Market Performance - The domestic convertible bond market has demonstrated strong resilience, with the China Securities Convertible Bond Index experiencing a significant drop of 4.05% on April 7, marking its largest single-day decline of the year, yet this was less severe than the declines in the Shanghai and Shenzhen indices, indicating a defensive feature [2]. - Following the market rebound starting April 8, many convertible bonds have recovered, showcasing their offensive potential alongside stock characteristics, with over 400 convertible bonds rising since that date, and more than 40 bonds increasing by over 10% [3]. Group 2: Notable Convertible Bonds - The Zhongqi Convertible Bond has shown a strong performance, with a price exceeding 300 yuan per share, marking a historical high, and a cumulative increase of 29.43% since April 8, with a year-to-date increase of 149.62% [4]. - The Zhongchong 2 Convertible Bond has also seen significant gains, reaching a price close to 200 yuan per share, with a cumulative increase of 36.45% since April 8 and a year-to-date increase of 42.89% [6]. - The Zhenhua Convertible Bond has reached a price of 197.981 yuan per share, with a cumulative increase of 24% since April 8 and a year-to-date increase exceeding 40% [8]. Group 3: Redemption Risks - Attention is drawn to the strong redemption risk associated with convertible bonds, as they possess both equity and debt characteristics, which can lead to significant losses if not monitored closely [10]. - A recent example is the Huisheng Convertible Bond, which faced a sharp decline of over 40% since its peak of 248 yuan per share on April 7 due to the triggering of its conditional redemption clause [11]. - The Bojie Convertible Bond is experiencing a similar situation, with a cumulative decline of nearly 20% since April due to early redemption, with its last trading day set for April 21, 2025 [13].

Core Viewpoint - Despite the impact of the U.S. "reciprocal tariffs" on global capital markets since April, the domestic convertible bond market has shown overall stability, highlighting its defensive and offensive characteristics, with some convertible bonds recently reaching historical highs [1][3]. Summary by Sections Market Performance - Since April, the domestic convertible bond market has demonstrated resilience amid global market volatility, with the China Securities Convertible Bond Index experiencing a significant drop of 4.05% on April 7, marking its largest single-day decline of the year, yet this was less severe than the declines in the Shanghai and Shenzhen indices, indicating a defensive nature [3][4]. Recovery and Growth - Following the market rebound starting April 8, many convertible bonds have regained their losses, showcasing their offensive potential. Over 400 convertible bonds have risen since April 8, with more than 40 bonds increasing by over 10%, including notable performers like Fuxin Convertible Bond and Zhongqi Convertible Bond, which saw increases exceeding 20% [4]. Historical Highs - Several convertible bonds have recently reached historical highs, such as Zhongqi Convertible Bond, which surpassed 300 CNY per share, achieving a cumulative increase of 29.43% since April 8 and 149.62% year-to-date [5]. Zhongchong Convertible Bond also approached 200 CNY per share, with a cumulative increase of 36.45% since April 8 and 42.89% year-to-date [7]. Zhenhua Convertible Bond reached a price of 197.981 CNY per share, with a cumulative increase of 24% since April 8 and over 40% year-to-date [9]. Redemption Risks - Despite the overall stability of the convertible bond market compared to equities, there are risks associated with specific terms, such as early redemption clauses. For instance, Huisheng Convertible Bond faced significant declines due to triggering its conditional redemption clause, dropping over 40% from its high of 248 CNY per share since April 7 [12][14]. Similar situations have been observed with Bojie Convertible Bond, which has seen a nearly 20% decline since April due to early redemption [14].