Group 1 - The report maintains an optimistic outlook for the convertible bond market in January 2026, driven by policy expectations and seasonal capital inflows, which are expected to create a "good start" for the market [6][17] - The central economic work conference has identified "technological innovation" and "expanding domestic demand" as key policy focuses, with related industry policy benefits expected to continue, directly boosting market risk appetite [6][17] - The convertible bond market is experiencing a tight supply-demand balance, with the total size of publicly traded convertible bonds at approximately 527.1 billion yuan as of December 31, 2025, down 183.6 billion yuan from the beginning of 2025 [19] Group 2 - The report suggests focusing on growth styles in investment strategies, particularly in technology sectors such as aerospace, AI computing, semiconductor equipment, and innovative pharmaceuticals, which are expected to benefit from industry policy support [6][20] - The top ten convertible bond portfolio for January 2026 emphasizes aggressive and elastic sectors, with a focus on technology growth, cyclical recovery, and financial sectors [6][20] - Specific recommendations include increasing holdings in convertible bonds from companies like Yinbang, Zhenhua, and Yingliu in the technology sector, and focusing on cyclical sectors such as precious metals and chemicals [20][22]

Core Viewpoint - The Shenzhen Stock Exchange announced a temporary suspension and subsequent resumption of trading for "Dingjie Convertible Bonds" (123263) after its trading price increased by 30% or more from the issuance price for the first time [1] Group 1 - The trading price of Dingjie Convertible Bonds reached a significant milestone, marking a 30% increase from the issuance price [1] - The temporary suspension of trading began at 09:30 and was lifted at 14:57 on the same day [1]

Group 1 - The core point of the article is that Dingjie Convertible Bonds and Tianzhun Convertible Bonds were listed on December 31 [1] Group 2 - The listing of these convertible bonds indicates a potential opportunity for investors in the bond market [1] - The event reflects ongoing activities in the financial market, particularly in the area of convertible securities [1]

Group 1 - The company Proya plans to repurchase shares worth between 800 million to 1.5 billion yuan [1] - The major shareholder of Ruihua Tai, Guotou Gaoke, intends to reduce its stake by no more than 1% [1] - The convertible bond "Yingte Convertible Bond" is subject to forced redemption [2] Group 2 - Blue Sail Medical intends to transfer 100% equity of its wholly-owned subsidiary, Wuhan Bikaier [1] - Several convertible bonds have been listed, including Dingjie Convertible Bond and Tianzhun Convertible Bond [1] - New shares of Hengtong Guang have been listed on the Beijing Stock Exchange [1] Group 3 - The current price and redemption price of various convertible bonds are detailed, with specific dates for the last trading and conversion days [4][6]

Group 1 - The company announced the issuance of convertible bonds named "Dingjie Convertible Bonds" with the bond code 123263 [1] - The total issuance amount is 827.6642 million yuan, with a total of 8,276,642 bonds issued [1] - The bonds will be listed on the Shenzhen Stock Exchange, with the listing date set for December 31, 2025 [1]

Report Industry Investment Rating No information provided in the report. Core Viewpoints - With market sentiment boosted, convertible bonds are expected to maintain a strong, oscillating upward trend in the short term. However, near the year - end, some funds' profit - taking needs may cause short - term shocks, especially the volatility of high - priced convertible bonds may increase. Against a backdrop of strong risk appetite, it is cost - effective to make bargain - hunting layouts for large - cap convertible bonds in the bottom - position category and hard - tech themed convertible bonds supported by strong performance and high prosperity. In December, the exchange accelerated the review of convertible bond pre - plans, and in a strong market environment, convertible bond subscription will continue to be an important means to increase returns [2]. Summary by Directory Policy Tracking - On December 16, 2025, the Ministry of Commerce announced that from December 17, 2025, for the next 5 years, anti - dumping duties would be imposed on imported relevant pork and pork by - products from the EU [3]. - On December 18, 2025, six departments including the National Development and Reform Commission issued a document to expand the scope of key areas for clean and efficient coal utilization and encourage enterprises to upgrade their projects [4]. Secondary Market - Last week, major equity market indices showed mixed performance. The Shanghai Composite Index rose slightly by 0.03%, while the Shenzhen Component Index and the ChiNext Index fell by 0.89% and 2.26% respectively. Overseas, the US and Japanese markets had different trends, and globally, capital markets and commodities showed a differentiated performance. Domestically, economic data in November indicated continued downward pressure on the economy, with retail sales data underperforming expectations. The equity market initially declined on low trading volume but rebounded after Huijin's purchase of ETFs. Concepts such as commercial space, Hainan Free Trade Zone, and retail led the gains [5]. - Convertible bond market indices all closed up. The CSI Convertible Bond Index, Shanghai Convertible Bond Index, and Shenzhen Convertible Bond Index rose by 0.48%, 0.18%, and 0.86% respectively, with an average daily trading volume of 63.611 billion yuan, an increase of 2.975 billion yuan from the previous period. Convertible bond ETFs had a net redemption of 1.476 billion yuan. Small - cap convertible bonds outperformed, while high - rated and high - priced convertible bonds lagged. In terms of industry, most convertible bonds in various industries rose, with the light manufacturing industry leading the gain, and some industries such as household appliances and electronics underperforming [6][7][8]. - Looking ahead, convertible bonds are expected to continue their upward trend in the short term. However, due to profit - taking needs near the year - end, high - priced convertible bonds may experience greater volatility. Bargain - hunting for large - cap and hard - tech themed convertible bonds is recommended. Convertible bond subscription will also be an important way to increase returns [9]. Primary Market - Last week, Dingjie Convertible Bond was issued, no convertible bonds were listed, and several convertible bonds were redeemed early or expired. As of December 19, the convertible bond market's outstanding scale was 559.626 billion yuan, a decrease of 174.267 billion yuan from the beginning of the year. The issuance scale last week was 828 million yuan [31]. - Twelve convertible bonds had a conversion ratio of over 5%, with some having announced early redemption or approaching redemption conditions. Some convertible bonds triggered more conversions due to negative conversion premiums [32]. - Haitian Co., Ltd., Doctor Optical, and Changgao Electric's convertible bond issuance plans were approved by the exchange; Jinpan Technology and Shangtai Technology's plans were approved by the CSRC. As of last Friday, 5 convertible bonds were approved by the CSRC to be issued, with a total of 5.9 billion yuan, and 10 convertible bonds passed the issuance review committee, with a total of 8.515 billion yuan [34]. - In terms of clause tracking, 2 convertible bonds announced downward revisions of conversion prices, and 3 announced early redemptions. Several other convertible bonds were approaching or expected to trigger relevant conditions [35].

1. Report Industry Investment Rating No information provided regarding the industry investment rating. 2. Core Viewpoints of the Report - As of December 12, 2025, the convertible bond's 100 - yuan fitted premium rate has risen to 31.82%. With the valuation reaching historical highs and continuing to fluctuate, there are doubts about the applicability of past curve - fitting methods in the current high - price and high - valuation market. The algorithm for the fitted premium rate may need to be re - explored [1][10]. - The convexity of the fitted premium rate curve has increased. The right - shift of the parity indicates a structural difference in the convertible bond market. High - parity convertible bonds have relatively stable valuations, and as parity decreases, the valuation premium rises faster, causing the convexity of the curve to strengthen. The change in parity may lead to deviations in the calculated 100 - yuan premium rate [1][15]. - The distribution of the conversion premium rate is more extreme. The low - parity group has a steeper slope of premium rate increase, and the high - parity group's premium rate has nearly doubled compared to the end of 2024, while the medium - parity group shows relatively small fluctuations. This requires a change in the function form for curve fitting [2][17]. - When the parity is changing, the fitting interval should be widened, especially towards high - parity. The fitting function form may be adjusted to an exponential form, which can better reflect the premium rate distribution in the high - parity range and is suitable for some low - price and high - valuation samples. Considering the expected positive performance of the equity market in 2026, attention can be paid to such fitting method adjustments [2][3]. 3. Summary According to the Table of Contents 3.1 Fitted Premium Rate Curve Shape Changes, Pay Attention to Structural Differences - **Valuation and Parity Changes**: As of December 12, 2025, the convertible bond's 100 - yuan fitted premium rate has reached 31.82%, up 11.14 pct from the beginning of the year, at the 98.90% historical quantile since 2017. The high - parity proportion has increased, and the traditional curve - fitting method may not be applicable [10]. - **Convexity of the Fitted Curve**: Compared with the end of 2024, the parity has shifted to the right. High - parity convertible bonds have stable valuations, and as parity decreases, the valuation premium rises faster, strengthening the convexity of the curve. The change in parity may cause the model to deviate, resulting in inaccurate 100 - yuan premium rate calculations [15]. - **Extreme Distribution of Premium Rate**: The low - parity (70 - 90) group has a steeper premium rate increase slope, and the high - parity (110 - 130) group's premium rate has nearly doubled compared to the end of 2024. The medium - parity group has relatively small fluctuations. The traditional cubic inverse function is not suitable for the current market, so the function form needs to be changed [2][17]. - **Consider Extreme Parity Values**: The common 70 - 130 fitting interval is less applicable when the parity rises. An exponential function (Y = A×e^(-k(x - B))+C) can be considered for fitting, as it has advantages at both ends and can better reflect the market distribution [2][19]. 3.2 Market Review: Convertible Bonds Rose Slightly Weekly, Valuation Remained Basically Flat 3.2.1 Weekly Market Quotes: Convertible Bond Market Rose Slightly, Most Equity Sectors Pulled Back - **Index Performance**: Last week, most major stock indices rose. The Shanghai Composite Index fell 0.34%, the Shenzhen Component Index rose 0.84%, the ChiNext Index rose 2.74%, the SSE 50 Index fell 0.25%, the CSI 1000 Index rose 0.39%, and the CSI Convertible Bond Index rose 0.20% [26]. - **Industry and Concept Performance**: In the Shenwan primary industry index, most equity markets pulled back last week. Communication, national defense and military industry, electronics, machinery and equipment, and power equipment led the gains; household appliances, basic chemicals, textile and apparel, real estate, and steel led the losses. The convertible bond market had mixed performance, with building materials, national defense and military industry, communication, automobiles, and power equipment leading the gains, and food and beverage, media, basic chemicals, commercial retail, and coal leading the losses. Among popular concepts, some concepts rose and some fell [30][33]. 3.2.2 Valuation Performance: Premium Rates of Convertible Bonds of Most Ratings and Sizes Rose - **Closing Price and Premium Rate**: The weighted average closing price of convertible bonds was 132.26, down 0.01% from the previous Friday. The closing price of equity - biased convertible bonds was 194.10 yuan, up 2.02% from last Friday; the closing price of bond - biased convertible bonds was 119.15 yuan, down 0.34% from last Friday; the closing price of balanced convertible bonds was 128.77 yuan, down 0.10% from last Friday. The proportion of the 120 - 130 (including 130) interval in the closing price distribution increased significantly. The price median was 130.59 yuan, down 0.21% from the previous Friday. The 100 - yuan parity fitted conversion premium rate of the convertible bond market was 31.82%, down 0.01 pct from last Friday. In terms of ratings and sizes, the premium rates of most convertible bonds rose [35]. 3.3 Terms and Supply: 2 Convertible Bonds Announced Forced Redemption, Total Pending Issuance Scale About 125 Billion 3.3.1 Terms: Last Week, 2 Convertible Bonds Announced Forced Redemption, 3 Convertible Bonds' Boards Proposed Downward Revisions - **Forced Redemption**: As of December 12, Yingbo and Hugong convertible bonds announced early redemption; Bojun convertible bond announced no early redemption; Xiangfeng, Kaisheng, Jinzhong, Furong, and Bo 23 convertible bonds announced that they were expected to meet the forced redemption conditions [4][55]. - **Downward Revision**: Last week, Bengang, Jinlang Zhuan 02, and Hongchuan convertible bonds issued announcements of the board's proposal for a downward revision of the conversion price. No convertible bonds announced the results of the downward revision. 15 convertible bonds announced no downward revision, and 11 convertible bonds announced that they were expected to trigger a downward revision [4][55]. 3.3.2 Primary Market: Last Week, Tianzhun, Shenyu, and Aohong Convertible Bonds Were Issued, Total Pending Issuance Scale About 125 Billion - **Issuance and Listing**: Last week, Tianzhun, Shenyu, and Aohong convertible bonds were issued, with a total scale of 19.52 billion yuan. Maolai and Ruike convertible bonds were listed, with a scale of 15.63 billion yuan. Dingjie convertible bond was listed on December 15, with a scale of 8.28 billion yuan [5][58]. - **Pending Issuance**: Last week, there were no new board proposals. Three companies passed the shareholders' meeting, two passed the issuance review committee's approval, and one was newly approved by the CSRC, an increase of +0, +3, +0, +1 respectively compared to the same period last year. As of December 12, four listed companies obtained convertible bond issuance approvals, with a proposed issuance scale of 41.67 billion yuan. Eight listed companies passed the issuance review committee, with a total scale of 83.14 billion yuan [60][65].

Group 1 - The article discusses the issuance of a convertible bond by Dingjie Smart, with a conversion price set at 100.00 yuan [1] - The bond has been rated AA, indicating a relatively high credit quality [1] - The stock associated with the bond, Dingjie Smart, has a current price-to-earnings ratio of 61.97, compared to the industry average of 37.19 [1] Group 2 - The maximum subscription limit for the bond is set at 10,000 shares [1] - The bond issuance price is noted as 100.00 yuan [1] - The article highlights the importance of understanding the financial metrics associated with the bond and its underlying stock [1]

Group 1 - Tian Nai Technology's shareholders plan to reduce their holdings by no more than 2.5% of the company's shares [1] - Yu Xing Co., Ltd. shareholders intend to reduce their holdings by no more than 1% of the company's shares [1] - The controlling shareholder of Blue Sky Gas, Blue Sky Group, has had 4.33% of the company's shares judicially frozen [1] Group 2 - Jinlang's convertible bond proposal is to adjust downwards [1] - Several convertible bonds including Yinwei, Dier, and Qixiang will not be adjusted [1][2] - Dingjie convertible bond will be available for subscription on December 15 [1] Group 3 - Various convertible bonds have been listed with 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 [4][6]