Core Viewpoint - The A-share market is experiencing a significant rebound, leading to an increase in investor confidence and a surge in the number of new participants in convertible bond subscriptions [1][4]. Group 1: Market Trends - The number of new investors participating in convertible bond subscriptions has increased by over 820,000 in just two months, bringing the total to over 8.7 million [1][4]. - The A-share market has seen a notable increase in new account openings, with 1,456.13 million new accounts opened in the first seven months of 2025, a year-on-year increase of 36.88% [4]. - The financing balance in the A-share market reached 21,329.69 billion, an increase of over 340 billion since the end of May [5]. Group 2: Performance of Convertible Bonds - Newly listed convertible bonds have shown impressive performance, attracting new investors. For instance, the Ber25 convertible bond rose by 29.01% on its first day and has since increased by over 50% [8][10]. - The average price of convertible bonds has recently surpassed 130 yuan per share, indicating a preference among institutions for low-priced and mid-priced convertible bonds [12]. Group 3: Investor Sentiment - The recent surge in convertible bond subscriptions reflects a broader increase in investor confidence in the equity market, driven by positive market conditions [1][4]. - Analysts suggest that the current market environment, characterized by rising stock indices and a strong "money-making effect," is likely to continue attracting more capital into the A-share market [13][14].

Company Overview - Wuxi Zhenhua Automotive Parts Co., Ltd. operates with nine wholly-owned subsidiaries and is located in Wuxi, Jiangsu Province [2] - The company specializes in the automotive parts sector, focusing on stamping parts, assembly processing services, mold design and manufacturing, and selective precision plating [2] - Wuxi Zhenhua has established core technological advantages and serves as a quality supplier for several leading automotive brands, including SAIC Motor, Tesla, and Xiaomi [2] Financial Performance - For the period from January to March 2025, Wuxi Zhenhua reported a revenue of 600.5 million yuan, representing a year-on-year increase of 22.48% [2] - The net profit attributable to shareholders was 94.54 million yuan, up 22.2% year-on-year, while the net profit excluding non-recurring items was 92.29 million yuan, reflecting a 20.98% increase [2] Shareholding Structure - As of March 2025, the concentration of shareholding is high, with the top ten shareholders holding a combined 69.61% of shares, and the top ten circulating shareholders holding 65.74% [2] - The number of shareholders is approximately 10,940, with an average circulating shareholding of 19,520 shares per person and an average holding amount of 605,900 yuan [2] Convertible Bond Details - The convertible bond issued by Wuxi Zhenhua has a credit rating of "AA-" and a maturity of six years, with a coupon rate increasing from 0.20% in the first year to 2.30% in the sixth year [1] - The bond's conversion price is set at 31.98 yuan, with a redemption price of 113 yuan at maturity, including the last interest payment [1] - As of August 20, the bond price increased by 2.07% to 158.155 yuan, with a trading volume of 37.44 million yuan and a conversion premium of 43.07% [1]

Group 1 - Wuxi Zhenhua (605319) issued convertible bonds named "Xizhen Convertible Bonds," which began trading on July 14, with a current stock price of 31.98 yuan and a conversion price of 31.98 yuan, resulting in a conversion value of 100 [1] - The subscription number for the convertible bonds was relatively low at 71,700, attributed to a small issuance scale of 520 million yuan and approximately 86.20% of the shares being allocated to existing shareholders [2] - The bonds received an AA- rating, indicating a strong position in the convertible bond market, with expectations that the bonds could rise above 300 yuan upon listing, potentially providing significant returns for investors [2] Group 2 - The current market for newly issued convertible bonds is experiencing high demand, often leading to price surges on the first trading day, comparable to the excitement surrounding new stock listings [5] - Many individual stocks are currently underperforming, while the market is seeing strong performances from bank stocks and active small-cap stocks, creating a disparity in market dynamics [5] - There is a significant amount of capital on the sidelines, waiting for market indices to break key resistance levels, which could trigger a wave of investment into the stock market, leading to a positive feedback loop of rising prices and increased buying [7]

Report Industry Investment Rating - Not provided in the given content Core Viewpoints - Last week, the equity market had a volume - driven rally. The real estate, steel, and building materials sectors were strong, while the banking sector declined. The bond market adjusted, and the 10 - year Treasury bond rate closed at 1.67% on Friday, up 2.2bp from the previous week. The convertible bond market mostly rose, with the CSI Convertible Bond Index up 0.76% for the week [1][8][9]. - In the short term, convertible bond supply may significantly shrink. The follow - up momentum of the convertible bond market has weakened, and valuations have been further compressed. It is recommended to focus on balanced convertible bonds or high - price, low - premium and non - redeemable in the short - term equity - biased varieties. For those with high requirements for drawdown, consider reducing positions [2][17]. - With the disclosure of mid - year report performance forecasts, attention should be paid to sectors such as consumer goods, technology, power grid equipment, and innovation drugs. Also, be cautious about bonds with a high proportion of exports to the US [3][18]. Summary by Relevant Catalogs Market Trends (2025/7/7 - 2025/7/11) - **Stock Market**: The equity market rose with volume. Real estate, steel, and building materials sectors performed well due to policy expectations and "anti - involution" themes. The non - banking sector was strong driven by the stablecoin theme, while the banking sector declined. Different sectors showed different performances on each trading day [8]. - **Bond Market**: The bond market adjusted. Factors such as the postponement of Trump's equal - tariff effective date, the Shanghai Composite Index breaking through 3500, and real estate policy rumors suppressed bond market sentiment. The 10 - year Treasury bond rate closed at 1.67% on Friday, up 2.2bp from the previous week [1][9]. - **Convertible Bond Market**: Most convertible bond issues rose. The CSI Convertible Bond Index increased by 0.76% for the week, the median price rose by 0.95%, and the calculated arithmetic average parity increased by 2.07%. The overall market conversion premium rate decreased by 1.29% compared with the previous week. Sectors like non - banking finance, coal, and computer in the convertible bond market led the gains, while social services, banking, and automotive sectors lagged. The total trading volume of the convertible bond market last week was 3405.76 billion yuan, with an average daily trading volume of 681.15 billion yuan, an increase from the previous week [9][12][15]. Viewpoints and Strategies (2025/7/14 - 2025/7/18) - **Supply Outlook**: Convertible bond supply may significantly shrink in the short term. The approval of the "potential new bond" Fudan Microelectronics expired, and there are only 5 issues in the pending - issuance list that have passed the listing committee, with a total scale of less than 5 billion yuan. Also, the delisting of existing bonds is accelerating [2][17]. - **Investment Suggestions**: Due to the intensified supply - demand contradiction, it is recommended to focus on balanced convertible bonds that can quickly consume the premium rate with high - volatility underlying stocks or high - price, low - premium and non - redeemable in the short - term equity - biased varieties. Consider reducing positions for those with high drawdown requirements [2][17]. - **Sector Focus**: Pay attention to sectors such as consumer goods (appliances, auto parts, two - wheeled vehicles), technology (PCB, copper - clad laminates, data center power supplies), power grid equipment, sea - wind power, energy storage, innovation drugs, and chemical pharmaceuticals. Be cautious about bonds with a high proportion of exports to the US [3][18]. Valuation Overview - As of July 11, 2025, for equity - biased convertible bonds, the average conversion premium rates in different parity intervals are at different percentile levels since 2010 and 2021. For debt - biased convertible bonds, the average YTM of bonds with a parity below 70 yuan is - 1.04%, at the 4%/0% percentile since 2010/2021. The average implied volatility of all convertible bonds is 33.92%, at the 64%/45% percentile since 2010/2021, and the difference between the implied volatility of convertible bonds and the long - term actual volatility of the underlying stocks is - 13.38%, at the 27%/32% percentile since 2010/2021 [19]. Primary Market Tracking - **Last Week (2025/7/7 - 2025/7/11)**: Guanghe Convertible Bond announced its issuance, and Luwei and Huachen Convertible Bonds were listed. Guanghe Convertible Bond, with an issuance scale of 4.9 billion yuan, is for the Guangdong Lufeng Nuclear Power Plant Project. Luwei Convertible Bond, with an issuance scale of 615 million yuan, is mainly for semiconductor and high - precision flat - panel display mask expansion projects. Huachen Convertible Bond, with an issuance scale of 460 million yuan, is for new - energy power equipment manufacturing and digital factory construction projects [27][28][29]. - **Next Week (2025/7/14 - 2025/7/18)**: Xizhen and Yongxi Convertible Bonds will be listed. Xizhen Convertible Bond, with an issuance scale of 520 million yuan, is for the Langfang Zhenhua Automobile Parts Project. Yongxi Convertible Bond, with an issuance scale of 1.165 billion yuan, is for multi - dimensional heterogeneous advanced packaging technology R & D and industrialization projects [30][31]. - **Overall Pending Issuance**: As of July 11, there are 75 convertible bonds to be issued, with a total scale of 116.32 billion yuan, including 2 issues approved for registration (total scale of 2.11 billion yuan) and 3 issues passed by the listing committee (total scale of 2.62 billion yuan) [32].

New Stock Offerings - Ji Chuan Pharmaceutical (600566) is in the offer period from June 18, 2025, to July 17, 2025[1] - Zhong Cheng Tui (300208) has 5 trading days remaining until the last trading day[1] - Tui Shi Jin Gang (600190) also has 5 trading days remaining until the last trading day[1] Delisting and Trading Alerts - Hengli Tui (000622) has 2 trading days remaining until the last trading day[1] - Tui Shi Jiu You (600462) has only 1 trading day remaining until the last trading day[1] - ST Zi Tian (300280) has an announcement dated July 10, 2025, regarding trading status[1] Abnormal Fluctuations - Changcheng Military Industry (601606) reported severe abnormal fluctuations on July 2, 2025[1] - An abnormal fluctuation was noted for Wei Xin Kang (603676) on July 5, 2025[2] - Multiple stocks, including ST Wei Ming (002581), reported abnormal fluctuations on July 11, 2025[2]

Overview - Wuxi Zhenhua Auto Parts Co., Ltd. is issuing convertible bonds totaling 520 million yuan (52,000,000,000) with a bond code of 111022 and a listing date of July 14, 2025 [2][6] - The bonds will be convertible from December 24, 2025, to June 17, 2031, and will not be secured [3][12] - The company has a credit rating of AA- for the bonds, with a stable outlook [4] Company Profile - Wuxi Zhenhua was established on June 8, 2006, and listed on June 7, 2021, with a registered capital of 250.06 million yuan [7][8] - The company specializes in manufacturing, processing, and R&D of automotive parts, fasteners, and electronic instruments [7] - The main business segments include stamping parts, assembly processing, precision electroplating, and mold manufacturing [13][18] Business Operations - The company produces over 3,500 types of automotive stamping parts, including body parts, chassis parts, powertrain components, and electronic components, with some specifically designed for new energy vehicles [13][18] - Wuxi Zhenhua has established stable strategic partnerships with major automotive manufacturers such as SAIC Motor, Tesla, and others, positioning itself as a leader in the domestic passenger vehicle supply chain [18][23] Market Position - The company has a strong competitive advantage in the precision electroplating sector, being the only qualified supplier for a major client in this field [19] - Wuxi Zhenhua has a comprehensive technical system for stamping and welding parts, which enhances production efficiency and product quality [22][25] - The automotive parts industry is characterized by high production volumes and strict quality requirements, necessitating advanced manufacturing equipment [22] Financial Information - The total issuance of convertible bonds is 520 million yuan, with a face value of 100 yuan per bond [2][6] - The bonds will be offered to existing shareholders first, with any remaining bonds available to the public [6][25]

Macro Strategy - The Federal Reserve did not lower interest rates in June and removed the judgment of higher unemployment and inflation from its statement, indicating a more stagflationary economic outlook [1][11] - The Fed revised down the US GDP growth forecast for Q4 2025 from 1.7% to 1.4% and raised the unemployment rate forecast from 4.4% to 4.5% [11] - The PCE inflation forecast for Q4 2025 was increased from 2.7% to 3.0%, with core PCE rising from 2.8% to 3.1% [11] Industry Analysis - In April 2025, the domestic installed capacity of new energy increased by 214.7%, with 45.22 GW added, marking the highest monthly increase for solar power in the first half of the year [5][17] - The global solar market is expected to grow, with a forecasted 10% increase in new installations in 2025 under neutral conditions, and up to 30% under optimistic scenarios [17] - The wind power sector is experiencing growth, with a 20% increase in land wind turbine bidding in the first five months of 2025 [17] Company Recommendations - BaiRun Co., Ltd. is expected to achieve revenues of 3.5 billion, 4 billion, and 4.7 billion yuan from 2025 to 2027, with net profits of 810 million, 970 million, and 1.18 billion yuan respectively, maintaining a "buy" rating [6][19] - YaSheng Pharmaceutical is projected to see rapid revenue growth, with forecasts of 519 million yuan and 3.215 billion yuan for 2025 and 2026, respectively, also maintaining a "buy" rating [7] - Top Cloud Agriculture is expected to benefit from the development of smart agriculture, with projected revenues of 659 million, 875 million, and 1.136 billion yuan from 2025 to 2027, receiving a "buy" rating [8]

Core Viewpoint - Wuxi Zhenhua Automotive Parts Co., Ltd. has successfully issued convertible bonds totaling 520 million yuan, with a significant portion allocated to existing shareholders and a limited allocation to public investors [2][4]. Group 1: Issuance Details - The company issued 520 million yuan (52,000,000) of convertible bonds, with the bond code "111022" and the name "Xizhen Convertible Bonds" [2]. - The issuance price is set at 100 yuan per bond (1,000 yuan per unit) [4]. - The subscription period for existing shareholders and public investors ended on June 18, 2025 [4]. Group 2: Subscription Results - Existing shareholders received 448,228,000 yuan (448,228 units), accounting for approximately 86.20% of the total issuance [5]. - The public subscription saw 7,862,390,684 units (7,862,390,684,000 yuan) applied for, but only 71,772 units (71,772,000 yuan) were allocated, resulting in a low allocation rate of 0.00091285% [5]. - The total effective subscription amount reached 7,862,838,912 units, with a total allocation of 520,000 units (520,000,000 yuan) [5]. Group 3: Underwriting and Risk Management - The lead underwriter, Dongfang Securities, will underwrite any shortfall in subscriptions, with a maximum underwriting limit of 30% of the total issuance, equating to 156 million yuan [3]. - If the total subscription does not reach 70% of the issuance, the company and the underwriter may consider suspending the issuance [2][3]. Group 4: Future Actions - The listing date for the convertible bonds will be announced separately [5]. - Investors are advised to check the relevant documents and announcements on the Shanghai Stock Exchange website for further details [5].

Core Viewpoint - The article discusses the adjustments in the conversion prices of various convertible bonds, highlighting specific changes and upcoming subscription dates for certain bonds [1]. Group 1: Convertible Bond Adjustments - The conversion price for "Hangyang Convertible Bond" has been adjusted from 26.59 CNY/share to 25.98 CNY/share, reflecting a decrease of 2% [1]. - Other convertible bonds such as Jianlong Convertible Bond, Tian23 Convertible Bond, Jiayuan Convertible Bond, and Jinggong Convertible Bond have not undergone any adjustments [1]. - The subscription dates for the "Xizhen Convertible Bond" and "Huachen Convertible Bond" are set for June 18 and June 20, respectively [1]. Group 2: Shareholder Actions - Guizhou Gas has reported that 147 million shares held by shareholder Beijing Dongjia have been frozen [1]. - Liyang Chip's shareholder plans to transfer 3.25% of its shares through an inquiry [1].