Report Industry Investment Rating No information provided in the report. Core Viewpoints - With market sentiment boosted, convertible bonds are expected to maintain a strong, oscillating upward trend in the short term. However, near the year - end, some funds' profit - taking needs may cause short - term shocks, especially the volatility of high - priced convertible bonds may increase. Against a backdrop of strong risk appetite, it is cost - effective to make bargain - hunting layouts for large - cap convertible bonds in the bottom - position category and hard - tech themed convertible bonds supported by strong performance and high prosperity. In December, the exchange accelerated the review of convertible bond pre - plans, and in a strong market environment, convertible bond subscription will continue to be an important means to increase returns [2]. Summary by Directory Policy Tracking - On December 16, 2025, the Ministry of Commerce announced that from December 17, 2025, for the next 5 years, anti - dumping duties would be imposed on imported relevant pork and pork by - products from the EU [3]. - On December 18, 2025, six departments including the National Development and Reform Commission issued a document to expand the scope of key areas for clean and efficient coal utilization and encourage enterprises to upgrade their projects [4]. Secondary Market - Last week, major equity market indices showed mixed performance. The Shanghai Composite Index rose slightly by 0.03%, while the Shenzhen Component Index and the ChiNext Index fell by 0.89% and 2.26% respectively. Overseas, the US and Japanese markets had different trends, and globally, capital markets and commodities showed a differentiated performance. Domestically, economic data in November indicated continued downward pressure on the economy, with retail sales data underperforming expectations. The equity market initially declined on low trading volume but rebounded after Huijin's purchase of ETFs. Concepts such as commercial space, Hainan Free Trade Zone, and retail led the gains [5]. - Convertible bond market indices all closed up. The CSI Convertible Bond Index, Shanghai Convertible Bond Index, and Shenzhen Convertible Bond Index rose by 0.48%, 0.18%, and 0.86% respectively, with an average daily trading volume of 63.611 billion yuan, an increase of 2.975 billion yuan from the previous period. Convertible bond ETFs had a net redemption of 1.476 billion yuan. Small - cap convertible bonds outperformed, while high - rated and high - priced convertible bonds lagged. In terms of industry, most convertible bonds in various industries rose, with the light manufacturing industry leading the gain, and some industries such as household appliances and electronics underperforming [6][7][8]. - Looking ahead, convertible bonds are expected to continue their upward trend in the short term. However, due to profit - taking needs near the year - end, high - priced convertible bonds may experience greater volatility. Bargain - hunting for large - cap and hard - tech themed convertible bonds is recommended. Convertible bond subscription will also be an important way to increase returns [9]. Primary Market - Last week, Dingjie Convertible Bond was issued, no convertible bonds were listed, and several convertible bonds were redeemed early or expired. As of December 19, the convertible bond market's outstanding scale was 559.626 billion yuan, a decrease of 174.267 billion yuan from the beginning of the year. The issuance scale last week was 828 million yuan [31]. - Twelve convertible bonds had a conversion ratio of over 5%, with some having announced early redemption or approaching redemption conditions. Some convertible bonds triggered more conversions due to negative conversion premiums [32]. - Haitian Co., Ltd., Doctor Optical, and Changgao Electric's convertible bond issuance plans were approved by the exchange; Jinpan Technology and Shangtai Technology's plans were approved by the CSRC. As of last Friday, 5 convertible bonds were approved by the CSRC to be issued, with a total of 5.9 billion yuan, and 10 convertible bonds passed the issuance review committee, with a total of 8.515 billion yuan [34]. - In terms of clause tracking, 2 convertible bonds announced downward revisions of conversion prices, and 3 announced early redemptions. Several other convertible bonds were approaching or expected to trigger relevant conditions [35].