1. Report Industry Investment Rating - Not provided in the given content 2. Core Viewpoints of the Report - The convertible bond market continues to rise with equities, and although the upward space for convertible bond valuations is decreasing, they still have potential under the influence of optimistic equity sentiment. The current positions of major institutional convertible bonds are generally low, and the absolute funds have mostly been realized. Relative funds are cautious about increasing convertible bond positions, with most maintaining their positions to keep their rankings, and the bond - selection style is relatively aggressive. There are no short - term negative factors in the domestic market, and the impact of the interim reports is limited. In the current market, the slow - bull characteristics are significant, and there is still potential for off - market funds in convertible bonds. One can appropriately ignore short - term fluctuations, adhere to the mid - line bullish view, and add positions at important support levels if there are callbacks [6][9]. - The A - share market continued to rise last week due to the combined influence of internal and external factors. The Fed's latest statement was dovish, the market was optimistic about the US interest rate cut, the Sino - US chip competition ignited the sentiment of the domestic chip industry, and the release of DeepSeek - V3.1 promoted the domestic chip sector. At the same time, the non - bank sector continued to strengthen under the bull market expectation [6][9]. - The judgment on the future market remains unchanged. The market will fluctuate and strengthen. The driving force of this bull market comes from the improvement of grass - roots governance ability and technological competitiveness, which has increased public confidence [9]. 3. Summary by Directory 3.1 Convertible Bond Viewpoint: Low Convertible Bond Positions, Unchanged Bullish Logic - The convertible bond market continues to rise with equities, with increasing trading volume. The median absolute price reaches 135 yuan, and the premium rate per 100 yuan also hits a new high. Although the upward space for convertible bond valuations is decreasing, they still have potential under the influence of optimistic equity sentiment. The current positions of major institutional convertible bonds are generally low, and the bond - selection style is relatively aggressive [9]. - There are no short - term negative factors in the domestic market, and the impact of the interim reports is limited. The current market shows significant slow - bull characteristics, and there is still potential for off - market funds in convertible bonds. One can appropriately ignore short - term fluctuations, adhere to the mid - line bullish view, and add positions at important support levels if there are callbacks [9]. - The A - share market continued to rise last week due to the combined influence of internal and external factors. The Fed's dovish statement, the Sino - US chip competition, and the release of DeepSeek - V3.1 promoted the domestic chip sector, and the non - bank sector continued to strengthen under the bull market expectation [9]. 3.2 Convertible Bond Review: Sustained Equity Momentum, Convertible Bonds Rising Accordingly 3.2.1 Market Overall Performance: Equity Volume Increases and the Technology Sector Leads the Rise - From August 18th to August 22nd, the market continued to rise significantly. The Shanghai Composite Index rose 3.49%, the Shenzhen Component Index rose 4.57%, the CSI 300 rose 4.18%, the CSI 1000 rose 3.45%, the ChiNext Index rose 5.85%, the STAR 50 rose 13.31%, and the Beijing Stock Exchange 50 rose 8.40%. All industries closed up, with communication, electronics, and comprehensive industries leading the gains. The average daily trading volume increased significantly from 4861.19 billion yuan to 2.58 trillion yuan [12]. - The top ten convertible bonds in terms of gains last week were Dongshi, Jintong, Huayi, Weice, Dongjie, Shuiyang, Songyuan, Xinzhi, Bo23, and Songsheng Convertible Bonds. In terms of trading volume, last week, Outong, Dayuan, Saili, Dongjie, Huahong, Jintong, Zhongqi, Chongda, Tianlu, and Xinzhi Convertible Bonds were relatively active [12]. 3.2.2 Convertible Bonds Reach New Trading Highs, High - Price and Medium - High - Rating Convertible Bonds Lead the Rise - Last week, convertible bonds significantly followed the rise, with the average daily trading volume continuing to rise to 94.06 billion yuan. The CSI Convertible Bond Index rose 2.83%, the parity center rose 2.5% to 112.1 yuan, and the conversion premium rate center rose 0.4% to 21.7%. In terms of style, high - price and medium - high - rating convertible bonds performed well last week, while AAA - rated and double - low convertible bonds were relatively weak [17].

Core Insights - The non-bank sector is experiencing a transformation driven by policy initiatives, which are expected to enhance revenue growth in the securities and insurance industries [2]. Group 1: Securities Industry - The implementation of the "Implementation Opinions on Strengthening Self-Regulation to Promote High-Quality Development of the Securities Industry" is likely to expand wealth management, investment banking, and asset management businesses, benefiting overall industry revenue growth [2]. - As of July 14, the CSI 800 Securities and Insurance Index component stocks showed mixed performance, with Guolian Minsheng leading with a 6.70% increase [1]. Group 2: Insurance Industry - The notification on guiding insurance funds for long-term stable investments is expected to increase the allocation of high-dividend stocks and long-term government bonds, enhancing the investment returns of insurance companies and improving industry valuations [2]. - The CSI 800 Securities and Insurance ETF has seen a significant increase in net value, rising by 49.53% over the past year, indicating strong investor interest [1]. Group 3: Market Performance - As of June 30, the top ten weighted stocks in the CSI 800 Securities and Insurance Index accounted for 63.35% of the index, highlighting the concentration of investment in these key players [3]. - The CSI 800 Securities and Insurance ETF has experienced a growth of 81 million shares over the past year, reflecting robust demand in the non-bank sector [1].