Core Viewpoint - The article highlights the trading activities in the Shanghai and Shenzhen stock markets, focusing on the top traded stocks, sector performances, and ETF transactions, indicating significant movements in capital flows and investor sentiment. Group 1: Trading Activities - The total trading volume of the Shanghai and Shenzhen Stock Connect today reached 378.506 billion, with Zijin Mining and Tianfu Communication leading in trading volume for the Shanghai and Shenzhen markets respectively [1] - The total trading amount for the Shanghai Stock Connect was 174.618 billion, while the Shenzhen Stock Connect totaled 203.888 billion [2] Group 2: Top Traded Stocks - In the Shanghai Stock Connect, the top traded stocks included Zijin Mining (39.72 billion), Cambricon (17.24 billion), and China Ping An (16.43 billion) [3] - In the Shenzhen Stock Connect, Tianfu Communication (51.26 billion), CATL (44.83 billion), and Zhongji Xuchuang (40.43 billion) were the top performers [4] Group 3: Sector Performance - The sectors with the highest net inflows of capital included Defense and Military (43.40 billion), Communication (30.03 billion), and Automotive (16.25 billion) [6] - Conversely, the sectors with the highest net outflows were Electronics (-199.50 billion), Computers (-162.39 billion), and New Energy (-115.12 billion) [7] Group 4: ETF Transactions - The top ten ETFs by trading volume included the Gold ETF (127.756 billion), A500 ETF Fund (95.401 billion), and A500 ETF Southern (78.299 billion) [12] - The Gold ETF saw a significant increase in trading volume, with a 152.31% increase compared to the previous trading day [12] - Several chemical-related ETFs experienced substantial reductions in shares, with the Chemical ETF (159870) decreasing by 1.4395 billion shares, the largest drop among ETFs [15]

Report Industry Investment Rating No information provided. Core Viewpoints - After the holiday, the convertible bond market declined slightly, but convertible bond ETFs continued to attract incremental funds. Before the Two Sessions, the convertible bond market is expected to feature policy - based games and sector rotations. Performance support will remain the core of valuation, high - price and high - premium convertible bonds may fluctuate significantly, and high - quality large - cap convertible bonds are expected to perform steadily. If investors' risk appetite increases, it is cost - effective to increase holdings in the main technology sectors [3][11]. Summary by Directory Policy Tracking - On February 25, 2026, five departments including the Shanghai Municipal Commission of Housing and Urban - Rural Development issued a notice to optimize real estate policies, including adjusting housing purchase restrictions, optimizing housing provident fund loan policies, and improving personal housing property tax policies, aiming to promote the stable and healthy development of the real estate market [4]. Secondary Market - Last week, major domestic equity market indices rose, with the Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index up 1.98%, 2.80%, and 1.05% respectively. Overseas, the conflict in the Middle East escalated, driving up precious metals and crude oil prices. Domestically, the RMB exchange rate strengthened, and the central bank took measures to prevent exchange - rate overshoot. The equity market showed a structural upward trend, with pro - cyclical sectors stronger [5]. - The convertible bond market indices declined, with average daily trading volume decreasing. However, convertible bond ETFs had a net purchase of 7.2 billion yuan. The large - cap style of the convertible bond market was dominant, and most convertible bonds in various industries fell. In terms of valuation, most industries' convertible bond valuations decreased [7][8][9]. - In the short term, the convertible bond market will follow the equity market with an upward - trending and volatile pattern. High - price and high - premium convertible bonds may fluctuate, and large - cap high - quality convertible bonds are expected to perform steadily. If market activity increases, it is advisable to increase holdings in technology - related convertible bonds [11]. - Most individual convertible bonds fell. Among rising bonds, Youcai Convertible Bond and Shuangliang Convertible Bond rose significantly due to non - early redemption announcements. Among falling bonds, those facing early redemption risk declined deeply [12]. Primary Market - No new convertible bonds were issued last week, and Aiwei Convertible Bond was listed. As of last Friday, the convertible bond market's outstanding scale decreased. Five convertible bonds were approved by the CSRC and seven passed the review of the issuance examination committee, waiting to be issued [31][32]. - In terms of terms tracking, one convertible bond announced a downward revision of the conversion price, four announced early redemption, and several announced non - early redemption or expected to trigger early redemption conditions. Ten convertible bonds had a conversion ratio of over 5% [34][36].

- The financing balance of the Shanghai and Shenzhen stock markets as of February 27 was 2,660.588 billion yuan, a decrease of 45.886 billion yuan from the end of the previous month[12] - The financing balance of the main board and the ChiNext board decreased, while the financing balance of the STAR Market increased[19] - The financing balance of the CSI 300 was 951.082 billion yuan, a decrease of 26.447 billion yuan from the end of the previous month[20] - The financing balance of the CSI 500 was 503.02 billion yuan, a decrease of 5.689 billion yuan from the end of the previous month[22] - The financing balance of the CSI 1000 was 544.918 billion yuan, a decrease of 7.049 billion yuan from the end of the previous month[22] - The financing balance of other sectors was 644.235 billion yuan, a decrease of 7.436 billion yuan from the end of the previous month[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The number of individual investors in margin trading and securities lending was 8.0051 million, an increase of 0.63% from the end of the previous month[26] - The number of institutional investors in margin trading and securities lending was 51,201, an increase of 0.39% from the end of the previous month[26] - The number of investors with margin trading and securities lending liabilities was 1,893,816, a decrease of 1.31% from the end of the previous month[26] - The average daily number of investors participating in margin trading and securities lending transactions from February 1 to February 27 was 453,113, a decrease of 24.51% from the previous month[26] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI 500, CSI 1000, and other sectors accounted for 35.98%, 19.03%, 20.62%, and 24.37% respectively[22] - The financing balance of the CSI 300, CSI

Equity Market Review and Outlook - The market experienced a mild rebound in the first week after the Spring Festival (February 24-27, 2026), with major indices approaching previous highs. The Shanghai Composite Index, CSI 300, ChiNext, CSI 500, and CSI 1000 saw gains of 1.98%, 1.08%, 1.05%, 4.32%, and 4.34% respectively. The total market turnover rebounded to 2.5 trillion yuan [5][6] - The easing of real estate policies in first-tier cities like Shanghai and geopolitical tensions in Iran boosted cyclical sectors such as real estate and chemicals, which rose on price increase expectations. Growth sectors like AI are beginning to extend from tight computing power to upstream semiconductor components and other supply chain segments, with price hikes observed in sub-sectors like electronic fabrics and capacitors [5][6] - Consumer sectors began to pull back after a concentrated realization of gains during the holiday [5] Fixed Income Market Review and Outlook - The bond market continued to fluctuate during the week (February 24-28, 2026). The 1-year government bond yield rose by 0.23 basis points to 1.32%, while the 10-year yield fell by 1.46 basis points to 1.78%. The 30-year yield increased by 2.66 basis points to 2.27%. Despite a rise in profit-taking sentiment post-holiday, a sudden geopolitical conflict led to a flight to safety, causing yields to drop [7][8] - Looking ahead, as profit-taking gradually exits and external uncertainties increase, even if the upcoming Two Sessions introduce economic targets and policies, there remains potential for exceeding expectations. The risk of mid-term adjustments may be limited, with a high probability of continued range-bound fluctuations in the short term [7][8] Public Fund Market Dynamics - On February 27, 2026, the first batch of four products under the new mutual recognition fund regulations was approved by the China Securities Regulatory Commission. These include Morgan Asia High Dividend Fund, Taiping Greater China New Power Fund, Fidelity Global Investment Fund-Hong Kong Bond Fund, and Huaxia Selected RMB Investment Grade Income Fund, covering two equity funds and two bond funds [9]

ELATE HOLDINGS LIMITED 誼礫控股有限公司 （ 於香港註冊成立之有限公司） （ 股份代號： 076） 就自願公告—業務發展最新情況作出之 補充公告 香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部 或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 本公司可應澳覓公司的需要，協助其對潛在海外市場進行初步的市場研究、 營商環境及合規層面的可行性分析，以供澳覓公司參考其業務發展方向。首 先集中資源於一至兩個文化與消費習慣與澳門相近的市場（優先考量臺灣或 新加坡）。在首個市場實現穩定運營後，將成功經驗複製至協議中確定的其 他目標市場（韓國、日本），同時探索雙方共同認可的新興市場機會。 1 茲提述誼礫控股有限公司（「本公司」）於二零二六年二月六日刊載之自願公 告—業務發展最新情况（「該公告」），內容有關本公司和澳覓公司（下文合 稱「訂約方」）簽訂為期三年之合作管理協議（「該協議」）。本公司董事會 (「董事會」)欲就該協議在本公告提供進一步資料。除另有指明外，本公告所用 詞彙與該公告所界定者具 ...

Group 1 - The core viewpoint of the article emphasizes the performance of the "brokerage golden stocks" and their ability to track the performance of mixed equity fund indices effectively, showcasing the analytical capabilities of brokerage firms [2][10]. - In February 2026, the top-performing stocks in the brokerage golden stock pool included Juguang Technology, Dongfang Tantalum, and Tianfu Communication, with significant monthly increases [1][3]. - The top three brokerages in terms of monthly returns were Caitong Securities, Dongwu Securities, and Guotou Securities, with returns of 14.54%, 10.54%, and 9.85% respectively, outperforming the mixed equity fund index and the CSI 300 index [6][8]. Group 2 - As of March 2, 2026, a total of 39 brokerages released their golden stocks, resulting in 273 unique A-shares after deduplication [21]. - The current allocation of golden stocks is heavily weighted in the electronics (12.50%), basic chemicals (8.85%), and non-ferrous metals (8.33%) sectors, with notable increases in the oil and petrochemical (+2.62%) and light manufacturing (+1.22%) sectors [27][21]. - The brokerage golden stock pool is characterized by a preference for mid-cap, high-valuation, and strong momentum styles [21][27]. Group 3 - The performance of the brokerage golden stock performance enhancement portfolio yielded an absolute return of 2.32% for the month and 14.06% year-to-date, with an excess return of 1.28% compared to the mixed equity fund index [35][31]. - The historical performance of the brokerage golden stock performance enhancement portfolio from 2018 to 2025 shows an annualized return of 21.71%, consistently ranking in the top 30% of active equity funds [33][35]. - The article highlights the importance of analyst recommendations, noting that stocks with multiple recommendations tend to gain higher market attention [22][24].

- The report focuses on the performance of the convertible bond market, highlighting that from February 24 to February 27, 2026, the weekly returns of the Shanghai Convertible Bond Index, Shenzhen Convertible Bond Index, and CSI Convertible Bond Index were -0.336%, -0.031%, and -0.234%, respectively, while the CSI All Share Index achieved a weekly return of 2.744%[7][10] - The convertible bond market's trading volume and value for the same period were 161,146.86 million units and 29,450,827.38 million yuan, respectively, showing a week-on-week decrease of -24.61% and -25.57%[7][10] - The median conversion premium rate of the convertible bond market as of February 27, 2026, was approximately 29.16%, with an arithmetic average of 41.94%, reflecting a significant week-on-week decline of -15.32% and -9.77%, respectively[10][17] - The report provides a breakdown of convertible bond prices, showing that as of February 27, 2026, the number of bonds priced below 100, between 100-110, 110-120, 120-130, 130-140, and above 140 were 0, 8, 14, 56, 88, and 205, respectively, with corresponding median conversion premium rates of 0.00%, 46.48%, 20.87%, 72.27%, 34.65%, and 23.63%[31][36][37] - The top five performing convertible bonds for the week were Aiwei Convertible Bond, Huiche Convertible Bond, Youcai Convertible Bond, Shuangliang Convertible Bond, and Guanglian Convertible Bond, with weekly returns of 72.02%, 21.84%, 21.16%, 19.66%, and 16.11%, respectively[18][21] - The bottom five performing convertible bonds for the week were Huicheng Convertible Bond, Weidao Convertible Bond, Ruichuang Convertible Bond, Xinfeng Convertible Bond, and Hengshuai Convertible Bond, with weekly returns of -18.37%, -16.84%, -16.28%, -14.04%, and -13.68%, respectively[18][19][21]

1. Report Industry Investment Rating No information provided in the given content. 2. Core Viewpoints of the Report - In February, the index showed high - level fluctuations. The CSI Convertible Bond Index rose by about 0.89% in February, significantly lower than the 5.82% increase in January. The convertible bond market was still in a range of systematic over - valuation and high volatility. After mid - February, the median full - scale conversion premium rate and implied volatility declined from local highs [3]. - In terms of style, the valuation of equity - biased convertible bonds compressed significantly by 5.91pct after the Spring Festival, more than that of debt - biased, balanced, and super debt - biased convertible bonds. This was due to profit - taking and the high concentration of positions after the pre - Spring Festival rally, as well as the pre - emptive risk - avoidance of potential callable bonds [3]. - In terms of industry allocation, there was a style switch in February. Sectors such as media, home appliances, national defense and military industry, steel, and consumer services showed strong elasticity, while some previously soaring technology sectors entered a phase of consolidation or high - level fluctuations [3]. - On the supply and demand side, under the new refinancing regulations, the supply side may gradually improve. In February, the convertible bond market had a net exit, but the monthly acceptance speed of new bonds was the highest since the "827" new policy in 2023 and the new "Nine - Point Plan" in 2024 [3]. - In March, the convertible bond market is expected to fluctuate at a high level. It is recommended to select bonds structurally in the fluctuations. Given the high valuation and geopolitical conflicts, the risk appetite may contract periodically. It is advisable to wait for the valuation to decline before going long [3]. - The top ten convertible bonds recommended for March are Libo, Huayi, Wankai, Hengyi, Haoyuan, Liyang, Huachen, Ruike, Jingce 2, and Zhongbei [3]. 3. Summary According to Relevant Catalogs 3.1 2 - month Convertible Bond Market Review - Index performance: In February, the CSI Convertible Bond Index rose by about 0.89% and closed at 525.2 points on February 27, significantly lower than the 5.82% increase in January. Before the Spring Festival (February 2 - 13), it rose to 526.44 points with a stage increase of about +3.61%. After the Spring Festival (February 24 - 27), it fell to 525.20 points, down about - 1.05% [7]. - Comparison with mainstream stock indexes: It underperformed small - cap stocks but was stronger than broad - based indexes. Its elasticity in February was between the CSI 300 and the CSI 1000, with a lower increase than the CSI 1000 (+3.71%) but higher than the CSI 300 (+0.09%) [7]. - Valuation: The convertible bond market was still systematically over - valued and highly volatile. As of February 27, 2026, the 100 - yuan premium rate was about 36.6%, corresponding to about the 97th percentile since 2018. After mid - February, the median full - scale conversion premium rate and implied volatility declined from local highs [10][11]. - Style valuation: The valuation of equity - biased convertible bonds compressed significantly by 5.91pct after the Spring Festival, mainly due to profit - taking and high - concentration risk, as well as the pre - emptive risk - avoidance of potential callable bonds [11]. - Industry allocation: There was a style switch in February. Media, home appliances, etc. showed strong elasticity, while some technology sectors entered a phase of consolidation. Financial and consumer sectors had mixed performance [12]. - Capital: In February, the holding face - value of Shanghai - listed convertible bonds and exchangeable bonds by insurance institutions (- 8.36%), QFII&RQFII (- 7.50%), etc. decreased significantly. The decline in the holdings of enterprise annuities and insurance may explain the valuation compression at the end of February [15]. - Supply: In February, the convertible bond market had a net exit of 66.53 billion yuan, with a month - end scale of 523.6 billion yuan. Three new convertible bonds were listed, and seven issuance plans were accepted, reaching the highest number since 2023. Under the new refinancing regulations, the supply may increase in the future [18]. 3.2 March: Structuring in Convertible Bond Fluctuations - Market outlook: In March, the convertible bond market is expected to fluctuate at a high level. Given the high valuation and geopolitical conflicts, the risk appetite may contract periodically. It is necessary to focus on defense and control drawdowns, and wait for the valuation to decline before going long [21]. - Market rhythm: The spring market has entered the "second half". The Two Sessions and the first - quarter reports will shift the market from "expectation - driven" to "performance - verified". In the medium term, the "broad fiscal + broad monetary" pattern remains unchanged, and convertible bonds still have allocation value [21]. - Market risks: Geopolitical conflicts may lead to oil price increases, which may impact the market through the oil - inflation - interest rate - stock market sentiment chain. The current high valuation makes the convertible bond market sensitive to equity market fluctuations and clause changes [22]. - Investment strategy: Adopt a "defense - first, balanced - structure" approach. Control positions to avoid excessive exposure at high valuations. Shift from high - elasticity to balanced and undervalued allocations. Pay attention to clause risks of medium - priced, near - maturity, and high - redemption - progress bonds [23]. 3.3 Individual Bonds: Top Ten Convertible Bonds in March - Defense - end bonds: Focus on medium - priced, large - cap, high - credit, low - premium, and liquid balanced or debt - biased convertible bonds, such as those related to banks, public utilities, high - dividend leaders, and some resource leaders [24]. - Offense - end bonds: Select individual bonds in high - growth sectors such as technology and resource sectors, avoiding those driven solely by valuation. The recommended ten convertible bonds are Libo, Huayi, Wankai, Hengyi, Haoyuan, Liyang, Huachen, Ruike, Jingce 2, and Zhongbei [24]. 3.4 Market One - Week Performance - Index performance: As of Friday's close, the Shanghai Composite Index rose 1.98% to 4162.88 points, and the CSI Convertible Bond Index fell 0.23% to 525.20 points. The top - three rising sectors in the stock market were steel (11.80%), non - ferrous metals (9.74%), and basic chemicals (6.21%); the top - three falling sectors were media (- 4.44%), consumer services (- 4.02%), and food and beverages (- 1.50%) [26]. - Convertible bond performance: 169 convertible bonds rose, accounting for 46%. The top - five gainers were Aiwei Convertible Bond (72.02%), Youcai Convertible Bond (21.16%), etc.; the bottom - five losers were Huicheng Convertible Bond (- 18.37%), Weidao Convertible Bond (- 16.84%), etc. 59 convertible bonds' conversion premium rates increased, accounting for 16%. The top - five in valuation change were Shuangliang Convertible Bond (21.69%), Youcai Convertible Bond (14.41%), etc.; the bottom - five were Honglu Convertible Bond (- 61.04%), Ruike Convertible Bond (- 25.73%), etc. [28] 3.5 Important Shareholders' Convertible Bond Reduction - This week, Diou Water issued a convertible bond reduction announcement. Many companies' major shareholders have reduced their holdings of convertible bonds [35][36]. 3.6 Convertible Bond Issuance Progress - This week, Opto - Technology Co., Ltd. (1.38 billion yuan) and Shenling Environment Co., Ltd. (1 billion yuan) passed the general meeting of shareholders; Zuoli Pharmaceutical Co., Ltd. (1.556 billion yuan) and Zhenyu Technology Co., Ltd. (1.88 billion yuan) were accepted by the exchange [37][38]. 3.7 Private EB Project Update - This week, there was no progress update on private EB projects [38]. 3.8 Style & Strategy: Small - scale, Low - rated, Debt - biased Bonds Prevail - This week, the small - scale, low - rated, debt - biased style of the convertible bond market was dominant. As of the last trading day of this week, the excess return of high - rated convertible bonds relative to low - rated ones was - 0.57pct, that of large - scale relative to small - scale was - 0.03pct, and that of equity - biased relative to debt - biased was - 0.04pct [39]. 3.9 One - Week Convertible Bond Valuation Performance: Fluctuation of 100 - yuan Premium Rate - The 100 - yuan premium rate of the convertible bond market fluctuated upward this week. As of the last trading day of this week, it reached 36.59%, up 0.69% from the last trading day before the holiday, at the 98.3% historical percentile in the past six months and 99.2% in the past year. The median full - scale conversion premium rate decreased by 4.86pct to 29.17%, and the market - value - weighted conversion premium rate (excluding banks) decreased by 3.28pct to 41.5% [46]. - Extreme pricing: As of the last trading day of this week, there was 1 convertible bond below par value, 1 below the bond floor, and 1 with a YTM greater than 3%, at the 11%, 20.7%, and 4% historical percentiles since 2016 respectively [51]. - YTM: The median YTM of bank convertible bonds was - 5.69%, 7.51pct lower than the 3 - year AAA corporate bond yield; the median YTM of AA - to AA + debt - biased convertible bonds was - 4.89%, 6.9pct lower than the 3 - year AA corporate bond yield [51].

- Model Name: Securities Firm Golden Stock Performance Enhancement Portfolio - Model Construction Idea: The model aims to optimize the selection of stocks from the securities firm golden stock pool to outperform the median of active equity funds[38] - Model Construction Process: The model uses the securities firm golden stock pool as the stock selection space and constraint benchmark, employs portfolio optimization to control deviations in individual stocks and styles from the golden stock pool, and uses the industry distribution of all public funds as the industry allocation benchmark[43] - Model Evaluation: The model has shown stable performance historically, consistently outperforming the equity hybrid fund index from 2018 to 2022, ranking in the top 30% of active equity funds each year[12][44] - Model Test Results: - Absolute return for the month (20260202-20260227): 2.32%[42] - Excess return relative to equity hybrid fund index for the month: 1.28%[42] - Absolute return for the year (20260105-20260227): 14.06%[42] - Excess return relative to equity hybrid fund index for the year: 5.62%[42] - Ranking in active equity funds for the year: 19.91% percentile (741/3721)[42] - Factor Name: Total Market Value - Factor Construction Idea: The factor aims to capture the performance of stocks with different market capitalizations[3] - Factor Construction Process: The factor is constructed by grouping stocks based on their total market value and tracking the performance of these groups[27] - Factor Evaluation: The total market value factor has performed well in the recent month and year-to-date[3][27] - Factor Name: SUE (Standardized Unexpected Earnings) - Factor Construction Idea: The factor aims to capture the performance of stocks with unexpected earnings[3] - Factor Construction Process: The factor is constructed by grouping stocks based on their SUE values and tracking the performance of these groups[27] - Factor Evaluation: The SUE factor has performed well in the recent month[3][27] - Factor Name: Expected Dividend Yield - Factor Construction Idea: The factor aims to capture the performance of stocks with different expected dividend yields[3] - Factor Construction Process: The factor is constructed by grouping stocks based on their expected dividend yields and tracking the performance of these groups[27] - Factor Evaluation: The expected dividend yield factor has performed well in the recent month[3][27] - Factor Name: EPTTM (Earnings Price to Trailing Twelve Months) - Factor Construction Idea: The factor aims to capture the performance of stocks based on their earnings price to trailing twelve months ratio[3] - Factor Construction Process: The factor is constructed by grouping stocks based on their EPTTM values and tracking the performance of these groups[27] - Factor Evaluation: The EPTTM factor has performed poorly in the recent month and year-to-date[3][27] - Factor Name: Analyst Net Upgrade Ratio - Factor Construction Idea: The factor aims to capture the performance of stocks based on the net upgrade ratio by analysts[3] - Factor Construction Process: The factor is constructed by grouping stocks based on their analyst net upgrade ratios and tracking the performance of these groups[27] - Factor Evaluation: The analyst net upgrade ratio factor has performed well year-to-date[3][27] - Factor Name: Analyst Net Upgrade Magnitude - Factor Construction Idea: The factor aims to capture the performance of stocks based on the net upgrade magnitude by analysts[3] - Factor Construction Process: The factor is constructed by grouping stocks based on their analyst net upgrade magnitudes and tracking the performance of these groups[27] - Factor Evaluation: The analyst net upgrade magnitude factor has performed well year-to-date[3][27] - Factor Name: Single Quarter ROE - Factor Construction Idea: The factor aims to capture the performance of stocks based on their single quarter return on equity[3] - Factor Construction Process: The factor is constructed by grouping stocks based on their single quarter ROE values and tracking the performance of these groups[27] - Factor Evaluation: The single quarter ROE factor has performed poorly year-to-date[3][27] - Factor Name: Intraday Return - Factor Construction Idea: The factor aims to capture the performance of stocks based on their intraday returns[3] - Factor Construction Process: The factor is constructed by grouping stocks based on their intraday return values and tracking the performance of these groups[27] - Factor Evaluation: The intraday return factor has performed poorly in the recent month and year-to-date[3][27] - Factor Name: Stripped Limit-Up Momentum - Factor Construction Idea: The factor aims to capture the performance of stocks based on their stripped limit-up momentum[3] - Factor Construction Process: The factor is constructed by grouping stocks based on their stripped limit-up momentum values and tracking the performance of these groups[27] - Factor Evaluation: The stripped limit-up momentum factor has performed poorly in the recent month[3][27] - Factor Test Results: - Total Market Value: Recent month performance - good, Year-to-date performance - good[3][27] - SUE: Recent month performance - good[3][27] - Expected Dividend Yield: Recent month performance - good[3][27] - EPTTM: Recent month performance - poor, Year-to-date performance - poor[3][27] - Analyst Net Upgrade Ratio: Year-to-date performance - good[3][27] - Analyst Net Upgrade Magnitude: Year-to-date performance - good[3][27] - Single Quarter ROE: Year-to-date performance - poor[3][27] - Intraday Return: Recent month performance - poor, Year-to-date performance - poor[3][27] - Stripped Limit-Up Momentum: Recent month performance - poor[3][27]

Core Insights - The article discusses the critical supply shortage of high-end electronic fabrics, particularly T-Glass, which is essential for AI chip manufacturing, and highlights the dominance of Nitto Denko in this market. Group 1: Market Dynamics - Nitto Denko holds over 90% of the global market share for T-Glass electronic fabric, which is crucial for AI chips due to its low thermal expansion properties [3] - The demand for high-end electronic fabrics has surged due to the AI race, with major tech companies like Nvidia, AMD, Google, and Amazon all requiring these materials [3][4] - Nitto Denko plans to triple its production capacity by 2028, but this will still not meet the global demand for electronic fabrics [3][5] Group 2: Competitive Landscape - The high technical barriers in producing high-end electronic fabrics make it difficult for new entrants to disrupt Nitto Denko's market position [4] - Taiwan's Taiwan Glass Group is emerging as a potential alternative supplier for Nvidia and other tech companies, having passed tests for T-Glass products [4] - The industry is exploring "quartz fabric" (Q-Fabric) as a next-generation alternative, which offers superior performance but is still in early development stages [5][8] Group 3: Investment and Future Outlook - Nitto Denko is receiving government subsidies of 2.4 billion yen to expand its T-Glass production, while the company plans to invest 80 billion yen over four fiscal years for global expansion [5] - Companies like Feilihua are gaining attention for their development of Q-Fabric, with Feilihua being the only supplier certified by Nvidia for this product [8] - The stock price of Feilihua has seen significant increases, reflecting market interest in advanced technologies, despite the company cautioning about the uncertainties in its new product's market performance [8][9]