Core Viewpoint - The banking sector has shown strong performance in 2023, with a cumulative increase of 20.54% in the banking index and nearly 20 bank stocks reaching new highs this year [1] Group 1: Convertible Bonds - There has been a notable surge in the redemption of bank convertible bonds, with two bonds officially delisted from the capital market this month [2] - Nanjing Bank's convertible bond is set to be redeemed and delisted on July 18, following a period where its closing price exceeded the conversion price threshold [3] - Hangzhou Bank's convertible bond completed its market-based conversion and delisting, strengthening its core tier one capital [4] - Several bank convertible bonds have completed conversion and delisting this year, with conversion rates for Chengyin and Suhang bonds reaching 99.94% and 99.93% respectively [5] - Qilu Bank's convertible bond is also approaching delisting, having triggered redemption clauses due to its stock price exceeding the conversion price threshold [5] Group 2: Shareholder Actions - Chengdu Bank's controlling shareholders have not executed their planned share buyback, as the stock price has consistently exceeded the buyback price limit [6][7] - The buyback plan was announced on April 9, with a price cap set at 17.59 yuan per share, but the stock price surpassed this limit shortly after the announcement [8][9] - Chengdu Bank indicated that the controlling shareholders will continue to monitor stock price fluctuations and market trends to determine the timing of their buyback [10]

Group 1 - The overall stock of bank convertible bonds is expected to significantly decrease within the next year, with approximately 100 billion yuan of bank convertible bonds likely to complete conversion this year [1][8][9] - The strong performance of bank stocks has led to multiple convertible bonds triggering mandatory redemption clauses, including Hangzhou Bank and Nanjing Bank convertible bonds [2][3] - As of July 3, 41 out of 42 bank stocks have seen price increases this year, with some banks like Pudong Development Bank and Qingdao Bank experiencing over 30% growth [3] Group 2 - The conversion of convertible bonds is crucial for banks as it helps reduce financial costs and supplement core tier one capital, while also signaling financial stability to the market [3][5] - The recent trend of asset management companies (AMCs) converting bonds into stocks is seen as a strategic move to enhance their asset allocation and share in the rising stock prices of banks [6][7] - Regulatory changes have tightened the issuance of new bank convertible bonds, leading to a significant reduction in the market supply and altering the investment landscape [8][9] Group 3 - The Hangzhou Bank convertible bond will officially delist on July 7, with investors facing potential losses exceeding 30% if they do not convert or sell before the last trading day [2] - The conversion process for Pudong Development Bank's convertible bonds has been slow, with a significant portion remaining unconverted until recent interventions by institutional shareholders [4][5] - The market is witnessing a shift in investment strategies as institutional investors reduce their allocation to bank convertible bonds, seeking alternative assets to fill the gap [9]