Core Viewpoint - The convertible bond market is currently positioned close to the valuation peaks of 2022 and January 2015, indicating a high valuation environment with potential for adjustments in line with equity market movements [4][65][66]. Group 1: Market Outlook - The current positioning of convertible bonds is nearing the high valuation levels seen in 2022 and January 2015, suggesting a potential for adjustments [4][65]. - Historical patterns indicate that convertible bonds typically adjust in sync or lag behind the equity market, with the adjustment pace and magnitude being difficult to precede the equity market [4][66]. - The strong market conditions of previous bull markets (2007, 2009, 2015) saw convertible bond valuations significantly higher than current levels, highlighting the unique circumstances of those periods [4][65][66]. Group 2: Investment Strategy - Convertible bonds are viewed as the only viable option for pure bond investors transitioning to equity investments, with a sustained demand expected due to profit-making effects [4][66]. - A recommended strategy includes a focus on high-quality convertible bonds with a scale of over 1.5 billion yuan and a rating of AA or above, as well as low-priced convertible bonds that still present investment opportunities [9][66]. - The report suggests a monthly review and adjustment of the recommended convertible bond portfolio to maintain flexibility and responsiveness to market conditions [9][66]. Group 3: Valuation Metrics - The median price of convertible bonds is reported at approximately 127.63 yuan, close to the highest points seen in 2021-2022, with premium rates indicating a historical high for bond valuations [16][22]. - New issuances are generally priced above 130 yuan, reflecting a strong market sentiment and high valuation levels similar to previous peaks [22][66]. - The current premium rates for convertible bonds are significantly elevated, with many bonds trading at premiums exceeding 30%, indicating a robust demand despite high valuations [16][22][66].