1. Report Industry Investment Rating There is no information provided in the document about the industry investment rating. 2. Core Viewpoints of the Report - The recent intense compression of convertible bond valuations is a recurrence of historical patterns. The early spring rally in the stock market synchronized with changes in convertible bond capital flows, amplifying the amplitude of valuations and the convertible bond index [1][11]. - The decline in convertible bond valuations shows significant structural differences. In terms of the parity structure, the valuations of debt - biased and balanced bonds remain high, while those of equity - biased and high - price bonds have fallen back to around early January. In terms of the term structure, the valuations of newly - issued bonds have dropped significantly, and those of near - maturity bonds have also adjusted notably [2][13][16]. - Looking at historical experiences of significant valuation compressions, the end of convertible bond valuation compression is almost synchronous with the stabilization of equities. When convertible bond valuations fall from high levels, the first rebound of equities does not strongly drive up convertible bond valuations, and a stronger equity expectation is needed for valuation recovery. If the equity rebound is weak or in a volatile state, convertible bond valuations may continue to adjust slowly [3][19][27]. - In the future, the overall position should be adjusted to a neutral position, waiting for equity stabilization signals. In terms of the term structure, although the valuations of newly - issued bonds have declined, they are still at a historically high level, and more caution is needed. In terms of the parity structure, debt - biased or balanced convertible bonds may face greater downward pressure, while equity - biased convertible bonds with a parity between 110 - 130 yuan have seen their risk - return ratios improve, and more attention can be paid to elastic varieties if the equity market is expected to perform well [4][38]. 3. Summary by Relevant Catalogs I. Decomposition of the Decline in Convertible Bond Valuations and Historical References (1) Question 1: Why has the convertible bond valuation compressed so intensely recently? - The pre - Spring Festival rush to allocate convertible bonds pushed valuations to new highs, but after the festival, it entered a profit - taking window, and valuations generally compressed. In 2026, the early spring rally in the stock market synchronized with changes in convertible bond capital flows, amplifying the amplitude of this adjustment [11]. - The net subscription and redemption intensities of "fixed - income +" funds and convertible bond ETFs also confirm this view. There were significant net subscriptions before the Spring Festival, indicating an influx of allocation funds, and after a brief shock, there was a large - scale shift to net redemptions in early March, indicating that profit - taking demand dominated [11]. (2) Question 2: What are the structural characteristics of this round of valuation compression? - **Parity Structure**: Debt - biased and balanced bonds maintained high levels, while equity - biased and high - price bonds fell back to around early January. The 70 - 90 parity bonds adjusted the least, the 90 - 110 parity bonds adjusted moderately, and the 110 - 130 parity bonds adjusted most significantly. High - parity bonds (parity > 130 yuan) and high - price bonds (price > 160 yuan) also saw notable declines [13]. - **Term Structure**: The valuations of newly - issued bonds (listed for less than 1 year) dropped significantly, and those of near - maturity bonds (remaining term less than 1 year) also adjusted notably. The valuation difference between new and old bonds has converged but is still at a historical high [16]. (3) Question 3: What can be learned from historical valuation compressions? - There have been 8 historical periods with valuation adjustments lasting over 1 month and compression amplitudes greater than 5 pcts. After excluding periods with irrelevant influencing factors, the following experiences can be learned: the end of convertible bond valuation compression is almost synchronous with the stabilization of equities; when convertible bond valuations fall from high levels, the first rebound of equities does not strongly drive up convertible bond valuations; if the equity rebound is weak or in a volatile state, convertible bond valuations may continue to adjust slowly [19][27]. II. Convertible Bond Strategy: Wait and See for Position Restoration, Focus on Elasticity in Structure - Affected by factors such as inflation, tightened global liquidity, economic recession expectations, and supply chain disruptions caused by the long - term US - Iran war, the A - share market has adjusted significantly, especially the previously leading oil - alternative energy and related industrial chain concepts [31]. - In the future, as the impact of geopolitical conflicts reaches a climax, it is recommended to focus on trading thinking. Industries with "self - dominated" prosperity characteristics in the technology and growth sectors can be focused on, and short - term valuation repair opportunities in low - risk sectors can also be appropriately considered [31]. - The overall position should be adjusted to a neutral position, waiting for equity stabilization signals. In terms of the term structure, although the valuations of newly - issued bonds have declined, they are still at a historically high level, and more caution is needed. In terms of the parity structure, debt - biased or balanced convertible bonds may face greater downward pressure, while equity - biased convertible bonds with a parity between 110 - 130 yuan have seen their risk - return ratios improve, and more attention can be paid to elastic varieties if the equity market is expected to perform well [38]. III. Market Review: Convertible Bonds Fell Weekly, and Valuations Compressed (1) Weekly Market Conditions: The convertible bond market declined, and most equity sectors performed weakly - Most major stock indices declined last week. The CSI 300 index fell by 2.19%, the CSI 500 by 5.82%, the CSI 1000 by 5.25%, the CSI 2000 by 5.70%, and the CSI Convertible Bond Index by 3.15%. Small - cap stocks and convertible bonds performed weakly overall [42]. - Most popular concepts were weak last week, with only a few concepts such as "Contribution to Rising Points", "Central Bank Stocks", and "Photovoltaic Selection" rising, while concepts such as "Chemical Products Selection", "Resource Stocks", and "Copper Industry" led the decline [42]. (2) Valuation Performance: The average premium rates of convertible bonds of various ratings and scales increased to varying degrees - The closing price of equity - biased convertible bonds rose by 1.06% compared to last Friday, while that of debt - biased convertible bonds fell by 2.10%, and that of balanced convertible bonds fell by 1.60%. - From the perspective of the closing price distribution of convertible bonds, the proportion of the 130 - 150 (including 150) interval decreased significantly. The median price was 133.32 yuan, a 3.44% decrease from the previous Friday. - In terms of ratings and scales, the average premium rates of convertible bonds of various ratings and scales increased to varying degrees. The AA - rating increased by 4.97 pcts, and the scale of less than 300 million (including 300 million) increased by 6.57 pcts. From the perspective of the parity interval, the conversion premium rate of convertible bonds in the 120 - 130 (including 130) parity interval increased by 3.19 pcts significantly [44]. IV. Terms and Supply: Two Convertible Bonds Announced Forced Redemption, and the Total Newly - Promoted Scale was Approximately 15.16 Billion (1) Terms: Two convertible bonds announced forced redemption last week, and the board of Ruike Convertible Bond proposed a downward revision - As of March 20, Huicheng Convertible Bond and Yuanxin Convertible Bond announced early redemption; Fuxin, Shuiyang, Dazhong, Wankai, and Jingzhuang Convertible Bonds announced no early redemption; Yong 02, Weier, Huamao, and Zhongbei Convertible Bonds announced that they were expected to meet the forced redemption conditions [60]. - As of March 20, Ruike Convertible Bond issued an announcement proposing a downward - revision plan. Qiaoyin Convertible Bond (almost at the bottom), Hongtu Convertible Bond (at the bottom), Baolai Convertible Bond (not at the bottom), and Lanfan Convertible Bond (at the bottom) announced the results of the downward revision; Guanyu, Fulai, Jin 23, Leizhi, Zhongte, Guowei, Baolai, Tong 22, and Jiete Convertible Bonds announced no downward revision, and two convertible bonds announced that they were expected to trigger a downward revision, including Shuangle and Zhengfan Convertible Bonds [60]. (2) Primary Market: Boshi and Shang 26 Convertible Bonds were issued last week, and the total newly - promoted scale was approximately 15.16 billion - **Issuance and Listing**: Boshi and Shang 26 Convertible Bonds were issued last week, with a total scale of 700 million yuan. Tonglian and Aiwei Convertible Bonds were listed, with a total scale of 2.477 billion yuan. There are currently 368 issued and non - matured convertible bonds, with a balance scale of 508.565 billion yuan. Xianghe, Shang 26, Boshi, and Changgao Convertible Bonds have not been listed for trading, and there are currently no convertible bonds to be issued [63]. - **New Progress**: Last week, one company added a board of directors' plan, two companies passed the shareholders' meeting, four companies passed the review by the issuance examination committee, and one company was approved by the CSRC, an increase of 1, 2, 2, and a decrease of 1 respectively compared to the same period last year. As of March 20, four listed companies obtained convertible bond issuance approvals, with a planned issuance scale of 6.428 billion yuan. Four companies newly passed the review by the issuance examination committee, with a scale of 5.728 billion yuan, and one company added a board of directors' plan, with a total scale of 3 billion yuan [65][71].

Report Industry Investment Rating - Not provided Core View - The convertible bond valuation is still in the process of compression, and the adjustment range of high - priced varieties is relatively large. The "de - leveraging" market of convertible bonds may continue [2][4] Summary by Directory 1. Convertible Bond Valuation Compression, Larger Adjustment Range for High - Priced Varieties - In the past week (March 9 - 13), the performance of convertible bonds was worse than that of underlying stocks. The Wind Convertible Bond Underlying Stock Equal - Weighted Index rose slightly by 0.04%, while the CSI Convertible Bond Index and the Wind Convertible Bond Equal - Weighted Index fell by 1.10% and 1.86% respectively. As of March 13, compared with the high points at the end of February and early March, the adjustment range of convertible bonds was greater. The market price median and the 100 - yuan premium rate decreased by 2.28 yuan and 2.13 pct respectively in the past week, and decreased by 5.63 yuan and 5.68 pct respectively compared with the previous high points [3][11] - The Wind Convertible Bond High - Price Index, Medium - Price Index, and Low - Price Index fell by 2.07%, 0.90%, and 0.32% respectively in the past week, and fell by 9.83%, 2.98%, and 1.17% respectively compared with the previous phased high points. High - priced convertible bonds were subject to factors such as forced redemption shocks and high valuations, and the adjustment range was significantly larger than that of medium - and low - priced varieties [12] 2. The "De - leveraging" Market of Convertible Bonds May Continue - From the perspective of the overall market valuation level, the current premium rate may still have some room for adjustment. In the previous two valuation change cycles, the 100 - yuan premium rate of the whole market fell by about 60% of the previous increase during the contraction process, and the adjustment durations were 64 and 35 trading days respectively. In this round of valuation expansion, the 100 - yuan premium rate has risen by 51.9%. As of March 13, the decline in the valuation contraction stage was only 11.9%, less than 40% of the previous increase, and it only took 16 trading days. So, the current adjustment is not sufficient in terms of time and space [20] - For high - priced bonds, if the underlying stocks fail to continue the previous upward trend, the "de - leveraging" market of convertible bonds may continue. The current median premium rate of high - priced convertible bonds is still as high as 20%, which hardly matches the median parity of 140 yuan. The rise of high - priced varieties from January to February 2026 was mainly driven by the "leverage" of convertible bonds. If the upward trend of the underlying stocks is broken, convertible bond assets will inevitably undergo "de - leveraging". If the underlying stocks continue to fall, the price of high - priced bonds may face double pressure of parity decline and valuation contraction. The median parity may fall back to around 130, and the median premium rate may stop falling around 15% [5][22][25]

1. Report Industry Investment Rating No information provided in the given content. 2. Core Viewpoints of the Report - Recently, convertible bonds have shown a certain "negative convexity" feature, where they follow the decline but not the rise of the underlying stocks, with both returns and drawdowns significantly worse than those of the underlying stocks [6]. - The compression of convertible bond valuations in this round started in the first week after the Spring Festival. Although the equity market performed well in the first week after the festival, there was an obvious structural shift, with the technology sector performing weakly. Additionally, non - callable convertible bonds generally entered the second round of call - counting periods. Despite the decent performance of the underlying stocks, high - parity convertible bonds, new bonds, and sub - new bonds actively compressed their valuations due to poor expectations [6]. - Subsequently, the conflict between the US and Iran impacted global risk appetite, causing a sharp rise in oil prices. The domestic equity market was volatile and weak, leading to a full - scale spread of the compression of convertible bond valuations, with significant declines in the valuations of debt - biased and balanced intervals [6]. - From a rolling perspective, the 100 - yuan premium rate has returned to around the +1 standard deviation level, and the central value has significantly shifted down from the previous high. In the short term, convertible bond valuations have been compressed to a stage - low. With the expectation of a slow - bull equity market in the medium term, the convertible bond market has shown a certain cost - effectiveness, and opportunities for individual bonds with certain cost - effectiveness in valuation can be actively explored [6]. 3. Summary According to Relevant Catalogs 3.1 Week's Viewpoint and Outlook - Convertible bonds have a "negative convexity" feature, and the valuation compression started after the Spring Festival. Due to factors such as structural shifts in the equity market and the entry of non - callable bonds into the call - counting period, the valuation compression has spread, and currently, the convertible bond market has certain cost - effectiveness [6]. 3.2 Convertible Bond Valuation - Affected by the US - Iran conflict and the new round of Sino - US economic and trade consultations, the domestic equity market stabilized compared to last week, with small and micro - cap stocks relatively weak. Convertible bonds continued to digest their valuations this week. After removing outliers, the 100 - yuan premium rate decreased by 0.5% to 31.8%, and currently, it is roughly at the +1 standard deviation level [7]. - This week, the compression of convertible bond valuations spread from high - parity and long - duration bonds to other intervals, showing a universal full - interval valuation compression feature. The valuation compression of bonds with a remaining term of more than 5.5 years was close to 4%, and the compression in the 2 - 4 - year interval was also relatively large [11]. - From the perspective of individual bonds, in the high - parity interval above 140 yuan, bonds with a large valuation compression are mostly those in the call progress or about to enter the call - counting period, with an obvious pre - emptive feature, and the valuation compression due to call expectations is mostly around 10%. In other balanced and debt - biased intervals, bonds with a large valuation compression are mostly new bonds that have not entered the conversion period. In addition, the valuations in the extremely low - parity area below 60 yuan were generally compressed [16]. - As of now, in terms of parity, the valuation quantiles of each interval are mostly in the 95 - 100 quantile range, significantly lower than the previous high, and the valuation quantiles in the 110 - 140 - yuan parity interval are relatively low. In terms of term, the valuation quantiles in the intervals within 1 year and 2 - 3 years are relatively low [18]. 3.3 Clause Tracking 3.3.1 Redemption - This week, 9 convertible bonds such as Fenggong and Liyang announced redemptions, and 4 announced non - redemptions, with a call rate of 69%. Currently, there are 31 convertible bonds that have issued call announcements or maturity redemption announcements and have not yet delisted, and the potential conversion or maturity balance of call and maturity bonds among the non - delisted bonds is 12.2 billion yuan [25]. - Currently, there are 47 convertible bonds in the redemption progress. 12 are expected to meet the redemption conditions next week, and 11 are expected to issue announcements indicating that redemption may be triggered. In addition, 13 convertible bonds are expected to enter the call - counting period within the next month [29]. 3.3.2 Downgrade - This week, Weining Convertible Bond proposed a downgrade, and no convertible bond announced the downgrade result. As of now, 79 convertible bonds are in the non - downgrade interval, 18 cannot be downgraded due to net asset constraints, 0 have triggered the condition and the stock price is still lower than the downgrade trigger price but have not issued an announcement, 21 are accumulating downgrade days, and 6 have issued board plans for downgrade but have not gone to the shareholders' meeting [33]. 3.3.3 Put Option - This week, no convertible bond issued a conditional put option announcement. As of now, 4 convertible bonds are accumulating put - option trigger days, among which 1 is also accumulating downgrade days, and 3 are in the non - downgrade interval [35]. 3.4 Primary Issuance - As of now, there are 6 convertible bonds in the approval - registration progress, with an issuance scale of 5.3 billion yuan; and 9 convertible bonds in the listing - committee - approval process, with an issuance scale of 8.2 billion yuan [37].

1. Report Industry Investment Rating There is no information provided regarding the industry investment rating in the report. 2. Core Viewpoints - Recently, convertible bonds have shown a "negative convexity" characteristic, where they follow the decline but not the rise of the underlying stocks, with both returns and drawdowns significantly worse than those of the underlying stocks [6]. - The compression of convertible bond valuations started in the first week after the Spring Festival. Although the equity market performed well in that week, there was an obvious structural shift, with the technology sector performing weakly. Additionally, non - callable convertible bonds generally entered the second round of call - counting periods. Despite the decent performance of the underlying stocks, high - parity convertible bonds and new/secondary new bonds actively compressed their valuations due to poor expectations [6]. - Subsequently, the conflict between the US and Iran impacted global risk appetite, causing a surge in oil prices. The domestic equity market oscillated weakly, and the compression of convertible bond valuations spread comprehensively, with valuations in the debt - biased and balanced intervals also declining significantly [6]. - From a rolling perspective, the 100 - yuan premium rate has returned to around the +1 standard deviation level, and the central value has significantly declined from the previous high. In the short term, convertible bond valuations have compressed to a phased low. Given the medium - term expectation of a slow - bull equity market, the convertible bond market has shown a certain cost - effectiveness, and opportunities for individual bonds with certain cost - effectiveness in valuation can be actively explored [6]. 3. Summary by Relevant Catalogs 3.1 Week's Viewpoint and Outlook - Convertible bonds showed "negative convexity", with returns and drawdowns worse than underlying stocks. Valuation compression started after the Spring Festival, spread due to various factors, and now the 100 - yuan premium rate is near +1 standard deviation. There are opportunities in individual bonds [6]. 3.2 Convertible Bond Valuation - Amid the US - Iran conflict and the new round of China - US economic and trade consultations, the domestic equity market stabilized compared to last week, with small - and micro - cap stocks relatively weak. Convertible bonds continued to digest valuations this week. After removing outliers, the 100 - yuan premium rate decreased by 0.5% to 31.8%, roughly at the +1 standard deviation level [7]. - This week, convertible bond valuations continued to compress, spreading from high - parity and long - duration bonds to other intervals, showing a universal full - interval valuation compression feature. In the past two weeks, the compression was mainly concentrated in high - parity, new, and secondary new bonds, but this week it spread globally. The valuation compression amplitude of debt - biased and balanced convertible bonds was generally over 1%. From a term perspective, the valuation compression amplitude of new bonds over 5.5 years was close to 4%, and that of the 2 - 4 - year interval was also relatively large [11]. - From an individual bond perspective, in the high - parity interval above 140 yuan, bonds with large valuation compression are mostly those in the call progress or about to enter the call - counting period, with obvious pre - emptive characteristics, and the valuation compression due to call expectations is about 10%, such as Huamao and Chun 23. In other balanced and debt - biased intervals, bonds with large valuation compression are mostly new bonds that have not entered the conversion period, such as Jin 25, Zhuomei, etc. Bonds around 3 years like Yake and Daimei also had relatively large valuation compression due to the downward trend of the underlying stocks. In addition, valuations in the extremely low - parity area below 60 yuan were generally compressed [16]. - As of now, in terms of parity, the valuation quantiles of each interval are mostly in the 95 - 100 quantile range, significantly lower than the previous high. The valuation quantiles in the 110 - 140 - yuan parity interval are relatively low. In terms of term, the valuation quantiles in the less - than - 1 - year and 2 - 3 - year intervals are relatively low [18]. 3.3 Clause Tracking 3.3.1 Redemption - This week, 9 convertible bonds such as Fenggong and Liyang announced redemptions, and 4 announced non - redemptions, with a call rate of 69%. Currently, there are 31 convertible bonds that have issued call or maturity redemption announcements but have not delisted. Among the non - delisted bonds, the potential conversion or maturity balance of call and maturity bonds is 12.2 billion yuan [25]. - There are currently 47 convertible bonds in the redemption progress. Next week, 12 are expected to meet the redemption conditions, and 11 are expected to issue announcements of potential redemption triggers. In addition, 13 convertible bonds are expected to enter the call - counting period within the next month [29]. 3.3.2 Downward Revision - This week, Weining Convertible Bond proposed a downward revision, and no bond announced the downward - revision result. As of now, 79 convertible bonds are in the non - downward - revision interval, 18 cannot be downward - revised due to net - asset constraints, 0 have triggered the condition and the stock price is still below the downward - revision trigger price but no announcement has been made, 21 are accumulating downward - revision days, and 6 have issued downward - revision board proposals but have not gone to the shareholders' meeting [33]. 3.3.3 Put Option - This week, no convertible bond issued a conditional put - option announcement. As of now, 4 convertible bonds are accumulating put - option trigger days, among which 1 is also accumulating downward - revision days, and 3 are in the non - downward - revision interval [35]. 3.4 Primary Issuance - As of now, there are 6 convertible bonds in the approval - registration progress, with a to - be - issued scale of 5.3 billion yuan; there are 9 convertible bonds in the listing - committee - approval process, with a to - be - issued scale of 8.2 billion yuan [37].

1. Report Industry Investment Rating No information provided in the report. 2. Core Viewpoint The convertible bond market currently meets the pre - condition of "long - term and significant valuation increase with the hundred - yuan premium rate at a historical high", but the recent upward trend of the equity market remains intact, and there has been no prior continuous shock adjustment to erode market confidence. Therefore, convertible bond valuations are expected to continue to fluctuate in the short - to - medium term. Future focus should be on equity trends and expected changes [3][25]. 3. Summary by Related Catalogs 3.1. Convertible Bond Sharp Valuation Compression Reappears, Conditions for Continuous Compression Not Met - On August 27, 2025, the CSI Convertible Bond Index dropped 2.82% in a single day, the hundred - yuan premium rate compressed by 3.48 pcts to 29.08%, and the trading volume exceeded 110 billion yuan. One reason for the sharp valuation compression was the vulnerability of convertible bond valuations at a historical high, and the other was the first significant net redemption of first - and second - tier bond funds since continuous net subscriptions in July, with securities firms, trusts/futures, and wealth management subsidiaries contributing the main net redemption volume [1][5]. - There were differences in the intraday performance of valuation compression. In terms of rhythm, the compression slope of the convertible bond hundred - yuan premium rate started to increase around 11:20, while the convertible bond underlying stock index lagged behind and began to decline rapidly around 13:25. After the lunch break, the equity market continued to decline, but the hundred - yuan premium rate bottomed out and fluctuated around 14:00. Structurally, the compression of the fitted premium rate of low - parity convertible bonds was more obvious, the valuations of financial and AA+/AAA convertible bonds were relatively resilient, and new bonds (listed for less than 1 year) had the largest valuation compression in the morning but also a strong rebound after the lunch break [1][8]. 3.2. Historical References for Rapid Valuation Compression - Since 2017, there have been 17 times when the single - day valuation compression of the hundred - yuan premium rate exceeded 2 pcts. Nine of these occurred during the period from 2017 - 2018 when the sample size was small and fluctuations were large, and the rest occurred on 2020 - 03 - 23, 2021 - 12 - 07, 2022 - 02 - 14, 2022 - 02 - 15, 2022 - 08 - 19, 2024 - 02 - 28, 2025 - 04 - 07, and 2025 - 08 - 27 [2][10]. - **2020 - 03 - 23**: Due to the unexpected spread of the pandemic globally, leading to deep adjustments in equity markets in many countries/regions. The Wind All - A Index dropped 3.81% and the Nasdaq Index dropped 9.49% on that day. Convertible bond valuations compressed by 2.55 pcts due to panic, but they stabilized and recovered as the global equity markets stabilized [10]. - **2021 - 12 - 07**: A typical period when convertible bond fluctuations increased after a rapid valuation increase to a high level. On that day, the conversion premium rate compression of high - priced convertible bonds and the decline in convertible bond prices were both prominent. However, from the end of 2021 to the beginning of 2022, fixed - income + funds and insurance funds entered the market significantly. With strong support from the capital side and the strength of convertible bond underlying stocks represented by small - cap stocks, convertible bond valuations continued to rise after a two - day correction, and the CSI Convertible Bond Index also fluctuated upward [14]. - **2022 - 02 - 14 and 2022 - 02 - 15**: The Wind All - A Index had been oscillating and declining for over 2 months, and convertible bond underlying stocks also had a sharp adjustment in mid - January. However, convertible bond valuations continued to oscillate upward, creating a divergence. After the equity market rebounded in early February but quickly declined again, the convertible bond market lost confidence and patience, resulting in a sharp valuation decline in mid - February. After the equity market stabilized in mid - to - late February, convertible bond valuations did not continue to decline, and only continued to compress when the equity market adjusted again in March [14]. - **2022 - 08 - 19**: Similar to the situation in February 2022, convertible bond valuations climbed to a high level. The Wind All - A Index had already adjusted significantly in advance, but convertible bond valuations remained high. After the small - and micro - cap stocks declined, the valuations were quickly adjusted to a relatively reasonable level of around 26%. However, the continued adjustment of the equity market caused convertible bond valuations to continue to decline [15]. - **2024 - 02 - 28**: During the repair process of the squeeze - out decline of small - and micro - cap stocks caused by quantitative funds, on the 28th, affected by market rumors about quantitative fund supervision, the equity market adjusted sharply again. The convertible bond underlying stock index mainly composed of small - and micro - cap stocks dropped 5.83%, and the hundred - yuan premium rate compressed by 2.29 pcts. After the rumor effect subsided, the equity market continued to repair, and convertible bond valuations stabilized, oscillated, and recovered the next day [18]. - **2025 - 04 - 07**: Mainly due to unexpected changes in peripheral tariff policies, the Wind All - A Index dropped 9.26% and the convertible bond underlying stock index dropped 12.19% on that day. Affected by the pessimistic sentiment in the equity market, convertible bond valuations compressed by 2.53 pcts. However, the subsequent equity market continued to repair, and the hundred - yuan premium rate rose 2.48 pcts on April 8, basically recovering all the losses [18]. - In the two sample periods of 2022 - 02 - 14 and 2022 - 08 - 19, there was still significant valuation decline in the 30 trading days after the rapid valuation compression. The commonalities were long - term and significant valuation increases before the compression, with the hundred - yuan premium rate at a historical high, and the equity market had started to oscillate and adjust, and continued to weaken in the future [2][19]. - In other sample periods, neither the decline of convertible bond valuations nor the CSI Convertible Bond Index lasted more than 3 days, and there was no obvious continuous compression of convertible bond valuations in the 30 trading days after the rapid valuation compression, regardless of whether the equity market rose, oscillated, or declined [3][23].

Report Industry Investment Rating No industry investment rating information is provided in the report. Core View of the Report - During the week from May 12 to May 17, 2025, the A-share market showed a volatile consolidation pattern with intensified structural rotation. The market style shifted from high - elasticity gaming to defense and low - level replenishment. The CSI Convertible Bond Index rose slightly by 0.32%, with a mild recovery in trading volume. The valuations in the low - and medium - price ranges were significantly compressed, while those of medium - to high - parity individual bonds were slightly repaired. There were still structural opportunities at the individual bond level. The primary market supply rhythm was active, the clause gaming remained cautious, and the redemption disturbance was generally controllable. It is recommended to focus on low - premium and high - prosperity individual bonds in the allocation, while also considering the stable allocation value of high - rated blue - chip convertible bonds [2][6]. Summary by Relevant Catalogs Market Weekly Review Equity Market - The A - share market was volatile and differentiated. The Shanghai Composite Index rose 0.8%, the ChiNext Index rose 1.4%, and the CSI 2000 Index rose 1.0%. The market style shifted from gaming elasticity to stable defense. Industries such as beauty care, banking, and transportation led the gains, while high - valuation growth sectors such as computer, military, and electronics adjusted. The daily average trading volume decreased to 1.2 trillion yuan, and the daily net outflow of main funds increased to 150 million yuan [10]. Convertible Bond Market - The convertible bond market was volatile. The CSI Convertible Bond Index rose 0.32%, and the daily average trading volume recovered to 637 million yuan. The median market price rose slightly to 112.39 yuan, and the balance - weighted implied volatility fell to 19.3%. The valuations in the low - and medium - price ranges were significantly compressed, while those of medium - to high - parity individual bonds were slightly repaired. In the primary market, 11 listed companies updated their convertible bond issuance plans, and in terms of clause gaming, 5 convertible bonds were expected to trigger a downward revision, 12 announced no downward revision, 2 proposed a downward revision, 5 announced an expected redemption, and 2 announced no early redemption [10]. Market Theme Weekly Review Equity Theme - The A - share theme market showed significant high - low switching. The trading - style indexes such as the daily limit hitting index, the first - board non - ST index, and the first - board index led the gains, while the growth sectors such as the pan - AI direction adjusted significantly. The market style shifted from high - elasticity gaming to low - level gaming and defense [15]. Convertible Bond - The convertible bond market rose first and then fell, with a mild recovery in trading volume. The CSI Convertible Bond Index rose 0.32%, and small - cap convertible bonds were relatively active. The valuations of medium - to high - parity convertible bonds were slightly repaired, while those in the low - price range were compressed. The market continued the pattern of structural rotation and theme gaming. It is recommended to pay attention to medium - and high - priced bonds with sufficient valuation compression, positive stock catalysis, and prosperity support [18]. Weekly Industry Outlook - The A - share market will continue the structural volatile pattern, with short - term market dominated by theme gaming and sentiment driving. High - elasticity directions such as the daily limit hitting index are strong, but the adjustment pressure on previous high - level themes such as AI and military is expected to continue. In the convertible bond market, the index rose first and then fell, with a mild recovery in trading volume. Low - priced convertible bond valuations were rapidly compressed, and medium - and high - priced bonds had valuation repair elasticity. It is recommended to pay attention to medium - and high - priced convertible bonds with fully adjusted valuations and strong fundamental support, as well as high - rated, low - premium bonds with "bond bottom + theme" dual characteristics [20]. Market Weekly Tracking Equity Market Style and Capital Trends - The main A - share indexes were volatile and differentiated. The Shanghai Composite Index rose 0.8%, and the ChiNext Index was relatively strong, rising 1.4%. The market style shifted to defense, and industries such as beauty care, banking, and transportation led the gains, while high - valuation growth sectors such as computer and military adjusted. The daily average trading volume decreased to 1.2 trillion yuan, and the daily net outflow of main funds increased to 150 million yuan. The capital allocation rhythm became more cautious, and the trading structure shifted from high - elasticity to stable defense [21][28]. Convertible Bond Market - The convertible bond index rose first and then fell, with small - cap convertible bonds being more elastic. The CSI Convertible Bond Index rose 0.32%, and the daily average trading volume recovered to 637.4 million yuan. By parity interval, the valuations of medium - and high - parity convertible bonds were stretched, while those in the low - price range were compressed. By market price interval, the valuations were generally compressed. The implied volatility of the whole market was at a historical low, and the median price of convertible bonds rose slightly. There were significant differences in the performance of convertible bonds between sectors, and individual bonds were also differentiated. The primary market supply was active, and clause gaming was an important trading auxiliary [39][43][52]. Primary Market Tracking and Clause Gaming Primary Market Issuance Plan - 11 listed companies updated their convertible bond issuance plans, including 2 approved for registration, 2 accepted by the exchange, 5 passed by the general meeting of shareholders, and 2 at the board of directors' plan stage. The total scale of projects at the exchange - accepted and subsequent stages reached 5.9 billion yuan [10][61]. Clause Gaming - In terms of downward revision, 5 convertible bonds were expected to trigger a downward revision, 12 announced no downward revision, and 2 proposed a downward revision. In terms of redemption, 5 convertible bonds announced an expected redemption, 2 announced no early redemption, and 0 announced an early redemption [10][68][72].