1. Report Investment Rating No investment rating information is provided in the report. 2. Core Viewpoints - In 2025Q3, the market value of convertible bonds held by public - funds increased, with the bond - type funds being the main force of the increase, and they mainly added positions in power equipment convertible bonds. The position of convertible bonds held by public - funds also rose. Although the convertible bond market continued to shrink, the convertible bond assets still had considerable returns under the catalysis of equity enthusiasm [2][8][9]. - The performance of convertible bond funds outperformed the index in 2025Q3, showing net subscriptions and scale expansion. However, the overall position and leverage ratio of these funds declined. Both public - funds and convertible bond funds focused on adding positions in power equipment convertible bonds [5][8][9]. 3. Summary by Directory 3.1 Public - funds Increase Convertible Bond Positions and Add Positions in Power Equipment Convertible Bonds 3.1.1 Market Value of Convertible Bonds Held by Public - funds Increases Month - on - Month, and Positions Rise - In 2025Q3, the market value of convertible bonds held by public - funds was 316.618 billion yuan, a month - on - month increase of 16.09% and a year - on - year increase of 12.72%. The ratio of the market value of convertible bonds held by public - funds to the market value of bond investments was 1.57%, a 0.28 - percentage - point increase from 25Q2; the ratio to net worth was 0.87%, a 0.07 - percentage - point increase from 25Q2 [13]. - The market value changes of convertible bonds held by different types of funds varied month - on - month. Stock - type and secondary bond - type funds significantly increased their positions. From the perspective of absolute amount changes, the bond - type funds had the largest increase in market value, with a month - on - month increase of 48.61 billion yuan in 25Q3 [17][19]. - The overall position of public - funds in convertible bonds increased, but the position of convertible bond funds was diluted. According to the Wind fund primary classification, the convertible bond position of stock - type funds remained flat at 0.02% month - on - month, that of hybrid funds decreased by 0.26 percentage points to 0.59%, and that of bond - type funds increased by 0.49 percentage points to 2.73% [23][25]. 3.1.2 Public - funds Inversely Increase Positions, while Insurance Funds, Enterprise Annuities, and Securities Firms' Proprietary Trading Reduce Positions - As of the end of 2025Q3, the total face value of convertible bonds held by the Shanghai and Shenzhen Stock Exchanges was 599.489 billion yuan, a decrease of 55.679 billion yuan from the end of 25Q2, a month - on - month decrease of 8.50%. Insurance institutions, enterprise annuities, and securities firms' proprietary trading significantly reduced their positions, while public - funds significantly increased their positions inversely, with a month - on - month increase of 7.68% to 233.561 billion yuan [35]. 3.1.3 Public - funds Mainly Add Positions in Power Equipment, and Bank Convertible Bonds Further Shrink - In terms of industry layout in 25Q3, banks were still the primary layout sector, but the overall position market value shrank significantly under the early redemption of multiple bank convertible bonds, with only a 233 - million - yuan difference from the power equipment market value. From the perspective of the market value month - on - month change rate, 24 industries had positive month - on - month changes, with the petrochemical, power equipment, and beauty care industries leading in growth [42]. 3.1.4 Industrial Convertible Bonds Maintain the First - Positioned Heavy - Position Bond - Industrial convertible bonds were the first - positioned heavy - position bond of public - funds, and EVE and Industrial convertible bonds led in terms of incremental positions. Among the top ten convertible bonds in terms of total position market value, there were 3 bank convertible bonds, which was fewer than in Q2. The types of bottom - position bonds gradually diversified [50]. 3.2 Convertible Bond Funds' Performance Outperforms the Index, and Convertible Bond Positions and Leverage Ratios Decline 3.2.1 Net Asset Value after Reinvestment Increases, and Overall Net Subscriptions Occur - As of 2025Q3, there were 39 convertible bond funds in the market. The performance of convertible bond funds outperformed the convertible bond index, showing net subscriptions and scale expansion. The scale of convertible bond funds in 25Q3 was 63.284 billion yuan, a significant increase of 11.635 billion yuan from 25Q2, a month - on - month increase of 22.53% [55]. - By observing the asset allocation changes of high - performing convertible bond funds, most of the larger - scale funds had reduced convertible bond positions. The top five funds in terms of net value performance in 25Q3 all had a certain scale, and most of them reduced their positions in stocks and convertible bond assets [57][58]. 3.2.2 Convertible Bond Positions Slightly Decrease Month - on - Month, and Leverage Ratios Decline Month - on - Month - The overall position of 39 convertible bond funds slightly decreased, and the leverage ratio declined month - on - month. In the third quarter of 2025, the ratio of the market value of convertible bonds to the net value of convertible bond funds was 84.18%, a month - on - month decrease of 1.16 percentage points; the median position was 85.54%, a more obvious month - on - month decrease of 6.14 percentage points. The average leverage ratio of 39 convertible bond funds was 114.13%, a decrease of 2.79 percentage points month - on - month, continuing the downward trend [5][68]. 3.2.3 Convertible Bond Funds Focus on Adding Positions in Power Equipment - From the perspective of the quarterly change in the number of times funds held convertible bonds, more than half of the industries had an increase in the number of holdings in 25Q3, with power equipment, electronics, and machinery leading in the increase. From the perspective of the quarterly change in the proportion of the market value of fund positions, the proportion of power equipment increased by 4.46 percentage points, leading by a large margin [6]. - Among the 39 convertible bond funds, Industrial convertible bonds were still the main heavy - position bond and increased in position. The banking and power equipment industries remained at the forefront of heavy - position industries [6].

Core Viewpoint - Industrial Bank has demonstrated resilience and steady growth in its performance amidst a complex environment, achieving a net profit of 63.083 billion yuan in the first three quarters of 2025, reflecting a year-on-year increase of 0.12% [1][2]. Financial Performance - The bank's operating income for the first three quarters reached 161.234 billion yuan, a decrease of 1.82% year-on-year, but the decline has narrowed compared to the first half of the year [2]. - Net interest income was 110.959 billion yuan, with a net interest margin of 1.72%, down 10 basis points from 2024 [2]. - Non-interest income increased by 3.79% year-on-year to 20.081 billion yuan, with wealth management sales growing by 7.7% [2]. Dividend Policy - Industrial Bank announced a mid-term dividend plan, proposing a cash dividend of 0.565 yuan per share, totaling 11.957 billion yuan, which represents 30.02% of the net profit attributable to ordinary shareholders for the first half of 2025 [3]. - This marks the bank's first mid-term dividend, continuing a trend of increasing dividends over the past fifteen years, with total dividends amounting to 216.1 billion yuan since its listing [3]. Asset and Liability Management - The bank's total assets reached 10.67 trillion yuan, a 1.57% increase from the end of the previous year, with customer loans growing by 4.42% to 5.99 trillion yuan [5]. - Customer deposits increased by 5.47% to 5.83 trillion yuan, with a deposit interest rate of 1.71%, down 32 basis points year-on-year [5]. - The bank has focused on optimizing its asset-liability structure, achieving a non-performing loan ratio of 1.08%, stable compared to the previous half [6]. Risk Management - The bank has initiated a reform of its risk management system, enhancing its comprehensive risk management framework and improving the integration of risk and business operations [7]. - The bank's risk resilience has been strengthened, with a provision coverage ratio of 227.81%, indicating a solid buffer against potential losses [6]. Market Confidence and Valuation - There is a clear trend of valuation recovery for bank stocks, supported by the bank's solid fundamentals and increased confidence from investors [8]. - The static dividend yield stands at 5.29%, placing the bank in the top third among listed banks, with a price-to-book ratio of 0.53, indicating it is undervalued [9]. - The bank aims to attract both existing and new investors to enhance its capital structure and accelerate valuation recovery [9].

Report Overview - The report analyzes the convertible bond holdings of public funds in Q3 2025, including scale, industry and style preferences, and factor performance [1][9] 1. Report Industry Investment Rating - Not provided in the report 2. Report's Core View - As of Q3 2025, public funds held convertible bonds worth 303.8 billion yuan, with the market value ratio increasing to 38.94%. Funds prefer convertible bonds with low BS pricing premium, high conversion value, large balance, and low conversion premium ratio. Factors such as maturity, implied volatility, and pure bond value have performed well this year [1][9] 3. Summary by Relevant Catalog 3.1 Publicly - Held Convertible Bond Scale - As of Q3 2025, 1581 public funds held convertible bonds, with a total scale of 303.8 billion yuan, accounting for 38.94% of the total convertible bond market value [9][13] 3.2 Convertible Bond Funds and Heavy - Held Convertible Bonds - Funds with large convertible bond holdings in Q3 2025 include Boshi CSI Convertible and Exchangeable Bond ETF, Haifutong Shanghai Stock Exchange Investment - Grade Convertible and Exchangeable Bond ETF, etc., all with holdings over 7 billion yuan. Funds with a high proportion of convertible bonds include Huashang Convertible Bond Selection A, Rongtong Convertible Bond A, etc., all with a proportion over 105% [15] 3.3 Convertible Bond Holding Industry Distribution - In terms of market value, the banking, power equipment and new energy, basic chemicals, and electronics industries have the largest holdings, all over 20 billion yuan. The banking industry accounts for 19%. Power equipment and new energy, banking, and basic chemicals are over - allocated, while power and utilities, non - banking, and construction are under - allocated [9][20] 3.4 Convertible Bond Holding Style Distribution - 21 style factors are constructed from four aspects: convertible bond valuation, underlying stock, trading, and terms. The market's funds prefer convertible bonds with low BS pricing premium, high conversion value, large scale, and low conversion premium ratio [22][27] 3.5 Convertible Bond Holding Factor Performance - From December 31, 2024, to October 29, 2025, factors such as maturity, implied volatility, implied volatility premium for 1 year, pure bond value, and peak factor have performed relatively well, with information ratios above 1.7 [29][30]

Core Insights - The public funds held convertible bonds accounted for 55.34% of the total market value of convertible bonds as of Q3 2025, with a quarter-on-quarter increase of 12.93 percentage points, indicating a slight rise in positions by 0.09 percentage points [1][7] - Despite a decrease in the total balance of convertible bonds to 572.07 billion yuan, the proportion of convertible bonds held by institutions continues to increase [1][7] Group 1: Public Fund Holdings - As of Q3 2025, public funds held convertible bonds worth 316.57 billion yuan, representing 55.34% of the total market value, an increase of 12.93 percentage points from Q2 [1][14] - The number of public funds holding convertible bonds exceeded 2,009, with 61 funds holding over 1 billion yuan in convertible bonds, accounting for 69.46% of the total value of convertible bonds held by public funds [14][17] Group 2: Convertible Bond Fund Holdings - Convertible bond funds, totaling 40, held convertible bonds worth 121.21 billion yuan, a quarter-on-quarter increase of 42.2% [3][17] - The average position of convertible bond funds rose from 84.99% in Q2 to 87.17% in Q3, while the leverage ratio decreased from 142.08% to 135.17% [19][22] Group 3: Sector Performance - The fastest growth in public fund holdings of convertible bonds was observed in the oil and petrochemical sector, which increased by 59.14% quarter-on-quarter, followed by the electric power equipment sector with a 40.93% increase [4][26] - Significant increases were also noted in the beauty care, computer, steel, and communication sectors, while reductions were seen in the media, non-ferrous metals, social services, and household appliances sectors [4][26] Group 4: Fund Performance - The average annualized return of convertible bond funds in Q3 2025 was 67.31%, outperforming the average annualized return of the Zhongzheng Convertible Bond Index, which was 41.57% [22][24] - Notable performers included the Southern Changyuan Convertible Bond Fund with a return of 172.4% and the Huaxia Convertible Bond Enhanced Fund with a return of 160.4% [22][24]

1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report In Q3 2025, despite the accelerating decline in the convertible bond market's outstanding balance, institutional holdings of convertible bonds continued to increase. Convertible bond funds and secondary bond funds increased their positions in convertible bonds, and convertible bond funds showed good performance in terms of returns and positions. Some industries such as petroleum and petrochemicals, and power equipment saw significant increases in positions, while others like media and non - ferrous metals saw reductions [1][2][4]. 3. Summary by Related Catalogs 3.1 Public Fund Convertible Bond Holdings - In Q3 2025, public funds' convertible bond holdings accounted for 55.34% of the total convertible bond market value, a 12.93 - percentage - point increase from Q2, and the position increased slightly by 0.09 percentage points. The outstanding balance of the convertible bond market was 572.072 billion yuan, a 10.96% decrease from Q2 [1][9]. - Convertible bond funds and secondary bond funds increased their positions in convertible bonds. Secondary bond funds' convertible bond market value increased by 20.596 billion yuan (+2.55%), and convertible bond funds' market value increased by 35.972 billion yuan (+7.67%). On the other hand, first - level bond funds, partial - debt hybrid funds, and flexible allocation funds reduced their positions [2][11]. - As of Q3 2025, there were 61 public funds with convertible bond holdings exceeding 1 billion yuan, accounting for 69.46% of the market value of public funds investing in convertible bonds, a 6.71 - percentage - point increase from Q2. There were 291 funds with holdings exceeding 100 million yuan, accounting for 93.31% of the market value, a 1.76 - percentage - point increase from Q2 [3][18]. 3.2 Convertible Bond Fund's Convertible Bond Holdings - As of Q3 2025, there were 40 convertible bond funds, with a total convertible bond market value of 121.205 billion yuan, a 35.972 - billion - yuan increase from Q2, a 42.2% increase. The convertible bond position rose from 84.99% in Q2 to 87.17%, and the leverage ratio decreased from 142.08% to 135.17% [3][21][22]. - In Q3 2025, the average return of convertible bond funds outperformed the CSI Convertible Bond Index. The average annualized return of the CSI Convertible Bond Index was 41.57%, the average annualized return of convertible bond funds was 67.31%, and 32 funds outperformed the CSI Convertible Bond Index, with a winning rate of 80% [4]. - Industries such as petroleum and petrochemicals, power equipment, beauty and personal care, computer, and steel saw significant increases in positions. The market value of public funds' holdings in the petroleum and petrochemical industry increased by 59.14% compared to Q2, and that in the power equipment industry increased by 40.93%. Industries like media, non - ferrous metals, social services, and household appliances saw significant decreases in holdings [5][31]. - The top five heavy - position convertible bonds of convertible bond funds were Industrial Bank Convertible Bond, Shanghai Bank Convertible Bond, Wens Convertible Bond, Jingneng Convertible Bond, and SDIC Convertible Bond. Among the top 20 convertible bonds held by convertible bond funds, 19 had a credit rating of AA or above, and most were pro - cyclical targets [5][31][33].

Core Viewpoint - The first "mega" convertible bond project in history, the SPDB convertible bond, is set to delist from the Shanghai Stock Exchange, with a conversion rate of 99.67%, significantly exceeding market expectations [2][4]. Summary by Sections Convertible Bond Performance - As of October 27, the SPDB convertible bond had an unconverted balance of 164 million yuan, representing only 0.33% of the total issuance of 50 billion yuan [4]. - The bond was issued on October 28, 2019, with a maturity date of October 28, 2025, and was intended to support the bank's future business development and core tier one capital [4]. Market Dynamics - Following the delisting of the SPDB convertible bond, only six bank convertible bonds will remain in the market, with five having a conversion rate of less than 0.01% [2][7]. - The disparity in performance among bank convertible bonds is attributed to the underlying stock performance [6][9]. Investor Activity - Multiple capital entities, including China Mobile, have increased their holdings in SPDB through the conversion of bonds, raising their stake to 18.18% [4][5]. - The management of SPDB has accelerated the conversion process this year, reflecting confidence in the bank's future operations and capital replenishment [5]. Future Outlook - The market for bank convertible bonds may continue to shrink in the short term due to a lack of large financial convertible bond issuance and ongoing low conversion rates [9]. - This situation may lead to a restructuring of the convertible bond market, with institutional investors seeking alternative assets to fill the gap left by the exiting bank convertible bonds [9].

Summary of Key Points Core Viewpoint - The announcements from six listed banks in A-shares regarding the results of convertible bond conversions indicate a significant amount of capital being converted into ordinary shares, reflecting the banks' strategies to enhance their equity base and manage capital effectively [1][2][3]. Group 1: Bank-Specific Announcements - Shanghai Pudong Development Bank reported that as of September 30, 2025, a total of RMB 25.43 billion of its convertible bonds have been converted into 2.00 billion shares, representing 6.82% of the total ordinary shares before conversion [1]. - Industrial Bank announced that RMB 8.65 billion of its convertible bonds have been converted into 388.66 million shares, accounting for 1.87% of its total ordinary shares prior to conversion [1]. - Shanghai Bank disclosed that RMB 22.17 million of its convertible bonds have been converted into 2.47 million shares, which is 0.0174% of its total ordinary shares before conversion [1]. - Chongqing Bank stated that RMB 856,000 of its convertible bonds have been converted into 80,463 shares, making up 0.0023% of its total ordinary shares prior to conversion [1]. - Changshu Bank reported that RMB 511,000 of its convertible bonds have been converted into 72,349 shares, representing 0.003% of its total ordinary shares before conversion [2]. - Zijin Bank indicated that RMB 432,000 of its convertible bonds have been converted into 98,352 shares, which is 0.0027% of its total shares before conversion [2].

Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - Overseas, the Fed's interest rate cut was confirmed this week, with the yield curve steepening rapidly. The long - end has high volatility and strong gaming attributes, while the short - end has relatively strong supply and demand. The long - end is expected to fluctuate between 4 - 4.5%, and the short - end is likely to decline and hard to rise. Gold is still favored [2][40]. - In the equity market, AI computing power showed a tendency to spread to other technology sectors. The market is still considered a "slow bull" and short - term is more structural. In the convertible bond market, high valuations are a psychological obstacle. It is recommended to invest in the mid - low - price range for technology diffusion, more left - side cycle directions, or alpha - focused gaming points [2][41]. - The top ten high - rating, mid - low - price convertible bonds with the greatest potential for parity premium rate repair next week are Hope Convertible Bond, Jinneng Convertible Bond, Liqun Convertible Bond, Liuyao Convertible Bond, Industrial Convertible Bond, Energy - saving Convertible Bond, Jiayue Convertible Bond, Energy - chemical Convertible Bond, Qingnong Convertible Bond, and Jiangong Convertible Bond [2][41]. Summary by Directory 1. Week - on - Week Market Review 1.1 Equity Market: Overall Decline with Most Industries Falling - This week (September 15 - 19), the equity market was significantly differentiated and overall declined. The Shanghai Composite Index fell 1.30%, the Shenzhen Component Index rose 1.14%, the ChiNext Index rose 2.34%, and the CSI 300 fell 0.44%. The average daily trading volume of the two markets increased by about 196.154 billion yuan to 2.494834 trillion yuan, a week - on - week increase of 8.53% [7][9]. - Among the 31 Shenwan primary industries, 12 industries rose, with 5 industries rising more than 2%. Coal, power equipment, electronics, automobiles, and machinery had the highest increases [14]. 1.2 Convertible Bond Market: Overall Decline with Most Industries Falling - The CSI Convertible Bond Index fell 1.55%. Among the 29 Shenwan primary industries, 3 industries rose, with 1 industry rising more than 2%. Communication, national defense and military industry, and automobiles had the highest increases [15]. - The average daily trading volume of the convertible bond market was 9.0635 billion yuan, a significant increase of 364.4 million yuan, a week - on - week change of 4.19%. The top ten convertible bonds in terms of trading volume were Jingxing Convertible Bond, Jing 23 Convertible Bond, etc. [15]. - About 18.29% of individual convertible bonds rose, with 6.48% rising between 0 - 1% and 9.26% rising more than 2% [15]. - The overall market conversion premium rate increased. The average daily conversion premium rate this week was 37.17%, up 1.07 pcts from last week. There were different changes in different price and parity intervals [23]. 1.3 Comparison of Stock and Bond Market Sentiments - This week, the weighted average and median weekly returns of convertible bonds and underlying stocks were negative, and the convertible bonds had a larger weekly decline. The trading volume of both markets increased significantly, with the convertible bond trading volume having a larger increase but a lower percentile level [37]. - About 18.88% of convertible bonds rose, and about 31.65% of underlying stocks rose. About 43.85% of convertible bonds had a higher return than the underlying stocks. Overall, the trading sentiment in the underlying stock market was better this week [37]. 2. Outlook and Investment Strategy - Overseas, the Fed's interest rate cut was confirmed. The long - end has high volatility and strong gaming attributes, while the short - end has relatively strong supply and demand. The long - end is expected to fluctuate between 4 - 4.5%, and the short - end is likely to decline and hard to rise. Gold is still favored [2][40]. - In the equity market, AI computing power showed a tendency to spread to other technology sectors. The market is still considered a "slow bull" and short - term is more structural. In the convertible bond market, high valuations are a psychological obstacle. It is recommended to invest in the mid - low - price range for technology diffusion, more left - side cycle directions, or alpha - focused gaming points [2][41]. - The top ten high - rating, mid - low - price convertible bonds with the greatest potential for parity premium rate repair next week are Hope Convertible Bond, Jinneng Convertible Bond, Liqun Convertible Bond, Liuyao Convertible Bond, Industrial Convertible Bond, Energy - saving Convertible Bond, Jiayue Convertible Bond, Energy - chemical Convertible Bond, Qingnong Convertible Bond, and Jiangong Convertible Bond [2][41].

Core Viewpoint - The company reported a slight decline in operating income and net interest income for the first half of 2025, while achieving a modest increase in net profit attributable to shareholders compared to the same period last year [11][12]. Financial Performance - Operating income for the first half of 2025 was RMB 110,458 million, a decrease of 2.29% compared to RMB 113,043 million in the same period of 2024 [11][13]. - Net interest income was RMB 73,755 million, down 1.52% from RMB 74,891 million year-on-year [11][13]. - Non-interest income decreased by 3.80%, totaling RMB 36,703 million compared to RMB 38,152 million in the previous year [11][12]. - The total profit amounted to RMB 50,558 million, reflecting a 3.30% increase from RMB 48,942 million [11][12]. - Net profit attributable to shareholders was RMB 43,141 million, showing a slight increase of 0.21% from RMB 43,049 million [11][12]. Asset and Liability Management - Total assets reached RMB 10,614,376 million, representing a growth of 1.01% from RMB 10,507,898 million at the end of the previous year [2][10]. - Total loans amounted to RMB 5,903,433 million, an increase of 2.91% from RMB 5,736,610 million [2][10]. - Total deposits were RMB 5,869,830 million, up 6.10% from RMB 5,532,333 million [2][10]. Asset Quality - The non-performing loan (NPL) balance was RMB 634,930 million, an increase of RMB 20,160 million compared to the previous year [11][12]. - The NPL ratio stood at 1.08%, up 0.01 percentage points from 1.07% at the end of the previous year [11][12]. - The provision coverage ratio decreased to 228.54%, down 9.24 percentage points from 237.78% [11][12]. Capital Adequacy - The capital adequacy ratio was reported at 14.18%, an increase from 13.84% at the end of the previous year [3]. - The Tier 1 capital adequacy ratio was 11.30%, up from 10.86% [3]. Shareholder Information - The total number of ordinary shareholders was 191,266, with the largest shareholder being Fujian Financial Investment Co., Ltd., holding 16.59% of the shares [5][8]. - The top ten shareholders collectively held 20.57% of the total shares [5][8].

Group 1 - The company will hold its first extraordinary general meeting of shareholders in 2025 on September 17, 2025, at 9:30 AM [2][5] - The meeting will be conducted both on-site and via an online voting system provided by the Shanghai Stock Exchange [2][4] - Shareholders can vote through the trading system or the internet voting platform, with specific time slots for each method [2][4] Group 2 - The company has ensured that all voting procedures comply with relevant regulations, including those for margin trading and stock connect investors [1][2] - There are no proposals requiring separate counting for small investors or involving related shareholders abstaining from voting [3] - The company will remind shareholders of the meeting and voting details through smart SMS notifications [4][5] Group 3 - Shareholders must register to attend the meeting, with specific documentation required for both corporate and individual shareholders [5][6] - The registration period is set for September 12, 2025, with designated hours for registration [6] - All expenses related to attending the meeting will be borne by the attendees themselves [6]