1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In 2025Q2, the market value of convertible bonds held by public - funds decreased, with a 3.34% quarter - on - quarter reduction and a 1.02% year - on - year decrease. The proportion of convertible bond market value in bond investment market value and net value also declined. Different types of funds showed varying trends in convertible bond market value changes, with first - tier bond funds being the main growth driver [2][8][12]. - Convertible bond funds underperformed the index in terms of performance in 2025Q2, with a small - scale net redemption and a reduction in overall scale. However, the convertible bond position and leverage ratio increased simultaneously [4][8][11]. - In terms of industry allocation, banks remained an important underlying position for convertible bonds. Both public - funds and convertible bond funds mainly increased their positions in public utilities, non - banking, and chemical convertible bonds. Additionally, public - funds also increased their positions in pharmaceutical and biological industry convertible bonds, while convertible bond funds increased their positions in non - ferrous metal convertible bonds [8][11][41]. 3. Summary According to the Directory I. Public - funds' Convertible Bond Positions Decrease, with Increased Positions in Public Utilities and Non - banking Convertible Bonds (1) The Market Value of Convertible Bonds Held by Public - funds Decreases Quarter - on - Quarter, and Positions Decline - In 2025Q2, the market value of convertible bonds held by public - funds was 272.823 billion yuan, a 3.34% quarter - on - quarter and 1.02% year - on - year decrease. The proportion of convertible bond market value in bond investment market value and net value decreased by 0.14pct and 0.09pct respectively compared to 25Q1 [2][12]. - Most types of funds saw a decrease in the market value of convertible bonds held, mainly due to the overall contraction of the convertible bond market. Among them, first - tier bond funds continued to expand their convertible bond scale, while second - tier bond funds and convertible bond funds decreased their positions [13][14]. (2) The Proportion of Public - funds' Positions Decreases, while Securities Asset Management and Proprietary Trading Increase Positions - As of the end of 2025Q2, the total face value of convertible bonds held by the Shanghai and Shenzhen Stock Exchanges decreased by 5.90% quarter - on - quarter. Public - funds, insurance institutions, enterprise annuities, and general institutions all significantly reduced their positions, while securities proprietary trading and asset management increased their positions [33]. - The face value of convertible bonds held by public - funds decreased quarter - on - quarter, but there was a marginal improvement in July [37]. (3) Public - funds' Positions Mainly Increase in Public Utilities and Non - banking Convertible Bonds - In 2025Q2, the banking sector remained the primary layout, but the overall position market value decreased significantly due to the forced redemption of multiple bank convertible bonds. The market value of public utilities, non - banking, and other industries increased, while the market value of household appliances, banks, and other industries decreased [41]. (4) Industrial Bank Convertible Bonds Maintain the First - Ranked Heavy - Position Bond, but the Proportion of Banks Decreases - Industrial Bank Convertible Bonds remained the first - ranked heavy - position bond for public - funds. Among the top ten convertible bonds in terms of total position market value, the number of bank convertible bonds decreased compared to Q1. G Sanxia EB2 entered the top five, and the total position market value of Hebang Convertible Bonds increased by over 1 billion yuan [45]. II. Convertible Bond Funds Underperform the Index, with Simultaneous Increases in Convertible Bond Positions and Leverage Ratios (1) The Re - invested Unit Net Value Increases, with Overall Net Redemption - As of 2025Q2, there were 39 convertible bond funds in the market. Their performance underperformed the convertible bond index, with a small - scale net redemption and a 5.96% quarter - on - quarter reduction in scale [50]. - The average increase in the re - invested unit net value of 39 convertible bond funds was 3.44%, and the median was 3.34%. The net redemption amount was 3.272 billion yuan, and the net subscription rate was 30.77%, a 20.51pct decrease compared to 25Q1 [50][52]. (2) The Convertible Bond Position Increases Quarter - on - Quarter, and the Leverage Ratio Increases Slightly - In the second quarter of 2025, the proportion of convertible bond market value in the net value of 39 convertible bond funds increased by 0.64pct quarter - on - quarter, and the median position increased by 4.78pct. The average leverage ratio increased by 2.10 percentage points [64]. (3) Convertible Bond Funds Mainly Increase Positions in Public Utilities, Non - banking Finance, etc. - Most industries saw an increase in the number of times held by convertible bond funds in 2025Q2. Public utilities and non - banking finance had the largest increases in the proportion of position market value. Banks and public utilities remained among the top heavy - position industries [5][50]

Report Industry Investment Rating No relevant information provided. Core Viewpoints of the Report - In July, the convertible bond market continued its upward trend, with the equal - weighted index significantly outperforming the weighted index. The median convertible bond price reached a maximum of 129 yuan, approaching the level at the beginning of 2022, but the structure showed that low - priced bonds were significantly higher than those at the beginning of 2022, while high - priced bonds were significantly lower [2][9]. - The July market was a "second - derivative" fluctuation, while the equity "first - derivative" remained positive. Before the September 3 parade, A - shares may have opportunities, and the dumbbell strategy (high - dividend + micro - cap stocks) may rebound. The convertible bond market will continue to follow the underlying stocks and remain strong [2]. - The new VAT policy on the interest income of bonds such as treasury bonds may increase the cost - effectiveness of stable and low - volatility convertible bonds, and the buying volume of bond - type convertible bonds and the entire convertible bond market may increase [2]. - After short - term winning - rate volatility pricing, the market will shift to odds - based advantages. It is recommended to pay attention to the cost - effectiveness improvement of bank convertible bonds and high - elasticity varieties, and the future will shift from position - based victory to structure - based victory [4]. Summary According to Relevant Catalogs 1. Review of the Convertible Bond Market in July: Recovery under Strong Equity - **Price and Index Performance**: The convertible bond market continued to rise in July, with a steeper upward slope compared to June. The equal - weighted index significantly outperformed the weighted index, and there was a slight pullback at the end of the month. The median convertible bond price reached a maximum of 129 yuan and closed at around 127 yuan at the end of the month [2][9]. - **Style and Sector Performance**: In July, small - cap and low - rating styles were dominant again, and their excess performance since the beginning of the year reached a new high. The pharmaceutical sector led the rise, while the financial sector significantly underperformed other sectors since 2025 [10][12][15]. - **Comparison with Underlying Stocks**: Convertible bonds slightly underperformed the underlying stocks, but the underperformance margin further narrowed compared to June. The convertible bond market showed strong performance overall, and its valuation advantage was significant [16][21]. - **Valuation Situation**: The convertible bond valuation confirmed an upward trend, with the 100 - yuan premium rate rising to a maximum of 33% in July. The current high - valuation problem is mainly reflected in the low - parity area, while the 120 - 130 yuan parity is still a valuation depression [22][24][27]. 2. Outlook for the Convertible Bond Market in August: Shifting from Position - Based Victory to Structure - Based Comparison - **Equity Market and Convertible Bond Market**: The short - term adjustment of the equity market is due to the full implementation of the market rotation and catch - up market, and the market has returned to a volatile state. Before the September 3 parade, A - shares may have opportunities, and the convertible bond market will follow the underlying stocks and remain strong [2][46]. - **Valuation of Convertible Bonds**: The high valuation of convertible bonds may be maintained because the overall risk of the stock market is controllable. However, the absolute valuation of bond - type convertible bonds is relatively high, and there are potential adjustment risks. After the short - term adjustment, they have certain cost - effectiveness [48][53][60]. - **Impact of VAT Policy**: The adjustment of the bond VAT policy may increase the attractiveness of bond - type convertible bonds. After the tax increase, the cost - effectiveness of pure bonds decreases, and the buying volume of bond - type convertible bonds may increase [63][66]. - **Cost - Effectiveness of Different Types of Convertible Bonds**: The cost - effectiveness of high - dividend and low - volatility convertible bonds such as bank convertible bonds may increase, and attention should also be paid to high - elasticity varieties and individual bonds with odds advantages [4]. 3. Bond Selection Directions and Targets in August - **Bond Selection Directions**: First, pay attention to the directions favored by the high - to - low shift in the August market, such as bank convertible bonds and some "bank - like" convertible bonds; second, focus on small - cap growth sectors such as self - controllability and national defense and military industries; third, pay attention to convertible bonds that are not subject to forced redemption or have been listed for less than 6 months; fourth, pay attention to convertible bonds that can replace underlying stocks [4]. - **Targets in August**: Low - volatility convertible bonds include Lvdong Convertible Bond, Hengyi Convertible Bond 2, etc.; stable convertible bonds include Bo 25 Convertible Bond, Guanghe Convertible Bond, etc.; high - volatility convertible bonds include Daotong Convertible Bond, Jiahe Convertible Bond, etc. [4]

Report Summary 1) Report Industry Investment Rating The provided content does not mention the industry investment rating. 2) Core Viewpoints The report presents the top ten convertible bonds for August 2025, including their ratings, closing prices at the end of July, conversion premium rates, and P/E ratios of the underlying stocks. It also provides an overview of each issuing company, including business scope, financial performance, and key points [14][29]. 3) Summary by Company Zhongte Convertible Bond (AAA) - Company is a global leader in specialty steel manufacturing with a production capacity of about 20 million tons. It has a complete industrial chain and coastal - river production bases [14][15]. - In 2024, revenue was 109.203 billion yuan (down 4.22% year - on - year), and net profit was 5.126 billion yuan (down 10.41% year - on - year). In Q1 2025, revenue was 26.84 billion yuan (down 5.59% year - on - year), and net profit was 1.384 billion yuan (up 1.76% year - on - year) [14]. - Key points: It is one of the companies with the most complete product specifications in the global special steel industry, has leading cost - control capabilities, and has opportunities for external expansion [15]. Shanlu Convertible Bond (AAA) - Company focuses on road and bridge construction and maintenance, and has expanded into other fields. It has a comprehensive business and management system [29]. - In 2024, revenue was 71.348 billion yuan (down 2.3% year - on - year), and net profit was 2.322 billion yuan (up 1.47% year - on - year). In Q1 2025, revenue was 9.764 billion yuan (up 1.95% year - on - year), and net profit was 249 million yuan (up 1.89% year - on - year) [29]. - Key points: It has the concept of "China - specific valuation" due to state - owned control, has potential for improvement in its balance sheet and order volume, can benefit from infrastructure construction in Shandong Province, and is exploring the Belt and Road Initiative markets [30]. Hebang Convertible Bond (AA) - Company has advantages in resource reserves and has diversified into the chemical, agricultural, and photovoltaic industries, with a four - sector business layout [42]. - In 2024, revenue was 8.547 billion yuan (down 3.13% year - on - year), and net profit was 31 million yuan (down 97.55% year - on - year). In Q1 2025, revenue was 1.726 billion yuan (down 13.68% year - on - year), and net profit was 13 million yuan (down 57.99% year - on - year) [42]. - Key points: Its phosphate mines and salt mines are profitable, and its liquid methionine production is a major profit contributor [43]. Aima Convertible Bond (AA) - Company is a leading enterprise in the electric two - wheeler industry, with self - developed products sold through dealers [59]. - In 2024, revenue was 21.606 billion yuan (up 2.71% year - on - year), and net profit was 1.988 billion yuan (up 5.68% year - on - year). In Q1 2025, revenue was 6.232 billion yuan (up 25.82% year - on - year), and net profit was 605 million yuan (up 25.12% year - on - year) [59]. - Key points: The "trade - in" subsidy may continue, the implementation of the new national standard may bring policy dividends, and there is room for improvement in gross margin [60]. Xingye Convertible Bond (AAA) - Company is one of the first joint - stock commercial banks in China and has evolved into a modern financial service group [73]. - In 2024, revenue was 212.226 billion yuan (up 0.66% year - on - year), and net profit was 77.205 billion yuan (up 0.12% year - on - year). In Q1 2025, revenue was 55.683 billion yuan (down 3.58% year - on - year), and net profit was 23.796 billion yuan (down 2.22% year - on - year) [73]. - Key points: Net interest income is growing steadily, asset quality is stable, and the company's scale and customer base are expanding [74]. Youfa Convertible Bond (AA) - Company is the largest welded steel pipe enterprise in China, with a wide range of products used in multiple fields [87]. - In 2024, revenue was 54.822 billion yuan (down 10.01% year - on - year), and net profit was 425 million yuan (down 25.46% year - on - year). In Q1 2025, revenue was 11.402 billion yuan (up 6.06% year - on - year), and net profit was 133 million yuan (up 9680.17% year - on - year) [87]. - Key points: It has a national layout, is expanding overseas, and maintains a high dividend rate [88]. Chongyin Convertible Bond (AAA) - Company is a local joint - stock commercial bank in the upper reaches of the Yangtze River and Southwest China, with a wide range of business operations [102]. - In 2024, revenue was 13.679 billion yuan (up 3.54% year - on - year), and net profit was 5.117 billion yuan (up 3.8% year - on - year). In Q1 2025, revenue was 3.581 billion yuan (up 5.3% year - on - year), and net profit was 1.624 billion yuan (up 5.33% year - on - year) [102]. - Key points: It can benefit from the development of the Chengdu - Chongqing economic circle, its asset scale is growing, and it is actively marketing key industries [103]. Tianye Convertible Bond (AA+) - Company is a leading enterprise in the chlor - alkali chemical industry in Xinjiang, with an integrated circular economy industrial chain [116]. - In 2024, revenue was 11.156 billion yuan (down 2.7% year - on - year), and net profit was 68 million yuan (up 108.83% year - on - year). In Q1 2025, revenue was 2.417 billion yuan (up 8.17% year - on - year), and net profit was - 17 million yuan (up 89.97% year - on - year) [116]. - Key points: The cost of caustic soda production is relatively fixed, and the company plans to increase dividend frequency and has coal mine projects in progress [117]. Huayuan Convertible Bond (AA -) - Company focuses on building a complete vitamin D3 industrial chain and has expanded into other vitamin products [131]. - In 2024, revenue was 1.243 billion yuan (up 13.58% year - on - year), and net profit was 309 million yuan (up 60.76% year - on - year). In Q1 2025, revenue was 326 million yuan (down 1.18% year - on - year), and net profit was 97 million yuan (up 5.5% year - on - year) [131]. - Key points: Its NF - grade cholesterol and 25 - hydroxyvitamin D3 products are industry leaders, and it is expanding its product portfolio and has achievements in the pharmaceutical field [132]. Yushui Convertible Bond (AAA) - Company is the largest water supply and drainage enterprise in Chongqing, with a monopoly position in the local market [147]. - In 2024, revenue was 6.999 billion yuan (down 3.52% year - on - year), and net profit was 785 million yuan (down 27.88% year - on - year). In Q1 2025, revenue was 1.652 billion yuan (up 8.66% year - on - year), and net profit was 237 million yuan (up 28.91% year - on - year) [147]. - Key points: It has a high market share, is expanding its business outside Chongqing, and has achieved cost control through intelligent applications [148].

1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report In Q2 2025, the convertible bond market generally followed the trend of the equity market, with the convertible bond index rising. However, the scale of convertible bonds held by funds decreased, and the convertible bonds of the banking industry were significantly reduced. Different types of funds showed different trends in holding convertible bonds, and the performance of convertible bond funds was stronger than that of the Wind All - A Index and the CSI Convertible Bond Index [2][3][4]. 3. Summary According to the Directory 3.1 2025 Q2 Market Review - Most major market indices rose, except for the Shenzhen Component Index. The Shanghai Composite Index rose 2.8%, the Shenzhen Component Index fell 1.3%, the ChiNext Index rose 1.2%, the Wind All - A Index rose 3.0%, and the CSI Convertible Bond Index rose 3.3%. The convertible bond market generally followed the trend of the equity market, and the conversion premium rate decreased from 46.58% on April 1 to 44.09% on June 30 [2][14]. 3.2 Fund Holding Convertible Bond Behavior Analysis 3.2.1 Fund Holding Convertible Bond Total Scale Change - As of the end of Q2 2025, the balance of the convertible bond market was 660.618 billion yuan, a decrease of 40.389 billion yuan from the end of the previous quarter. The scale of convertible bonds held by funds was 272.825 billion yuan, a decrease of 9.457 billion yuan from the end of the previous quarter, a year - on - year decrease of 1.21% and a quarter - on - quarter decrease of 3.35%. The proportion of the market value of convertible bonds held by funds to the balance of the convertible bond market was 41.30%, an increase of 1.03 percentage points compared with Q1 2025 [16][17]. 3.2.2 Various Types of Funds Holding Convertible Bond Scale Change - In Q2 2025, the secondary hybrid bond funds held the largest scale of convertible bonds, with a market value of 8.5867 billion yuan, followed by the primary hybrid bond funds with a market value of 7.2656 billion yuan. The secondary hybrid bond funds reduced their holdings of convertible bonds by 8.14 billion yuan, while the primary hybrid bond funds increased their holdings by 6.05 billion yuan [23][29]. 3.2.3 Fund Positioning Behavior Analysis - **Industry Distribution**: The convertible bonds of the banking sector were still the main allocation direction of funds. In Q2 2025, the top five industries with the largest scale of convertible bonds held by funds were banking, power equipment, basic chemicals, electronics, and non - ferrous metals. The convertible bonds of the banking industry were significantly reduced by over 14 billion yuan, while those of basic chemicals, non - banking finance, electronics, automotive, and pharmaceutical biology industries were increased by over 500 million yuan [37][40]. - **Individual Bond Distribution**: At the end of Q2 2025, among the top 5 convertible bonds held by funds, 4 were bank - related convertible bonds. The Bank of Shanghai Convertible Bond was the individual bond with the largest increase in holdings, followed by the Hebang Convertible Bond [45][47]. - **Rating Situation**: Among the convertible bonds held by funds, the proportion of AA - rated convertible bonds was relatively high, with 143 bonds, accounting for 30.82% [53]. 3.3 Convertible Bond Fund Holding Convertible Bond Behavior Analysis 3.3.1 Convertible Bond Fund Scale Change - As of the end of Q2 2025, there were 38 convertible bond funds in existence, holding a scale of 40.229 billion yuan, a decrease of 2.201 billion yuan from the previous quarter [56]. 3.3.2 Convertible Bond Fund Positioning Behavior Analysis - **Industry Distribution**: Convertible bond funds held the largest market value of bank - related convertible bonds, with a scale of 6.917 billion yuan. The convertible bonds of the non - banking finance industry were increased by 413 million yuan, while those of the banking industry were reduced by 1.583 billion yuan [57][59]. - **Performance**: In Q2 2025, the average return rate of convertible bond funds was 3.50%, the median return rate was 3.43%, and the average return rate of the top 10 convertible bond funds was 4.98%. The performance of convertible bond funds was stronger than that of the Wind All - A Index and the CSI Convertible Bond Index [63].

1. Report Industry Investment Rating There is no information provided regarding the industry investment rating in the given content. 2. Core Viewpoints of the Report - In Q2 2025, secondary bond funds and partial - debt hybrid funds reduced their convertible bond allocation, while first - level bond funds were the main force for increasing convertible bond holdings. The convertible bond market scale decreased significantly by 43 billion yuan, and the overall convertible bond holdings of public funds decreased by 5.4 billion yuan to 282.2 billion yuan [1][13]. - The convertible bond funds led the active funds in performance in Q2 2025, with a median net value growth of 3.52% for 41 (pan) convertible bond funds, but the overall scale declined [2]. - Among the high - performing products, 85 out of 87 funds with a convertible bond proportion of over 40% in the fund's total assets and a total asset value of over 100 million yuan achieved positive returns. The median net value growth rate in Q2 was 3.03%, and as of July 24, it was 7.24% [3]. 3. Summary According to the Directory 3.1 Fund Holding Convertible Bond Scale and Fund Type Distribution - In Q2 2025, the total asset scale of public funds reached 37.3 trillion yuan (excluding QDII and REITs), with the number reaching 12,576. The scale and number increased significantly compared to the previous quarter. The scale of pan - fixed - income + funds increased, and the total asset value of convertible bond funds slightly increased from 56.338 billion yuan at the end of last year to 56.636 billion yuan, but decreased compared to the end of Q1 [12]. - The total asset values of first - level/second - level bond funds/partial - debt hybrid funds changed from 883.6 billion yuan/793.7 billion yuan/288.7 billion yuan at the end of 2024 to 1004.1 billion yuan/940.3 billion yuan/283.8 billion yuan respectively. The number of funds with a decreased convertible bond position was more than those with an increased position in Q2 2025, and the ratio of adding - position funds to reducing - position funds was 0.9 [12][14]. - The number of funds with a convertible bond position of over 5% decreased significantly. By fund type, first - level bond funds, second - level bond funds, convertible bond - type funds, partial - debt hybrid funds, and flexible allocation funds were the main forces for convertible bond allocation. The average convertible bond position of convertible bond funds increased to 78.84% [17][21]. - More first - level bond funds started to allocate convertible bonds in Q2 2025. The scale of short - term pure bond funds, first - level bond funds, and second - level bond funds expanded significantly, and the proportion of first - level bond funds with convertible bond holdings in the total scale of first - level bond funds rose to 57.8%, the highest since 2023 [26]. 3.2 Public Fund Convertible Bond Individual Bond Allocation Situation Sorting - In Q2 2025, public funds increased their holdings of high - price and balanced convertible bonds and reduced their holdings of partial - equity, partial - debt, and bank convertible bonds. At the individual bond level, funds increased their positions in convertible bonds related to computing power, military industry, medicine, and pig farming, and significantly reduced their positions in photovoltaic and mechanical convertible bonds [28][30]. - The sharp decline in the scale of bank convertible bonds led to a switch in the market's bottom - position allocation. Most financial convertible bonds were added to positions. Some low - price varieties in sectors such as environmental protection, public utilities, steel, and transportation were increased in holdings, while high - dividend targets that were favored in Q1 2025 saw a decrease in the number of times they entered the top 10 heavy - position holdings [31]. - Convertible bonds related to the military industry and computing power were generally added to positions. Most pharmaceutical convertible bonds were increased in holdings due to the recovery of the pharmaceutical industry's prosperity. The performance of automobile industry convertible bonds was divided, with some decreasing and some increasing in the number of times they entered the top 10 heavy - position holdings [34][35][37]. - In the resource sector, copper - processing - related convertible bonds were reduced, while some others were added. In the chemical sector, large - cap low - price varieties were significantly increased in positions, and the performance of other convertible bonds was relatively divided. In the consumption sector, most home appliance convertible bonds were reduced, light industry and textile and apparel convertible bonds increased in the number of times they entered the top 10 heavy - position holdings, and the performance of food and beverage convertible bonds was divided [38][40]. 3.3 Statistics on the Returns of Various Funds in Q2 2025 - Convertible bond funds led the active funds in performance in Q2 2025. The average returns of first - level bond funds, second - level bond funds, partial - equity hybrid funds, partial - debt hybrid funds, and flexible allocation funds in Q2 2025/nearly one year were +1.19%/1.85%, +1.39%/2.90%, +2.94%/12.71%, 1.29%/3.23%, and 2.39%/9.11% respectively [41]. - The convertible bond funds performed well, but the overall scale declined. The median return of 41 convertible bond funds in Q2 was +3.52%, and the return of convertible bond ETFs was 3.6%. The median return of these 41 products in nearly one year was 20.1%. The scale of convertible bond ETFs slightly decreased to 36.924 billion yuan in Q2 but rose to 41.518 billion yuan as of July 24 [43]. - Among the funds with a convertible bond proportion of over 40% in the fund's total assets and a total asset value of over 100 million yuan, 85 out of 87 achieved positive returns. The median net value growth rate in Q2 was 3.03%, and as of July 24, it was 7.24%. The top - performing A fund had strong bond - selection ability, maintained a high position, and outperformed the index in the upward phase of the equity market. The second - ranked B fund allocated to securities + growth, with a decreasing convertible bond position and strong historical net value stability [3][52][60].

1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - In 25Q2, the scale of convertible bonds held by public - offering funds accounted for 42.44% of the total market value of convertible bonds, with a slight decrease in positions. The convertible bond market showed a net outflow trend due to large - scale bond delistings and an increase in forced redemptions [2][12]. - The market value and proportion of convertible bonds held by first - tier bond funds increased, while those of second - tier bond funds, other funds, partial - debt hybrid funds, and flexible allocation funds decreased [2][13]. - The market value of convertible bonds held by convertible bond funds decreased by 3.42% quarter - on - quarter, but the convertible bond position and leverage ratio increased slightly. The average return of convertible bond funds in 25Q2 was slightly lower than the CSI Convertible Bond Index [4][23][29]. - Public - offering funds significantly increased their positions in industries such as social services, non - bank finance, beauty care, food and beverage, and basic chemicals, and reduced their positions in industries such as steel, banks, and household appliances [6][35]. 3. Summary According to the Directory 3.1 Public - Offering Fund Convertible Bond Holdings - In 25Q2, the balance of the convertible bond market was 642.481 billion yuan, a 7.16% decrease from 25Q1. Public - offering funds held convertible bonds worth 272.661 billion yuan, accounting for 42.44% of the total market value of convertible bonds, a 1.65 - percentage - point increase from 25Q1. The position of public - offering funds in convertible bonds was 0.73%, a 0.09 - percentage - point decrease from 25Q1 [2][12]. - First - tier bond funds increased their holdings of convertible bonds by 6517 million yuan (+3.56%), while second - tier bond funds decreased their holdings by 7933 million yuan (-1.06%), other funds by 1991 million yuan (-0.55%), partial - debt hybrid funds by 1969 million yuan (-0.38%), flexible allocation funds by 1215 million yuan (-0.29%), and convertible bond funds by 3022 million yuan (+0.57%) [2][13]. - As of 25Q2, there were 60 public - offering funds (excluding convertible bond funds) with a convertible bond market value of over 1 billion yuan, with a total market value of 170.987 billion yuan, a 3.41% decrease from 25Q1, accounting for 62.71% of the market value of public - offering funds investing in convertible bonds. There were 311 public - offering funds (excluding convertible bond funds) with a convertible bond market value of over 100 million yuan, with a total market value of 249.435 billion yuan, a 3.30% decrease from 25Q1, accounting for 91.48% of the market value of public - offering funds investing in convertible bonds [3][18]. 3.2 Convertible Bond Fund Convertible Bond Holdings - As of 25Q2, there were 40 convertible bond funds, holding convertible bonds worth 8.5233 billion yuan, a decrease of 302.2 million yuan from 2025Q1, a 3.42% quarter - on - quarter decrease [4][23]. - The convertible bond position of convertible bond funds increased from 84.49% in 25Q1 to 84.99%, a 0.50 - percentage - point increase. The leverage ratio increased from 137% to 142%, a 5 - percentage - point increase [4][26]. - In 25Q2, the average annualized return of the CSI Convertible Bond Index was 17.32%, and the average annualized return of convertible bond funds was 15.90%. There were 11 convertible bond funds that outperformed the CSI Convertible Bond Index, with a winning rate of 27.5%; 15 outperformed the convertible bond fund index, with a winning rate of 37.5% [5][29]. - Public - offering funds significantly increased their positions in social services, non - bank finance, beauty care, food and beverage, basic chemicals, and other industries. Industries such as steel, banks, and household appliances saw a significant decrease in the market value of public - offering fund holdings in 25Q2 [6][35]. - The top five heavy - position convertible bonds of convertible bond funds were Industrial Bank Convertible Bonds, Shanghai United Bank Convertible Bonds, 25 Treasury Bond 01, Shanghai Pufa Bank Convertible Bonds, and Chongqing Bank Convertible Bonds [6][38].

Performance Insights - In Q2 2025, convertible bond funds achieved a median return of 3.52%, outperforming pure bond funds which had returns of 0.96%[1] - The overall performance of typical fixed income + funds surpassed that of pure bond funds following a rapid market recovery after a sharp decline[1] Fund Size and Positioning - In Q2 2025, the size of convertible bond funds decreased by 3.67% (CNY 36 billion) to CNY 948 billion, while first and second-tier bond funds increased by CNY 800 billion and CNY 385 billion, reaching CNY 8,487 billion and CNY 8,077 billion respectively[2][20] - The convertible bond fund's position increased slightly by 0.18 percentage points to 91.41%, while first-tier bond funds saw a minor decrease of 0.11 percentage points to 8.54%[24] Market Dynamics - The decline in convertible bond positions was primarily due to passive reductions, as fund managers struggled to find suitable investment opportunities amidst high demand and rising prices[3][26] - The high valuation of convertible bonds has weakened the common low-price investment strategy, leading to a constrained capacity for bottom-layer investment strategies[3][26] Sector Allocation - Public funds focused on increasing allocations in financial securities and mid-to-low priced cyclical consumer sectors, while reducing holdings in banks and other sectors facing forced redemption[4][37] - The top holdings included financial sector bonds, with significant increases in holdings of bonds from banks and non-bank financial institutions[4][37] Investment Strategy - The demand for convertible bonds remains strong, suggesting a continued bullish stance as long as underlying stocks do not show a downward trend[4] - A "barbell" investment strategy is recommended, combining large-cap bank stocks with policy-driven domestic demand sectors and undervalued technology growth stocks[4]

2025 年 07 月 13 日 上周权益市场整体表现强劲，沪指多次逼近或突破 3500 点， 创年内新高。银行股为市场主线，国有大行连续创历史新 高，成为指数上涨的重要支撑。同时，算力硬件、新能源、 光伏、硅能源等板块表现活跃，受益于政策预期和行业景气 度提升。受中央城市工作会议预期影响，地产、城镇化有阶 段性行情。部分板块如 PCB、消电子、游戏等出现调整。 转债市场高位的破局方向 分析师：罗云峰 S1050524060001 luoyf2@cfsc.com.cn 分析师：杨斐然 S1050524070001 yangfr@cfsc.com.cn 相关研究 1、《关注股债性价比何时重回偏向 债券——资产配置周报》2025-07- 06 2、《股债跷跷板环境下转债维持偏 高估值》2025-07-06 3、《择券空间继续收窄》2025-06- 30 投资要点 ▌ 股债、转债市场回顾 债市方面，受股债跷跷板效应影响，收益率普遍上行。资金 面边际收紧、通胀数据以及权益市场波动对债市造成扰动。 不过低利率环境下更多机构仍是每调买机，伴随周五权益及 银行股方面冲高回落，国债期货明显修复。 转债跟随正股表现强势，成交额 ...

Key Insights - As of June 2025, China's foreign exchange reserves stood at 33,174 billion USD, indicating a stable economic environment [1] - The convertible bond market showed a 3.3% increase in June, following a 4.7% rise in the stock market, driven by policy stimuli and geopolitical factors [2][3] - The life sciences upstream sector is experiencing a turning point, with a projected revenue growth of 10.75% year-on-year in 2024, driven by stable investment and domestic substitution trends [7][8] - The North Exchange is expected to maintain high trading activity and market attention, with a focus on new industries such as artificial intelligence and commercial aerospace for the second half of 2025 [12][17] Convertible Bond Market - The convertible bond market's valuation is not overly high, with structural opportunities still available, particularly in sectors showing improved economic conditions such as non-ferrous metals, machinery, agriculture, and computing [4][3] - The market is transitioning from a policy-driven focus to a fundamental pricing approach, with expectations of a 5% economic growth target being met [3][4] - Recommended convertible bonds for July include Guotou Convertible Bond, Ran 23 Convertible Bond, and others, indicating a strategic focus on sectors benefiting from policy support [4] Life Sciences Upstream Sector - The life sciences upstream sector is characterized by high specialization and significant barriers to entry, with major companies expanding and exploring international markets [7][8] - The sector is poised for growth due to the booming demand for innovative drugs, with the Chinese antibody drug market expected to reach 510.8 billion RMB by 2030 [8] - Mergers and acquisitions are becoming more prevalent, with domestic companies looking to replicate the growth paths of global giants, enhancing industry concentration and growth potential [9][10] North Exchange - The North Exchange's trading activity has slightly decreased, with an average daily turnover of approximately 279.83 billion RMB, but it remains higher than other markets [13] - The North Exchange's overall price-to-earnings ratio is around 50.4 times, indicating a slight decline but still higher than other boards, with the electronics sector showing the highest ratios [14] - The North Exchange is optimizing its evaluation system to support the high-quality development of small and medium-sized enterprises, focusing on innovation and market ecology improvement [15][17]

Group 1 - The report indicates that the banking and dividend sectors have shown stable performance recently, with a strong likelihood of continued inflow of insurance funds, making the dividend sector a cost-effective investment option [3][11]. - Since 2022, the balance of insurance fund utilization has steadily increased, primarily due to the expansion of premium scales, while the stock investment scale within insurance funds has also shown a fluctuating upward trend [3][11]. - A correlation analysis between the average March price fluctuations of the CSI 300 index and the growth rate of insurance stock investment positions reveals a strong relationship, suggesting that the current recovery in stock market sentiment may lead to a rebound in insurance stock investment positions [3][11]. Group 2 - From the perspective of convertible bond investment, the report suggests screening dividend convertible bonds based on market capitalization, profitability stability, and dividend yield, which align with insurance capital investment preferences [4][12]. - The report identifies several leading dividend ETFs, including Huatai-PB SSE Dividend ETF and Tianhong CSI Low Volatility 100 ETF, and lists convertible bonds associated with these ETFs that are expected to yield excess returns if the dividend sector maintains strong performance [4][12]. - The overall economic stability in China suggests limited downside for the stock market, with expectations of a structural market characterized by range-bound fluctuations, particularly benefiting sectors with stable profitability such as finance and public utilities [5][25]. Group 3 - The report emphasizes the importance of new production capabilities in China's industrial upgrade process, which may reflect positively in the stock market, highlighting the need to focus on popular themes from this year [5][25]. - Recommendations include focusing on companies driving the industrialization of AI models and robotics, as well as those in the undervalued sectors, particularly convertible bonds from firms like Xingye, Lantian, and Yifeng [5][25]. - The report anticipates a recovery in the new energy and automotive parts sectors in the second half of the year, suggesting attention to companies such as Mingli, Huayou, and Yihui [5][25].