1. Report Industry Investment Rating No relevant information provided. 2. Core View of the Report In Q4 2025, against the backdrop of a strong equity market, there was still demand for "Fixed - Income +" allocation. The convertible bond market's outstanding balance increased slightly, while the proportion of convertible bonds held by institutions decreased. Some types of funds increased their positions in convertible bonds, while others reduced them. Convertible bond funds saw a decline in their convertible bond positions and an increase in leverage, with their average returns in Q4 2025 lower than the CSI Convertible Bond Index. There were significant increases in positions in industries such as petroleum and petrochemicals, national defense and military industry, while some industries like communication and non - ferrous metals were significantly reduced [1][3]. 3. Summary According to the Directory 3.1 Public Fund Convertible Bond Holdings - **Overall situation**: In Q4 2025, the scale of convertible bonds held by public funds accounted for 57.74% of the total convertible bond market value, a decrease of 4.08 pcts compared to Q3. The position decreased slightly by 0.05 pcts. The outstanding balance of the convertible bond market was 533.89 billion yuan, a 4.30% increase compared to Q3 2025. The market value of convertible bonds held by public funds was 308.251 billion yuan [1][8]. - **Fund type structure**: The fund types that held more convertible bonds were secondary bond funds (36.41%), convertible bond funds (36.29%), primary bond funds (21.90%), partial - debt hybrid funds (3.30%), and flexible allocation funds (2.10%). Compared to Q3 2025, secondary bond funds and primary bond funds increased their positions in convertible bonds, with the market value of convertible bonds held by secondary bond funds increasing by 3.963 billion yuan (+3.72%) and that of primary bond funds increasing by 1.639 billion yuan (+2.53%). Flexible allocation funds also increased by 0.088 billion yuan (+1.40%). Convertible bond funds and partial - debt hybrid funds reduced their positions, with the market value of convertible bonds held by convertible bond funds decreasing by 10.996 billion yuan (-9.07%) and that of partial - debt hybrid funds decreasing by 2.160 billion yuan (-17.75%) [1][13]. - **Funds with large - scale holdings**: As of Q4 2025, there were 1,921 public funds holding convertible bonds, with a total market value of 308.251 billion yuan. Among them, 62 funds held convertible bonds with a market value of over 1 billion yuan, with a total market value of 213.525 billion yuan, accounting for 69.27% of the market value of public funds investing in convertible bonds, a 0.23% decrease compared to Q3. 281 funds held convertible bonds with a market value of over 100 million yuan, with a total market value of 288.495 billion yuan, accounting for 93.59% of the market value of public funds investing in convertible bonds, a 0.24% increase compared to Q3 2025 [2][18]. 3.2 Convertible Bond Fund Convertible Bond Holdings - **Market value change**: As of Q4 2025, there were 40 convertible bond funds, holding a total market value of convertible bonds of 110.209 billion yuan, a decrease of 10.996 billion yuan compared to Q3 2025, a 9.07% decrease [2][22]. - **Position and leverage change**: The convertible bond position of convertible bond funds decreased from 87.17% in Q3 2025 to 86.82%, a decrease of 0.35 pcts. The leverage ratio increased from 135.17% to 142.34%, an increase of 7.17 pcts [2][25]. - **Return performance**: In Q4 2025, the average annualized return of the CSI Convertible Bond Index was 6.03%, and the average annualized return of convertible bond funds was 3.69%. There were 28 convertible bond funds with positive returns, among which Baoying Rongyuan Convertible Bond A had the best return of 16.41%, and Huatai - PineBridge Convertible Bond A also performed well with a return of 15.31%. 15 convertible bond funds outperformed the CSI Convertible Bond Index and the convertible bond fund index, with a win - rate of 37.5% [3][28]. - **Industry position adjustment**: Public funds significantly increased their positions in industries such as petroleum and petrochemicals, national defense and military industry, steel, public utilities, electronics, and machinery. The market value of convertible bonds in the petroleum and petrochemical industry held by public funds increased by 59.23% compared to Q3 2025, and that in the national defense and military industry increased by 30.40%. Public funds held a total of 8.224 billion yuan of convertible bonds in the steel industry. In terms of reduction, industries such as communication, non - ferrous metals, building materials, automobiles, and media had significant decreases in the market value of convertible bonds held by public funds in Q4 2025 [3][33]. - **Top - holding convertible bonds**: The top five heavy - holding convertible bonds of convertible bond funds were Industrial Bank Convertible Bond, 25 Treasury Bond 08, Shanghai Bank Convertible Bond, Wens Convertible Bond, and 25 Treasury Bond 01. The top five heavy - holding individual bonds held by 38 convertible bond funds in Q4 2025 involved a total of 67 bonds [4][35].

Group 1 - The People's Bank of China has resumed the operation of government bond trading, which had been suspended since January 2025, with a net injection of 20 billion yuan in the open market as of November 4, 2025 [1] - The resumption of government bond trading is seen as a signal to support long-term liquidity in the banking system and to stabilize macroeconomic operations in Q4 2025 and Q1 2026 [1] - Analysts from CITIC Securities suggest that the resumption of bond trading indicates a continuation of loose monetary policy, with expectations of a slight decline in the 10-year government bond yield in the short term [1] Group 2 - The current market conditions suggest that bond funds may be a necessary addition to asset allocation for investors looking to solidify their portfolios [2] - Bond funds, particularly pure bond funds, have a low correlation with equity assets and provide stable coupon income, which can reduce portfolio volatility [2] - The recent ratings indicate that the Huian Yongfu 90-Day Holding Period Short-Duration Bond Fund A has received multiple five-star ratings, making it a preferred choice for investors [2][3] Group 3 - As of September 30, 2025, the Huian Yongfu 90-Day Holding Period Short-Duration Bond Fund A has achieved positive returns for 13 consecutive quarters, with a maximum drawdown of approximately -0.3% [3] - The Huian Jiacheng Bond Fund A has outperformed its benchmark significantly, with a one-year return of 18.00%, exceeding the benchmark by 17.43% [3] - The fund's strategy focuses on maintaining a low duration and increasing the allocation to convertible bonds, with 85.19% of its net asset value invested in convertible bonds as of the end of Q3 2025 [3]

Group 1 - The core point of the news is the performance of the Zhongou Convertible Bond A fund, which has seen a decline of 0.44% on May 27, with a cumulative drop of 1.84% over five consecutive trading days [1] - The fund was established in November 2017, with a total scale of 3.269 billion yuan and a cumulative return of 34.53% since inception [1] - As of the end of 2024, institutional investors hold 1.307 billion shares, accounting for 95.79% of the total shares, while individual investors hold 0.057 billion shares, accounting for 4.21% [1] Group 2 - The current fund manager, Li Bo, has a background in fixed income analysis and has been with Zhongou Fund Management since April 2020 [2] - As of March 31, 2025, the top five holdings of Zhongou Convertible Bond A account for a total of 8.18%, including various government bonds and convertible bonds from financial institutions [2]

Group 1 - The core viewpoint of the article highlights the strong performance of the Huashang Fengli Enhanced Open A fund, which has generated good returns for investors, with a year-to-date return of 9.09% as of April 25, 2025, ranking first among its peers [1][4] - The fund has an annualized return of 9.75% since its inception in September 2016, significantly outperforming its benchmark, the China Bond Index, by over 70 percentage points [2][4] - As of the end of Q1 2025, the fund's asset allocation consisted of 73.79% in fixed income investments, primarily in convertible bonds, and 16.62% in equity investments [6][7] Group 2 - The fund manager, Li Qian, has been managing the Huashang Fengli Enhanced Open A since December 2019 and focuses on actively managing the fund to achieve stable returns [5] - The fund's investment strategy emphasizes a mix of medium to short-duration bonds with a focus on AAA-rated credit to control credit risk while also participating in interest rate bonds and equity assets to enhance returns [8]