Group 1 - The company announced a cash dividend of 0.05 yuan per share (before tax) as part of its 2025 semi-annual equity distribution plan, with a total cash dividend payout of 183 million yuan based on a total share capital of 3.661 billion shares [1][2] - The adjustment of the conversion price for the "Ziyin Convertible Bond" will be from 3.65 yuan per share to 3.60 yuan per share, effective on February 5, coinciding with the dividend distribution date [1][2] - The dividend will be distributed to all shareholders registered with the China Securities Depository and Clearing Corporation Limited by the end of trading on February 4, 2026, with the distribution method varying for different types of shareholders [1][2] Group 2 - Taxation standards for different types of shareholders have been clarified, with individual shareholders facing a tax burden of 20% for shares held for one month or less, 10% for shares held between one month and one year, and no tax for shares held over one year [2] - Qualified Foreign Institutional Investors (QFII) and Shanghai-Hong Kong Stock Connect investors will have a uniform withholding tax rate of 10%, with the possibility of tax refunds for those meeting certain conditions [2] - The adjustment of the conversion price for the "Ziyin Convertible Bond" is based on the formula "P1=P0-D," where P0 is the previous conversion price and D is the cash dividend per share [2]

Core Viewpoint - Zijin Bank announced the implementation of a mid-term equity distribution plan for 2025, affecting the trading status of its convertible bonds during the distribution period [2] Group 1 - The company will suspend the conversion of "Ziyin Convertible Bonds" from January 28, 2026, until the equity distribution registration date [2] - The conversion of "Ziyin Convertible Bonds" will resume on the first trading day after the equity registration date [2] - An announcement regarding the implementation of the equity distribution and the adjustment of the convertible bond conversion price will be disclosed on January 29, 2026, on the Shanghai Stock Exchange website and designated information disclosure media [2]

Group 1 - The core announcement from Zijin Bank states that due to the implementation of the 2025 mid-term equity distribution, the "Ziyin Convertible Bonds" will suspend conversion from January 28, 2026, until the equity registration date, after which conversion will resume on the first trading day following the registration [1][7][10] - The company will distribute a cash dividend of 0.5 yuan (including tax) for every 10 shares to registered ordinary shareholders based on the total share capital on the equity registration date [4][10] - The mid-term profit distribution plan was approved by the company's board during its fourth meeting on December 25, 2025, following authorization from the annual shareholders' meeting held on May 20, 2025 [4][10] Group 2 - The announcement includes a table detailing the suspension of the convertible bond's conversion, indicating the start date of suspension as January 28, 2026 [3][9] - The company assures that the announcement's content is truthful, accurate, and complete, with the board of directors taking legal responsibility for any misrepresentation [2][8]

1. Report Industry Investment Rating No information about the industry investment rating is provided in the report. 2. Core Viewpoints of the Report - 2026 Q1 may see an increase in convertible bond calls, but high - parity convertible bond valuations are at historical highs. High valuations do not guarantee post - call valuation maintenance, and the pressure on convertible bond prices before and after the call is relatively large. It is recommended to take profit before the call or stop loss in a timely manner after the call based on market conditions [3][7]. - The overall trend of convertible bond valuations is likely to be high - level oscillations, with a possibility of short - term foaming. In January 2026, institutional demand for configuration will support valuations, and if the equity market performs better than expected, valuations may foam [28]. - In December 2025, the convertible bond market oscillated upward, with both convertible bonds and underlying stocks performing strongly, and valuations oscillated and increased. The trading volume of the convertible bond and equity markets decreased, but margin trading funds showed a strengthening trend [48][56]. - The issuance of new convertible bonds slightly increased in December 2025, and the number of new issuance plans continued to rise. The overall scale of holders in the Shanghai and Shenzhen Stock Exchanges decreased, with obvious reductions by insurance funds [3][62]. 3. Summary According to Relevant Catalogs 3.1 Historical Facts and Changes before and after Convertible Bond Calls - **Before the Call Announcement** - High market valuations do not guarantee post - call valuation maintenance. After the call, the valuation compresses to near 0%, and the compression process is basically completed before the call announcement [3][8]. - The strength of the underlying stock before the call can partially offset the compression of convertible bond valuations, but when valuations are high, the pressure on convertible bond prices before the call is still relatively large [3]. - The decline before the call mainly occurs within T - 10 days, and the day of the highest price is advancing [3][16]. - **After the Call Announcement** - In most months, convertible bond prices continue to decline after the call announcement, but in some months with a strong equity market, prices rebound [3][20]. - There is generally a decline of varying degrees on T - day, and the months with price rebounds mainly show strength from T + 1 to T + 15 days [3][21]. - The stronger the equity market, the more delayed the appearance of the highest price [3][25]. 3.2 Valuation Outlook - The overall trend is high - level oscillations, with a possibility of short - term foaming. In December 2025, valuations oscillated upward. As of December 31, 2025, the 100 - yuan par - value fitted conversion premium rate was 34.04%, up 2.50 pct from the end of November, reaching the highest level since 2019 [28]. 3.3 Key Focused Convertible Bonds - From December 1 to December 31, 2025, the convertible bond portfolio rose 3.84%, outperforming the benchmark index by 1.70 pct. Huayi and Xingqiu had obvious increases [41]. - The "Huachuang Convertible Bond" January key - focused portfolio is adjusted to include Xingqiu, Mingli, Yirui, Huachen, Huayi, Yifeng, Ziyin, Qingnong, Zhongyin, and Xingye [43]. 3.4 Market Review - **Market Performance** - In December 2025, the convertible bond market oscillated upward, with a strong performance in the second half of the month. Most sectors of the convertible bond market rose, and technology - related concepts declined. The science and technology and manufacturing sectors showed significant increases, and the cyclical sector also performed well [48][50]. - **Fund Performance** - The trading volume of the convertible bond and equity markets decreased slightly. From December 1 to December 31, 2025, the average daily trading volume of CSI Convertible Bonds was 63.803 billion yuan, a 1.27% decrease from November, and the average daily trading volume of Wind All - A was 1.880842 trillion yuan, a 1.76% decrease from November [56]. - Margin trading funds oscillated and strengthened. As of December 31, 2025, the balance of margin trading in the Shanghai and Shenzhen Stock Exchanges was approximately 2.53 trillion yuan, an increase of 66.664 billion yuan from the end of November. Most industries received net margin purchases [60]. 3.5 Supply and Demand Situation - **New Bond Issuance and Listing** - In December 2025, 7 convertible bonds were issued, with a total scale of 5.494 billion yuan, and 5 new convertible bonds were listed, with a total scale of 3.005 billion yuan. The online new - bond issuance subscription scale increased, with an average effective subscription amount of 8.85 trillion yuan, a 2.61% increase month - on - month [62]. - **Expected Issuance Scale and New Plans** - The total expected issuance scale is approximately 122.663 billion yuan. As of December 31, 2025, 7 listed companies obtained convertible bond issuance approvals, with a planned issuance scale of 8.583 billion yuan; 6 companies' convertible bond issuances passed the review committee, waiting for approvals, with a total scale of 3.361 billion yuan. In December, 6 new board plans were added, with a total scale of approximately 77.9 billion yuan [65]. - **Holder Scale Changes** - The overall scale of holders in the Shanghai and Shenzhen Stock Exchanges decreased. In December 2025, the total par value of convertible bonds held by the two exchanges was 552.692 billion yuan, a decrease of 6.144 billion yuan from November, a 1.10% decline. The scale of public funds increased, while the scale of enterprise annuities decreased [83][87].

Core Viewpoint - Zijin Bank has announced its 2025 interim profit distribution plan, proposing a cash dividend of 0.5 yuan per 10 shares, totaling approximately 183.05 million yuan, which represents 20% of the net profit attributable to shareholders for the first half of 2025 [1][4][6]. Summary by Sections Profit Distribution Plan - The company plans to distribute cash dividends based on a total share capital of 3,660,984,783 shares as of June 30, 2025, with a cash dividend of 0.5 yuan per 10 shares (including tax) [1][4][6]. - The total cash dividend payout will amount to 183,049,239.15 yuan, which is 20% of the net profit attributable to shareholders for the first half of 2025, reported at 912,481,531.55 yuan [4][9]. - The distribution will be adjusted if there are changes in the total share capital before the record date for the dividend [3][4][8]. Approval Process - The profit distribution plan was approved during the fourth meeting of the fifth board of directors held on December 25, 2025 [10]. - The plan can be implemented following the authorization from the 2024 annual general meeting of shareholders [10].

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].

Industry Investment Rating No industry investment rating information is provided in the report. Core Views - The long - and short - end of US Treasury yields continued to decline last week, and the long - end briefly fell below 4%, suggesting an increased market bet on US economic recession. The gold price correction on Friday raised concerns about changing market bets. Global liquidity is shifting more firmly towards easing, which will fuel the further bubble of AI themes, strengthen market structuring, benefit the technology sector in the short - term, and be negative for precious metals [1][43][44]. - China's ChiNext and STAR Market weakened with a strong wait - and - see sentiment, and convertible bonds followed suit. Low - price, large - cap, and high - rating convertible bonds were relatively resilient. The high - low rotation in the convertible bond market preceded that in the equity market, possibly due to factors such as the amplification effect of convertible bond valuation, large - scale redemptions of high - standard bonds, and the low risk appetite of convertible bond investors [1][44]. - Considering both external and domestic factors, the main logic of technology computing power and electricity remains valid. With the approaching earnings season, it is recommended to focus on sectors with relatively certain earnings improvement, such as new energy and some chemical fields. Convertible bonds like Pingmei, Yuguang, Xingfa, Aidi, Saite, and Shouhua are recommended for their defensive properties [1]. - The top ten convertible bonds with the highest probability of downward revision next week are Ziyin, Lanfan, Dongshi, Baolai, Longda, Jiangong, Wanqing, Jidong, Shanlu, and Aojia Convertible Bonds [1][44]. - The top ten high - rating, medium - low - price convertible bonds with the greatest potential for par premium rate repair next week are Sheng24, Changji, Pufa, Chunqiu, Ying19, Xiwang, Liqun, Wentai, Liuyao, and Jieneng Convertible Bonds [1][44]. Summary by Directory 1. Week - on - Week Market Review 1.1 Equity Market Declined Overall - From October 13th to 17th, the equity market declined. The Shanghai Composite Index fell 1.47% to 3839.76 points, the Shenzhen Component Index dropped 4.99% to 12688.94 points, the ChiNext Index decreased 5.71% to 2935.37 points, and the CSI 300 Index declined 2.22% to 4514.23 points. The average daily trading volume of the two markets decreased by about 2039.56 billion yuan to 21766.30 billion yuan, a week - on - week decline of 8.57% [6][10]. - Among the 31 Shenwan primary industries, 4 industries rose, with 2 industries rising more than 2%. Banking, coal, food and beverage, and transportation led the gains, rising 4.89%, 4.17%, 0.86%, and 0.37% respectively. Electronics, media, automobiles, communications, and machinery led the losses, with declines of 7.14%, 6.27%, 5.99%, 5.92%, and 5.84% respectively [13]. 1.2 Convertible Bond Market Declined Overall - From October 13th to 17th, the CSI Convertible Bond Index fell 2.35% to 474.22 points. Among the 29 Shenwan primary industries, only the banking industry rose 0.93%. Electronics, communications, national defense and military industry, non - ferrous metals, and computers led the losses, falling 6.45%, 5.71%, 5.25%, 5.13%, and 4.59% respectively [16]. - The average daily trading volume of the convertible bond market was 709.50 billion yuan, a significant decrease of 54.72 billion yuan, a week - on - week change of - 7.16%. The top ten convertible bonds in terms of trading volume were Yuguang, Guanzhong, Huicheng, Wentai, Jingxing, Wujin, Saili, Yiwei, Luwei, and Outong Convertible Bonds [16]. - Approximately 10.66% of convertible bond issues rose, about 6.64% had a gain between 0 - 1%, and 1.66% had a gain of over 2% [16]. 1.3 Comparison of Stock and Bond Market Sentiments - From October 13th to 17th, the weekly weighted average and median of convertible bond and underlying stock returns were negative, and the underlying stocks had a larger decline. In terms of trading volume, the convertible bond market's trading volume increased 16.05% week - on - week, at the 66.60% quantile since 2022, while the underlying stock market's trading volume increased 11.91% week - on - week, at the 94.70% quantile since 2022. About 10.85% of convertible bonds and 17.46% of underlying stocks rose, and about 66.84% of convertible bonds had a higher return than their underlying stocks. Overall, the trading sentiment in the convertible bond market was better [40]. - On specific trading days, the convertible bond market had better trading sentiment on October 13th, 16th, and 17th, while the underlying stock market had better trading sentiment on October 14th and 15th [41]. 2. Outlook and Investment Strategy - The main logic of technology computing power and electricity remains valid, and relevant catalysts have both short - term intermittency and long - term sustainability. Near the earnings season, it is recommended to focus on sectors with relatively certain earnings improvement, such as new energy and some chemical fields. Convertible bonds like Pingmei, Yuguang, Xingfa, Aidi, Saite, and Shouhua are recommended [1][44]. - The top ten convertible bonds with the highest probability of downward revision next week are Ziyin, Lanfan, Dongshi, Baolai, Longda, Jiangong, Wanqing, Jidong, Shanlu, and Aojia Convertible Bonds [1][44][45]. - The top ten high - rating, medium - low - price convertible bonds with the greatest potential for par premium rate repair next week are Sheng24, Changji, Pufa, Chunqiu, Ying19, Xiwang, Liqun, Wentai, Liuyao, and Jieneng Convertible Bonds [1][44][46].

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].

Core Points - The Supervisory Board of Jiangsu Zijin Rural Commercial Bank Co., Ltd. held a meeting on August 27, 2025, to review the half-year report and its summary for 2025, confirming compliance with relevant laws and regulations [1][2] - The meeting had full attendance with 9 supervisors present, and all resolutions were passed unanimously with 9 votes in favor, 0 against, and 0 abstentions [2] Summary by Sections Meeting Details - The meeting was convened in accordance with the Company Law and internal regulations, with prior notification sent via email on August 17, 2025 [1] - All 9 supervisors attended the meeting, ensuring a quorum for decision-making [1] Resolutions Passed - The Supervisory Board approved the half-year report and its summary, affirming that the preparation and review processes adhered to legal and regulatory requirements [1] - The content and format of the report were deemed compliant with regulatory standards, accurately reflecting the bank's operations without any breaches of confidentiality or harm to the bank's interests [1]

Core Viewpoint - Jiangsu Zijin Rural Commercial Bank reported steady growth in key financial metrics for the first half of 2025, with a focus on supporting rural and small enterprises while maintaining a robust risk management framework [2][3]. Financial Performance - Total operating income for the first half of 2025 reached CNY 2,392.67 million, a slight increase of 0.49% compared to CNY 2,381.01 million in the same period of 2024 [2]. - Total profit amounted to CNY 1,064.76 million, reflecting a 1.83% increase from CNY 1,045.58 million year-on-year [2]. - Net profit attributable to shareholders was CNY 912.48 million, a marginal increase of 0.12% from CNY 911.41 million in the previous year [2]. - The bank's total assets grew to CNY 272.09 billion, up 0.79% from CNY 269.94 billion at the end of the previous year [2]. - The non-performing loan ratio stood at 1.24%, with a provision coverage ratio of 200.48% [3]. Business Operations - The bank's loan balance for agricultural and small enterprises reached CNY 1,283.80 billion, accounting for 66.9% of total loans [3]. - The bank has focused on enhancing its service to the real economy, particularly in rural and small business sectors, aligning with national policies [3][4]. - The bank has implemented a strategic transformation, upgrading its microfinance department and signing strategic cooperation agreements with local governments [4][5]. Risk Management - The bank has established a comprehensive risk management system, focusing on credit, market, liquidity, and operational risks [9]. - The management has emphasized compliance culture and risk awareness among staff, enhancing the overall risk control framework [4][9]. Market Positioning - The bank maintains a strong commitment to serving rural areas and small enterprises, positioning itself as a key player in local economic development [8]. - The bank's governance structure is designed to integrate party leadership with corporate governance, ensuring effective oversight and management [8].