1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report In Q2 2025, the convertible bond market generally followed the trend of the equity market, with the convertible bond index rising. However, the scale of convertible bonds held by funds decreased, and the convertible bonds of the banking industry were significantly reduced. Different types of funds showed different trends in holding convertible bonds, and the performance of convertible bond funds was stronger than that of the Wind All - A Index and the CSI Convertible Bond Index [2][3][4]. 3. Summary According to the Directory 3.1 2025 Q2 Market Review - Most major market indices rose, except for the Shenzhen Component Index. The Shanghai Composite Index rose 2.8%, the Shenzhen Component Index fell 1.3%, the ChiNext Index rose 1.2%, the Wind All - A Index rose 3.0%, and the CSI Convertible Bond Index rose 3.3%. The convertible bond market generally followed the trend of the equity market, and the conversion premium rate decreased from 46.58% on April 1 to 44.09% on June 30 [2][14]. 3.2 Fund Holding Convertible Bond Behavior Analysis 3.2.1 Fund Holding Convertible Bond Total Scale Change - As of the end of Q2 2025, the balance of the convertible bond market was 660.618 billion yuan, a decrease of 40.389 billion yuan from the end of the previous quarter. The scale of convertible bonds held by funds was 272.825 billion yuan, a decrease of 9.457 billion yuan from the end of the previous quarter, a year - on - year decrease of 1.21% and a quarter - on - quarter decrease of 3.35%. The proportion of the market value of convertible bonds held by funds to the balance of the convertible bond market was 41.30%, an increase of 1.03 percentage points compared with Q1 2025 [16][17]. 3.2.2 Various Types of Funds Holding Convertible Bond Scale Change - In Q2 2025, the secondary hybrid bond funds held the largest scale of convertible bonds, with a market value of 8.5867 billion yuan, followed by the primary hybrid bond funds with a market value of 7.2656 billion yuan. The secondary hybrid bond funds reduced their holdings of convertible bonds by 8.14 billion yuan, while the primary hybrid bond funds increased their holdings by 6.05 billion yuan [23][29]. 3.2.3 Fund Positioning Behavior Analysis - **Industry Distribution**: The convertible bonds of the banking sector were still the main allocation direction of funds. In Q2 2025, the top five industries with the largest scale of convertible bonds held by funds were banking, power equipment, basic chemicals, electronics, and non - ferrous metals. The convertible bonds of the banking industry were significantly reduced by over 14 billion yuan, while those of basic chemicals, non - banking finance, electronics, automotive, and pharmaceutical biology industries were increased by over 500 million yuan [37][40]. - **Individual Bond Distribution**: At the end of Q2 2025, among the top 5 convertible bonds held by funds, 4 were bank - related convertible bonds. The Bank of Shanghai Convertible Bond was the individual bond with the largest increase in holdings, followed by the Hebang Convertible Bond [45][47]. - **Rating Situation**: Among the convertible bonds held by funds, the proportion of AA - rated convertible bonds was relatively high, with 143 bonds, accounting for 30.82% [53]. 3.3 Convertible Bond Fund Holding Convertible Bond Behavior Analysis 3.3.1 Convertible Bond Fund Scale Change - As of the end of Q2 2025, there were 38 convertible bond funds in existence, holding a scale of 40.229 billion yuan, a decrease of 2.201 billion yuan from the previous quarter [56]. 3.3.2 Convertible Bond Fund Positioning Behavior Analysis - **Industry Distribution**: Convertible bond funds held the largest market value of bank - related convertible bonds, with a scale of 6.917 billion yuan. The convertible bonds of the non - banking finance industry were increased by 413 million yuan, while those of the banking industry were reduced by 1.583 billion yuan [57][59]. - **Performance**: In Q2 2025, the average return rate of convertible bond funds was 3.50%, the median return rate was 3.43%, and the average return rate of the top 10 convertible bond funds was 4.98%. The performance of convertible bond funds was stronger than that of the Wind All - A Index and the CSI Convertible Bond Index [63].