Group 1 - The issuance of convertible bonds has seen a recovery this year, with 36 companies completing issuances totaling 57.828 billion yuan, a year-on-year increase of 65.6% [1] - The China Convertible Bond Index has risen by 18% this year, indicating strong performance in the secondary market [1][3] - In the fourth quarter, there has been an acceleration in the issuance of convertible bonds, with 11 companies launching plans since October [1] Group 2 - Several companies are using convertible bonds for mergers and acquisitions, such as Xinbang Intelligent and Sunshine Nuohe [1] - Over 100 convertible bonds have been delisted this year due to price surges triggering forced redemptions and approaching maturities [2] - The market for convertible bonds is experiencing a reduction in outstanding bonds, with significant issuances like Daqin and Citic bonds being delisted [2] Group 3 - The market for convertible bonds is characterized by its "attack and defense" advantages, attracting investor interest [3] - The highest price for a convertible bond this year reached 2593.987 yuan, indicating strong demand and market activity [3] - Analysts suggest that the convertible bond market may enter a wide fluctuation range in the fourth quarter, with a focus on low-priced bonds with conversion demands [3]

Market Review - The convertible bond market showed a slight increase, with the China Convertible Bond Index rising by 0.41% as of September 26, outperforming the equity market by 1.18 percentage points [1][7] - The technology growth sector performed exceptionally well, while the overall equity market exhibited structural differentiation after a strong performance in August [1][7] Convertible Bond Valuation - As of September 26, the average conversion premium for convertible bonds was 40.78%, marking a 6.51 percentage point increase from the end of August [2][15] - The average price of convertible bonds was 148.09 yuan, reflecting a slight decrease of 0.20% compared to the previous month [13][15] - The weighted average price of convertible bonds was 141.57 yuan, also down by 0.21% from August [13] Changes in Holder Structure - Public funds increased their holdings in convertible bonds, with a total of 1,512.42 billion yuan, accounting for 39% of the total market [23] - The total market size for convertible bonds on the Shanghai Stock Exchange decreased to 3,918.32 billion yuan, down by 74.74 billion yuan from the previous month [23] Strategy Layout - The report recommends maintaining a non-typical barbell strategy, focusing on technology growth sectors while incorporating low-priced cyclical stocks to mitigate risks from potential market fluctuations [3][33] - Suggested convertible bonds include those from leading companies in AI applications, copper alloy materials, and thin copper foil technology, as well as low-priced cyclical stocks in consumer goods and chemicals [3][33]

Market Review - Convertible bonds have continued to rise alongside equities, with the Shanghai Composite Index increasing by 3.74% in July, while the CSI Convertible Bond Index rose by 2.87%, underperforming equities by 0.87 percentage points [8][15] - The average closing price of convertible bonds reached 140.73 yuan as of July 31, marking a 4.44% increase from the end of June and a new high for 2023 [15][17] - The average conversion premium for convertible bonds was 39.20%, with a weighted average of 40.08%, both at the lowest levels since January 2023 [17][19] Strategy Layout - The recommended strategy involves a non-typical barbell approach, focusing on sectors such as military industry, AI computing power, and low-altitude economy, while also including low-volatility dividends and high-cost performance varieties to navigate potential market fluctuations [3][37] - The previous convertible bond selection yielded a return of 19.46% from May to July, significantly outperforming the CSI Convertible Bond Index's 8.17% increase, with all holdings generating positive returns [36][37] - The report suggests maintaining the barbell strategy, emphasizing high-quality stocks in popular themes and low-priced convertible bonds to enhance defensive positions [3][37] Changes in Holder Structure - As of July 2025, the total market for convertible bonds on the Shanghai Stock Exchange was 399.31 billion yuan, a decrease of 6.297 billion yuan from the previous month [2][24] - The top five holders of convertible bonds included public funds (1,419.79 billion yuan, 36%), corporate annuities (734.97 billion yuan, 18%), and insurance institutions (353.05 billion yuan, 9%) [2][24] - On the Shenzhen Stock Exchange, the total market for convertible bonds was 318.65 billion yuan, with public funds increasing their holdings by 8.115 billion yuan [2][24] Primary Market Dynamics - In July, nine new convertible bonds were listed, with four exceeding 1 billion yuan in issuance, indicating a positive market sentiment towards new issues [31][32] - The report notes that all new bonds had initial prices above 127 yuan, reflecting strong demand [31][32] - Several companies have received approval for convertible bond issuance, with ongoing applications and proposals in various stages of the approval process [31][34]