Core Viewpoint - The A-share market has seen a significant increase in institutional research activities in 2026, with approximately 760 listed companies undergoing various institutional investigations, indicating a growing interest in quality investment targets and industry trends [2] Group 1: Institutional Research Trends - Institutional research has accelerated, with a focus on high-quality companies across sectors such as electronics, new energy, machinery manufacturing, healthcare, and information technology [2] - The research activities are characterized by a focus on companies with strong growth potential, industry competitiveness, and favorable market conditions, leading to high frequencies of institutional visits [2][3] - Key areas of interest for institutions include industry prosperity, business development strategies, overseas market expansion, capacity utilization, and performance expectations [2][7] Group 2: High-Frequency Research Companies - Six companies have been the focus of institutional research with over 10 visits each, with Jiemai Technology leading at 15 visits, followed by Taihe New Materials and Binglun Environment [3][4] - Jiemai Technology specializes in electronic packaging materials and has shown steady revenue growth, with figures of 1.301 billion, 1.572 billion, 1.817 billion, and 1.526 billion from 2022 to the first three quarters of 2025 [4] - Taihe New Materials, with 14 visits, is a leader in the domestic spandex and aramid fiber industry, while Binglun Environment, with 13 visits, operates in multiple sectors including low-temperature refrigeration and environmental heating [4] Group 3: Companies with High Institutional Engagement - Four companies have received over 200 institutional visits, with Dajin Heavy Industry leading at over 300 visits, focusing on wind power tower production and high-value offshore wind markets [5] - Dajin Heavy Industry's revenue figures from 2022 to the first three quarters of 2025 are 5.106 billion, 4.325 billion, 3.780 billion, and 4.595 billion, showing a rebound in 2025 [5] - Neipu Mining Machinery, with a focus on heavy mining equipment, and Xiangyu Medical, specializing in rehabilitation medical devices, have also seen significant institutional interest [6] Group 4: Key Focus Areas in Institutional Research - Institutions are particularly interested in the growth potential of companies, with inquiries about industry conditions and capacity utilization being common [7][8] - Jiemai Technology reported full production capacity for its core products, while Dajin Heavy Industry highlighted its overseas market strategies, particularly in Europe [8] - The overall trend reflects a strong market recognition of quality listed companies, with institutions considering fundamental factors, industry outlook, and management teams in their research [7]

1. Report Industry Investment Rating - No industry investment rating is provided in the report. 2. Core Viewpoints of the Report - The sustainability of the polarized valuation depends on the direction of the equity market. The report makes three conjectures about the possible trends of the equity market and formulates corresponding convertible bond response plans [2][20]. - In the case of convertible bond prices and valuation indicators approaching the historical 100% quantile, if the spring rally continues, the Shanghai Composite Index breaks through 4200, and the market style shifts from small - cap to large - cap stocks, it is recommended to select individual convertible bonds in the growth technology sector [2][20]. - If the broad - based index continues the January shock trend and the small - cap style remains dominant, it is advisable to focus on core targets in popular sectors [2][20]. - If the equity market turns down, it is recommended to reduce positions first and then pay attention to defensive sectors [2][20]. 3. Summary by Relevant Catalogs Market Trends (2026/1/26 - 2026/1/30) Stock Market - The daily trading volume of the market remained high last week, with rapid rotation among sectors. The precious metals sector led the gains but had a large decline on Friday. Affected by the potential conflict risk between the US and Iran, the oil price soared, driving the performance of the A - share oil and gas sectors. The previous popular sectors such as commercial aerospace and space photovoltaics had significant corrections [8]. - Most of the Shenwan primary industries declined last week. The top - performing sectors were petroleum and petrochemicals (7.95%), communication (5.83%), coal (3.68%), non - ferrous metals (3.37%), and agriculture, forestry, animal husbandry, and fishery (1.82%); the bottom - performing sectors were national defense and military industry (-7.69%), power equipment (-5.10%), automobiles (-5.08%), and computers (-4.77%) [9]. Bond Market - The central bank's open - market operations were mainly net injections last week, and the capital market changed from tight to loose. The bond market sentiment was generally strong due to the intensified volatility of the equity market, frequent positive signals from the monetary policy, and rumors about new monetary policy tools. The 10 - year Treasury bond yield closed at 1.81% on Friday, down 1.86bp from the previous week [9]. Convertible Bond Market - Most convertible bond issues declined last week. The CSI Convertible Bond Index fell 2.61% for the whole week, the median price dropped 2.22%, and the calculated arithmetic average parity decreased 3.70% for the whole week. The overall market conversion premium rate increased 1.12% compared with the previous week [1][9]. - Most industries in the convertible bond market declined last week. The top - performing sectors were coal (0.57%), banks (-0.84%), agriculture, forestry, animal husbandry, and fishery (-0.87%), and building materials (-1.07%); the bottom - performing sectors were social services (-8.65%), national defense and military industry (-6.45%), computers (-5.51%), and electronics (-4.88%) [13]. - At the individual bond level, Tianzhun (machine vision), Baichuan Zhuan 2 (fine chemicals), Outong (data center power supply), Haomei (aluminum profiles), and Yunji (transportation machinery) led the gains; Xinzhi (AI application), Hangyu (commercial aerospace), Dongshi (driver training), Guanzhong (ecological restoration), and Huicheng (waste catalyst treatment) convertible bonds led the losses [1][14]. - The total trading volume of the convertible bond market last week was 422.855 billion yuan, with an average daily trading volume of 84.571 billion yuan, a slight decrease from the previous week [18]. Valuation Overview - As of January 30, 2026, for equity - biased convertible bonds, the average conversion premium rates for bonds with a parity in the ranges of 80 - 90 yuan, 90 - 100 yuan, 100 - 110 yuan, 110 - 120 yuan, 120 - 130 yuan, and above 130 yuan were 61.11%, 40.98%, 36.66%, 26.78%, 20.18%, and 20.8% respectively, at the 100%/100%, 98%/99%, 99%/100%, 98%/99%, 96%/99%, and 99%/99% quantiles since 2010/2021 [21]. - For bond - biased convertible bonds, the average YTM of bonds with a parity below 70 yuan was -4.65%, at the 1%/3% quantiles since 2010/2021 [21]. - The average implied volatility of all convertible bonds was 49.75%, at the 95%/99% quantiles since 2010/2021. The difference between the convertible bond implied volatility and the long - term actual volatility of the underlying stock was 8.36%, at the 96%/98% quantiles since 2010/2021 [21]. Primary - Market Tracking - No convertible bonds were announced for issuance last week (2026/1/26 - 2026/1/30). Lianrui Convertible Bond and Naipu Zhuan 02 were listed [28]. - Lianrui Convertible Bond (118064.SH): The underlying stock is Lianrui New Materials (688300.SH), belonging to the basic chemical industry. As of January 30, its market value was 16.128 billion yuan. The issued convertible bond scale is 695 million yuan, with a credit rating of AA. The funds after deducting issuance fees are planned for specific projects [28]. - Naipu Zhuan 02 (123265.SZ): The underlying stock is Naipu Mining Machinery (300818.SZ), belonging to the machinery equipment industry. As of January 30, its market value was 8.368 billion yuan. The issued convertible bond scale is 450 million yuan, with a credit rating of A+. The funds after deducting issuance fees are used for a project in Peru and to supplement working capital [29]. - As of the announcement on January 30, there are no convertible bonds announced for issuance or listing in the next week (2026/2/2 - 2026/2/6). Last week (2026/1/19 - 2026/1/23), 4 companies' applications were newly accepted by the exchange, 4 companies' plans passed the general meeting of shareholders, and 3 companies announced board plans. As of now, there are 100 convertible bonds awaiting issuance, with a total scale of 155.9 billion yuan, among which 8 have been approved for registration, with a total scale of 6.16 billion yuan [30][31].

Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - The sustainability of polarized valuations depends on the direction of the equity market. The report presents three scenarios for the equity market and corresponding convertible bond strategies: 1) If the spring rally continues, the Shanghai Composite Index breaks through 4,200, and the market style shifts from small - cap to large - cap, it is recommended to select convertible bonds related to the battery, automotive/robot/intelligent driving, edge - side AI, and innovative drug/CDMO sectors in the growth technology sector; 2) If the broad - based index continues the January oscillation and the small - cap style remains dominant, focus on core targets in popular tracks such as commercial space, AIDC - related gas turbines/liquid cooling, semiconductor equipment and materials, power semiconductors, and chemical industries; 3) If the equity market turns down, it is recommended to reduce positions first and then focus on defensive sectors like banks, power, and pig farming [2][20]. Summary According to Relevant Catalogs Market Focus from January 26 - January 30, 2026 - **Stock Market**: Daily trading volume remained high with rapid sector rotation. The precious metals sector led the gains but had a significant decline on Friday. The A - share oil and gas sector performed well due to the potential conflict risk between the US and Iran. Some previously popular sectors such as commercial space and space photovoltaics had significant pullbacks. Different sectors rose and fell on different days. In terms of industries, most Shenwan primary industries declined, with petroleum and petrochemicals, communications, coal, non - ferrous metals, and agriculture, forestry, animal husbandry, and fishery leading the gains, while national defense and military industry, power equipment, automotive, and computer sectors performing poorly [8][9]. - **Bond Market**: The central bank's open - market operations were mainly net injections, and the money market shifted from tight to loose. Bond market sentiment was generally strong. The 10 - year Treasury bond yield closed at 1.81% on Friday, down 1.86bp from the previous week [9]. - **Convertible Bond Market**: Most convertible bond issues declined. The CSI Convertible Bond Index fell 2.61% for the week, the median price dropped 2.22%, the arithmetic average parity fell 3.70%, and the overall market conversion premium rate increased 1.12% compared to the previous week. The arithmetic average conversion premium rates of convertible bonds in different parity ranges changed, and they were at high percentile values since 2023 [9]. Viewpoints and Strategies from February 2 - February 6, 2026 - After the convertible bond market adjusted with the equity market last week, the sustainability of polarized valuations depends on the equity market's direction. Three scenarios and corresponding strategies are proposed as mentioned in the core viewpoints [2][20]. Valuation Overview - As of January 30, 2026, the average conversion premium rates of equity - biased convertible bonds in different parity ranges were at high percentile values since 2010 and 2021. The average YTM of debt - biased convertible bonds with a parity below 70 yuan was at a low percentile value. The average implied volatility of all convertible bonds and the difference between the convertible bond implied volatility and the long - term actual volatility of the underlying stocks were at high percentile values [21]. Primary Market Tracking - **Last Week (January 26 - January 30, 2026)**: No convertible bonds were announced for issuance. Lianrui Convertible Bond and Naipu Convertible Bond 02 were listed. Lianrui Convertible Bond has a scale of 695 million yuan, and Naipu Convertible Bond 02 has a scale of 450 million yuan [28][29]. - **Future Outlook**: No convertible bonds are announced for issuance or listing in the next week (February 2 - February 6, 2026). As of now, there are 100 convertible bonds waiting to be issued, with a total scale of 155.9 billion yuan, of which 8 have been approved for registration, with a total scale of 6.16 billion yuan [30][31].

1. Report Industry Investment Rating No relevant information provided in the report. 2. Core Viewpoints of the Report - Last week, A - share market rose first and then fell, with the daily trading volume hitting a record high on Wednesday. The bond market yield declined, and the 10 - year Treasury bond rate closed at 1.84% on Friday, down 3.58bp from the previous week. Most convertible bond issues closed higher, with the CSI Convertible Bond Index up 1.08% for the week [1][8][9]. - Although the current market price and convertible bond valuations in each price - parity range are close to historical 100% quantile positions, the equity is in an upward main - rising wave. Institutions' fear of missing out on opportunities strongly supports the convertible bond valuations. Currently, it is the stage with the strongest certainty of upward market force, and investors are reluctant to reduce positions despite high valuations [3][19]. 3. Summary by Relevant Catalogs 3.1 Market Focus (January 12 - January 16, 2026) Stock Market - A - shares rose first and then fell. The daily trading volume reached a record high of 3.99 trillion yuan on Wednesday. After the exchange adjusted the margin ratio for margin trading on Wednesday, market sentiment cooled down. The commercial aerospace sector declined from its high, and the market focus shifted to AI applications and semiconductors. The dividend - paying sector underperformed [1][8]. - By industry, most Shenwan primary industries fell last week. Computer (3.82%), electronics (3.77%), non - ferrous metals (3.03%), media (2.04%), and machinery and equipment (1.91%) led the gains, while national defense and military industry (- 4.92%), real estate (- 3.52%), agriculture, forestry, animal husbandry and fishery (- 3.27%), and coal (- 3.11%) lagged [9]. Bond Market - Although the equity market continued to rise at the beginning of the week, the impact on the bond market weakened significantly. Due to the increased expectation of equity market adjustment after its rapid rise, the bond market yield declined. After the central bank cut the interest rate of structural monetary policy tools on Thursday, the yield fluctuated and remained stable overall. The 10 - year Treasury bond rate closed at 1.84% on Friday, down 3.58bp from the previous week [1][9]. Convertible Bond Market - Most convertible bond issues closed higher. The CSI Convertible Bond Index was up 1.08% for the week, the median price was up 0.63%, the arithmetic average parity was up 1.39%, and the market - wide conversion premium rate decreased by 0.64% compared with the previous week. In terms of individual bonds, Huayi, Dingjie, Haohan, Jingce Zhuan 2, and Weice led the gains, while Zai 22, Tianjian, Guanglian, Hugong, and Shentong convertible bonds led the losses [2][9][14]. - By industry, most convertible bond sectors in the market closed higher last week. Computer (4.92%), electronics (4.63%), media (4.62%), and machinery and equipment (4.32%) performed well, while national defense and military industry (- 5.17%), building materials (- 3.23%), coal (- 2.06%), and transportation (- 1.38%) underperformed [13]. - The total trading volume of the convertible bond market last week was 509.615 billion yuan, with an average daily trading volume of 101.923 billion yuan, an increase from the previous week [16]. 3.2 Views and Strategies (January 19 - January 23, 2026) - The consensus on rising prices supports the valuation of convertible bonds. Last week, the equity market rose first and then fell under the influence of cooling forces. The theme market shifted from aerospace to AI applications and semiconductor equipment, and related convertible bonds performed well. The average parity increased, and the median market price rose to 139 yuan. The premium rate of equity - biased convertible bonds in the high - parity range increased significantly. Convertible bond ETFs still showed a significant net inflow trend, and new issues remained strong [3][19]. - In terms of investment directions, for relative returns, it is recommended to focus on lithium - battery, semiconductor equipment and materials, chemical industry, and securities industries. For absolute - return funds, attention should be paid to the undervalued leading companies in underperforming industries such as two - wheeled vehicles, beauty and skincare, architectural design, and pig farming [4][20]. 3.3 Valuation Overview As of January 16, 2026, in equity - biased convertible bonds, the average conversion premium rates of bonds with parities in the ranges of 80 - 90 yuan, 90 - 100 yuan, 100 - 110 yuan, 110 - 120 yuan, 120 - 130 yuan, and above 130 yuan were 52.01%, 41.63%, 33.21%, 26.22%, 21.03%, and 21.08% respectively, at the 99%/100%, 98%/100%, 98%/100%, 99%/100%, 97%/100%, and 99%/100% quantiles since 2010/2021. In debt - biased convertible bonds, the average YTM of bonds with parities below 70 yuan was - 4.26%, at the 1%/4% quantile since 2010/2021. The average implied volatility of all convertible bonds was 51.03%, at the 96%/100% quantile since 2010/2021. The difference between the implied volatility of convertible bonds and the long - term actual volatility of the underlying stocks was 9.85%, at the 97%/100% quantile since 2010/2021 [21]. 3.4 Primary Market Tracking - Last week (January 12 - January 16, 2026), Shangtai Convertible Bond and Naipu Zhuan 02 announced their issuances, while Aohong, Shuangle, and Jin 05 convertible bonds were listed [28]. - As of the announcements on January 16, there were no announcements of convertible bond issuances and listings in the coming week (January 19 - January 23, 2026). Last week, 4 companies including Haitian Co., Ltd., Changgao Electric Co., Ltd., Tonglian Precision Co., Ltd., and Xianghe Industrial Co., Ltd. got the exchange's approval for registration, 1 company (Jiangshan Co., Ltd.) was accepted by the exchange, 2 companies (Runhe Materials and Qiangda Circuit) passed the shareholders' meeting, and 4 companies (Jindao Technology, Zhongchuang Zhiling, Caixun Co., Ltd., and Dingtong Technology) were at the board of directors' proposal stage [34]. - As of now, there are 99 convertible bonds waiting to be issued, with a total planned issuance scale of 155.14 billion yuan. Among them, 9 bonds have been approved for registration, with a total scale of 8.69 billion yuan, and 1 bond has passed the listing committee, with a scale of 0.38 billion yuan [34].