Core Viewpoint - As of October 15, 2025, the conversion rate of SPDB convertible bonds has exceeded 70%, significantly alleviating repayment pressure ahead of the conversion deadline on October 27, 2025 [2][4]. Summary by Sections SPDB Convertible Bonds - The total amount of SPDB convertible bonds converted into common stock is RMB 382.51 billion, with 30.28 billion shares converted, representing 10.3148% of the total common shares before conversion [3]. - The remaining unconverted amount is RMB 117.49 billion, accounting for 23.4984% of the total issuance [3]. Market Context - Among the seven existing bank convertible bonds, SPDB's conversion rate is significantly higher than others, with some bonds showing a conversion rate of 0% or less than 1% [2][7]. - The low conversion rates in other banks are attributed to a combination of "net asset value below par + high conversion price," indicating a need for banks to improve operational quality and market expectations [9]. Institutional Support - Key stakeholders, such as China Mobile, have actively supported SPDB by converting their holdings, increasing their shareholding from 17.00% to 18.18% [5]. - Other institutional investors, like Dongfang Asset, have also shown confidence in SPDB's future by increasing their stakes through market purchases and bond conversions [5]. Financial Implications - The conversion of bonds into equity enhances SPDB's core Tier 1 capital, improving its capital adequacy ratio and reducing financial costs by eliminating interest payments on the bonds [4]. - High conversion rates signal market confidence in SPDB's capital replenishment and profitability, providing a flexible capital management tool while avoiding dilution effects from direct equity issuance [4]. Comparative Analysis - The existing bank convertible bonds show a stark contrast in conversion rates, with SPDB and Xingye convertible bonds being the only ones with significant rates, while others remain low or at zero [7][9]. - The urgency for banks to repair their stock valuations is highlighted by the current "polarization" phenomenon in convertible bond conversion rates [8][9].