Report Summary 1. Report Industry Investment Rating No information provided. 2. Core View of the Report Last week, the convertible bond market followed the equity market to fluctuate upward and then pulled back. The CSI Convertible Bond Index outperformed the Shanghai Composite Index by 0.67 pcts. High - priced convertible bonds continued to be dominant, and low - price and low - premium convertible bonds led the Wind sub - indices. In the short term, the "15th Five - Year Plan" focusing on carbon peaking and the supply - side reform of the new energy industry is expected to support relevant underlying stocks and convertible bonds. However, in the fourth quarter, due to economic data pressure and profit - taking needs, the probability of high - to - low and structural switching in the market increases, and defensive convertible bonds with previous underperformance may be dominant in stages, and the cost - performance of low - price and low - premium convertible bonds has increased. Attention should also be paid to the possible impact on the demand side of convertible bonds with the further adjustment of fund fees and the launch of stock - bond balanced funds [2]. 3. Summary by Relevant Catalogs Policy Tracking - On October 28, the China Securities Regulatory Commission (CSRC) issued the "Several Opinions on Strengthening the Protection of Small and Medium - sized Investors in the Capital Market", focusing on key issues of small and medium - sized investors and proposing 23 specific measures in eight aspects [3]. - On October 31, the CSRC issued the "Guidelines for the Performance Comparison Benchmark of Publicly Offered Securities Investment Funds (Exposure Draft)", aiming to standardize the selection and use of performance comparison benchmarks of public funds through six chapters and 21 articles, and protect the legitimate rights and interests of investors [3]. Secondary Market - **Equity Market**: Last week, major domestic equity market indices fluctuated strongly. Overseas, the Fed cut interest rates by 25bp as expected, but its stance on the December interest - rate cut was hawkish. Domestically, the China - US economic and trade negotiations advanced, and the October manufacturing PMI was 49.0%, 0.8 percentage points lower than that in September, which was lower than market expectations and suppressed market risk appetite. The equity market showed a pattern of rising first and then falling [6]. - **Convertible Bond Market**: Last week, major convertible bond market indices followed the equity market to rise. The CSI Convertible Bond Index, Shanghai Convertible Bond Index, and Shenzhen Convertible Bond Index rose 0.79%, 0.55%, and 1.14% respectively. Convertible bond ETFs had a net redemption of 11.92 billion yuan. Structurally, high - priced convertible bonds continued to be strong, and low - price and low - premium convertible bonds performed well. In terms of industries, most convertible bonds in various industries rose, with steel industry convertible bonds leading the gain. Looking forward, in the short term, relevant policies may support new energy - related convertible bonds, but in the fourth quarter, the probability of market switching increases, and the cost - performance of low - price and low - premium convertible bonds has increased [2][8][11]. Primary Market - **Issuance and Listing**: Last week, there was no new convertible bond issuance. Fueneng Convertible Bond and Jin25 Convertible Bond were listed, while several convertible bonds were redeemed in advance or expired and delisted. As of October 31, the convertible bond market's outstanding scale was 581.274 billion yuan, a decrease of 152.619 billion yuan compared with the beginning of the year and an increase of 3.14 billion yuan compared with the previous week [35]. - **Conversion and Approval**: Seven convertible bonds had a conversion ratio of over 5% last week. Shuangle Co., Ltd.'s convertible bond issuance was approved by the exchange, and Ruikeda's convertible bond issuance was approved by the CSRC. As of last Friday, 5 convertible bonds were approved by the CSRC to be issued, with a total of 4.15 billion yuan, and 6 convertible bonds passed the issuance review committee, with a total of 3.381 billion yuan [35][40]. - **Clause Tracking**: Last week, no convertible bond announced a downward revision of the conversion price, and 1 convertible bond announced early redemption. Several convertible bonds proposed or were about to trigger a downward revision of the conversion price, and some were expected to trigger early redemption conditions [41].

Report's Investment Rating for the Industry - No information regarding the industry investment rating is provided in the report. Core Views - The bond market sentiment was generally positive last week due to factors such as the central bank's resumption of treasury bond trading, loose cross - month funds, the stock market decline after the Sino - US summit, and weak PMI data. The 10 - year treasury bond yield closed at 1.80% on Friday, down 5.32bp from the previous week [1][7][8]. - The equity market rose first and then fell last week. With positive factors like Sino - US trade negotiations, the release of the "15th Five - Year Plan" draft, and the Fed's interest - rate cut expectation, the A - share market was strong in the first half of the week, with the Shanghai Composite Index hitting a new high above 4000. However, it declined in the second half as positive news materialized and the demand for profit - taking increased. The technology hardware sector, which had a high increase previously, led the decline [1][7]. - Most convertible bond issues rose last week. The CSI Convertible Bond Index increased by 0.79% for the whole week, the median price rose by 0.63%, and the calculated arithmetic average parity increased by 0.64%. The overall conversion premium rate increased by 0.10% compared with the previous week [1][8]. - Convertible bonds are still restricted by high prices, high premiums, and frequent redemptions. The overall opportunity is hard to find as the median convertible bond price remains above 130 yuan. For different types of convertible bonds, there are different challenges, such as limited capacity and return space for low - price strategies in debt - biased convertible bonds, over - anticipation of underlying stock price increases in balanced convertible bonds, and the risk of double - killing of valuation and parity in high - quality "core stocks" of non - redeemable equity - biased convertible bonds during market fluctuations [2][17]. - Given the strong bullish atmosphere in the equity market, it is difficult to make decisions on increasing or decreasing positions. The overall assets should be treated with a trading - band mindset. When selecting bonds, it is advisable to allocate evenly across industries. For balanced convertible bonds, choose those with high - volatility underlying stocks that can quickly digest the high convertible bond premiums, and for equity - biased convertible bonds, focus on low - premium targets [2][17]. Summary by Relevant Catalogs Market Trends (2025/10/27 - 2025/10/31) Stock Market - The equity market showed a volatile trend. The Shanghai Composite Index had different daily changes: up 1.18% on Monday, down 0.22% on Tuesday, up 0.7% on Wednesday, down 0.73% on Thursday, and down 0.81% on Friday. Different sectors had varying performances each day [7]. - Most Shenwan primary industries rose last week. The top - performing industries were power equipment (4.29%), non - ferrous metals (2.56%), steel (2.55%), basic chemicals (2.50%), and comprehensive (2.26%), while communication (-3.59%), beauty care (-2.21%), banking (-2.16%), and electronics (-1.65%) performed poorly [8]. Bond Market - The bond market sentiment was good. The 10 - year treasury bond yield closed at 1.80% on Friday, down 5.32bp from the previous week, influenced by factors such as the central bank's actions, fund conditions, stock market movements, and PMI data [1][7][8]. Convertible Bond Market - Most convertible bond issues rose. The CSI Convertible Bond Index increased by 0.79% for the whole week, the median price rose by 0.63%, and the arithmetic average parity increased by 0.64%. The overall conversion premium rate increased by 0.10% compared with the previous week. The arithmetic average conversion premium rates of convertible bonds in different parity ranges also changed [1][8]. - In terms of industries, most convertible bond industries rose. The top - performing industries were steel (+3.04%), machinery and equipment (+2.15%), national defense and military industry (+1.75%), and automobile (+1.16%), while communication (-3.18%), beauty care (-3.17%), building materials (-0.75%), and media (-0.48%) performed poorly [11]. - At the individual bond level, Titan (solid - state battery concept), Dazhong (lithium mine), Zhenhua (chromium salt), Zhonghuan Zhuan 2 (innovative drugs), and Yunji (belt conveyor) convertible bonds led the increase, while Tongguang (optical fiber cable), Shuiyang (skin care products), Jingda (controllable nuclear fusion), Huayi (semiconductor clean room), and Wujin (stainless steel) convertible bonds led the decline [1][12]. - The total trading volume of the convertible bond market last week was 310.731 billion yuan, with an average daily trading volume of 62.146 billion yuan, which was higher than the previous week [15]. Valuation Overview - As of October 31, 2025, for equity - biased convertible bonds, the average conversion premium rates in different parity intervals were at different percentile levels since 2010 and 2021. For debt - biased convertible bonds, the average YTM of those with a parity below 70 yuan was -5.3%, at the 0%/1% percentile levels since 2010/2021. The average implied volatility of all convertible bonds was 40.84%, and the difference between the convertible bond implied volatility and the long - term actual volatility of the underlying stocks was -1.34%, both at certain percentile levels [18]. Primary Market Tracking Last Week (2025/10/27 - 2025/10/31) - Qizhong Convertible Bond announced its issuance, and Jin 25 and Funeng Convertible Bonds were listed. Qizhong Convertible Bond has a scale of 850 million yuan, Jin 25 Convertible Bond has a scale of 2 billion yuan, and Funeng Convertible Bond has a scale of 3.802 billion yuan. Each bond's underlying company has its own business characteristics, financial performance, and planned use of funds after deducting issuance fees [26][27][29]. - One company (Ruikeda) got new approval for registration, one company (Shuangle Co., Ltd.) passed the listing committee review, 13 companies' applications were accepted by the exchange, one company (Mankun Technology) passed the shareholders' meeting, and 4 companies announced board proposals [31]. Future Week (2025/11/3 - 2025/11/7) - As of the announcement on October 31, there is no convertible bond announced for issuance, and Jinlang Zhuan 02 is expected to be listed. It has a scale of 1.677 billion yuan, and its underlying company has specific business operations, financial data, and planned use of funds [30]. - Currently, there are 94 convertible bonds waiting to be issued, with a total scale of 143.51 billion yuan. Among them, 5 have been approved for registration with a total scale of 4.15 billion yuan, and 6 have passed the listing committee review with a total scale of 3.38 billion yuan [31].

Core Viewpoint - The company has decided not to exercise the early redemption rights for the "Jincheng Convertible Bonds" despite triggering the redemption conditions due to stock price performance [2][7]. Group 1: Convertible Bond Overview - The company issued 1 million convertible bonds with a total value of 100 million yuan, with a maturity of 6 years starting from December 23, 2020 [3]. - The initial conversion price was set at 12.73 yuan per share, which has been adjusted multiple times due to profit distribution, currently standing at 11.78 yuan per share as of June 27, 2025 [4]. Group 2: Redemption Conditions - The redemption clause allows the company to redeem the bonds if the stock price remains above 130% of the conversion price for at least 15 out of 30 consecutive trading days [5]. - The stock price from October 10 to October 30, 2025, met the criteria for early redemption, triggering the company's decision-making process [6]. Group 3: Decision on Early Redemption - On October 30, 2025, the board unanimously decided not to redeem the bonds early, considering the current market conditions and the bonds' impending maturity on December 22, 2026 [7]. - The company will not exercise early redemption rights during the remaining conversion period if the stock price conditions are met again [7]. Group 4: Shareholder Activity - There have been no transactions of "Jincheng Convertible Bonds" by major shareholders or executives in the six months leading up to the triggering of the redemption conditions, and there are no plans for future reductions [7].

New Stock Issuance - Fengbei Bio (证券代码: 732334) issued at a price of 24.49 on 2025/10/27[1] - The offer period for the acquisition of Shangwei New Materials (证券代码: 688585) is from 2025/09/29 to 2025/10/28[1] Market Alerts - Significant abnormal fluctuations reported for *ST Yuancheng (证券代码: 603388) on 2025/10/24[1] - Other companies with abnormal fluctuations include *ST Wanfang (证券代码: 000638) and ST Lingnan (证券代码: 002717) on 2025/10/27[1] Recent Announcements - Multiple companies including Tianpu Co. (证券代码: 605255) and Chang Aluminum (证券代码: 002160) have recent announcements dated 2025/10/27[1] - The latest announcements can be accessed through the provided links for detailed information[1]

Group 1 - The core viewpoint of the article highlights the successful issuance of convertible bonds by Jinchengxin (603979), with a scale of 2 billion yuan and a high rating of AA [1] - The current stock price of Jinchengxin is 66.10 yuan, with a conversion price of 63.46 yuan, resulting in a high conversion value of 104.16, indicating strong potential for profit [1] - The convertible bond market is currently more active than the stock market, with T+0 trading attracting short-term investors, leading to high demand for new bond issuances [3] Group 2 - Jinchengxin's total market capitalization is 41.23 billion yuan, with a dynamic price-to-earnings ratio of 18.56 and a price-to-book ratio of 4.22 [3] - The article suggests that the stock market is experiencing a surge in retail investor interest, often indicating a peak in market sentiment [6][8] - The influx of new retail investors typically signals a market top, as seasoned investors may begin to exit their positions [8]

Summary of Key Points Core Viewpoint - The article discusses recent announcements regarding share reductions by major shareholders in several companies, along with updates on convertible bonds and financial performance of specific firms. Group 1: Shareholder Reductions - Qifan Cable's controlling shareholder plans to reduce holdings by up to 3.5% of the company's shares [1] - Liyang Chip's controlling shareholder intends to reduce holdings by up to 2.95% of the company's shares [1] - Yiwei Lithium Energy's controlling shareholder is looking to reduce holdings by up to 2% through inquiry [1] Group 2: Convertible Bonds Updates - Zhonghuan Convertible Bond 2 and Youfa Convertible Bond will not be forcibly redeemed [1] - Triangle Convertible Bond, Silk Road Convertible Bond, and Leizhi Convertible Bond will not undergo adjustments [1] - The article lists various convertible bonds with their current prices, redemption prices, and other relevant details [4][6] Group 3: Financial Performance - Wentai Technology reported a net profit of 1.04 billion yuan for the third quarter, marking a year-on-year increase of 279.29% [1] Group 4: New Stock Offerings - Fengbei Biological is listed for new stock subscription on the Shanghai and Shenzhen exchanges [1]

Report Industry Investment Rating No information provided in the content. Core Viewpoints of the Report - Policy support has significantly boosted the equity and convertible bond markets. The Shanghai Composite Index and the Wind Micro - cap Stock Index have reached new phased highs, but the style rotation is fast, with the technology and dividend sectors taking turns. Amid the intertwining of Sino - US tariff issues and domestic policy expectations, the equity market is highly volatile, but its downside risk is generally controllable. The convertible bond market is trending optimistically. In the short term, the impetus for the convertible bond market comes from the liability side, with the return of net inflows into convertible bond ETFs and the potential increased demand from the upcoming stock - bond constant ETFs. After a period of retracement and consolidation, a new round of market upswing is expected to start. [3][5] Section Summaries 1. Weekly Outlook - Policy support has strongly influenced the equity and convertible bond markets. The Shanghai Composite Index and the Wind Micro - cap Stock Index have hit new phased highs. The equity market is highly volatile due to Sino - US tariff and domestic policy expectations, but its downside risk is controllable. The convertible bond market is optimistic, and its short - term momentum comes from the liability side, such as the return of net inflows into convertible bond ETFs and potential demand from stock - bond constant ETFs. [3][5] 2. Convertible Bond Valuation - During the Fourth Plenary Session of the 20th CPC Central Committee, risk appetite was resilient, and the 100 - yuan valuation rose to around 36%. High - rated large - cap convertible bonds showed stronger valuation performance. The overall market's 100 - yuan premium rate was 35.7%, up 0.6% from the previous week, and its percentile since 2017 was 93.9%. High - rated convertible bonds had a larger increase in valuation than low - rated ones. - The conversion premium rate and the bottom - line premium rate increased across most parity ranges. The low - parity range below 80 yuan and the 110 - 120 yuan parity range showed relatively strong valuation performance, while the high - parity range above 140 yuan saw a slight decline. - The median price of convertible bonds was 131.80 yuan, up 2.07 yuan from the previous week, and the yield to maturity was - 6.47%, down 0.01%. Their percentile levels since 2017 were 99.20 and 0.60 respectively. [4][6][10] 3. Clause Statistics 3.1 Redemption - This week, Tongcheng Convertible Bond announced redemption, while Fuchun, Youfa, and Zhonghuan Zhuan 2 Convertible Bonds announced non - redemption, with a forced - redemption rate of 25%. There are currently 18 convertible bonds that have announced forced or maturity redemptions but have not yet delisted, with a potential conversion or maturity balance of 4.9 billion yuan. There are 34 convertible bonds currently in the redemption process, and 12 are expected to meet the redemption conditions next week. [4][13][16] 3.2 Downward Revision - This week, Lanfan Convertible Bond proposed a downward revision. As of now, 107 convertible bonds are in the non - downward - revision period, 23 cannot be downward - revised due to net - asset constraints, 2 have triggered the downward - revision condition but the stock price is still below the trigger price and no announcement has been made, 32 are accumulating days for downward revision, and 1 has issued a board - meeting proposal for downward revision but has not yet held a shareholders' meeting. [4][18] 3.3 Put Option - This week, Baocai Convertible Bond issued a conditional put - option announcement. As of now, 2 convertible bonds have issued put - option announcements, and 5 are accumulating days to trigger the put - option. Among them, 1 proposed a downward revision, 1 has triggered the downward - revision condition, 1 is accumulating days for downward revision, and 2 are in the non - downward - revision period. [4][22] 4. Primary Market Issuance - There were no new convertible bond issuances this week. Jin 25, Funeng, and Jinlang Zhuan 02 Convertible Bonds have been issued but not yet listed. Jin 25 Convertible Bond is scheduled to list on October 27, 2025. As of now, there are 7 convertible bonds awaiting registration, with a total issuance scale of 6.7 billion yuan, and 6 awaiting listing - committee approval, with a total issuance scale of 3.6 billion yuan. [4][26] 5. Appendix - The CSI Convertible Bond Index rose 1.47% this week. The technology and advanced manufacturing sectors showed significant recovery. Most industries saw gains, with the national defense and military industry, electronics, and computer sectors leading the way. [28][33]

New Stock Issuance - Daming Electronics (Code: 732376) issued at a price of 12.55[1] - Chaoying Electronics (Code: 603175) issued at a price of 17.08[1] Equity Announcements - Offer period for Shangwei New Materials (Code: 688585) is from September 29, 2025, to October 28, 2025[1] - Significant abnormal fluctuations reported for *ST Yuancheng (Code: 603388) on October 24, 2025[1] Recent Trading Alerts - Multiple companies reported significant trading alerts, including ST Dongyi (Code: 002713) and ST Keli Da (Code: 603828) on October 22 and 24, 2025, respectively[1] - A total of 50 companies reported trading alerts, with the highest alert for *ST Haohua (Code: 600243) on October 24, 2025[1]

Group 1 - The core point of the article discusses the planned reduction of shareholding by shareholders of Zhengfan Technology, with a total reduction not exceeding 1.89% of the company's shares [1] - Liu Hui and Zhu Wenyi, shareholders of Rundar Medical, have had part of their shares frozen by the Shanghai First Intermediate People's Court, with Liu Hui's 18,994,771 shares frozen, accounting for 69.46% of his holdings, and Zhu Wenyi's 1,189,056 shares frozen, accounting for 3.77% of his holdings [1] - The total shares held by Liu Hui and Zhu Wenyi amount to 63,047,179 shares, representing 10.44% of the total shares, with a combined freeze of 23,087,827 shares, which is 36.62% of their holdings and 3.82% of the total shares [1] Group 2 - The article lists several convertible bonds, including their current prices, redemption prices, last trading dates, last conversion dates, conversion values, remaining scales, and the proportion of convertible bonds to the underlying stocks [1][3] - Notable convertible bonds include the "Jingxing Convertible Bond" with a current price of 177.100 and a conversion value of 179.65, and the "Montai Convertible Bond" with a current price of 133.442 and a conversion value of 134.38 [1] - The article also highlights the upcoming listing of the "Jin 25 Convertible Bond" on October 27 [1]

Macro Strategy - The macroeconomic indicators show a marginal recovery in infrastructure work volume since September, with expectations for monetary policy to continue its supportive stance to stabilize liquidity amid seasonal factors [1][12] - The ECI supply index stands at 50.03%, unchanged from the previous week, while the demand index has slightly increased to 49.92%, indicating a stable economic operation [12] - The U.S. economic data has led to a cooling of interest rate cut expectations, with analysts significantly raising growth forecasts for the U.S. economy for Q3 2025 to Q2 2026 [13][14] Fixed Income - The secondary capital bond market saw a total transaction volume of approximately 229.9 billion yuan from September 22 to September 26, an increase of 52.1 billion yuan from the previous week [2][18] - The issuance of green bonds totaled about 30.97 billion yuan during the same period, a slight decrease from the previous week, while the secondary market transaction volume for green bonds reached 70.3 billion yuan, an increase of 9.9 billion yuan [3][20] - The report indicates that the bond investment income of 42 listed banks in the first half of 2025 was approximately 1.42 trillion yuan, reflecting a modest growth of 3.82% compared to the same period in 2024 [4][6] Industry Insights - Youyou Green Energy (301590) is positioned as a leader in charging modules, benefiting from the trend towards high-power DC charging equipment for electric vehicles, with projected net profits of 204 million, 315 million, and 507 million yuan for 2025-2027 [8] - Jiufeng Energy (605090) plans to invest in coal-to-gas projects in Xinjiang, with net profit forecasts of 1.56 billion, 1.80 billion, and 2.13 billion yuan for 2025-2027, maintaining a "buy" rating [8] - Andisoo (600299), a leader in the global methionine industry, is expected to see net profits of 1.6 billion, 1.7 billion, and 2.1 billion yuan for 2025-2027, with a "buy" rating based on its strong project progress and market position [8]