1. Report Industry Investment Rating No relevant content provided in the report. 2. Core View of the Report - From January to August 22, 2025, the CSI Convertible Bond Index rose by +17.9%, slightly lower than the +18.3% increase of the CSI All-Share Index. Although the current valuation quantiles of convertible bonds are close to or exceed historical highs, with the equity market on the rise, the subsequent performance of convertible bonds is still worth looking forward to [1][4]. 3. Summary by Relevant Catalog Market Conditions - From August 18 to August 22, 2025, the CSI Convertible Bond Index rose by +2.8% (last week's increase was +1.6%), and the CSI All-Share Index rose by +3.9% (last week's increase was +2.9%). The convertible bond market continued to rise, and the increase was greater [1]. - By rating, high-rated bonds (rated AA+ and above), medium-rated bonds (rated AA), and low-rated bonds (rated AA- and below) rose by +3.2%, +3.3%, and +2.8% respectively this week, with low-rated bonds having the smallest increase [1]. - By convertible bond scale, large-scale convertible bonds (bond balance greater than 5 billion yuan), medium-scale convertible bonds (balance between 500 million and 5 billion yuan), and small-scale convertible bonds (balance less than 500 million yuan) rose by +2.5%, +3.2%, and +3.3% respectively this week, with small-scale convertible bonds having the largest increase [1]. - By parity, ultra-high parity bonds (conversion value greater than 130 yuan), high parity bonds (conversion value between 110 and 130 yuan), medium parity bonds (conversion value between 90 and 110 yuan), low parity bonds (conversion value between 70 and 90 yuan), and ultra-low parity bonds (conversion value less than 70 yuan) rose by +4.0%, +2.9%, +2.6%, +2.4%, and +4.2% respectively this week, with ultra-low parity bonds having the largest increase [2]. Current Convertible Bond Valuation Levels - As of August 22, 2025, there were 450 outstanding convertible bonds (456 at the close of last week), with a balance of 623.836 billion yuan (627.415 billion yuan at the close of last week) [3]. - The average convertible bond price was 134.42 yuan (131.58 yuan last week), with a quantile of 100%; the average convertible bond parity was 106.74 yuan (104.19 yuan last week), with a quantile of 96.9%; the average convertible bond conversion premium rate was 27.8% (28.6% last week), with a quantile of 56.0%. Among them, the conversion premium rate of medium-parity (conversion value between 90 and 110 yuan) convertible bonds was 32.2% (30.8% last week), higher than the median conversion premium rate of medium-parity convertible bonds since 2018 (20.2%) [3]. Convertible Bond Increase Situation - This week, the top 15 convertible bonds in terms of increase were Dongshi Convertible Bond, Jintong Convertible Bond, Huayi Convertible Bond, etc. The increase rates ranged from 11.64% to 90.12%, and the corresponding underlying stocks also had varying degrees of increase [24].

1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report - Today, the convertible bond market showed a trend of increasing in price with decreasing trading volume, and the valuation increased compared to the previous day. The CSI Convertible Bond Index rose by 0.36%, the Shanghai Composite Index rose by 1.04%, the Shenzhen Component Index rose by 0.89%, the ChiNext Index rose by 0.23%, the SSE 50 Index rose by 1.23%, and the CSI 1000 Index rose by 0.86%. The mid - cap growth style was relatively dominant. The trading sentiment in the convertible bond market weakened, with the trading volume of the convertible bond market at 81.547 billion yuan, a 16.74% decrease from the previous day, and the total trading volume of the Wind All - A at 2.448414 trillion yuan, a 7.28% decrease from the previous day. The net outflow of the main funds in the Shanghai and Shenzhen stock markets was 33.57 billion yuan, and the yield of the 10 - year treasury bond rose by 0.95bp to 1.78% [1]. - The central price of convertible bonds increased, and the proportion of high - price bonds increased. The weighted average closing price of convertible bonds was 132.22 yuan, a 0.37% increase from the previous day. The valuation of convertible bonds also increased. The 100 - yuan par - value fitted conversion premium rate was 31.69%, a 0.89pct increase from the previous day [2]. - In the industry performance, most underlying stock industries rose. In the A - share market, the top three rising industries were Beauty Care (+2.42%), Petroleum and Petrochemicals (+2.36%), and Electronics (+2.32%), while the only declining industry was Medicine and Biology (-0.07%). In the convertible bond market, 20 industries rose, with the top three rising industries being Beauty Care (+1.68%), Non - Ferrous Metals (+1.40%), and Petroleum and Petrochemicals (+1.38%) [3]. 3. Summary According to Relevant Catalogs Market Overview - **Index Performance**: The CSI Convertible Bond Index rose by 0.36%, the Shanghai Composite Index by 1.04%, the Shenzhen Component Index by 0.89%, the ChiNext Index by 0.23%, the SSE 50 Index by 1.23%, and the CSI 1000 Index by 0.86% [1]. - **Market Style**: The mid - cap growth style was relatively dominant. The large - cap growth rose by 1.06%, the large - cap value by 0.82%, the mid - cap growth by 1.72%, the mid - cap value by 1.04%, the small - cap growth by 1.37%, and the small - cap value by 0.96% [1]. - **Fund Performance**: The trading sentiment in the convertible bond market weakened. The trading volume of the convertible bond market was 81.547 billion yuan, a 16.74% decrease from the previous day; the total trading volume of the Wind All - A was 2.448414 trillion yuan, a 7.28% decrease from the previous day; the net outflow of the main funds in the Shanghai and Shenzhen stock markets was 33.57 billion yuan, and the yield of the 10 - year treasury bond rose by 0.95bp to 1.78% [1]. Convertible Bond Price and Valuation - **Convertible Bond Price**: The weighted average closing price of convertible bonds was 132.22 yuan, a 0.37% increase from the previous day. The proportion of bonds with a closing price above 130 yuan was 60.22%, a 0.13pct increase from the previous day. The price median was 133.94 yuan, a 0.42% increase from the previous day [2]. - **Convertible Bond Valuation**: The 100 - yuan par - value fitted conversion premium rate was 31.69%, a 0.89pct increase from the previous day; the overall weighted par value was 101.21 yuan, a 0.87% increase from the previous day [2]. Industry Performance - **Underlying Stock Industry**: 29 industries in the A - share market rose, with the top three rising industries being Beauty Care (+2.42%), Petroleum and Petrochemicals (+2.36%), and Electronics (+2.32%); the only declining industry was Medicine and Biology (-0.07%) [3]. - **Convertible Bond Market**: 20 industries in the convertible bond market rose, with the top three rising industries being Beauty Care (+1.68%), Non - Ferrous Metals (+1.40%), and Petroleum and Petrochemicals (+1.38%); the top three declining industries were Building Materials (-1.57%), Environmental Protection (-1.09%), and Computer (-0.94%) [3]. - **Index Changes in Different Sectors**: In terms of closing price, the large - cycle decreased by 0.03%, manufacturing increased by 0.38%, technology increased by 0.09%, large - consumption increased by 0.48%, and large - finance increased by 0.15%. In terms of conversion premium rate, the large - cycle decreased by 0.62pct, manufacturing increased by 0.023pct, technology decreased by 0.91pct, large - consumption decreased by 0.18pct, and large - finance decreased by 0.54pct. In terms of conversion value, the large - cycle increased by 0.14%, manufacturing increased by 0.17%, technology increased by 0.72%, large - consumption increased by 5.27%, and large - finance increased by 0.73%. In terms of pure bond premium rate, the large - cycle increased by 0.0079pct, manufacturing increased by 0.49pct, technology increased by 0.11pct, large - consumption decreased by 0.12pct, and large - finance increased by 0.18pct [3].

固 定 收 益 研 转债市场风格或切换 固定收益研究团队 ——固收专题 固 收 专 题 开 源 证 券 证 券 -2025.8.17 续上涨行情—固收专题》-2025.8.16 相关研究报告 《Q2 货币政策报告学习，政策边际变 化下的债市波动 — 固 收 专 题 》 《经济结构向好优化，政策引导稳中 有进—事件点评》-2025.8.17 《产业趋势和流动性宽松下，转债延 具有超额收益。 第三种，经济增速回落、通胀继续回落，但市场预期修复，类似于 2014 年下半 年。这一情况下，核心资产有望跟随补涨。类似于 2014 年 11-12 月。 不难发现，无论是哪一种情形下，核心资产均具备良好的优势。 我们认为，2025 年下半年随着一系列政策逐渐见效下，经济更可能是保持稳定 和通胀的持续回升。 红利和核心资产的跷跷板效应或切换 回顾历史，2019 年-2025 年 4 月，核心资产和红利资产出现明显的跷跷板效应。 其中，2019 年-2021 年 1 月．核心资产上涨、红利资产震荡行情；2021 年 2 月-2025 年 4 月，红利资产持续上涨、核心资产明显下跌。 我们认为，展望 2025 年下半年，核心资产 ...

Report Industry Investment Rating - Not provided in the given content Core Viewpoints - Last week, the equity market generally rose, with the Shanghai Composite Index returning above 3,600 points. The military industry sector remained high due to the approaching military parade, and the non - ferrous metals sector was boosted by factors such as rising gold prices and increased rare - earth exports. The pharmaceutical sector, which had accumulated high gains, saw a decline in sentiment. The bond market was generally volatile, and the new VAT regulations had no significant impact. The 10 - year Treasury bond yield dropped by 1.68bp to 1.69% on Friday [1][8][9]. - In the convertible bond market, most individual convertible bonds rose last week. The CSI Convertible Bond Index increased by 2.31% for the whole week, the median price rose by 2.23%, the arithmetic average parity increased by 2.86%, and the overall market conversion premium rate increased by 0.09% compared to the previous week [2][9]. - After a very short - term adjustment, the equity market rose again, and the convertible bond market performed better. As of last Friday, the average price of convertible bonds was close to 145 yuan, and the median market price reached 130 yuan, both at the highest levels since 2023. In the short term, there are no obvious negative factors in the equity market. In the convertible bond market, although the bond - bottom protection has decreased, the current valuation is slightly lower than in August 2022, and the bond market interest rate is much lower. The supply - demand pattern can still strongly support convertible bonds, and the probability of a significant short - term adjustment is low, but more attention should be paid to bond selection [3][19]. Summary by Related Catalogs Market Focus (August 4 - August 8, 2025) Stock Market - The equity market generally rose last week. The Shanghai Composite Index returned above 3,600 points. The military industry sector was affected by the approaching military parade on September 3, and the non - ferrous metals sector was driven by factors such as the Fed's interest - rate cut expectation and increased rare - earth exports in July. The pharmaceutical sector with high previous gains saw a decline in sentiment [1][8]. - By industry, most Shenwan primary industries rose. National defense and military industry (+5.93%), non - ferrous metals (+5.78%), machinery and equipment (+5.37%), comprehensive (+4.32%), and textile and apparel (+4.23%) led the gains, while pharmaceutical biology (-0.84%), computer (-0.41%), commercial retail (-0.38%), and social services (-0.11%) performed poorly [9]. Bond Market - The bond market was generally volatile last week. The new VAT regulations on the previous Friday had no significant impact. Although the central bank conducted net withdrawals for several consecutive days, the overnight capital price remained low, and the capital environment was relatively loose. The impact of the stock - bond seesaw effect was weak, and there were even days when stocks, bonds, and commodities all rose. The 10 - year Treasury bond yield closed at 1.69% on Friday, down 1.68bp from the previous week [1][9]. Convertible Bond Market - Most individual convertible bonds rose last week. The CSI Convertible Bond Index increased by 2.31% for the whole week, the median price rose by 2.23%, the arithmetic average parity increased by 2.86%, and the overall market conversion premium rate increased by 0.09% compared to the previous week [2][9]. - By industry, most sectors in the convertible bond market rose. Beauty care (+4.18%), non - ferrous metals (+4.16%), machinery and equipment (+4.16%), and national defense and military industry (+3.70%) led the gains, while pharmaceutical biology (+0.76%), building materials (+1.09%), social services (+1.28%), and food and beverage (+1.44%) performed poorly [12]. - At the individual bond level, bonds such as Jian (related to the Xinzang Railway), Julong (PEEK materials), Gaoce (photovoltaic & robotics), Dongjie (robotics), and Borui (innovative drugs) had the highest increases; bonds such as Qizheng (innovative drugs), Haopeng (solid - state batteries & announced forced redemption), Saili (innovative drugs), Yingji (military industry & announced forced redemption), and Tianlu (Yaxia Hydropower concept) had the highest decreases [2][13]. - The total trading volume of the convertible bond market last week was 422.376 billion yuan, with an average daily trading volume of 84.475 billion yuan, an increase from the previous week [17]. Views and Strategies (August 11 - August 15, 2025) - After a very short - term adjustment, the equity market rose again, and the convertible bond market performed better. The CSI Convertible Bond Index outperformed the major stock indices, and the convertible bond valuation further increased. As of last Friday, the average price of convertible bonds was close to 145 yuan, and the median market price reached 130 yuan, both at the highest levels since 2023 [3][19]. - In the short term, there are no obvious negative factors in the equity market. In the convertible bond market, although the bond - bottom protection has decreased, the current valuation is slightly lower than in August 2022, and the bond market interest rate is much lower. The supply - demand pattern can still strongly support convertible bonds. The increase in the convertible bond holdings of public funds in July and the continuous expansion of the convertible bond ETF scale since late July reflect the strong allocation demand for convertible bonds. The probability of a significant short - term adjustment is low, but more attention should be paid to bond selection [3][19]. - In terms of direction, as the interim reports of listed companies are being released, there is still room for growth in low - priced stocks of equity - biased underlying stocks with good performance. It is recommended to find high - quality targets in sectors such as computing power, domestic substitution of semiconductor equipment and materials, components of humanoid robots, AI applications benefiting from large - model iterations, and solid - state battery materials. Dividend assets led by banks have relatively lagged behind in this round of the market, so it is recommended to pay attention to the allocation value of dividend sectors such as banks, water services, and gas. In addition, pay attention to opportunities in high - quality new and sub - new convertible bonds [4][20]. Valuation Overview - As of last Friday (August 8, 2025), for equity - biased convertible bonds, the average conversion premium rates of convertible bonds with parities in the ranges of 80 - 90 yuan, 90 - 100 yuan, 100 - 110 yuan, 110 - 120 yuan, 120 - 130 yuan, and above 130 yuan were 44.32%, 34.38%, 25.28%, 18.4%, 12.37%, and 7.79% respectively, at the 94%/92%, 94%/95%, 90%/90%, 87%/84%, 80%/71%, and 80%/59% percentile levels since 2010/2021 [21]. - For debt - biased convertible bonds, the average YTM of convertible bonds with parities below 70 yuan was - 2.72%, at the 0%/0% percentile level since 2010/2021 [21]. - The average implied volatility of all convertible bonds was 37.94%, at the 72%/56% percentile level since 2010/2021. The difference between the implied volatility of convertible bonds and the long - term actual volatility of the underlying stocks was - 9.09%, at the 45%/43% percentile level since 2010/2021 [21]. Primary Market Tracking - Last week (August 4 - August 8, 2025), the Weidao Convertible Bond was issued, and no convertible bonds were listed. The underlying stock, Weidao Nano (688147.SH), belongs to the power equipment industry, with a market value of 15.315 billion yuan as of August 8. The company is a global high - end micro - nano equipment manufacturer for semiconductors and pan - semiconductors. The scale of the issued convertible bonds is 1.17 billion yuan, with a credit rating of AA, and the issuance was announced on August 4. After deducting the issuance fees, the funds are planned to be invested in projects such as the construction of a semiconductor thin - film deposition equipment intelligent factory, the expansion of a research laboratory, and the replenishment of working capital [29]. - As of the announcements on August 8, there are no convertible bonds announced for issuance or listing in the next week (August 11 - August 15, 2025). Last week, there was 1 company with a board of directors' plan (Sanxin Medical), and no companies passed the exchange's approval for registration, the listing committee's review, the exchange's acceptance, or the shareholders' meeting [30]. - As of now, there are 74 convertible bonds to be issued, with a total scale of 116.62 billion yuan. Among them, 4 have been approved for registration, with a total scale of 3.56 billion yuan, and 4 have passed the listing committee's review, with a total scale of 8.98 billion yuan [30].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In the first week of August, convertible bonds rebounded strongly, recovering losses from the end of July and reaching new highs. High - priced bonds performed strongly, while low - priced bonds were mediocre. Tech and cyclical sectors led the gains, and the pharmaceutical sector declined. The industry theme showed high rotation. The strong performance of convertible bonds was supported by three factors: the resilience of the equity market, high bullish sentiment and continuous inflow of funds into the convertible bond market, and a high forced - redemption rate leading to an imbalance in supply - demand. The positive sentiment in the convertible bond market is expected to continue. It is recommended to pay attention to dividend - low - volatility convertible bonds such as bank convertible bonds and bottom - up opportunities of high - elasticity varieties [1][5]. 3. Summary According to Relevant Catalogs 3.1 Week's Viewpoint and Outlook - In the first week of August, convertible bonds rebounded strongly. Structurally, high - priced bonds were strong and low - priced bonds were mediocre. Tech and cyclical sectors led the gains, and the pharmaceutical sector declined. The industry theme had high rotation. The strong performance was due to the resilience of the equity market, high bullish sentiment and fund inflow, and a high forced - redemption rate. There are no obvious short - term negative factors, and the positive sentiment in the convertible bond market is expected to last. Attention should be paid to the cost - performance switch between pure bonds and convertible bonds, especially bank convertible bonds, and bottom - up opportunities of high - elasticity varieties. The future will shift from position - winning to structure - winning [1][5]. 3.2 Convertible Bond Valuation - This week, convertible bonds and underlying stocks rebounded, with valuations rising strongly and convertible bonds having strong follow - up ability. The 100 - yuan premium rate of the whole - market convertible bonds was 33%, up 1.68% week - on - week, and the latest quantile was at the 91.10% percentile since 2017. The valuation increase of high - and low - rated convertible bonds was similar this week, and the valuation quantile of high - rated convertible bonds was higher than that of low - rated ones. - This week, convertible bonds rose strongly following the underlying stocks, and the yield to maturity hit a new low since 2017, reporting - 5.60%. As of now, the conversion premium rate index, pure bond premium rate index, and yield to maturity were 42.35%, 39.35%, and - 5.60% respectively, changing + 0.29%, + 3.87%, and - 0.86% from last week, and their current quantile levels were at the 62.60, 68.90, and 0.00 percentiles since 2017 [4][6][9]. 3.3 Clause Tracking 3.3.1 Redemption - This week, Youzu, Baidian, Haopeng, Dongcai, Xince, and Longhua Convertible Bonds issued early - redemption announcements. Currently, there are 24 convertible bonds that have issued forced - redemption or maturity - redemption announcements and have not delisted, with a potential conversion or maturity balance of 5.1 billion yuan. There are 45 convertible bonds currently in the redemption process, and 10 are expected to meet the redemption conditions next week. Three convertible bonds issued non - redemption announcements this week [4][14][18]. 3.3.2 Downgrade - This week, Ou22 Convertible Bond proposed a downgrade, and Zhongzhuangzhuan 2 announced a downgrade to the bottom. As of now, 139 convertible bonds are in the non - downgrade period, 24 cannot be downgraded due to net - asset constraints, 1 has triggered the condition but the stock price is still below the downgrade trigger price without an announcement, 31 are accumulating downgrade days, and 4 have issued board - of - directors' plans for downgrades but have not gone to the general meeting of shareholders [4][21]. 3.3.3 Put - back - This week, Tianchuang Convertible Bond issued a put - back announcement. As of now, 2 convertible bonds have issued put - back announcements, 4 are accumulating put - back trigger days, 3 of which are in the non - downgrade period and 1 has proposed a downgrade [4][24]. 3.4 Primary Issuance - This week, Weidao Convertible Bond issued an issuance announcement. According to the latest announcement, there are no bonds to be listed next week. As of now, there are 6 convertible bonds in the approval - registration process, with a to - be - issued scale of 5.7 billion yuan, and 4 in the listing - committee - approval process, with a to - be - issued scale of 9 billion yuan [4][26][28].

Report Industry Investment Rating No relevant content provided. Core Views of the Report - On August 6, 2025, most convertible bond industries rose, and the valuation decreased slightly compared to the previous day. The small-cap growth style was relatively dominant, and the trading sentiment in the convertible bond market increased [1]. - The central price of convertible bonds increased, and the proportion of high-priced bonds rose. The valuation was compressed, with the fitting conversion premium rate of 100-yuan parity decreasing [2]. - In the A-share market, more than half of the underlying stock industry indices rose. In the convertible bond market, 26 industries rose, and only two industries fell [3]. Summary by Relevant Catalogs Market Main Index Performance - The CSI Convertible Bond Index rose 0.58% day-on-day, the Shanghai Composite Index rose 0.45%, the Shenzhen Component Index rose 0.64%, the ChiNext Index rose 0.66%, the SSE 50 Index rose 0.24%, and the CSI 1000 Index rose 1.09% [1]. - The small-cap growth style was relatively dominant, with small-cap growth rising 1.15% [1]. - The convertible bond equal-weight index rose 0.76%, the convertible bond index rose 0.72%, the convertible bond pre - plan index rose 1.70% [7]. Market Fund Performance - The trading volume in the convertible bond market was 87.489 billion yuan, a 1.53% increase from the previous day; the total trading volume of Wind All A was 1759.242 billion yuan, an 8.88% increase [1]. - The net outflow of main funds from the Shanghai and Shenzhen stock markets was 11.049 billion yuan, and the yield of the 10-year Treasury bond decreased by 0.62bp to 1.70% [1]. Convertible Bond Valuation - The fitting conversion premium rate of 100-yuan parity was 29.47%, a 0.11pct decrease from the previous day; the overall weighted parity was 97.68 yuan, a 0.49% increase [2]. - The conversion premium rates of all types of convertible bonds by stock - bond nature increased, with the premium rate of debt - biased convertible bonds rising 1.59pct [28]. Industry Performance - In the A-share market, the top three industries in terms of gains were National Defense and Military Industry (+3.07%), Machinery and Equipment (+1.98%), and Coal (+1.89%); the top three industries in terms of losses were Pharmaceutical Biology (-0.65%), Commerce and Retail (-0.23%), and Building Materials (-0.23%) [3]. - In the convertible bond market, the top three industries in terms of gains were Media (+4.17%), National Defense and Military Industry (+2.18%), and Non - Ferrous Metals (+1.63%); the two industries with losses were Building Materials (-2.36%) and Agriculture, Forestry, Animal Husbandry and Fishery (-0.11%) [3]. - In terms of different sectors, the closing price of the large - cycle sector rose 0.56%, the manufacturing sector rose 0.76%, the technology sector rose 1.96%, the large - consumption sector rose 0.67%, and the large - finance sector rose 0.16% [3]. Industry Rotation - National Defense and Military Industry, Machinery and Equipment, and Coal led the rise. The underlying stocks of National Defense and Military Industry rose 3.07% day - on - day, and the convertible bonds rose 2.18% [52]. - The report also provided the weekly, monthly, and year - to - date price changes, as well as the valuation quantiles of different industries [52].

Group 1: Report Industry Investment Rating - No relevant content provided Group 2: Core Viewpoints of the Report - From January to August 1, 2025, the CSI Convertible Bond Index rose by +10.3%, and the CSI All-Share Index rose by +8.6%. The convertible bond market outperformed the equity market. After five consecutive weeks of gains, the convertible bonds adjusted slightly this week. Fundamental trends and anti-involution policies are important influencing factors for the current convertible bond market. Investors can continue to focus on convertible bonds in areas such as boosting domestic demand and anti-involution [1][4] Group 3: Summary by Related Catalogs 1. Market Conditions - From July 28 to August 1, 2025, the CSI Convertible Bond Index fell by -1.4% (last week's increase was +2.1%), and the CSI All-Share Index changed by -1.1% (last week's increase was +2.2%). Since the beginning of 2025, the CSI Convertible Bond Index has risen by +10.3%, and the CSI All-Share Index has risen by +8.6%. The convertible bond market outperformed the equity market [1] - By rating, high-rated bonds (AA+ and above), medium-rated bonds (AA), and low-rated bonds (AA- and below) fell by -2.03%, -0.29%, and -0.93% respectively this week, with high-rated bonds having the largest decline. By convertible bond scale, large-scale convertible bonds (bond balance greater than 5 billion yuan), medium-scale convertible bonds (balance between 500 million and 5 billion yuan), and small-scale convertible bonds (balance less than 500 million yuan) fell by -1.66%, -0.85%, and -0.83% respectively this week, with large-scale convertible bonds having the largest decline. By parity, ultra-high parity bonds (conversion value greater than 130 yuan) rose slightly by +0.38% this week, while other types of parity bonds had varying degrees of decline [2] - By industry, the top 30 convertible bonds in terms of gains mainly came from machinery and equipment (6), pharmaceutical biology (4), and electronics (4); the top 30 convertible bonds in terms of losses mainly came from chemicals (5), non-ferrous metals (4), etc. [2] 2. Convertible Bond Price, Parity, and Conversion Premium Rate - As of August 1, 2025, there were 463 outstanding convertible bonds (468 at the close of last week), with a balance of 636.614 billion yuan (637.942 billion yuan at the close of last week) [3] - The average convertible bond price was 127.7 yuan (128.87 yuan last week), with a quantile of 97.7%; the average convertible bond parity was 100.65 yuan (101.20 yuan last week), with a quantile of 89.3%; the average convertible bond conversion premium rate was 27.4% (27.3% last week), with a quantile of 55.4%. Among them, the conversion premium rate of medium-parity convertible bonds (conversion value between 90 and 110 yuan) was 27.6% (29.0% last week), higher than the median conversion premium rate of medium-parity convertible bonds since 2018 (20.0%) [3] 3. Convertible Bond Performance and Allocation Direction - This week, the CSI Convertible Bond Index fell by -1.4%. After five consecutive weeks of gains, the convertible bonds adjusted slightly this week; the CSI All-Share Index changed by -1.1%. Since the beginning of 2025, the CSI Convertible Bond Index has risen by +10.3%, and the CSI All-Share Index has risen by +8.6%. The convertible bond market outperformed the equity market. Looking ahead, fundamental trends and anti-involution policies are still important influencing factors for the current convertible bond market. Investors can continue to focus on convertible bonds in areas such as boosting domestic demand and anti-involution [4] 4. Convertible Bond Increase Situation - The top 15 convertible bonds in terms of gains this week included Qizheng Convertible Bond, Bo 25 Convertible Bond, Dongjie Convertible Bond, etc. For example, Qizheng Convertible Bond had a convertible bond increase of 45.60% and an underlying stock increase of 39.99% [24]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - Today, the convertible bond market declined with reduced trading volume, and the valuation increased compared to the previous day [1]. - The CSI Convertible Bond Index decreased by 0.08% compared to the previous day, while the Shanghai Composite Index rose by 0.17%, the Shenzhen Component Index decreased by 0.77%, the ChiNext Index decreased by 1.62%, the SSE 50 Index rose by 0.38%, and the CSI 1000 Index decreased by 0.82% [1]. - The large - cap value style was relatively dominant in the market. The large - cap growth index decreased by 0.48%, the large - cap value index rose by 0.84%, the mid - cap growth index decreased by 0.17%, the mid - cap value index rose by 0.51%, the small - cap growth index decreased by 0.76%, and the small - cap value index decreased by 0.27% [1]. - The trading sentiment in the convertible bond market weakened. The trading volume of the convertible bond market was 76.134 billion yuan, a 2.88% decrease compared to the previous day; the total trading volume of the Wind All - A Index was 1.870976 trillion yuan, a 2.28% increase compared to the previous day; the net out - flow of main funds in the Shanghai and Shenzhen stock markets was 52.9 billion yuan, and the yield of the 10 - year treasury bond decreased by 2.86bp to 1.72% [1]. 3. Summary by Related Catalogs Market Overview - Index performance: The CSI Convertible Bond Index decreased by 0.08% compared to the previous day, while the Shanghai Composite Index rose by 0.17%, the Shenzhen Component Index decreased by 0.77%, the ChiNext Index decreased by 1.62%, the SSE 50 Index rose by 0.38%, and the CSI 1000 Index decreased by 0.82% [1]. - Market style: The large - cap value style was relatively dominant. The large - cap growth index decreased by 0.48%, the large - cap value index rose by 0.84%, the mid - cap growth index decreased by 0.17%, the mid - cap value index rose by 0.51%, the small - cap growth index decreased by 0.76%, and the small - cap value index decreased by 0.27% [1]. - Capital performance: The trading volume of the convertible bond market was 76.134 billion yuan, a 2.88% decrease compared to the previous day; the total trading volume of the Wind All - A Index was 1.870976 trillion yuan, a 2.28% increase compared to the previous day; the net out - flow of main funds in the Shanghai and Shenzhen stock markets was 52.9 billion yuan, and the yield of the 10 - year treasury bond decreased by 2.86bp to 1.72% [1]. Convertible Bond Price - The central price of convertible bonds decreased, and the proportion of high - price bonds remained the same. The weighted average closing price of convertible bonds was 126.79 yuan, a 0.05% decrease compared to the previous day. Among them, the closing price of equity - biased convertible bonds was 167.54 yuan, a 0.24% decrease; the closing price of debt - biased convertible bonds was 117.04 yuan, a 0.22% increase; the closing price of balanced convertible bonds was 124.96 yuan, a 0.08% increase [2]. - The proportion of high - price bonds above 130 yuan was 43.84%, remaining the same as the previous day; the range with the largest change in proportion was 110 - 120 (including 120), with a proportion of 20.95%, a 0.65pct decrease compared to the previous day; there were 2 bonds with a closing price below 100 yuan. The median price was 128.43 yuan, a 0.19% increase compared to the previous day [2]. Convertible Bond Valuation - Valuation increased. The fitted conversion premium rate of 100 - yuan par value was 27.74%, a 0.18pct increase compared to the previous day; the overall weighted par value was 96.98 yuan, a 0.30% decrease compared to the previous day. The premium rate of equity - biased convertible bonds was 6.82%, a 0.29pct increase; the premium rate of debt - biased convertible bonds was 85.62%, a 0.25pct increase; the premium rate of balanced convertible bonds was 22.17%, a 0.05pct increase [2]. Industry Performance - In the A - share market, more than half of the underlying stock industry indices declined, with 16 industries falling. The top three industries with the largest declines were power equipment (-2.22%), computer (-1.59%), and automobile (-1.27%); the top three industries with the largest increases were steel (+2.05%), petroleum and petrochemical (+1.84%), and media (+1.00%) [3]. - In the convertible bond market, 18 industries declined. The top three industries with the largest declines were communication (-2.25%), automobile (-1.07%), and household appliances (-0.96%); the top three industries with the largest increases were building materials (+0.82%), textile and apparel (+0.79%), and building decoration (+0.42%) [3]. - Closing price: The large - cycle sector decreased by 0.04%, the manufacturing sector decreased by 0.57%, the technology sector decreased by 0.81%, the large - consumption sector increased by 0.04%, and the large - finance sector decreased by 0.18% [3]. - Conversion premium rate: The large - cycle sector increased by 0.063pct, the manufacturing sector increased by 1.1pct, the technology sector increased by 0.87pct, the large - consumption sector increased by 0.68pct, and the large - finance sector increased by 0.14pct [3]. - Conversion value: The large - cycle sector decreased by 0.14%, the manufacturing sector decreased by 1.22%, the technology sector decreased by 1.37%, the large - consumption sector remained unchanged, and the large - finance sector decreased by 0.71% [3]. - Pure - debt premium rate: The large - cycle sector decreased by 0.062pct, the manufacturing sector decreased by 0.72pct, the technology sector decreased by 1.2pct, the large - consumption sector increased by 0.054pct, and the large - finance sector decreased by 0.22pct [4]. Industry Rotation - The leading rising industries were steel, petroleum and petrochemical, and media. The daily increase of steel was 2.05%, petroleum and petrochemical was 1.84%, and media was 1.00%. In the convertible bond market, the corresponding daily changes were -0.10%, -0.06%, and -0.66% respectively [54].

Summary of Key Points from Conference Call Industry Overview - The conference call primarily discusses the bond market and its current dynamics, including investor sentiment, monetary policy, and fiscal measures in response to trade tensions and economic pressures [1][2][3][4]. Core Insights and Arguments - **Investor Sentiment**: Investors generally hold a bullish outlook on the bond market but are hesitant to make significant investments due to uncertainties surrounding tariff negotiations, economic downturn pressures, and the potential for monetary policy easing [1][2]. - **Policy Expectations**: There is low expectation for significant policy changes from the upcoming Politburo meeting at the end of April, with most investors anticipating a focus on maintaining economic stability and flexibility in policy implementation [1][3][5]. - **Tariff Impact**: Approximately 46% of investors believe that tariff impacts will ease in the third quarter, but overall sentiment regarding the annual outlook for tariff relief remains pessimistic [6][7]. - **Monetary Policy Outlook**: A majority of investors expect a reserve requirement ratio (RRR) cut in the next three months, with a smaller percentage anticipating interest rate cuts. The rationale for RRR cuts includes addressing liquidity gaps and supporting government bond issuance [9][10]. - **Bond Market Predictions**: Investors predict that the 10-year government bond yield will fluctuate between 1.5% and 1.8%, indicating a slight downward adjustment in market expectations [11]. Additional Important Content - **Trade Policy Response**: The policy response to trade tensions includes stabilizing the market, maintaining exchange rate stability, and expanding domestic demand, with a focus on service consumption as a key driver [12][13]. - **Service Consumption Policies**: Recent policies in the service consumption sector include direct subsidies for hospitality, dining, and transportation, with expectations for further financial support to stimulate consumption [14]. - **Real Estate Sector Focus**: Key points of interest in the real estate sector include government attitudes towards market stabilization and the potential for policy shifts regarding property development and financing [15][16]. - **Credit Bond Market Regulation**: Recent regulatory changes in the credit bond market have tightened oversight on local state-owned enterprises, impacting their financing capabilities [24]. - **Local Government Financing**: Local governments, particularly in Guangdong, are actively issuing special bonds to support land reserve projects, with a focus on expediting the issuance process compared to previous years [25][37]. This summary encapsulates the essential insights and data points discussed during the conference call, providing a comprehensive overview of the current state of the bond market and related economic policies.

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In Q2 2025, the scale of fixed - income plus funds continued to grow, and the inflow of funds was expected to continue due to the bond market under - allocation and the upward movement of equities. Convertible bond funds and fixed - income plus funds still had strong support [4][6]. - Brokers significantly increased their positions in convertible bonds, while public funds and insurance funds actively reduced their positions on the whole. The behavior of brokers was different from that of public funds and insurance funds, with brokers more likely to increase positions in a bull market and the latter reducing positions when the convertible bond valuation was high [10][12]. - Public funds continued to reduce their positions in bank convertible bonds and sought bottom - position substitutes. Other convertible bonds in the financial sector and those in the public utilities sector received certain increases in positions [19]. 3. Summary According to Relevant Catalogs 3.1. Growth of Fixed - Income Plus Fund Shares with Market Support - In Q2 2025, fixed - income plus funds had a net subscription of 56.41 billion shares. Among them, first - tier bond funds had a net subscription of 52.548 billion shares, second - tier bond funds had a net subscription of 7.774 billion shares, and partial - debt hybrid funds had a net redemption of 3.68 billion shares, with the net redemption volume further decreasing compared to Q1 2025. Convertible bond funds had a net redemption of 2.164 billion shares, slightly higher than that in Q1 2025 but with relatively low net redemption pressure compared to Q4 2024 [4][6]. - In Q2 2025, the positions of convertible bond funds and fixed - income plus funds in equity - related assets decreased slightly. The reasons might include the tariff event in early April, profit - taking in May and June, and the reduction in the scope of investable targets in the convertible bond market [8]. 3.2. Public Funds and Insurance Funds Reduce Positions Marginally, while Brokers Increase Positions in Convertible Bonds - Brokers significantly increased their positions in convertible bonds in February, March, May, and June 2025, while public funds and insurance funds actively reduced their positions when the convertible bond valuation was high. With the convertible bond market hitting a new high and the equity market at a relatively high level, there was a need to be cautious about possible valuation drops [10][12]. - From January to June 2025, the positions of funds, insurance, and social security in convertible bonds decreased, while those of brokers' self - operation and asset management increased. The positions of convertible bond ETFs had net outflows in April and May and recovered significantly after late June [12][13][15]. 3.3. Analysis of Public Fund Holdings - In terms of industry distribution, public funds continued to reduce their positions in bank convertible bonds in Q2 2025 due to the forced redemption of Nanyin Convertible Bond, Hangyin Convertible Bond, Qilu Convertible Bond, and the approaching maturity of Pufa Convertible Bond. Other convertible bonds in the financial sector and those in the public utilities sector received certain increases in positions [19]. - Public funds increased their positions in some high - elasticity varieties such as those in the electronics, computer, communication, pharmaceutical, and food and beverage sectors, which might benefit from the structural market of technology, medicine, and consumption sectors. The positions in convertible bonds of the basic chemical and building materials industries also increased [21]. - In addition to financial bottom - position convertible bonds such as bank convertible bonds, public funds increased their positions in high - prosperity and high - elasticity targets such as Outong Convertible Bond, Wentai Convertible Bond, Shenma Convertible Bond, and Hengbang Convertible Bond [26].