1. Report Industry Investment Rating No information about the industry investment rating is provided in the report. 2. Core Viewpoints of the Report - The convertible bond market continued to rebound today, with an increase in valuation. The convertible bond index and major stock indices all rose, and small - cap growth stocks were relatively dominant. The trading sentiment in the convertible bond market weakened, while the total trading volume of the A - share market increased [2]. - The central price of convertible bonds increased, and the proportion of high - price bonds rose. The valuation of convertible bonds also increased, with different changes in the premium rates of different types of convertible bonds [3]. - Most industries in the underlying stock market rose, and all industries of convertible bonds also rose. Different industries showed different performance in terms of closing price, conversion premium rate, conversion value, and pure bond premium rate [4]. 3. Summary by Relevant Catalogs Market Main Index Performance - The China Securities Convertible Bond Index rose 1.03% compared to the previous day, the Shanghai Composite Index rose 1.30%, the Shenzhen Component Index rose 1.95%, the ChiNext Index rose 2.01%, the Shanghai 50 Index rose 1.01%, and the China Securities 1000 Index rose 1.98%. Small - cap growth stocks were relatively dominant, with small - cap growth rising 2.30% [2][7]. Market Fund Performance - The trading volume of the convertible bond market was 70.319 billion yuan, a 1.59% decrease compared to the previous day. The total trading volume of the Wind All - A Index was 2.192853 trillion yuan, a 4.62% increase compared to the previous day. The net inflow of main funds in the Shanghai and Shenzhen stock markets was 15.032 billion yuan [2][8]. Convertible Bond Valuation - After excluding convertible bonds with a closing price > 150 yuan and a conversion premium rate > 50%, the 100 - yuan par - value fitted conversion premium rate was 36.84%, a 1.91 - percentage - point increase compared to the previous day. The overall weighted par value was 102.35 yuan, a 1.59% increase compared to the previous day. Different types of convertible bonds had different changes in premium rates [3][15]. Industry Performance - Most industries in the underlying stock market rose, with the top three rising industries being communication (+3.71%), non - ferrous metals (+2.97%), and electronics (+2.65%). Only two industries fell, namely coal (-1.29%) and petroleum and petrochemicals (-0.44%). All industries of convertible bonds rose, with the top three rising industries being communication (+3.25%), petroleum and petrochemicals (+2.06%), and machinery and equipment (+1.99%) [4]. - In terms of different industry categories, the closing price, conversion premium rate, conversion value, and pure bond premium rate of large - cycle, manufacturing, technology, large - consumption, and large - finance industries all had different changes [4]. Industry Rotation - Communication, non - ferrous metals, and electronics led the rise. The report provides detailed data on the daily, weekly, monthly, and year - to - date changes in the underlying stocks and convertible bonds of various industries, as well as the valuation quantiles of the underlying stocks [51].

Core Viewpoints - The convertible bond market is still adjusting, but valuations have dropped to their lowest point of the year, with the adjusted conversion premium rate currently at approximately 33.11% [9][10] - The compression in valuations is influenced by multiple factors, including adjustments in institutional expectations for the equity market's continued upward movement, as evidenced by changes in convertible bond ETF shares [9][10] - There is a rising pressure for forced redemptions as the equity market adjusts, leading issuers to show increased willingness to redeem high-priced bonds to avoid future unfavorable conditions [9][10] Market Review - The convertible bond market has experienced a notable adjustment since the Spring Festival, primarily due to the decline in the underlying equity market [9][10] - The current market environment reflects a cautious outlook on the sustainability of high equity prices, prompting issuers to act on redemption opportunities [9][10] Valuation Levels - The adjusted conversion premium rate has reached a year-to-date low, indicating significant valuation compression in the convertible bond market [9][10] - The market is witnessing structural pressures, particularly regarding the willingness of issuers to redeem bonds as market conditions change [9][10] Primary Issuance and Special Terms - Recent developments in issuance plans show various companies progressing through different stages of approval for convertible bond offerings, with issuance limits ranging from 1.39 billion to 35 billion [17] - The upcoming issuance and listing of convertible bonds include several notable companies, indicating ongoing market activity despite current adjustments [19][20] Special Terms - There is an increasing likelihood of forced redemptions for certain convertible bonds, with specific conditions outlined for triggering these actions [21] - The report highlights several bonds that may trigger redemption or adjustment based on current market conditions and issuer strategies [21][23]

1. Report Industry Investment Rating No information provided regarding the report industry investment rating. 2. Core View of the Report The convertible bond market declined this week. It is recommended that investors track market supply, policy rhythm, and geopolitical conflict disturbances, and make comprehensive judgments based on convertible bond terms and underlying stock conditions to select bonds in a refined manner [3]. 3. Summary by Relevant Catalogs Market Conditions - From March 9 to March 13, 2026 (5 trading days), the CSI Convertible Bond Index had a change of -1.10% (last week's change was -2.07%), and the CSI All-Share Index changed by -0.51% (last week's change was -2.28%). Since 2026, the CSI Convertible Bond Index has changed by +3.41%, and the CSI All-Share Index has changed by +5.09% [1]. - By rating, high-rated bonds (AAA), medium-high-rated bonds (AA+), medium-rated bonds (AA), medium-low-rated bonds (AA-), and low-rated bonds (AA- and below) had weekly changes of +0.02%, -0.79%, -1.83%, -2.55%, and -1.97% respectively. High-rated bonds rose, while the rest declined [1]. - By convertible bond scale, large-scale convertible bonds (bond balance > 2 billion yuan), medium-large-scale convertible bonds (balance between 1.5 and 2 billion yuan), medium-scale convertible bonds (balance between 1 and 1.5 billion yuan), small-medium-scale convertible bonds (balance between 0.5 and 1 billion yuan), and small-scale convertible bonds (balance < 0.5 billion yuan) had weekly changes of -0.27%, +0.02%, +0.05%, -2.11%, and -2.75% respectively. Medium-large-scale and medium-scale convertible bonds rose, while the rest declined [2]. - By parity, ultra-high parity bonds (conversion value > 130 yuan), high parity bonds (conversion value between 120 and 130 yuan), medium-high parity bonds (conversion value between 110 and 120 yuan), medium parity bonds (conversion value between 100 and 110 yuan), medium-low parity bonds (conversion value between 90 and 100 yuan), low parity bonds (conversion value between 80 and 90 yuan), and ultra-low parity bonds (conversion value < 80 yuan) had weekly changes of -6.78%, -3.29%, -0.36%, -1.46%, -1.71%, -0.88%, and +0.07% respectively. All except ultra-low parity bonds declined [2]. Current Convertible Bond Valuation Levels As of March 13, 2026, there were 377 outstanding convertible bonds (382 at the end of last week), with a balance of 527.921 billion yuan (532.506 billion yuan at the end of last week). Specifically: - The average convertible bond price was 139.04 yuan (139.31 yuan at the end of last week), with a percentile of 96.49% (from the beginning of 2023 to March 13, 2026, the same below). - The average convertible bond parity was 108.59 yuan (106.74 yuan at the end of last week), with a percentile of 97.79%. - The average convertible bond conversion premium rate was 29.05% (31.15% at the end of last week), with a percentile of 22.76% [3]. Convertible Bond Increase Situation The top 15 convertible bonds in terms of increase this week are as follows: | Serial Number | Convertible Bond Abbreviation | Underlying Stock Abbreviation | Industry | Latest Closing Price (yuan) | Convertible Bond Increase (%) | Underlying Stock Increase (%) | | --- | --- | --- | --- | --- | --- | --- | | 1 | Wankai Convertible Bond | Wankai New Materials | Basic Chemicals | 262.02 | 19.61 | 22.58 | | 2 | Baichuan Convertible Bond 2 | Baichuan Co., Ltd. | Basic Chemicals | 200.58 | 16.16 | 18.06 | | 3 | Hebang Convertible Bond | Hebang Biotechnology | Basic Chemicals | 185.67 | 16.15 | 13.10 | | 4 | Xinfu Convertible Bond | SANGFOR Technologies | Computer | 116.60 | 10.24 | 2.21 | | 5 | Lianrui Convertible Bond | Lianrui New Materials | Basic Chemicals | 228.18 | 10.20 | 21.33 | | 6 | Dazhong Convertible Bond | Dazhong Mining | Steel | 412.99 | 8.68 | 10.30 | | 7 | Tongyu Convertible Bond | Tongyu Heavy Industry | Power Equipment | 153.00 | 7.59 | 28.35 | | 8 | Rong 23 Convertible Bond | Rongsheng Environmental Protection | Light Industry Manufacturing | 143.52 | 7.05 | 7.65 | | 9 | Jinlang Convertible Bond 02 | Jinlang Technology | Power Equipment | 182.17 | 6.53 | 16.03 | | 10 | Zhoubang Convertible Bond | Shenzhen Capchem Technology | Power Equipment | 184.40 | 5.93 | 8.61 | | 11 | Huati Convertible Bond | Huati Technology | Electronics | 124.09 | 5.32 | 9.43 | | 12 | Hengyi Convertible Bond 2 | Hengyi Petrochemical | Petroleum and Petrochemicals | 150.47 | 5.30 | -1.16 | | 13 | Yiwei Convertible Bond | EVE Energy | Power Equipment | 168.80 | 4.99 | 13.13 | | 14 | Shangtai Convertible Bond | Shangtai Technology | Power Equipment | 155.00 | 4.74 | 14.25 | | 15 | Lanfan Convertible Bond | Bluestar Medical | Medical Biology | 113.75 | 4.21 | 14.83 | [19]

1. Report Industry Investment Rating No information about the industry investment rating is provided in the report. 2. Core Viewpoints - The convertible bond market continued to be weak today, with valuations compressing on a month - on - month basis. The trading sentiment in the convertible bond market heated up, but the overall market showed a downward trend [1]. - The central price of convertible bonds decreased, and the proportion of high - price bonds declined. The valuation of convertible bonds compressed, with different types of convertible bonds showing different trends in price and premium rate [2]. - Most of the underlying stock industry indices declined, and the convertible bond market also had more declining industries. Different industries had different performance in terms of closing price, conversion premium rate, conversion value, and pure bond premium rate [3]. 3. Summary by Relevant Catalogs Market Main Index Performance - The CSI Convertible Bond Index decreased by 1.04% month - on - month, the Shanghai Composite Index decreased by 0.82%, the Shenzhen Component Index decreased by 0.65%, the ChiNext Index decreased by 0.22%, the SSE 50 Index decreased by 0.50%, and the CSI 1000 Index decreased by 1.46%. The large - cap growth style was relatively dominant, with large - cap growth decreasing by 0.06%, large - cap value decreasing by 0.16%, mid - cap growth decreasing by 1.06%, mid - cap value decreasing by 1.28%, small - cap growth decreasing by 0.87%, and small - cap value decreasing by 0.66% [1][7]. Market Fund Performance - The trading volume of the convertible bond market was 71.943 billion yuan, a month - on - month increase of 14.73%. The total trading volume of the Wind All - A Index was 2.417276 trillion yuan, a month - on - month decrease of 1.76%. The net outflow of the main funds in the Shanghai and Shenzhen stock markets was 4.0095 billion yuan, and the yield of the 10 - year Treasury bond increased by 0.91bp to 1.81% [1]. Convertible Bond Price and Valuation - The weighted average closing price of convertible bonds was 139.51 yuan, a month - on - month decrease of 0.88%. Among them, the closing price of equity - biased convertible bonds was 199.31 yuan, a month - on - month increase of 2.06%; the closing price of debt - biased convertible bonds was 121.96 yuan, a month - on - month decrease of 0.35%; the closing price of balanced convertible bonds was 132.14 yuan, a month - on - month decrease of 0.81%. The proportion of high - price bonds above 130 yuan was 73.41%, a month - on - month decrease of 2.22pct. The price median was 137.91 yuan, a month - on - month decrease of 0.93% [2]. - The fitted conversion premium rate of 100 - yuan par value was 37.90%, a month - on - month decrease of 1.58pct; the overall weighted par value was 106.98 yuan, a month - on - month decrease of 0.51%. The premium rate of equity - biased convertible bonds was 14.43%, a month - on - month increase of 1.01pct; the premium rate of debt - biased convertible bonds was 89.32%, a month - on - month increase of 1.39pct; the premium rate of balanced convertible bonds was 25.22%, a month - on - month decrease of 0.97pct [2]. Industry Performance - In the A - share market, the top three industries with the largest declines were non - ferrous metals (-2.70%), computer (-2.70%), and national defense and military industry (-2.69%); the top three industries with the largest increases were food and beverage (+0.87%), building decoration (+0.60%), and banking (+0.38%). In the convertible bond market, 26 industries declined, with the top three industries with the largest declines being communication (-7.15%), national defense and military industry (-3.67%), and machinery and equipment (-2.75%); only two industries rose against the trend, namely petroleum and petrochemicals (+0.73%) and banking (+0.21%) [3]. - In terms of closing price, the large - cycle decreased by 0.84%, manufacturing decreased by 2.08%, technology decreased by 3.37%, large - consumption decreased by 1.00%, and large - finance decreased by 0.16%. In terms of conversion premium rate, the large - cycle decreased by 0.45pct, manufacturing decreased by 0.85pct, technology increased by 0.27pct, large - consumption decreased by 1.5pct, and large - finance decreased by 0.26pct. In terms of conversion value, the large - cycle decreased by 0.27%, manufacturing decreased by 1.22%, technology decreased by 3.40%, large - consumption decreased by 0.67%, and large - finance decreased by 0.12%. In terms of pure bond premium rate, the large - cycle decreased by 1.3pct, manufacturing decreased by 3.4pct, technology decreased by 5.4pct, large - consumption decreased by 1.3pct, and large - finance decreased by 0.2pct [3][4]. Industry Rotation - Food and beverage, building decoration, and banking led the rise. The daily increase rates of food and beverage, building decoration, and banking in the underlying stocks were 0.87%, 0.60%, and 0.38% respectively; the daily increase rates in the convertible bond market were - 0.30%, - 1.09%, and 0.21% respectively [53].

1. Report Industry Investment Rating No information about the industry investment rating is provided in the report. 2. Core Viewpoints - On March 11, 2026, half of the convertible bonds in the market rose, and the valuation increased compared to the previous day. The trading sentiment in the convertible bond market heated up, with the trading volume of the convertible bond market reaching 64.842 billion yuan, a 0.75% increase from the previous day. The total trading volume of the Wind All - A Index was 252.8294 billion yuan, a 4.61% increase from the previous day [2]. - The convertible bond price center increased, and the proportion of high - price bonds rose. The overall weighted average closing price of convertible bonds was 142.13 yuan, a 0.28% increase from the previous day. The proportion of bonds with a closing price above 130 yuan was 78.18%, a 1.1 - percentage - point increase from the previous day [3]. - The convertible bond valuation increased. The fitted conversion premium rate of the 100 - yuan par value was 40.84%, a 0.99 - percentage - point increase from the previous day [3]. - In the A - share market, more than half of the underlying stock industry indices rose, with 17 industries rising. In the convertible bond market, 15 industries rose [4]. 3. Summary by Directory Market Main Index Performance - The CSI Convertible Bond Index rose 0.34% compared to the previous day, the Shanghai Composite Index rose 0.25%, the Shenzhen Component Index rose 0.78%, the ChiNext Index rose 1.31%, the SSE 50 Index rose 0.12%, and the CSI 1000 Index rose 0.16% [2]. - In terms of market style, mid - cap value stocks were relatively dominant. Large - cap growth stocks rose 1.13%, large - cap value stocks rose 0.93%, mid - cap growth stocks rose 0.05%, mid - cap value stocks rose 1.59%, small - cap growth stocks fell 0.08%, and small - cap value stocks rose 1.20% [2]. Market Fund Performance - The trading volume of the convertible bond market was 64.842 billion yuan, a 0.75% increase from the previous day; the total trading volume of the Wind All - A Index was 252.8294 billion yuan, a 4.61% increase from the previous day. The net outflow of the main funds in the Shanghai and Shenzhen stock markets was 19.257 billion yuan, and the 10 - year Treasury bond yield rose 0.20bp to 1.81% [2]. Convertible Bond Valuation - After excluding convertible bonds with a closing price > 150 yuan and a conversion premium rate > 50%, the 100 - yuan par value fitted conversion premium rate was 40.84%, a 0.99 - percentage - point increase from the previous day; the overall weighted average par value was 107.27 yuan, a 0.97% increase from the previous day [3][16]. - The conversion premium rates of all types of convertible bonds classified by stock - bond nature decreased. The conversion premium rate of balanced convertible bonds decreased by 0.62 percentage points [28]. Industry Performance - In the A - share market, the top three rising industries were coal (+2.53%), power equipment (+2.43%), and basic chemicals (+2.08%); the top three falling industries were national defense and military industry (-1.37%), media (-1.17%), and electronics (-0.78%) [4]. - In the convertible bond market, the top three rising industries were petroleum and petrochemicals (+3.04%), coal (+1.81%), and steel (+0.74%); the top three falling industries were non - ferrous metals (-2.87%), national defense and military industry (-1.83%), and electronics (-1.24%) [4]. - In terms of different sectors: the closing price of the large - cycle sector increased by 0.13%, the manufacturing sector decreased by 0.38%, the technology sector decreased by 0.96%, the consumer sector decreased by 0.14%, and the large - finance sector decreased by 0.38%. The conversion premium rate of the large - cycle sector decreased by 0.9 percentage points, the manufacturing sector decreased by 0.64 percentage points, the technology sector increased by 0.92 percentage points, the consumer sector decreased by 0.51 percentage points, and the large - finance sector decreased by 0.37 percentage points. The conversion value of the large - cycle sector increased by 1.04%, the manufacturing sector decreased by 0.05%, the technology sector decreased by 1.73%, the consumer sector decreased by 0.39%, and the large - finance sector increased by 0.70%. The pure bond premium rate of the large - cycle sector increased by 0.21 percentage points, the manufacturing sector decreased by 0.62 percentage points, the technology sector decreased by 1.7 percentage points, the consumer sector decreased by 0.19 percentage points, and the large - finance sector decreased by 0.45 percentage points [4][5]. Industry Rotation - The coal, power equipment, and basic chemical industries led the rise. The coal industry had a daily increase of 2.53% in the underlying stocks and 1.81% in convertible bonds. The power equipment industry had a daily increase of 2.43% in the underlying stocks and 0.22% in convertible bonds. The basic chemical industry had a daily increase of 2.08% in the underlying stocks and 0.12% in convertible bonds [52].

1. Report Industry Investment Rating No information about the industry investment rating is provided in the report. 2. Core Viewpoints - The convertible bond market showed a majority of industry corrections, with compressed valuations on March 4, 2026. The convertible bond trading sentiment heated up, while the overall A - share market had a large - scale decline [1]. - The convertible bond price center decreased, the proportion of high - price bonds decreased, and the convertible bond valuation increased [2]. - Most of the underlying stock industries declined, with different performance in the convertible bond and A - share markets [3]. 3. Summary by Directory Market Main Index Performance - The CSI Convertible Bond Index decreased by 0.23% compared to the previous day, the Shanghai Composite Index decreased by 0.98%, the Shenzhen Component Index decreased by 0.75%, the ChiNext Index decreased by 1.41%, the SSE 50 Index decreased by 1.33%, and the CSI 1000 Index decreased by 0.59% [1]. - In terms of market style, mid - cap value was relatively dominant. Large - cap growth decreased by 1.34%, large - cap value decreased by 1.17%, mid - cap growth decreased by 0.51%, mid - cap value decreased by 0.40%, small - cap growth decreased by 0.73%, and small - cap value decreased by 1.57% [1]. Market Fund Performance - The trading volume of the convertible bond market was 77.829 billion yuan, a 2.49% increase compared to the previous day; the total trading volume of the Wind All - A Index was 2.387942 trillion yuan, a 24.37% decrease compared to the previous day; the net outflow of the main funds in the Shanghai and Shenzhen stock markets was 49.96 billion yuan, and the yield of the 10 - year Treasury bond decreased by 0.39bp to 1.78% [1]. Convertible Bond Price and Valuation - The weighted average closing price of convertible bonds was 140.88 yuan, a 0.20% decrease compared to the previous day. The closing price of equity - biased convertible bonds was 222.97 yuan, a 0.30% increase; the closing price of debt - biased convertible bonds was 121.57 yuan, a 0.07% decrease; the closing price of balanced convertible bonds was 133.82 yuan, a 0.09% increase [2]. - The proportion of high - price bonds above 130 yuan was 73.15%, a 1.99 - percentage - point decrease compared to the previous day; the proportion of the 120 - 130 yuan interval increased by 1.69 percentage points to 18.90%. There were 0 bonds with a closing price below 100 yuan. The median price was 138.41 yuan, a 0.23% decrease compared to the previous day [2]. - The fitted conversion premium rate of 100 - yuan par value was 38.16%, a 0.04 - percentage - point increase compared to the previous day; the overall weighted par value was 104.99 yuan, a 0.84% decrease compared to the previous day. The premium rate of equity - biased convertible bonds was 20.59%, a 0.12 - percentage - point decrease; the premium rate of debt - biased convertible bonds was 85.76%, a 0.03 - percentage - point increase; the premium rate of balanced convertible bonds was 28.26%, a 1.15 - percentage - point increase [2]. Industry Performance - In the A - share market, the top three industries with the largest declines were transportation (- 2.90%), petroleum and petrochemicals (- 2.53%), and non - bank finance (- 2.16%); the top three industries with the largest increases were national defense and military industry (+ 1.33%), agriculture, forestry, animal husbandry and fishery (+ 1.29%), and power equipment (+ 0.32%) [3]. - In the convertible bond market, 19 industries declined. The top three industries with the largest declines were communication (- 12.29%), petroleum and petrochemicals (- 2.20%), and non - ferrous metals (- 1.85%); the top three industries with the largest increases were national defense and military industry (+ 2.75%), automobile (+ 0.58%), and coal (+ 0.38%) [3]. - In terms of closing price, the large - cycle decreased by 0.52%, manufacturing increased by 0.03%, technology decreased by 2.61%, large - consumption decreased by 0.42%, and large - finance decreased by 0.60% [3]. - In terms of conversion premium rate, the large - cycle increased by 1.3 percentage points, manufacturing increased by 1.1 percentage points, technology increased by 3.5 percentage points, large - consumption increased by 1.2 percentage points, and large - finance increased by 0.78 percentage points [3]. - In terms of conversion value, the large - cycle decreased by 1.26%, manufacturing decreased by 0.36%, technology decreased by 3.96%, large - consumption decreased by 0.51%, and large - finance decreased by 1.55% [3]. - In terms of pure - bond premium rate, the large - cycle decreased by 0.78 percentage points, manufacturing decreased by 0.051 percentage points, technology decreased by 3.4 percentage points, large - consumption decreased by 0.55 percentage points, and large - finance decreased by 0.69 percentage points [4]. Industry Rotation - The national defense and military industry, agriculture, forestry, animal husbandry and fishery, and power equipment led the rise. The national defense and military industry had a daily increase of 1.33% in the underlying stock market and 2.75% in the convertible bond market; agriculture, forestry, animal husbandry and fishery had a daily increase of 1.29% in the underlying stock market and a - 0.13% decrease in the convertible bond market; power equipment had a daily increase of 0.32% in the underlying stock market and a - 0.07% decrease in the convertible bond market [56].

Report Industry Investment Rating No information provided in the report. Core Viewpoint The convertible bond market experienced an incremental correction today, with compressed valuations. The market style favored large-cap value stocks, and trading sentiment in the convertible bond market heated up. The prices and valuations of convertible bonds showed certain changes, and most industries in the stock and convertible bond markets declined [1]. Summary by Directory 1. Market Main Index Performance - The CSI Convertible Bond Index decreased by 1.81% compared to the previous day, the Shanghai Composite Index decreased by 1.43%, the Shenzhen Component Index decreased by 3.07%, the ChiNext Index decreased by 2.57%, the SSE 50 Index decreased by 1.06%, and the CSI 1000 Index decreased by 3.95% [1]. - In terms of market style, large-cap value stocks were relatively dominant. Large-cap growth decreased by 1.73%, large-cap value increased by 0.89%, mid-cap growth decreased by 3.38%, mid-cap value decreased by 2.33%, small-cap growth decreased by 4.30%, and small-cap value decreased by 2.50% [1]. 2. Market Fund Performance - The trading volume of the convertible bond market reached 75.94 billion yuan, a 14.19% increase compared to the previous day. The total trading volume of the Wind All A Index was 3.157558 trillion yuan, a 3.67% increase compared to the previous day. The net outflow of main funds from the Shanghai and Shenzhen stock markets was 130.445 billion yuan, and the yield of the 10-year Treasury bond increased by 0.46bp to 1.78% [1]. 3. Convertible Bond Price and Valuation - Convertible bond prices: The weighted average closing price of convertible bonds was 141.20 yuan, a 1.64% decrease compared to the previous day. Among them, the closing price of equity-biased convertible bonds was 220.86 yuan, a 0.30% increase; the closing price of bond-biased convertible bonds was 121.65 yuan, a 0.24% decrease; the closing price of balanced convertible bonds was 133.66 yuan, a 0.62% decrease. The proportion of high-priced bonds above 130 yuan was 75.20%, a 2.84 percentage point decrease compared to the previous day. The price median was 138.77 yuan, a 1.46% decrease compared to the previous day [2]. - Convertible bond valuation: The fitted conversion premium rate of 100-yuan par value was 38.12%, a 2.17 percentage point decrease compared to the previous day. The overall weighted par value was 106.02 yuan, a 2.07% decrease compared to the previous day. The premium rate of equity-biased convertible bonds was 20.36%, a 0.67 percentage point increase; the premium rate of bond-biased convertible bonds was 85.73%, a 1.29 percentage point increase; the premium rate of balanced convertible bonds was 27.07%, a 0.77 percentage point decrease [2]. 4. Industry Performance - In the A-share market, the top three industries with the largest declines were national defense and military industry (-6.74%), non-ferrous metals (-5.61%), and electronics (-5.30%); the top three industries with the largest increases were petroleum and petrochemicals (+6.75%), coal (+1.76%), and transportation (+1.14%). - In the convertible bond market, 27 industries declined. The top three industries with the largest declines were communications (-5.51%), electronics (-4.26%), and non-ferrous metals (-3.89%); the only industry that rose against the trend was banking (+0.07%) [3]. - Closing price: The large cycle decreased by 2.21%, manufacturing decreased by 3.08%, technology decreased by 3.40%, large consumption decreased by 1.45%, and large finance decreased by 0.51% [3]. - Conversion premium rate: The large cycle increased by 0.8 percentage points, manufacturing increased by 1.7 percentage points, technology increased by 3.0 percentage points, large consumption increased by 2.5 percentage points, and large finance increased by 2.1 percentage points [3]. - Conversion value: The large cycle decreased by 2.70%, manufacturing decreased by 4.16%, technology decreased by 5.31%, large consumption decreased by 2.25%, and large finance decreased by 0.17% [3]. - Pure bond premium rate: The large cycle decreased by 3.4 percentage points, manufacturing decreased by 5.2 percentage points, technology decreased by 6.1 percentage points, large consumption decreased by 1.9 percentage points, and large finance decreased by 0.59 percentage points [3]. 5. Industry Rotation - Industries leading the rise included petroleum and petrochemicals, coal, and transportation. The daily increase rates of petroleum and petrochemicals, coal, and transportation were 6.75%, 1.76%, and 1.14% respectively. In the convertible bond market, the daily increase rate of the banking industry was 0.07%, and it was the only industry that rose [52].

1. Report Industry Investment Rating - Not provided in the report 2. Core Views of the Report - On March 2, the convertible bond market saw a correction, with the convertible bond index declining, while the valuation increased. The trading sentiment in the convertible bond market weakened, and the median price and weighted average price of convertible bonds decreased. In the A - share market, more than half of the industries' stock price indices declined, and there were differences in performance among different market - style sectors, with mid - cap value relatively dominant [2][3]. 3. Summary by Directory Market Main Index Performance - The CSI Convertible Bond Index decreased by 0.17% compared to the previous day, the Shanghai Composite Index increased by 0.47%, the Shenzhen Component Index decreased by 0.20%, the ChiNext Index decreased by 0.49%, the SSE 50 Index increased by 0.23%, and the CSI 1000 Index decreased by 0.98%. Among different market - style sectors, mid - cap value was relatively dominant, with mid - cap value rising by 1.96% [2][8]. Market Fund Performance - The trading volume of the convertible bond market was 66.503 billion yuan, a decrease of 0.43% compared to the previous day. The total trading volume of the Wind All - A Index was 3.045765 trillion yuan, an increase of 21.56% compared to the previous day. The net outflow of the main funds in the Shanghai and Shenzhen stock markets was 68.483 billion yuan, and the yield of the 10 - year Treasury bond increased by 0.08bp to 1.78% [2]. Convertible Bond Valuation - The weighted average closing price of convertible bonds was 143.55 yuan, a decrease of 0.17% compared to the previous day. The proportion of high - price bonds above 130 yuan decreased by 0.87pct. The median price was 140.82 yuan, a decrease of 0.18% compared to the previous day. The 100 - yuan par - value fitted conversion premium rate was 40.29%, an increase of 1.17pct compared to the previous day [3]. Industry Performance - In the A - share market, the top three industries with the largest declines were media (-3.98%), computer (-2.88%), and social services (-2.68%); the top three industries with the largest increases were petroleum and petrochemicals (+7.95%), coal (+3.77%), and non - ferrous metals (+3.17%). In the convertible bond market, 18 industries declined, with the top three industries with the largest declines being media (-3.20%), communication (-1.95%), and computer (-1.85%); the top three industries with the largest increases were national defense and military industry (+4.57%), household appliances (+3.20%), and public utilities (+1.61%) [4]. Industry Rotation - Petroleum and petrochemicals, coal, and non - ferrous metals led the rise. For example, the daily increase of the petroleum and petrochemicals industry was 7.95%, and the daily increase of its convertible bonds was 1.46%. Different industries showed different performance in terms of daily, weekly, monthly, and year - to - date increases, as well as valuation quantiles [57].

Core Viewpoint - The article discusses the impact of the escalating tensions in the Middle East on the A-share market and convertible bonds, suggesting that while short-term fluctuations may occur, the long-term outlook remains positive [4][6]. Group 1: Market Impact - The recent tensions in the Middle East have led to significant uncertainty in global financial markets, with specific events such as Israel's military actions against Iran and the U.S. military operations being highlighted [4]. - Historical context is provided, noting that past events, such as the U.S. tariff increases in April 2025, resulted in a sharp decline in the market, but subsequent government support led to a recovery [4]. - The convertible bond market is expected to experience similar patterns, with the negative impact from external pressures being less severe than previous instances [4]. Group 2: Sector Analysis - Different sectors are affected variably by the Middle East situation, with potential investment opportunities identified in military, shipping, oil and gas, coal chemical, gold, and strategic metals sectors [5]. - Some industries may benefit indirectly, such as copper and aluminum, due to the potential rise in gold prices [5]. - The number of convertible bonds in the aforementioned sectors is limited, with a concentration in military and shipping industries, and the current valuations of these bonds are considered relatively high compared to their underlying stocks [5]. Group 3: Investment Strategy - Given the unpredictability of the geopolitical situation, a passive strategy of buying on dips is recommended over attempting to predict market movements [5]. - The article emphasizes that the current valuations of convertible bonds are high relative to their underlying stocks, suggesting that investors should maintain moderate positions and adjust their holdings for better returns [6]. - A long-term view indicates that convertible bond valuations are likely to revert to historical averages, and investors should be flexible in their decision-making [6].

Report Industry Investment Rating No information provided in the text Core Viewpoints - The divergence in the convertible bond market has intensified, and it is expected that the Sharpe ratio of assets will decline. The main sectors will "separate the wheat from the chaff", and attention should be paid to the sub - directions that have lagged behind in the early stage and have performance support [3][18] Summary by Relevant Catalogs Market Focus (2026/2/24 - 2026/2/27) Stock Market - After the Spring Festival, the market showed a warming trend, with major indices oscillating upwards and trading volume steadily increasing to about 2.5 trillion yuan. The market sentiment was generally positive. Upstream resource products became the main line of the market, with sectors such as non - ferrous metals, oil and gas, chemicals, and coal taking turns to perform, while the media sector adjusted significantly due to the adjustment of the film and entertainment and AI application sectors [1][8] - By industry, most Shenwan primary industries rose last week. Steel (12.27%), non - ferrous metals (9.77%), basic chemicals (7.15%), environmental protection (6.96%), and coal (5.92%) led the gains; media (-5.10%), commercial retail (-1.64%), food and beverage (-1.54%), and non - bank finance (-1.18%) performed poorly [9] Bond Market - At the beginning of the week, the bond market adjusted continuously under the suppression of factors such as the unexpected implementation of the Shanghai real - estate new policy and the strong linkage between stocks and commodities. On Friday, the capital market loosened, and the tone of the Politburo meeting was stable. Market sentiment gradually stabilized, and the yields of various maturities declined slightly. The whole week showed a pattern of gradually stabilizing during the adjustment. The 10 - year Treasury bond rate closed at 1.7877% on Friday, down 0.51bp from the last trading day before the Spring Festival [1][9] Convertible Bond Market - Last week, most convertible bond issues fell. The CSI Convertible Bond Index fell 0.23% for the whole week, the median price rose 1.22%, the calculated arithmetic average parity rose 3.46% for the whole week, and the market conversion premium rate decreased by 4.65% compared with the previous week. In terms of individual bonds, Youcai (polyester staple fiber), Shuangliang (space photovoltaic), Guanglian (commercial aerospace), Dazhong (lithium mine), and Guanzhong (environmental protection) convertible bonds led the gains; Huicheng (advanced packaging), Weidao (semiconductor equipment), Ruichuang (military industry), Xinfu (software), and Hengshuai (automotive motor) convertible bonds led the losses [2][9][13] - Most industries in the convertible bond market fell last week. Steel (4.73%), non - ferrous metals (1.99%), public utilities (1.90%), and building decoration (1.87%) performed well, while media (-4.45%), social services (-2.47%), commercial retail (-2.33%), and non - bank finance (-2.23%) performed poorly [12] - The total trading volume of the convertible bond market last week was 27.2551 billion yuan, with an average daily trading volume of 681.38 million yuan, a slight decrease from the previous week [15] Views and Strategies (2026/3/2 - 2026/3/6) Stock Market - After the new year, the introduction of structural monetary policies and the relaxation of real - estate control in Shanghai are better than the previous stable and moderate policy expectations, which is beneficial for maintaining a relatively high risk preference in the equity market. From the perspective of past seasonal effects, the winning rate of small - cap stocks is extremely high between the Spring Festival and the Two Sessions, and after the Two Sessions, the correlation between the stock market trend and performance gradually increases. During the spring rally, the price - increase chain in the technology + resource product sectors has obvious excess returns. As the economic data for January - February are gradually released, it is expected that March - April will be an important window for the market to further verify price increases and performance. The main sectors will face "separating the wheat from the chaff", and sectors that have lagged behind in the early stage and have current performance are more advantageous [3][18] Convertible Bond Market - After the Spring Festival, the divergence in the convertible bond market has increased. On the 25th and 26th, the premium rates of high - price and high - premium targets were significantly compressed. Some investors are worried that the spring market will gradually come to an end in terms of duration. According to the previous judgment (the sustainability of the polarized valuation of convertible bonds depends on the stock market expectations), it is expected that the volatility of convertible bonds in March (especially the volatility of the premium rate) will further increase. It should be recognized that there are obvious differences between selecting convertible bonds and selecting underlying stocks at this stage. Most of the core targets related to the main equity lines are expected to have a poor Sharpe ratio for convertible bonds at a conversion premium rate of over 30%, and they are not the best choice for the current portfolio allocation. Bond selection needs to sort out the upward logic one by one and screen by considering both the price and premium rate of the available convertible bond targets [3][18] - In the context of power shortages in North America, most convertible bonds related to main lines such as high - volume orders for gas turbines, price increases in the upstream and downstream of the electronic industry chain such as power semiconductors/silicon wafers/carrier tapes, and the increasing prosperity of liquid cooling are all high - price and high - premium, and many targets are close to triggering redemption. At present, when the divergence in the convertible bond market has emerged, the volatility of convertible bonds may be greater than that of the underlying stocks in the short term, and the odds are limited. Some targets are about to enter the conversion period. If the major shareholders reduce their holdings and the market corrects, and the convertible bond valuation is significantly compressed, then additional allocation can be considered [18] - For the AI main line, consider allocating to the divergent fields that have relatively lagged behind in the early stage and have performance support, such as computing power leasing, energy storage, embodied intelligence, and autonomous driving [18] - Against the background of the global increase in strategic reserves of resource products and the downward trend of the US dollar, pay attention to the polyester industry chain, engineering machinery, resource products and mining services. In addition, pay attention to the innovative drug industry chain, two - wheeled vehicles, and the post - cycle of the real - estate chain [18] - If the equity market turns down, funds will replenish the defensive sectors that have fallen significantly in the early stage. Referring to past experience, at the beginning of the equity market decline, the parity and valuation of the entire convertible bond market will fall together. Then, the low - price bottom - position varieties with high ratings will stabilize first. It is recommended to reduce positions as a response. After that, pay attention to the defensive sectors such as banks and power that have adjusted more in the early stage [18] Valuation Overview - As of last Friday (2026/02/27), 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 54.87%, 46.47%, 35.03%, 26.27%, 23.02%, and 15.61% respectively, which were at the 99%/99%, 98%/99%, 99%/99%, 98%/98%, 98%/100%, and 98%/97% percentile values since 2010/2021 [19] - For bond - biased convertible bonds, the average YTM of convertible bonds with parities below 70 yuan was -5.14%, which was at the 1%/3% percentile values since 2010/2021 [19] - The average implied volatility of all convertible bonds was 49.88%, which was at the 95%/98% percentile values since 2010/2021. The difference between the implied volatility of convertible bonds and the long - term actual volatility of the underlying stocks was 8.63%, which was at the 96%/98% percentile values since 2010/2021 [19] Primary Market Tracking - Last week (2026/2/24 - 2026/2/27), Xianghe and Tonglian convertible bonds announced their issuance, and Aiwei convertible bonds were listed [26] - As of the announcements on February 27, there are no convertible bonds announced for issuance and listing next week (2026/3/2 - 2026/3/6). Last week, the exchanges accepted applications from 2 companies (Zuoli Pharmaceutical and Zhenyu Technology), and the general meetings of shareholders passed the applications of 3 companies (Shenghui Integration, Aopute, and Shenling Environment). There are no new companies approved for registration by the exchanges, passed by the listing committees, or with board proposals. As of now, there are a total of 102 convertible bonds to be issued, with a total scale of 166.28 billion yuan, including 5 that have been approved for registration with a total scale of 4.39 billion yuan and 7 that have passed the listing committee with a total scale of 6.97 billion yuan [29]