Group 1 - The convertible bond market has recently experienced a significant downward adjustment after a strong performance earlier in the year, with over 90% of convertible bonds declining in the last seven trading days [1][2][3] - The China Securities Index for convertible bonds began its decline on August 26, with a notable drop of 2.82% on August 27, followed by three consecutive days of decline [3][5] - More than 400 convertible bonds have seen a decline, with around 230 bonds dropping over 5%, and over 50 bonds experiencing declines exceeding 10% [5][8] Group 2 - Specific convertible bonds such as Tianyuan Convertible Bond and Borui Convertible Bond have shown significant declines, with Tianyuan dropping over 20% from above 240 yuan to 191.7 yuan [5][7] - The overall market adjustment is believed to be influenced by the weak performance of the underlying stocks, as the A-share market has also seen a decline, with over 4,300 stocks dropping in the last seven trading days [8][9] - The average decline of the underlying stocks corresponding to convertible bonds that fell over 10% is more than 10%, indicating a strong correlation between the performance of convertible bonds and their underlying stocks [8][9] Group 3 - Research from Guojin Securities suggests that while the equity market is expected to maintain an upward trend, there is a short-term impulse for profit-taking in convertible bonds, with two convertible bond ETFs accounting for nearly 10% of the market [11] - The current market volatility may lead to increased trading activity, and the potential for further downward adjustment in convertible bond valuations is limited [11][13]