Core Viewpoint - The imminent delisting of Nan Yin Convertible Bonds marks a significant trend in the banking convertible bond market, with multiple bonds facing similar fates this year, indicating a potential shift in investor sentiment and market dynamics [1][2][4]. Group 1: Upcoming Delistings - Nan Yin Convertible Bonds will be delisted from the Shanghai Stock Exchange on July 18, following its last trading day on July 14 and last conversion day on July 17 [1]. - This will be the second bank convertible bond to be delisted in July and the fourth this year, highlighting a concerning trend in the sector [1][2]. Group 2: Redemption and Conversion Details - Investors can either trade Nan Yin Convertible Bonds in the secondary market or convert them at a price adjusted to RMB 8.02 per share starting June 23, 2025, or face forced redemption at RMB 100 per bond plus accrued interest [2]. - The recent delisting of Hang Yin Convertible Bonds, which had a conversion ratio of 99.39%, indicates a significant shift in the market, with only 0.61% remaining unconverted [2]. Group 3: Market Impact and Trends - The delisting of bank convertible bonds is expected to significantly impact the convertible bond market, leading to a reduction in supply and potentially increasing the scarcity of high-quality bonds [5]. - The total balance of bank convertible bonds has decreased from nearly RMB 300 billion at its peak in 2023 to below RMB 150 billion, with market share dropping from 40% to approximately 20% [5][6]. - Institutional investors are adjusting their strategies, moving away from bank convertible bonds towards other assets, such as utility bonds, which offer stable dividends [5][6].

Core Viewpoint - The bank convertible bond market is experiencing a significant reduction in the number of available bonds, with only 9 remaining after several have been redeemed or matured, indicating a shrinking market size and potential changes in investment strategies [1][6]. Group 1: Convertible Bonds Redemption - Qilu Bank's convertible bond has triggered a conditional redemption clause due to its stock price exceeding 130% of the conversion price for 15 out of 30 trading days, leading to an early redemption three and a half years before maturity [2]. - The total issuance of Qilu convertible bonds was 8 billion yuan, with a conversion price currently at 5.00 yuan per share, and 2.66 billion yuan worth of bonds converted into shares as of June 30, 2025 [2]. - Hangzhou Bank's convertible bond has also been redeemed, with a total conversion amount reaching 14.908 billion yuan, representing 99.39% of the total issuance [3]. Group 2: Market Trends and Performance - The continuous rise in bank stock prices has led to a 17.7% increase in the China Securities Bank Index this year, with all 42 stocks in the sector showing positive performance [4]. - Five banks have seen stock price increases exceeding 30%, with Shanghai Pudong Development Bank leading at a 41.69% increase [4]. - The market for bank convertible bonds is shrinking, with the total balance dropping from nearly 300 billion yuan to below 150 billion yuan, and market share decreasing from 40% to approximately 20% [6]. Group 3: Investment Strategies and Market Dynamics - The ongoing reduction in the supply of bank convertible bonds is altering market structure and triggering a shift in investment strategies, with institutional investors reducing their allocations to these bonds [6]. - As the supply of bank convertible bonds diminishes, funds are seeking alternative high-yield assets or other convertible bonds to fill the gap, leading to a divergence in allocation strategies among different types of funds [6].