Summary of Convertible Bond Market Analysis Industry Overview - The analysis focuses on the convertible bond market and its dynamics in relation to fixed income and equity markets, particularly during periods of market volatility and economic fluctuations [1][3][5]. Key Points and Arguments 1. **Market Dynamics**: The relationship between fixed income funds and convertible bonds is characterized by a seesaw effect, where strong performance in pure bonds leads to reduced enthusiasm for convertible bonds [1][3]. 2. **Investment Strategies**: In 2025, many fixed income funds achieved returns of approximately 2% to 3% through strategies involving conversion or equity enhancement, particularly in a challenging pure bond environment [1][5]. 3. **Credit Ratings and YTM**: The rise in stock prices in 2025 has led to a significant increase in the conversion evaluation center, making YTM data less comparable to government or credit loans, thus reducing the strategy of using pure conversion as a credit loan alternative [1][6]. 4. **Market Volatility**: The convertible bond market has experienced several rounds of volatility since 2018, influenced by events such as the US-China trade war and the COVID-19 pandemic, with varying impacts on valuation [1][7][9]. 5. **Credit Risk Concerns**: In 2024, concerns over credit risk and defaults, particularly with the first default from Lingnan State-owned Enterprises, led to skepticism about the reliability of convertible bonds, resulting in significant price fluctuations [1][11]. 6. **Market Recovery**: After September 24, 2024, the convertible bond market began to recover, with premium rates gradually normalizing as market risk and liquidity risk became more pronounced [1][14]. 7. **Investor Behavior**: Different types of institutional investors have varying approaches to convertible bonds, with low-risk investors favoring stable bonds and high-risk investors seeking high returns from equity-like convertible bonds [1][18]. 8. **ETF Performance**: Convertible ETFs, such as the Bosera Convertible ETF, have shown strong performance, driven by demand from banks and insurance funds seeking exposure to equity markets [1][19]. 9. **Current Valuation**: As of now, the median price of convertible bonds has surpassed 130 yuan, with premium rates remaining in the 20-30% range, indicating a reasonable valuation despite being perceived as expensive [1][20]. 10. **Active Management Necessity**: Active management of convertible bond positions is crucial for fixed income funds to control drawdowns, given the inherent volatility of convertible securities compared to pure equities [1][21]. Additional Important Insights - The convertible bond market's performance is closely tied to macroeconomic conditions and investor sentiment, with historical experiences shaping current strategies and expectations [1][9][10]. - The impact of credit rating adjustments on the market is significant, particularly during the annual review periods, which can lead to substantial changes in the composition of convertible bond portfolios [1][16].

Investment Insights - The market sentiment remains strong with margin trading exceeding 2 trillion, indicating a potential overheating risk [1][4] - The cyclical sector is gaining strength driven by expectations from projects like the Xinjiang-Tibet Railway, while the rotation between growth and cyclical stocks continues [1][4] Equity Market Overview - Small-cap growth stocks significantly outperformed last week, while the volatility of both large and small-cap styles increased [6] - The dispersion of excess returns among industry indices is at a near one-year low, indicating a slowdown in industry rotation [6] - The trading concentration has increased, with the top 100 stocks and top 5 industries seeing a rise in transaction value share [6] Commodity Market Analysis - Precious metals and agricultural products showed increased trend strength, while other sectors remained stable or declined [15][16] - The volatility in black and energy chemical sectors remained stable, with a slight decrease in the volatility of non-ferrous metals [15][16] Options Market Insights - Implied volatility for the Shanghai Stock Exchange 50 and CSI 1000 indices continues to decline, reflecting a market that is both strong and cautious [24] Convertible Bond Market Trends - The premium rate for convertible bonds is approaching a one-year high, while the proportion of bonds with low conversion premiums is increasing, indicating structural growth characteristics [26]

1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report In Q2 2025, the convertible bond market generally followed the trend of the equity market, with the convertible bond index rising. However, the scale of convertible bonds held by funds decreased, and the convertible bonds of the banking industry were significantly reduced. Different types of funds showed different trends in holding convertible bonds, and the performance of convertible bond funds was stronger than that of the Wind All - A Index and the CSI Convertible Bond Index [2][3][4]. 3. Summary According to the Directory 3.1 2025 Q2 Market Review - Most major market indices rose, except for the Shenzhen Component Index. The Shanghai Composite Index rose 2.8%, the Shenzhen Component Index fell 1.3%, the ChiNext Index rose 1.2%, the Wind All - A Index rose 3.0%, and the CSI Convertible Bond Index rose 3.3%. The convertible bond market generally followed the trend of the equity market, and the conversion premium rate decreased from 46.58% on April 1 to 44.09% on June 30 [2][14]. 3.2 Fund Holding Convertible Bond Behavior Analysis 3.2.1 Fund Holding Convertible Bond Total Scale Change - As of the end of Q2 2025, the balance of the convertible bond market was 660.618 billion yuan, a decrease of 40.389 billion yuan from the end of the previous quarter. The scale of convertible bonds held by funds was 272.825 billion yuan, a decrease of 9.457 billion yuan from the end of the previous quarter, a year - on - year decrease of 1.21% and a quarter - on - quarter decrease of 3.35%. The proportion of the market value of convertible bonds held by funds to the balance of the convertible bond market was 41.30%, an increase of 1.03 percentage points compared with Q1 2025 [16][17]. 3.2.2 Various Types of Funds Holding Convertible Bond Scale Change - In Q2 2025, the secondary hybrid bond funds held the largest scale of convertible bonds, with a market value of 8.5867 billion yuan, followed by the primary hybrid bond funds with a market value of 7.2656 billion yuan. The secondary hybrid bond funds reduced their holdings of convertible bonds by 8.14 billion yuan, while the primary hybrid bond funds increased their holdings by 6.05 billion yuan [23][29]. 3.2.3 Fund Positioning Behavior Analysis - **Industry Distribution**: The convertible bonds of the banking sector were still the main allocation direction of funds. In Q2 2025, the top five industries with the largest scale of convertible bonds held by funds were banking, power equipment, basic chemicals, electronics, and non - ferrous metals. The convertible bonds of the banking industry were significantly reduced by over 14 billion yuan, while those of basic chemicals, non - banking finance, electronics, automotive, and pharmaceutical biology industries were increased by over 500 million yuan [37][40]. - **Individual Bond Distribution**: At the end of Q2 2025, among the top 5 convertible bonds held by funds, 4 were bank - related convertible bonds. The Bank of Shanghai Convertible Bond was the individual bond with the largest increase in holdings, followed by the Hebang Convertible Bond [45][47]. - **Rating Situation**: Among the convertible bonds held by funds, the proportion of AA - rated convertible bonds was relatively high, with 143 bonds, accounting for 30.82% [53]. 3.3 Convertible Bond Fund Holding Convertible Bond Behavior Analysis 3.3.1 Convertible Bond Fund Scale Change - As of the end of Q2 2025, there were 38 convertible bond funds in existence, holding a scale of 40.229 billion yuan, a decrease of 2.201 billion yuan from the previous quarter [56]. 3.3.2 Convertible Bond Fund Positioning Behavior Analysis - **Industry Distribution**: Convertible bond funds held the largest market value of bank - related convertible bonds, with a scale of 6.917 billion yuan. The convertible bonds of the non - banking finance industry were increased by 413 million yuan, while those of the banking industry were reduced by 1.583 billion yuan [57][59]. - **Performance**: In Q2 2025, the average return rate of convertible bond funds was 3.50%, the median return rate was 3.43%, and the average return rate of the top 10 convertible bond funds was 4.98%. The performance of convertible bond funds was stronger than that of the Wind All - A Index and the CSI Convertible Bond Index [63].

1. Report Industry Investment Rating No information provided in the given content. 2. Core View of the Report - The convertible bond market had more than half of the industries declining, and the valuation was compressed on July 23, 2025. The trading sentiment in the convertible bond market heated up, with the turnover increasing by 6.46% compared to the previous day. The 10 - year Treasury yield rose by 1.34bp to 1.70%. The central price of convertible bonds decreased, and the proportion of high - price bonds declined. The valuation of convertible bonds was compressed, with the conversion premium rate of the 100 - yuan par - value fitting decreasing by 0.36pct compared to the previous day [2][3][6]. 3. Summary According to Relevant Catalogs Market Main Index Performance - **Overall Index**: The CSI Convertible Bond Index decreased by 0.04% compared to the previous day, the Shanghai Composite Index increased by 0.01%, the Shenzhen Component Index decreased by 0.37%, the ChiNext Index decreased by 0.01%, the SSE 50 Index increased by 0.32%, and the CSI 1000 Index decreased by 0.45% [2]. - **Style Index**: The large - cap value style was relatively dominant. The large - cap growth index decreased by 0.04%, the large - cap value index increased by 0.24%, the mid - cap growth index decreased by 0.19%, the mid - cap value index decreased by 0.48%, the small - cap growth index decreased by 0.26%, and the small - cap value index decreased by 0.33% [2]. - **Detailed Index Data**: The closing prices, daily changes, weekly changes, monthly changes, and year - to - date changes of multiple convertible bond and stock indexes are presented in the report, such as the CSI Convertible Bond Index closing at 459.42 with a daily decrease of 0.04% [10]. Market Fund Performance - **Turnover**: The turnover of the convertible bond market was 85.925 billion yuan, a 6.46% increase compared to the previous day. The total turnover of the Wind All - A Index was 1.898371 trillion yuan, a 1.57% decrease compared to the previous day [2]. - **Net Inflow of Main Funds**: The net outflow of main funds from the Shanghai and Shenzhen stock markets was 40.834 billion yuan [2]. - **10 - year Treasury Yield**: The 10 - year Treasury yield rose by 1.34bp to 1.70% [2]. Convertible Bond Valuation - **Overall Valuation**: The conversion premium rate of the 100 - yuan par - value fitting was 27.32%, a decrease of 0.36pct compared to the previous day. The overall weighted par value was 96.85 yuan, an increase of 0.51% compared to the previous day [6]. - **Different Types of Convertible Bonds**: The premium rate of equity - biased convertible bonds was 7.25%, a decrease of 0.16pct; the premium rate of debt - biased convertible bonds was 86.64%, a decrease of 4.93pct; the premium rate of balanced convertible bonds was 20.35%, an increase of 0.45pct [6]. Industry Performance - **Stock Market**: Among A - share markets, the top three industries with the largest declines were building materials (- 2.27%), national defense and military industry (- 1.60%), and machinery and equipment (- 1.29%); the top three industries with the largest increases were non - bank finance (+ 1.29%), beauty care (+ 0.59%), and household appliances (+ 0.58%) [6]. - **Convertible Bond Market**: Among the convertible bond markets, 16 industries declined. The top three industries with the largest declines were national defense and military industry (- 1.66%), non - ferrous metals (- 1.02%), and steel (- 1.02%); the top three industries with the largest increases were building materials (+ 4.54%), communication (+ 1.27%), and beauty care (+ 0.66%) [7]. - **Industry Indicators**: In terms of closing prices, the large - cycle industry increased by 0.08%, the manufacturing industry decreased by 0.41%, the technology industry decreased by 0.07%, the large - consumption industry increased by 0.09%, and the large - finance industry increased by 0.12%. In terms of conversion premium rates, the large - cycle industry increased by 0.89pct, the manufacturing industry decreased by 0.53pct, the technology industry increased by 1.1pct, the large - consumption industry decreased by 1.6pct, and the large - finance industry increased by 1.0pct. In terms of conversion values, the large - cycle industry decreased by 0.43%, the manufacturing industry decreased by 0.56%, the technology industry decreased by 1.03%, the large - consumption industry increased by 0.24%, and the large - finance industry decreased by 0.07%. In terms of pure - bond premium rates, the large - cycle industry increased by 0.11pct, the manufacturing industry decreased by 0.56pct, the technology industry decreased by 0.13pct, the large - consumption industry increased by 0.081pct, and the large - finance industry increased by 0.27pct [7]. Industry Rotation - Non - bank finance, beauty care, and household appliances led the rise. The report also presented the daily, weekly, monthly, and year - to - date changes in stock prices and convertible bond prices of various industries, as well as the P/E and P/B ratios and their percentile rankings in the past 3 - year and 10 - year periods [57].

1. Report Industry Investment Rating There is no information provided regarding the industry investment rating in the report. 2. Core Views - The Xizhen Convertible Bond (111022.SH) began online subscription on June 18, 2025, with a total issuance scale of 520 million yuan. After deducting issuance fees, the net raised funds will be used for the Langfang Zhenhua Quanjing Shen Automobile Parts Project [4]. - The current bond floor valuation is 95.23 yuan, with a YTM of 2.81%. The convertible bond has a 6 - year term, and its pure - bond value offers good protection [4]. - The current conversion parity is 100.3 yuan, with a parity premium rate of - 0.31%. The conversion period is from December 24, 2025, to June 17, 2031 [4]. - The bond terms are standard, and the total equity dilution rate is 6.11%, with a relatively small dilution pressure on the equity [4]. - It is estimated that the listing price of the Xizhen Convertible Bond on the first day will be between 123.58 and 137.42 yuan, and the subscription success rate is expected to be 0.0018%. It is recommended to subscribe actively [4]. - Wuxi Zhenhua's main business includes stamping parts, sub - assembly processing, mold, and selective precision electroplating processing. The company has a complete technical system and stable cooperation with many well - known customers [4]. - Since 2019, the company's revenue and net profit attributable to the parent have been growing steadily, with a compound growth rate of 10.23% and 27.23% respectively from 2019 - 2024 [4]. - The company's main business income accounts for a high proportion of total revenue, and the business is stable. The sales net profit margin and gross profit margin fluctuate, while the sales expense ratio remains low [4]. 3. Summary by Directory 3.1. Convertible Bond Basic Information - The Xizhen Convertible Bond's issuance and subscription schedule is from June 16 to June 22, 2025, including steps such as prospectus publication, online roadshows, priority subscription for original shareholders, and online subscription [11]. - The basic terms of the convertible bond include a 6 - year term, a face value of 100 yuan, a coupon rate ranging from 0.20% to 2.30% from the first to the sixth year, and a redemption price of 113% of the face value at maturity. The conversion price is 31.98 yuan, and the conversion period is from December 24, 2025, to June 17, 2031 [12]. - The raised funds will be used for the Langfang Zhenhua Quanjing Shen Automobile Parts Project (420 million yuan) and working capital replenishment (100 million yuan) [13]. - The bond's pure - bond value is 117.80 yuan, with a pure - bond premium rate of - 15.11% and a YTM of 2.81%. The conversion parity is 101.78 yuan, with a parity premium rate of - 1.75% [13][14]. 3.2. Investment Subscription Recommendations - Based on comparable targets and empirical results, considering the good bond floor protection, rating, and scale attractiveness of the Xizhen Convertible Bond, it is estimated that the first - day listing conversion premium rate will be around 30%, and the listing price will be between 123.58 and 137.42 yuan [16][17]. - It is estimated that the original shareholders' priority subscription ratio will be 70.89%, and the online subscription success rate will be 0.0018% [18]. 3.3. Underlying Stock Fundamental Analysis 3.3.1. Financial Data Analysis - Wuxi Zhenhua's main business consists of stamping parts, sub - assembly processing, mold, and selective precision electroplating processing. The company has a complete technical system and stable cooperation with many customers [19]. - From 2019 to 2024, the company's revenue and net profit attributable to the parent have grown steadily, with a compound growth rate of 10.23% and 27.23% respectively. In 2024, the net profit attributable to the parent was 378 million yuan, a year - on - year increase of 36.30% [21]. - The main business income accounts for a high proportion of total revenue, and the business is stable. The sales net profit margin and gross profit margin fluctuate, while the sales expense ratio remains low, and the financial expense ratio is slightly higher than the industry average [24]. 3.3.2. Company Highlights - Wuxi Zhenhua has a complete stamping and welding technology system, covering the entire process from pre - process design analysis and stamping mold research and development to post - stamping and welding technology, forming a unique competitive advantage [32]. - The company has established long - term stable cooperation relationships with many well - known domestic and foreign vehicle manufacturers [32]. - In 2023, the company added the selective precision electroplating processing business through the acquisition of Wuxi Kaixiang, becoming a new profit growth point [33].

1. Report Industry Investment Rating - No industry investment rating is provided in the report. 2. Core Viewpoints - Anker Convertible Bond (123257.SZ) started online subscription on June 16, 2025, with a total issuance scale of 1.105 billion yuan. The net proceeds after deducting issuance fees will be used for multiple projects [3]. - The current bond - floor valuation is 99.26 yuan, and the YTM is 2.01%. The bond - floor protection is good [3]. - The current conversion parity is 99.41 yuan, and the parity premium rate is 0.59% [3]. - The convertible bond terms are mediocre, and the total share capital dilution rate is 1.82%, with relatively small dilution pressure on the equity [3]. - It is expected that the listing price of Anker Convertible Bond on the first day will be between 127.29 and 141.30 yuan, and the subscription rate is expected to be 0.0036%. It is recommended to actively subscribe [3]. - Since 2019, Anker Innovations' revenue has steadily increased, with a compound growth rate of 27.36% from 2019 - 2024. In 2024, the company achieved an operating income of 24.71 billion yuan, a year - on - year increase of 22.85% [3]. - Anker Innovations' operating income mainly comes from the charging business, and the product structure changes annually [3]. - Anker Innovations' sales net profit margin and gross profit margin are stable, the sales expense ratio decreases, the financial expense ratio first increases and then decreases, and the management expense ratio increases [3]. 3. Summary by Directory 3.1. Convertible Bond Basic Information - The issuance and subscription schedule of Anker Convertible Bond is clearly arranged from June 12 to June 20, 2025 [8]. - The basic terms of Anker Convertible Bond include a 6 - year term, AA +/AA+ credit rating, specific coupon rates from the first to the sixth year, and clear conversion, redemption, and repurchase terms [3][9]. - The proceeds from the issuance will be used for projects such as R & D and industrialization of portable and household energy storage products, and the total planned investment in all projects is 1.2348577 billion yuan, with 1.10482 billion yuan from the issuance [10]. - The bond - related indicators show a pure - bond value of 99.26 yuan, a pure - bond premium rate of - 11.11%, and a pure - bond YTM of 2.01%. The equity - related indicators show a conversion parity of 99.41 yuan and a parity premium rate of 0.59% [3][10]. 3.2. Investment Subscription Suggestion - By referring to comparable convertible bonds in terms of parity, rating, and scale, and using an established empirical model, it is expected that the conversion premium rate of Anker Convertible Bond on the first - day of listing will be around 35%, corresponding to a listing price between 127.29 and 141.30 yuan [13][14][15]. - It is estimated that the priority subscription ratio of original shareholders is 73.62%, and the online subscription rate is expected to be 0.0036% [16]. 3.3. Underlying Stock Fundamental Analysis 3.3.1. Financial Data Analysis - Anker Innovations mainly engages in R & D and sales of consumer electronics, with over 97% of its revenue from overseas sales, mainly in developed regions. The company has won many awards and recognitions [17]. - From 2019 to 2024, the company's operating income and net profit attributable to the parent company have shown growth trends, with compound growth rates of 27.36% and 22.33% respectively. In 2024, the operating income was 24.71 billion yuan, and the net profit attributable to the parent company was 2.114 billion yuan [3][19]. - The charging business is the main source of revenue, and its proportion in the main business income has increased year by year from 2022 - 2024, while the proportion of other main businesses is stable [3][20]. - The sales net profit margin and gross profit margin are stable, and are significantly higher than the industry average. The sales expense ratio decreases, the financial expense ratio first increases and then decreases, and the management expense ratio increases [22]. 3.3.2. Company Highlights - Anker Innovations is a global consumer electronics company with well - known brands. It has strong product innovation and technology integration capabilities, leading in overseas e - commerce platforms [32]. - The charging and energy storage business is the core growth engine, with significant revenue growth in 2024. The company is also actively deploying in intelligent innovation and intelligent audio - visual fields [32]. - Through a light - asset operation model, global supply chain layout, and multi - channel sales strategy, the company has achieved efficient market penetration and brand building, showing strong growth and profitability [32].

Core Viewpoint - Hangzhou Bank's convertible bonds have triggered mandatory redemption conditions due to the stock price exceeding the specified threshold, indicating strong performance in the A-share banking sector and a significant increase in the bank's stock price and convertible bond trading [1][2]. Group 1: Convertible Bonds and Redemption - Hangzhou Bank issued 150 billion RMB worth of convertible bonds in March 2021, with a conversion price adjusted to 11.35 RMB per share starting November 6, 2024 [1]. - The bank's stock price has remained above 130% of the conversion price for 15 trading days, leading to the decision to exercise early redemption of the bonds [1]. - The bonds will be redeemed at face value plus accrued interest, reflecting the bank's proactive capital management strategy [1]. Group 2: Stock Performance and Financial Results - Hangzhou Bank's stock price has increased over 6% year-to-date, contributing to a rise in the trading price of its convertible bonds, which are currently around 135 RMB [2]. - The conversion rate of the bonds has significantly increased from less than 10% at the beginning of 2025 to over 70% by May 23, 2025 [2]. - In Q1 2023, the bank reported a revenue increase of 2.22% to 9.978 billion RMB and a net profit increase of 17.30% to 6.021 billion RMB, with a stable non-performing loan ratio of 0.76% [2]. Group 3: Market Trends and Challenges - The overall conversion rate of bank convertible bonds is low, with only 4 out of 10 bonds having a conversion rate below 1%, primarily due to banks' stock prices being below their net asset values [3]. - Factors affecting conversion rates include the conversion premium, which must be negative to attract investors, and the general performance of the banks [3]. - The market for convertible bonds is expected to shift from being bank-dominated to a more diversified industry-driven structure due to a decrease in issuance and the retirement of existing bonds [4].

Group 1: Report Industry Investment Rating - No industry investment rating information is provided in the report Group 2: Report's Core Views - The US Treasury yield curve shows a "bear steepening" trend, with the long - end in a range of 4 - 4.5% and the short - end (2 - year) likely to decline. The Fed is expected to cut interest rates 1 - 2 times in 2025 and slow down the balance - sheet reduction [1] - In the domestic equity market, the large - cap dividend stocks have seen a pull - back, and the bank - related targets are still recommended for configuration. There are high - quality non - issued pan - technology targets, and investors are advised to buy at low points [1] - The top ten convertible bonds with the greatest potential for premium - to - parity ratio repair next week are Hailiang Convertible Bond, Hexing Convertible Bond, etc. [1] Group 3: Summary by Relevant Catalogs 1. Weekly Market Review 1.1. Equity Market Overall Declined, Most Industries Rose - From May 19th to May 23rd, the equity market declined overall, with the average daily trading volume in the two markets decreasing by about 74.483 billion yuan to 1138.753 billion yuan, a week - on - week decline of 6.14% [6][9] - Among the 31 Shenwan primary industries, 19 industries rose, with beauty care, non - bank finance, etc. leading the gains, and computer, national defense and military industry, etc. leading the losses [14] 1.2. Convertible Bond Market Overall Declined, Industry Overall Declined - From May 19th to May 23rd, the CSI Convertible Bond Index fell 0.11%. Among the 29 Shenwan primary industries, 9 industries rose, with media, bank, etc. leading the gains, and communication, social services, etc. leading the losses [16] - The average daily trading volume of the convertible bond market was 63.517 billion yuan, a significant increase of 13.435 billion yuan, a week - on - week change of 26.83% [16] - About 34.17% of the convertible bond individual bonds rose, and about 24.11% of them had a gain in the range of 0 - 1% [16] 1.3. Stock - Bond Market Sentiment Comparison - From May 19th to May 23rd, the weekly weighted average and median of the convertible bond and underlying stock markets were negative, and the convertible bond market had a better trading sentiment overall [33] - On different trading days, the trading sentiment of the stock and bond markets varied. For example, on Monday and Tuesday, the stock market had better trading sentiment, while on Wednesday, Thursday, and Friday, the convertible bond market had better trading sentiment [35] 2. Future Outlook and Investment Strategy - The long - end of the US Treasury yield is expected to be in a range - bound oscillation, and the short - end is likely to decline. The duration strategy is recommended to be short [1][37][38] - In the domestic market, continue to recommend the configuration of bank - related targets and the purchase of non - issued pan - technology targets at low points [1][38] - The top ten convertible bonds with the greatest potential for premium - to - parity ratio repair next week are recommended [1][39]

Market Overview - The market showed an increase in cautious sentiment before the long holiday, with broad market indices experiencing a decline, while small-cap stocks stabilized and recovered [4][2]. - The week before the May Day holiday saw a balanced performance between large-cap and small-cap styles, as well as between value and growth styles, with a continued decrease in style volatility [6][2]. Market Structure - The excess return dispersion of industry indices slightly decreased, and the proportion of rising constituent stocks also saw a decline, indicating a slowdown in industry rotation [6][2]. - The trading concentration decreased, with the proportion of trading volume from the top 100 stocks rebounding from a low level, while the top five industries' trading volume proportion continued to decline [6][2]. Market Activity - Market volatility continued to decrease due to the upcoming holiday, and turnover rates also saw a reduction [7][2]. Commodity Market - There was a divergence in trend strength among commodity sectors, with energy and black metals maintaining strong trends, while non-ferrous and agricultural products showed weaker trends, and precious metals experienced a significant decline in trend strength [18][17]. - The non-ferrous sector had the highest basis momentum, while the black sector saw a rapid decline [18][17]. - Volatility across all sectors remained high, and liquidity was stable across the board [18][17]. Options Market - Implied volatility levels for the Shanghai Stock Exchange 50 and CSI 1000 indices increased, indicating some speculative sentiment in the market before the holiday [23][3]. - The skew of call options for the CSI 1000 improved, while the skew for the Shanghai Stock Exchange 50 saw a notable decline, suggesting a market expectation of small-cap stocks performing better post-holiday [23][3]. Convertible Bond Market - The valuation level of the convertible bond market slightly increased, remaining above the historical median for the past year, with a small rebound in the number of convertible bonds with low conversion premiums [27][3]. - Overall trading volume in the convertible bond market continued to recover [27][3].

- The report provides a weekly performance summary of convertible bonds (CB) and their correlation with the equity market, highlighting the weekly price changes of major CB indices and their comparison with equity indices such as the Shanghai Composite Index and the CSI All Share Index[1][5] - The report details the trading volume and value of the CB market and its corresponding stocks, noting that both CB and stock trading activities remained high compared to the previous week[1][5] - The report includes a valuation analysis of CBs, providing the median and arithmetic mean of the conversion premium rates, and noting the weekly changes in these rates[1][9] - The report lists the top five CBs with the highest and lowest weekly price changes, along with their corresponding stock performance, industry classification, weekly trading value, and credit ratings[1][17][18] - The report tracks the number of CBs that have triggered downward revision clauses and those that may trigger conditional redemption clauses in the upcoming week[1][39] - Weekly performance of major CB indices: Shanghai CB Index (-0.68%), Shenzhen CB Index (-1.16%), CSI CB Index (-0.89%)[1][5] - Weekly performance of major equity indices: Shanghai Composite Index (-1.72%), CSI All Share Index (-2.53%)[1][5] - Weekly trading volume and value of the CB market: 254,745.92 million units and 42,541,372.03 million yuan, respectively[1][5] - Weekly trading volume and value of corresponding stocks: 5,409,498.53 million shares and 85,142,094.14 million yuan, respectively[1][5] - Median and arithmetic mean of conversion premium rates: 31.30% and 49.67%, respectively[1][9] - Weekly changes in conversion premium rates: median (+0.29%), arithmetic mean (-0.86%)[1][9] - Top five CBs with the highest weekly price changes: Zhishang CB (11.38%), Jingzhuang CB (10.68%), Liugong CB 2 (9.94%), Keda CB (6.64%), Fenggong CB (6.27%)[1][17][18] - Top five CBs with the lowest weekly price changes: Yuanxin CB (-25.66%), Shenma CB (-16.75%), Henghui CB (-15.48%), Tuopu CB (-14.00%), Chaoda CB (-13.55%)[1][17][18] - Number of CBs that have triggered downward revision clauses: 226[1][39] - Number of CBs that may trigger conditional redemption clauses in the upcoming week: 10[1][39]