1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report The report focuses on non - public fund - type convertible bond investment institutions, aiming to analyze their convertible bond investment strategies and preferences to understand the pricing mechanism and investment strategies of the convertible bond market [10]. 3. Summary by Directory 3.1 Annuity - type Products 3.1.1 Annuity and Pension Product Investment Mechanisms - "Enterprise annuity" is a supplementary endowment insurance system established by enterprises and their employees on the basis of participating in the basic endowment insurance. It involves multiple institutions such as trustees, account managers, and investment managers [11]. - The investment scope of enterprise annuity funds includes various financial products, and pension products are standard investment portfolios for enterprise annuity funds. Small - scale investment portfolios should prioritize investing in pension products [16]. - By the end of 2024, the total number of enterprises with enterprise annuity reached 159,300, with 32.42 million insured employees and a cumulative fund of 3.6422 trillion yuan. The total convertible bond - holding scale of enterprise annuity was about 130 billion yuan, accounting for less than 5% of the direct investment scale [19][21]. - By the end of 2024, there were 649 registered pension products, with 578 in actual operation and a total net asset value of 2.434307 trillion yuan, accounting for about 70% of the enterprise annuity plan's end - of - period asset amount [25]. 3.1.2 Pension Product Convertible Bond Investment Analysis - Pension products are the second most frequently disclosed "top ten holders" of convertible bonds, but the average holding scale is not high. The holding scale reached a peak of 22.657 billion yuan at the end of 2023 and then declined [30]. - In terms of industry distribution, pension products mainly hold convertible bonds in industries such as power equipment, chemicals, medicine, and banks. Since 2022, they have stably over - allocated convertible bonds in industries such as coal, public utilities, transportation, and commercial retail [31]. - In terms of rating distribution, pension products under - allocated AAA convertible bonds from 2017 to 2022, over - allocated them from mid - 2023 to mid - 2024, and then under - allocated them again at the end of 2024. They have stably over - allocated AA convertible bonds and under - allocated A+ and below convertible bonds [33]. - In terms of price distribution, pension product holdings are mainly concentrated in the 100 - 120 yuan range, with a stable under - allocation of high - price convertible bonds above 130 yuan and a cautious attitude towards those in the 120 - 130 yuan range. Since mid - 2024, they have significantly under - allocated convertible bonds below 100 yuan [34]. 3.1.3 Differences among Different Pension Managers - Among fund companies, the convertible bond - holding scale of pension products managed by E Fund exceeded that of ICBC Credit Suisse Fund again in mid - 2023, reaching about 5.849 billion yuan at the end of 2024. The convertible bond - holding scale of pension products managed by ICBC Credit Suisse Fund has been stable above 4 billion yuan since the end of 2023 [37]. - Among insurance companies, the convertible bond - holding scale of pension products managed by Huatai Asset nearly doubled to 1.065 billion yuan at the end of 2024, while that of People's Pension Insurance decreased significantly from 1.51 billion yuan in mid - 2024 to 178 million yuan at the end of 2024. The convertible bond - holding scales of China Life Pension and Ping An Pension also increased significantly at the end of 2024 [37]. - Taking E Fund as an example, its pension products prefer convertible bonds in the power equipment industry. Since the end of 2020, they have continuously over - allocated convertible bonds in upstream resources, cyclical industries, and some consumer and financial industries, and under - allocated convertible bonds in machinery, TMT, and other industries. In terms of rating, they have continuously over - allocated AA convertible bonds, over - allocated AA - convertible bonds since mid - 2023, and under - allocated AAA convertible bonds since mid - 2024 [39]. 3.2 Social Security Fund (Council) - As of the end of 2024, the total assets under the trusteeship of the Social Security Fund Council were 2.84 trillion yuan for pension funds and 3.32 trillion yuan for social security funds, with a total direct investment scale of about 1.53 trillion yuan and a entrusted investment scale of about 4.12 trillion yuan. The total convertible bond - holding scale of the social security fund was about 1.6 billion yuan, accounting for about 1% of the direct investment scale [2]. - The social security fund significantly over - allocated bank convertible bonds at the end of 2023 and mid - 2024 (about 5pct) and stably under - allocated them at other times. It also significantly and stably over - allocated AA+ and AA convertible bonds [2]. 3.3 Insurance Companies and Insurance Asset Management 3.3.1 Investment Mechanisms of Insurance Companies and Insurance Asset Management - Insurance companies have both self - investment and entrusted investment by investment managers such as insurance asset management companies. Self - managed funds account for about 30% of the insurance company's fund utilization balance. Insurance asset management companies also accept entrusted investment funds from third - party customers such as enterprise annuities, social security funds, and bank wealth management, accounting for about 20% of their management scale [3]. - In 2023, the total investment asset scale of insurance asset management companies was 26.16 trillion yuan, mainly in bonds, insurance asset management products, and bank deposits. At the end of 2023, insurance - type institutions directly held convertible bonds worth about 5.5 billion yuan, accounting for less than 0.2% of the insurance company's fund utilization balance of 28 trillion yuan [3]. 3.3.2 Insurance Self - investment Convertible Bond Investment Analysis - Insurance companies continuously and stably under - allocate convertible bonds in the agriculture, forestry, animal husbandry, and fishery industries (under - allocation of about 5pct), overall stably over - allocate bank convertible bonds, with an over - allocation ratio of about 20pct at the end of 2023, and significantly over - allocate AAA convertible bonds at the same time. They also significantly under - allocate convertible bonds above 120 yuan [3]. 3.3.3 Insurance Asset Management Convertible Bond Investment Analysis - Since June 2022, insurance asset management products have stably over - allocated petrochemical convertible bonds. In mid - 2024 and at the end of 2024, they significantly over - allocated power equipment convertible bonds, stably over - allocated AA+ convertible bonds (with an over - allocation ratio of up to 50pct since the end of June 2024), stably under - allocated AA - and below convertible bonds, and stably under - allocated AAA convertible bonds since the end of 2021 [3]. 3.4 Securities Self - investment - Since the end of 2021, securities self - investment has stably over - allocated bank convertible bonds. Since June 2022 (except mid - 2024), it has overall stably and significantly over - allocated AAA convertible bonds and clearly prefers convertible bonds in the 100 - 110 yuan range [4]. 3.5 Private Asset Management 3.5.1 Asset Management Plan Convertible Bond Investment Analysis - Since the end of 2022, asset management plans have stably over - allocated power equipment convertible bonds and under - allocated AA - and below convertible bonds [4]. 3.5.2 Private Fund Convertible Bond Investment Analysis - Since the end of 2022, private funds have significantly over - allocated electronic convertible bonds, with higher investment scales from institutions such as Ruijun Asset [4]. 3.6 QFII - Many institutions have obtained QFII qualifications, but their investment scale in the convertible bond market is not high. Institutions such as Northwest Asset Management and UBS AG often appear on the "top ten holders" list, and the convertible bond investment of Northwest Asset Management is highly analyzable [4].

Core Insights - The article emphasizes that true wealth management is not just about making money quickly, but about understanding how to spend and allocate wealth effectively [1][3] Group 1: Wealth Management Strategies - The first step after acquiring wealth is to ensure its safety by diversifying investments and avoiding impulsive decisions [5][6] - Prioritize purchasing insurance and planning for retirement over luxury items to protect against unforeseen circumstances [8][9][10] - Invest in personal development and skills enhancement to ensure the ability to manage and grow wealth effectively [14][15][16] Group 2: Investment Approaches - Allocate funds into stable investment vehicles such as fixed-income securities and real estate to combat inflation [18][19] - Consider long-term investments that benefit from compound interest, such as index funds and blue-chip stocks [21][22] - Avoid ostentatious spending and maintain a low profile to prevent financial pitfalls associated with high visibility [24][25][26] Group 3: Family and Future Planning - Plan for the future of children and family to ensure wealth is preserved across generations, including education funds and estate planning [28][29][30] - Allocate a portion of wealth for personal enjoyment to enhance overall happiness and quality of life [32][36] Group 4: Summary of Principles - The key principles include ensuring safety first, investing in oneself, maintaining a low profile, and planning for the long term to effectively manage and grow wealth [37]

Core Insights - The national enterprise annuity investment assets reached approximately 3.8 trillion yuan by the end of Q2, with a cumulative return rate of 6.27% over the past three years [1][2][3] - Pension products totaled around 2.45 trillion yuan by the end of Q2, with a Q2 investment return rate of 1.09% [1][9] Enterprise Annuity Overview - As of the end of Q2, the net value of national enterprise annuity investment assets is approximately 38,142.88 billion yuan, with a total of 5,987 established portfolios [2][3] - The cumulative return rates for the past three years are 10.49% for fixed-income portfolios and 5.84% for equity-inclusive portfolios [3][4] Fund Management Scale - Two fund companies, ICBC Credit Suisse Asset Management and E Fund Management, have management scales exceeding 300 billion yuan as of the end of Q2 [6] - ICBC Credit Suisse Asset Management saw a significant increase in management scale from approximately 315.1 billion yuan at the end of Q1 to 332.5 billion yuan at the end of Q2 [7] Pension Product Performance - Pension products achieved a Q2 investment return rate of 1.09%, with a year-to-date return of 1.67% and a cumulative return of 35.11% since inception [9][10] - In equity assets, ordinary stock-type products had a Q2 return of 1.72%, while Hong Kong stock-type products performed best with a Q2 return of 6.85% [9][10]

Core Viewpoint - The company has achieved significant growth in its operating performance in the first half of 2025, with a consolidated revenue of 11.695 billion and a net profit of 4.284 billion, reflecting a year-on-year increase of 44.44% and 101.32% respectively [2] Group 1: Capital Market Development - The company remains optimistic about the development prospects of the Chinese capital market and actively supports its stability and expectations [4] - As one of the first financial institutions to participate in the central bank's swap facility, the company has been instrumental in maintaining market stability and providing liquidity support to various market segments [4][5] - The company is focused on internationalization and high-quality financial services to support the Belt and Road Initiative, assisting four companies in going public in Hong Kong and completing 114 overseas bond projects [4][5] Group 2: Investment Banking Performance - The company has successfully advanced quality investment banking projects, achieving a net income of 627 million from investment banking fees, a year-on-year increase of 49.12% [7] - The company ranks 7th in the industry for equity underwriting and 6th for bond underwriting, with historical highs in both categories [7][8] Group 3: Wealth Management Transformation - The company’s wealth management transformation is driven by customer needs, resulting in a 44.32% increase in net income from agency trading to 2.011 billion [10] - The number of retail clients has increased significantly, with over 10 million clients and a total of 4.77 trillion in client assets under custody [10] Group 4: Research and Innovation - The company has developed a comprehensive research system integrating investment, industry, and policy research, enhancing its professional and customized services [13] - The company has also seen growth in its FICC sales and trading business, maintaining a competitive edge and expanding its product offerings [14]

Core Insights - The company reported a significant increase in revenue and profit for the first half of 2025, with total revenue reaching 11.695 billion yuan, a year-on-year growth of 44.44%, and net profit attributable to shareholders at 4.284 billion yuan, up 101.32% [1] Investment Banking Business - The investment banking segment achieved a net income of 627 million yuan from fees, reflecting a year-on-year increase of 49.12% - The company ranked 7th in the number of equity underwriting cases, with 5 IPOs, ranking 3rd in the industry - The bond underwriting scale reached 169 billion yuan, ranking 6th, with 441 main underwriting cases, also ranking 7th, both achieving historical highs [1] Wealth Management Business - The wealth management transformation is driven by customer needs, focusing on product and service innovation - Retail customer numbers increased, with high-net-worth clients ranking among the industry leaders, achieving net income of 2.011 billion yuan from agency trading, a growth of 44.32% - The total number of clients exceeded 10 million, with securities client assets reaching 4.77 trillion yuan, further solidifying the client and asset base [2] Research Business - The company developed a comprehensive research system integrating investment, industry, and policy research to enhance depth and breadth - A unified portal named "Yi Wan Qi Yuan" was launched to assist institutional clients in navigating market complexities and demands - The company generated 216 million yuan in seat leasing income, with increased trading shares for funds and insurance [3]

Core Insights - The total net asset value of registered pension products reached 1.96 trillion yuan by the end of Q1, with a quarterly investment return rate of -1.61%, indicating significant divergence in returns among different pension products [1][2] - Despite the negative quarterly performance, the cumulative return rate of pension products remains stable from a medium to long-term perspective [2] Group 1: Pension Product Performance - As of the end of Q1, there were 649 registered pension products, with 603 actively operating, including 196 equity products, 371 fixed-income products, and 36 money market products [2] - The cumulative investment return rate for pension products since inception is 26.54%, while the Q1 return rate was -1.61%, with both equity and fixed-income assets experiencing losses [2] - Nearly 20 equity pension products saw a decline exceeding 20% in Q1, with specific products like Hai Fu Tong Value Preferred Stock Pension Product reporting a return of -29.90% [2][3] Group 2: Fund Company Performance - Some fund companies' equity products performed well in Q1, with returns exceeding 3% for products like Fu Guo Fu Xiang Stock Pension and Fu Guo Fu Sheng Quantitative Hedge Stock Pension [3] - Historical performance shows that many pension products have positive returns since inception, with Silver Hua Qian Li Stock Pension achieving a cumulative return of 235.5% since March 2014 [3] Group 3: Pension Financial System Development - The pension financial system is improving with new policies from the China Banking and Insurance Regulatory Commission, which provide guidance on commercial pension financial business [4] - The number of pension target funds has increased, with 173 funds established as of May 29, and a total fund size of 106.275 billion yuan [4] Group 4: Future Outlook - The demand for pension investments is expected to surge with the implementation of personal pension systems, attracting attention from financial institutions [5] - Securities firms and public funds are well-positioned to leverage their research capabilities to design products that appeal to higher-risk clients, although they face challenges in independent sales capabilities [5]

Group 1 - The scale of pension products has surpassed 2.4 trillion yuan, with the personal pension fund catalog expanding to 297 funds, indicating a significant growth in the supply of pension financial products [1][2] - The implementation of the "Opinions on Capital Market to Serve Financial 'Five Major Articles'" has led to a phase of effectiveness in the capital market's service to pension finance, addressing the bottlenecks and pain points of medium and long-term capital entering the market [1][2] - The demand for diversified pension financial products is increasing due to the growing pressure of pension payments caused by an aging population, necessitating financial innovations such as commercial pension insurance and pension wealth management products [2][3] Group 2 - As of the end of Q1 2025, there are 649 registered pension products, with 573 actively operating and a total scale of approximately 2.42 trillion yuan, achieving a cumulative return rate of about 33.46% since inception [2] - The number of personal pension public fund products has steadily increased, providing investors with more diverse investment options, with 297 funds included in the personal pension fund catalog as of June 30, 2025 [2][3] - Fund of Funds (FOF) products dominate the personal pension fund category, with 212 out of 297 funds being FOFs, which include 83 target date funds and 129 target risk funds [3] Group 3 - The capital market has begun to show results in promoting the stable appreciation of pension financial products, with specific products like ICBC Pension 2035A and Harvest Pension 2040 Five-Year A achieving net value growth rates of 30.86% and 23.41% respectively over the past year [3] - Challenges remain in attracting investors to personal pensions, including insufficient tax incentives and doubts regarding the investment returns and liquidity of pension FOFs [3][5] - Some institutions have launched intelligent advisory systems, such as the "Pension Calculator" by Huaxia Fund, to automatically adjust portfolios based on life cycles [4] Group 4 - The introduction of pension REITs (Real Estate Investment Trusts) is anticipated, which could serve as a new link between the capital market and the real pension industry, supported by local policies encouraging capital market involvement in the construction and development of pension facilities [6][7] - The market shows high interest in silver economy projects, particularly in the areas of pension services and healthcare, with various local governments establishing special investment funds to promote the development of the pension industry [7] - There is a recognized need for patient capital with long-term investment characteristics to match the requirements of the pension industry, which currently faces a supply-demand gap [7][8] Group 5 - The capital market is entering a critical window period for serving pension finance as the personal pension system is fully implemented, necessitating the construction of a "policy-market-product" linkage system [8] - Future developments should focus on improving tax incentives at the policy level, cultivating a long-term investment culture in the market, and developing pension financial products that align with lifecycle characteristics [8]

Core Viewpoint - The adjustment of the investment scope for pension funds, as announced by the Ministry of Human Resources and Social Security, is expected to significantly increase the capital inflow into the capital market, enhancing the interaction between the pension insurance system and the capital market [2][4]. Group 1: Policy Changes - The new policy allows for an increase in the upper limit of equity asset investment from 30% to 40% of the net asset value of the investment portfolio, theoretically bringing an additional 300 billion yuan into the capital market [2][4]. - Fund companies have begun to amend their pension product contracts to comply with the new regulations, expanding investment options to include Hong Kong market investments and various financial instruments [3][5]. Group 2: Market Impact - The increase in the equity investment ratio is expected to stabilize the capital market and facilitate the discovery of high-quality stock values, benefiting both the market and pension fund returns [2][4]. - The introduction of new investment categories, including preferred stocks and asset-backed securities, is anticipated to enhance the investment landscape for pension funds [5][6]. Group 3: Implementation and Future Outlook - The new regulations took effect on January 1, and several fund companies have already revised their investment strategies accordingly, indicating a practical implementation phase for the increased investment ratio [4][6]. - Experts suggest that the current market conditions, characterized by reasonable valuations and favorable liquidity, present an opportune moment for pension funds to enter the market [4][6].

Group 1 - The core viewpoint of the article emphasizes the comprehensive implementation of the personal pension system in China, which began on December 15, 2024, and the inclusion of index funds in the personal pension product range [3][11][51] - As of early July 2025, there are 1,060 personal pension products available, with 932 currently on sale, including 466 savings products, 134 insurance products, 35 wealth management products, and 297 fund products [3][11] - The total scale of pension products reached 24,236 billion yuan by the first quarter of 2025, with 573 pension products actively in operation [2][4] Group 2 - The personal pension savings products are issued by 23 banks, with a total of 466 products, maintaining the same number as the previous quarter [12][13] - The average interest rates for various term savings products are as follows: 1-year term at 1.29%, 2-year term at 1.39%, 3-year term at 1.73%, and 5-year term at 1.77% [14][16] - The macro-prudential ratings of 23 banks show that major state-owned banks have a strong rating, with several banks rated five stars [19] Group 3 - The personal pension insurance products include 134 products currently for sale, with 80 being annuity insurance products, which increased by 27 from the previous quarter [20][21] - The distribution of personal pension insurance products shows a variety of types, including traditional, dividend, and universal insurance products [22] - The sales channels for these insurance products have expanded to include internet sales, with an increase in the number of products sold online [22] Group 4 - The personal pension wealth management products have seen growth, with 35 products available as of June 30, 2025, and the average yield for products that have been in operation for over a year is 3.22% [25][27] - The risk levels of these wealth management products are primarily categorized as medium to low risk, with 23 products rated at level two and 12 at level three [25] - The wealth management market has expanded significantly, with a total sales amount exceeding 9 billion yuan for personal pension wealth management products [24] Group 5 - The personal pension fund products consist of 297 products, including 212 fund-of-funds (FOF) and 85 index funds, with a notable increase in the number of products from the previous quarter [33][36] - The average yield for FOF products that have been in operation for over a year is 8.87%, indicating strong performance [40] - The risk levels of fund products are concentrated in the medium risk category, with the majority falling into R2 and R3 risk levels [39]

Core Viewpoint - The article emphasizes the need to accelerate the development of the third pillar of pension insurance and implement a personal pension system in China, addressing structural challenges in pension finance and advocating for an increased allocation of equity assets in pension investments while utilizing derivatives for risk management [2][4]. Group 1: Structural Challenges in Pension Finance - China's aging population poses significant structural challenges to pension finance, with over 310 million people aged 60 and above by the end of 2024, accounting for 22% of the total population [5]. - The reliance on government funding is substantial, with over two-thirds of pension funds coming from government-led basic pensions and social security funds, while enterprise annuities and personal commercial insurance account for only 32.7% [6]. - The investment structure is heavily concentrated in fixed-income assets, with over 85% of pension products invested in such assets from 2021 to 2024 [6]. Group 2: Need for Increased Equity Investment - The current pension finance system is characterized by low marketization and a predominance of fixed-income assets, leading to low returns. As of June 2024, the actual contribution rate for personal pensions was only 22%, with only 25% of contributions being invested [8]. - The potential for the silver economy is significant, with projections indicating that its contribution to GDP will rise from 6% to 9% by 2035, necessitating an increase in equity asset investment to enhance overall pension returns and alleviate government financial pressure [9]. Group 3: Risk Management through Derivatives - Equity investments exhibit greater short-term volatility compared to fixed-income investments, which has contributed to the current focus on fixed-income assets in pension products [13]. - To mitigate risks associated with increased equity investments, it is essential to enhance the performance evaluation period for pension products and utilize financial derivatives for risk management, thereby improving the stability and growth of investment portfolios [12][13].