Report Industry Investment Rating No information provided. Core Viewpoints - After the holiday, the convertible bond market declined slightly, but convertible bond ETFs continued to attract incremental funds. Before the Two Sessions, the convertible bond market is expected to feature policy - based games and sector rotations. Performance support will remain the core of valuation, high - price and high - premium convertible bonds may fluctuate significantly, and high - quality large - cap convertible bonds are expected to perform steadily. If investors' risk appetite increases, it is cost - effective to increase holdings in the main technology sectors [3][11]. Summary by Directory Policy Tracking - On February 25, 2026, five departments including the Shanghai Municipal Commission of Housing and Urban - Rural Development issued a notice to optimize real estate policies, including adjusting housing purchase restrictions, optimizing housing provident fund loan policies, and improving personal housing property tax policies, aiming to promote the stable and healthy development of the real estate market [4]. Secondary Market - Last week, major domestic equity market indices rose, with the Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index up 1.98%, 2.80%, and 1.05% respectively. Overseas, the conflict in the Middle East escalated, driving up precious metals and crude oil prices. Domestically, the RMB exchange rate strengthened, and the central bank took measures to prevent exchange - rate overshoot. The equity market showed a structural upward trend, with pro - cyclical sectors stronger [5]. - The convertible bond market indices declined, with average daily trading volume decreasing. However, convertible bond ETFs had a net purchase of 7.2 billion yuan. The large - cap style of the convertible bond market was dominant, and most convertible bonds in various industries fell. In terms of valuation, most industries' convertible bond valuations decreased [7][8][9]. - In the short term, the convertible bond market will follow the equity market with an upward - trending and volatile pattern. High - price and high - premium convertible bonds may fluctuate, and large - cap high - quality convertible bonds are expected to perform steadily. If market activity increases, it is advisable to increase holdings in technology - related convertible bonds [11]. - Most individual convertible bonds fell. Among rising bonds, Youcai Convertible Bond and Shuangliang Convertible Bond rose significantly due to non - early redemption announcements. Among falling bonds, those facing early redemption risk declined deeply [12]. Primary Market - No new convertible bonds were issued last week, and Aiwei Convertible Bond was listed. As of last Friday, the convertible bond market's outstanding scale decreased. Five convertible bonds were approved by the CSRC and seven passed the review of the issuance examination committee, waiting to be issued [31][32]. - In terms of terms tracking, one convertible bond announced a downward revision of the conversion price, four announced early redemption, and several announced non - early redemption or expected to trigger early redemption conditions. Ten convertible bonds had a conversion ratio of over 5% [34][36].