Core Viewpoint - Convertible bond funds have gained significant attention in the capital markets this year, with the A-share market experiencing a surge in trading sentiment, leading to the Shanghai Composite Index surpassing 3,800 points, marking a nearly ten-year high with an annual increase of over 15% [1] Group 1: Performance of Convertible Bond Funds - The China Convertible Bond Index has seen an annual increase of over 18%, also reaching a nearly ten-year high [1] - As of August 25, the average return of convertible bond funds this year is 21.5%, significantly outperforming other bond funds and even some mixed funds [1] - All 76 convertible bond funds (excluding newly established funds this year) have achieved positive returns [1] Group 2: Top Performing Convertible Bond Funds - In the category of funds with a scale exceeding 1 billion, "Southern Changyuan Convertible Bond A" managed by Liu Wenliang leads with a return of 40.69% [2] - "Bosera Convertible Bond Enhanced A" ranks second with a return of 30.67%, managed by Gao Hui and Guo Jun [2] - "Penghua Convertible Bond D" ranks third with a return of 30.27%, having been established for less than a year and already exceeding 60 billion in scale [3] Group 3: Performance of Smaller Scale Funds - In the category of funds with a scale between 100 million and 1 billion, "Yinhua Convertible Bond A" tops the list with a return of 28.22%, managed by Sun Hui [3] - "Oriental Convertible Bond A" also performs well among smaller funds, achieving a return of 28.92% [5]

Group 1 - The core viewpoint of the articles highlights the significant rise in the convertible bond market, with the China Convertible Bond Index reaching a ten-year high, driven by strong performance in the A-share market and a favorable investment environment for convertible bonds [1][2][3]. - The China Convertible Bond Index has seen a year-to-date increase of 7.18%, with a notable rise of over 22% since September 24, 2024, indicating strong market momentum [2]. - The convertible bond market is characterized by low volatility and low drawdown, attracting continuous inflow of new capital, which is expected to further enhance investment experiences [2][3]. Group 2 - Several funds tracking convertible bonds have reported positive returns this year, with the top-performing fund, China Europe Convertible Bond A, achieving a return of 13.11% [4][5]. - A total of 14 convertible bond funds have recorded returns exceeding 10%, showcasing the strong performance of this asset class [4][5]. - The performance of convertible bond ETFs has also been commendable, with returns exceeding 7% for the Bosera China Convertible Bond ETF and over 5% for the Haifutong Shanghai Investment Grade Convertible Bond ETF [5]. Group 3 - The supply-demand imbalance in the convertible bond market is a key factor supporting the rising valuations, with supply expected to contract while demand continues to grow [2][3]. - Historical data indicates that most convertible bonds exit through conversion to equity rather than actual repayment, suggesting manageable credit risk in the current market environment [3]. - The market's confidence in convertible bonds has strengthened due to reduced risks of delisting or default, further enhancing investor sentiment [3].

Core Insights - The average yield of bond funds in the public market for May was 0.19%, with approximately 80% of the products showing floating profits [2][8] - Convertible bond funds performed well, with an average return of 1.28% in May, while passive index bond funds lagged behind with a mere 0.07% increase [3][4] Performance Analysis - Top-performing funds included Zhonghai Convertible Bond A and Huashang Convertible Bond Selection A, with returns of 4.72% and 3.09% respectively [5][7] - A total of 600+ bond funds experienced floating losses in May, with Jin Ying Yuan Feng A and He Xu Zhi Yuan Xin Yue Li Rate Bond A showing significant declines of 1.95% and 1.69% [8][10] Fund Details - Zhonghai Convertible Bond A utilized a quantitative approach for style selection and invested in undervalued convertible bonds [7] - Jin Ying Yuan Feng A's significant drop was attributed to its heavy investments in stocks and bonds that underperformed in the market [8][10]