1. Report Industry Investment Rating No industry investment rating information is provided in the content. 2. Core View of the Report - During the week from September 8 to September 13, 2025, construction convertible bonds remained in a relatively stable stage with median valuation and high market prices. The fundamentals of the underlying stocks are expected to gradually recover with policy support. The sector has the advantages of large scale and relatively low valuation, so construction convertible bonds may present allocation opportunities [2][6]. - The A - share market oscillated upward, with the CSI 500 and Sci - tech Innovation styles relatively dominant. The technology growth and manufacturing mainlines remained active, with concentrated trading in electronics and power equipment. Valuations in some highly - crowded sectors were high, and volatility risks needed to be guarded against [2][6]. - The convertible bond market recovered as a whole, with small - cap rebounds stronger than large - cap ones. The valuation structure was differentiated, with the valuation of high - parity bonds rising and the implied volatility slightly increasing, showing signs of style rotation. The primary market supply was stable, and clause games were frequent. Event - driven opportunities needed continuous attention [2][6]. 3. Summary by Relevant Catalogs 3.1. Macro and Construction Sector Analysis - The construction sector may stabilize. Infrastructure construction investment has maintained low - level year - on - year growth, and real estate investment has maintained negative year - on - year growth. The early issuance of local government bonds may boost the demand of the construction sector [10][17]. - This year, the equity side of the construction sector has been boosted by the "Yajiang" concept. The convertible bond side has shown internal differentiation, with building materials slightly outperforming the CSI Convertible Bond Index and building decoration under some pressure. The overall valuation is slightly equity - biased but still at a median level, and the market price is in a historically high area, with individual bond prices concentrated between 110 - 130 yuan [10][17][18]. - Financially, the construction sector is still at the bottom of the cycle. The accounts receivable days of building materials and building decoration have been on the rise since 2021 and are currently at a high level since 2015. The ratio of net operating cash flow to operating income is at a low level since 2015, indicating pressure on corporate cash collection [20]. - In terms of market price, the construction sector is currently at a historically high level. In terms of valuation, it is still in the median range, slightly leaning towards equity characteristics [24][25]. - The individual bonds in the construction sector have a large overall scale, and the market price distribution is concentrated. The ROE of the underlying stocks corresponding to the convertible bonds in Q2 2025 is generally less than 10%, and the PB historical quantiles are evenly distributed [27]. 3.2. Market Theme Weekly Review 3.2.1. Equity Theme Weekly Review - During the week, the trading themes in the equity market remained active, with the manufacturing mainline leading the gains. Solid - state battery - related indexes such as the power battery index, lithium - ion electrolyte index, and energy storage index led the rise, and the photovoltaic sector in power equipment also strengthened. The energy metals such as lithium ore and cobalt ore performed strongly. The pharmaceutical chain improved marginally, while the military sector was relatively weak. High - valuation and high - crowding sectors should be guarded against for valuation convergence risks [34]. 3.2.2. Market Weekly Tracking - **Main Indexes**: The main A - share indexes oscillated upward, with the Shenzhen Component Index performing strongly. The Sci - tech Innovation 50 and CSI 500 had stronger gains than the CSI 300 and CSI 2000. The outflow of main funds converged, and there were signs of inflow in the latter part of the week [36]. - **Sector Performance**: Technology - related sectors such as electronics, communication, non - ferrous metals, and power equipment rebounded. Funds were mainly concentrated in electronics, power equipment, and machinery, indicating a focus on technology growth and manufacturing sectors. Some sectors had high crowding and high valuations, and risks needed to be guarded against [40]. 3.2.3. Convertible Bond Market - The convertible bond market oscillated and recovered, with small - cap varieties rebounding more prominently and large - cap ones under some pressure. The overall trading activity declined. Valuations were differentiated, with the valuation of high - parity individual bonds rising and that of low - parity ones under pressure. The median market price oscillated upward, and the implied volatility increased slightly, indicating market divergence [10][47]. - Technology and cyclical sectors performed strongly. The non - ferrous metals sector led the gains, and the computer, electronics, and communication sectors also performed well. Trading was mainly concentrated in power equipment, electronics, and basic chemicals [55]. - Individual bonds generally strengthened, with cyclical and manufacturing sectors performing well. Among them, 427 convertible bonds had a week - on - week increase of 0 or more, accounting for 92.2% of the total number of convertible bonds in the market. Some of the top - performing and bottom - performing individual bonds had short - duration characteristics [61]. 3.3. Issuance and Clause Tracking - **New Bond Listings**: Three convertible bonds were listed during the week, namely Jinwei Convertible Bond, Shenglan Convertible Bond 02, and Kaizhong Convertible Bond [63]. - **Pre - issuance Updates**: A total of 15 listed companies updated their convertible bond issuance plans, including 3 at the approved - for - registration stage, 4 at the passed - by - the - listing - committee stage, 5 at the passed - by - the - shareholders' - meeting stage, and 3 at the board - proposal stage. The total scale of projects at and after the exchange - acceptance stage was 52.36 billion yuan [64][65]. - **Clause - related Announcements**: - **Expected Trigger of Downward Revision**: Five convertible bonds announced an expected trigger of downward revision, with a market - value - weighted average PB of the underlying stocks of 2.5 [71][74]. - **No Downward Revision**: Five convertible bonds announced no downward revision, with a market - value - weighted average PB of the underlying stocks of 5.9 [73][74]. - **Expected Trigger of Redemption**: Seven convertible bonds announced an expected trigger of redemption [76][79]. - **No Early Redemption**: Two convertible bonds announced no early redemption [77][79]. - **Early Redemption**: Four convertible bonds announced early redemption [78][79].

Market Overview - The A-share market experienced a slight pullback today, with the Shanghai Composite Index down 0.12% closing at 3635.13 points, the Shenzhen Component down 0.26% at 11128.67 points, and the ChiNext Index down 0.38% at 2333.96 points [2][3] - The total trading volume in the Shanghai and Shenzhen markets was 171.02 billion yuan, a decrease of 115.3 billion yuan compared to the previous day [2][3] Sector Performance - The market showed a stable sentiment despite the overall decline, with individual stocks experiencing mixed performance. The cement and building materials sector led the gains with an increase of 2.83%, followed by transportation equipment at 2.81%, engineering machinery at 2.13%, and engineering construction at 1.70% [3] - The Yajiang concept stocks rose overall by 2.69%, with notable performers including Shanhai Intelligent, which hit the daily limit up with a gain of approximately 10% [4] Yajiang Concept Analysis - The Yajiang concept index started at 1240 points, peaked at 1354 points, dropped to 1230 points yesterday, and rebounded by 30 points today to close at 1263 points. This indicates that investors in this concept were largely trapped before today's rebound [4] - The trading volume for the Yajiang sector was about 52.2 billion yuan, an increase from 41.5 billion yuan the previous day, but still less than half of the volume during previous highs [4][5] Weighting Stocks Impact - Major weighted stocks, particularly in the banking and insurance sectors, contributed to the index's decline. Notably, companies like BYD, Dongfang Caifu, and Luxshare Precision collectively dragged down the Shenzhen Component by 10.37 points [5] AI Sector Reaction - Following the announcement of new AI models by OpenAI and Google, related stocks in the A-share market did not see an increase but instead experienced a collective decline, indicating market fatigue towards AI concepts [6] Speculative Stocks - Speculative stocks, referred to as "妖股," showed varied performance, with some like Shangwei New Materials dropping by 5.5% and others like Changcheng Military Industry fluctuating in price. The term "击鼓传花" was used to describe the current speculative behavior in the market, suggesting a potential for increased regulatory scrutiny [7]

Core Viewpoint - The A-share market shows resilience and upward momentum, with the Shanghai Composite Index reaching a new closing high, indicating a strong market despite some underlying weaknesses in individual stocks [2][3][4]. Market Performance - All three major A-share indices rose today, with the Shanghai Composite Index up 0.45% to close at 3633.99 points, the Shenzhen Component Index up 0.64% to 11177.78 points, and the ChiNext Index up 0.66% to 2358.95 points [2]. - The trading volume in the Shanghai and Shenzhen markets reached 1.73 trillion yuan, an increase of 138 billion yuan compared to the previous day [2][3]. Market Dynamics - The recent index highs are characterized by a higher number of advancing stocks compared to declining ones, contrasting with previous highs where more stocks were down [3]. - Despite the overall index rise, many investors feel they are "making money on the index but not on their investments," indicating a disconnect between index performance and individual stock gains [4]. Sector Analysis - The military industry sector performed strongly, partly due to the upcoming "September 3" commemorative day, with stocks like China Shipbuilding Group seeing short-term speculation [5]. - The rapid rotation of sectors is evident, with strong performances in robotics and pharmaceuticals, but also significant volatility, as seen with stocks like Upwind New Materials [5][6]. Investor Sentiment - Investors are advised to maintain a cautious approach, as the market's upward trend can lead to rapid changes in sector performance, making it crucial to act quickly to capitalize on opportunities [5][6]. - The market has seen a decline in the number of stocks advancing to the second board, reflecting regulatory measures aimed at cooling speculative trading [7]. Notable Records - The market recorded a financing balance exceeding 2 trillion yuan, the highest in a decade, and Agricultural Bank of China reached a market capitalization of 2.11 trillion yuan, surpassing Industrial and Commercial Bank of China [7].

Market Overview - On July 30, the A-share market showed mixed performance with the three major indices fluctuating. The total trading volume reached 1.87 trillion yuan, an increase of 41.7 billion yuan compared to the previous trading day, with over 3,500 stocks declining [1] - Market hotspots included sectors such as aquaculture, baby and child concepts, and dairy stocks, while sectors like digital currency, batteries, and cross-border payments saw declines [1] Stock Performance - A total of 48 stocks hit the daily limit up, with 12 stocks on consecutive limit up boards. The limit up rate was 72% (excluding ST and delisted stocks) [3] - Notable stocks included: - Tibet Tourism: 8 consecutive limit ups, closing at 25.64 yuan (+10.00%) [4] - Xining Special Steel: 8 limit ups in 7 days, closing at 4.20 yuan (+9.95%) [4] - Southern Road Machinery: 8 limit ups in 7 days, closing at 49.87 yuan (+9.99%) [4] - Happiness Blue Sea: 5 limit ups in 4 days, closing at 25.32 yuan (+20.00%) due to the release of the film "Nanjing Photo Studio" [4] Institutional Activity - The top three net buying stocks on the daily leaderboard were: - Yingweike: 5.74 billion yuan net buy, closing at 36.55 yuan (+9.99%) [6] - Baogang Co.: 3.74 billion yuan net buy, closing at 2.92 yuan (+10.19%) [6] - Xizang Tianlu: 2.18 billion yuan net buy, closing at 17.91 yuan (+3.95%) [6] - The top three net selling stocks were: - Construction Industry: 8.6 billion yuan net sell, closing at 38.81 yuan (-9.95%) [7] - Zhongyin Securities: 3.89 billion yuan net sell, closing at 16.11 yuan (-10.00%) [7] - Zhongtung High-tech: 3.53 billion yuan net sell, closing at 17.10 yuan (-10.00%) [7] Sector Insights - Yingweike is a provider of precision temperature control energy-saving solutions, with significant growth in liquid cooling technology for data centers expected in 2024 [9] - Baogang Co. confirmed a major contract for supplying rare earth alloy steel for a national key infrastructure project, enhancing its position in the market [9][11] - Xizang Tianlu focuses on engineering contracting and cement production, with a strong background in state-owned enterprises [12] Conclusion - The market exhibited a diverse range of performances across sectors, with notable activity in tourism, steel, and film-related stocks. Institutional buying and selling patterns indicate strategic movements in response to market conditions and company developments.

Market Overview - The A-share market has shown strong performance recently, with major indices experiencing notable increases, including a 1.67% rise in the Shanghai Composite Index, a 2.33% increase in the Shenzhen Component Index, a 2.76% rise in the ChiNext Index, and a significant 4.63% increase in the STAR Market Index over the past week [1] Hot Stocks - The Yajiang concept sector has been particularly prominent, with the Wande Yajiang Hydropower Station Index rising over 20% during the same period [1] - China Power Construction Corporation has been a leading stock in the Yajiang concept sector, achieving a consecutive four-day limit-up from July 21 to July 24, with a record trading volume on July 24 [1] - Tibet Tianlu has also experienced a consecutive five-day limit-up, with significant trading activity noted on the leaderboard, where the top five buying seats accumulated a total of 81.32 million yuan, while the top five selling seats totaled 63.49 million yuan [2] - Tibet Tourism has similarly seen a five-day limit-up, with trading primarily from brokerage seats and no institutional presence noted during this period [2] Stock Volatility - Deepwater Design Institute experienced a four-day limit-up followed by a sharp decline, with institutional seats heavily involved in buying before the drop [3] - Zhongyan Dadi also faced significant volatility after a series of limit-ups, with institutional selling observed during the peak trading days [3]

Core Viewpoint - The A-share market has shown strong performance recently, with major indices experiencing notable increases, particularly driven by the Yajiang concept sector, which has seen significant gains [1] Group 1: Market Performance - The Shanghai Composite Index rose by 1.67%, the Shenzhen Component Index increased by 2.33%, the ChiNext Index gained 2.76%, and the Sci-Tech Innovation 50 Index surged by 4.63% over the past week [1] - The Yajiang concept sector has been a standout performer, with the Wande Yajiang Hydropower Station Index rising over 20% during the same period [1] Group 2: Individual Stock Highlights - China Electric Power Construction (China Electric) has been a leading stock in the Yajiang concept sector, achieving a consecutive four-day limit-up from July 21 to July 24, with a record trading volume on July 24 [1] - During the same period, the Shanghai Stock Connect saw a net sell of over 200 million yuan in China Electric, with a buy of approximately 420 million yuan and a sell of about 621 million yuan [1] Group 3: Other Notable Stocks - Tibet Tianlu has experienced five consecutive limit-up days, with significant trading activity on the leaderboard, where the top five buying seats accumulated a total purchase of 81.32 million yuan and the top five selling seats sold 63.49 million yuan [2] - Tibet Tourism also saw five consecutive limit-up days, with trading primarily from brokerage seats, totaling 217 million yuan in purchases and 157 million yuan in sales [2] - Deep Water Planning Institute had a strong performance with four consecutive limit-up days but faced a sharp decline on July 25, with significant selling from institutional seats [3] - Zhongyan Dadi experienced volatility after three consecutive limit-up days, with a notable drop on July 25, reflecting a shift in trading dynamics with institutional selling [3][4]

Group 1 - The current rebound in the Chinese stock market lacks a clear trading theme, exhibiting a "fan-like" rotation characteristic [14] - As of July 24, the Shanghai Composite Index rose by 0.65%, closing above the 3600-point mark, but faced volatility with a slight decline by the end of the week [2][4] - Many retail investors report dissatisfaction with their returns, indicating a common sentiment of "only the index rises, but not profits" [9][3] Group 2 - In the first half of 2025, the number of new A-share accounts reached 12.55 million, significantly higher than 9.45 million in the same period of 2024, indicating a surge in retail investor participation [8] - Despite the influx of new investors, many are unable to capitalize on the market gains due to a preference for small-cap stocks and short-term trading strategies [9][10] - The recent surge in the "Yajiang Water Power" concept stocks has made it difficult for ordinary investors to enter the market at the right time, leading to missed opportunities [10] Group 3 - Foreign investors, particularly from South Korea, have shown increased interest in the A-share market, with cumulative trading exceeding $5.4 billion by mid-July [14][15] - The Bridgewater Fund has upgraded its view on Chinese stocks from "strategic allocation" to "moderate increase," following a 14% return in the first half of the year [16][18] - In the first half of 2025, foreign net purchases of domestic stocks reached $10.1 billion, reversing the previous trend of net outflows [19] Group 4 - Public funds have significantly benefited from the current market rally, with total profits reaching 636.845 billion yuan in the first half of 2025, and 385.098 billion yuan in the second quarter alone [21] - The financial sector saw the largest increase in public fund holdings, with a net increase of 47.126 billion yuan, indicating a preference for defensive investments [25][27] - Despite strong performance, there has been a notable net redemption of stock funds, suggesting a lack of confidence in the sustainability of the bull market [38][42] Group 5 - The recent market rally has been driven by "anti-involution" policies and significant infrastructure projects, such as the Yarlung Tsangpo River hydropower project, which has injected new momentum into the market [33][35] - Analysts express mixed views on whether the market can sustain its upward trajectory, with some citing historical resistance levels around 3600 points as a potential risk [46][47] - The current market environment requires investors to be cautious and selective, as the dynamics of the bull market can lead to significant losses for those who chase trends without proper timing [47]

Group 1 - The Yarlung Tsangpo River downstream hydropower project has attracted significant attention, with a total investment scale of approximately 1.2 trillion yuan, leading to speculation in the capital market and causing some concept stocks to hit the daily limit [1] - Some listed companies have explicitly stated that they do not possess the qualifications and capabilities for hydropower station project design, resulting in significant stock price fluctuations, including sharp declines [1] - Many companies have responded to their relationship with the Yarlung concept by either acknowledging past involvement, claiming they can provide services based on existing business capabilities, or expressing intent to participate in procurement tenders related to the project, leaving room for future involvement [1] Group 2 - Historically, some listed companies have engaged in opportunistic behavior by leveraging market hotspots, which can lead to violations of information disclosure regulations and even criminal activities [2] - Companies that do not clearly deny their association with market hotspots may benefit in the short term, as this can lead to stock price increases, allowing major shareholders to sell at higher prices [2] - From the perspective of protecting investors, companies should truthfully respond to inquiries about market hotspots, acknowledging connections when they exist and denying them when they do not, to avoid misleading investors and protect their rights [2] Group 3 - For long-term development, companies need the courage to say "no" to short-term market hotspots, as excessive focus on immediate gains can detract from core business development and lead to negative outcomes [3] - Historical cases indicate that companies overly focused on market trends may lose sight of their main business, resulting in detrimental effects on their operations [3] - Sustained focus on core business rather than succumbing to short-term temptations is essential for long-term success [3]