Group 1 - The core viewpoint of the report indicates that the valuation of convertible bonds still has room for upward movement, driven by strong expectations in the stock market and a "scarcity of assets" in the bond market, leading to increased allocation of funds to convertible bonds for equity returns [1][9]. - An analysis of the differences in the funding landscape for convertible bonds between July 2025 and January 2025 shows that while the total scale of outstanding convertible bonds has decreased, the proportion held by major institutional investors has not significantly increased, indicating a shift of holdings towards financial institutions [2][10]. - The current structure of convertible bonds shows a higher proportion of equity-sensitive bonds compared to early 2022, with an average premium rate that suggests equity-sensitive bonds still have potential for valuation increases, making them relatively cost-effective [3][11]. Group 2 - The weekly strategy suggests that despite high valuations, as long as the stock market maintains an upward or high-level oscillation, the likelihood of a significant drop in convertible bond valuations remains low, with continued interest from funds in participating in equity markets through convertible bonds [4][23]. - Specific sectors and companies to focus on include those benefiting from rising overseas computing power demand and AI industrialization, as well as high-end manufacturing sectors like new energy and automotive parts, indicating potential investment opportunities in companies such as Huanxu, Lingyi, and Tian23 [4][24].