Group 1 - The capital market in early 2026 shows a diverse pattern with a seesaw effect between stocks and bonds, while convertible bonds stand out as a major highlight [1] - The bond market has strengthened under the central bank's liquidity support, with yields declining by approximately 2 basis points, except for the ultra-long end which saw a slight increase of 1 basis point due to supply concerns [1] - The convertible bond market has experienced significant enthusiasm, with new bonds seeing substantial first-day gains, such as a 57.3% increase for the Nipei Convertible Bond and over 126% cumulative gain for the Lianrui Convertible Bond within three days [1] Group 2 - The net inflow into convertible bond ETFs reached 13.193 billion yuan in 2026, with the total scale of convertible bond ETFs surpassing 61 billion yuan by the end of 2025, marking a shift towards index-based investment as the mainstream for convertible bond allocation [1] - The strong performance of the convertible bond market is attributed to ample macro liquidity, the expansion of "fixed income +" products, and a balanced supply-demand dynamic, making convertible bonds an attractive option for risk-averse investors seeking value [1] - The director of fixed income investment at Minsheng Jianyin Fund, Xie Zhihua, notes that while the stock market is rising sharply, it has not reached bubble levels, suggesting a healthier market environment where stocks with matching valuations and fundamentals deserve attention [2]