April 7, 2026 Convertible Bond Portfolio Adjustment

Investing is a popularity contest. It’s most dangerous to buy when popularity is at its peak. At that point, all good-news factors and viewpoints have already been priced in, and no new buyers will ever appear again..

The safest investment with the greatest profit potential is to buy when nobody likes it. If you give it time, once the asset becomes popular, its price can only move in one direction: up!

Right now, my personal convertible bond position is not very high (overall position around 45%). We’re near the lower bound of my holdings. To deal with the possibility that there could be even more highs, I’m not planning to proactively reduce the position first. Last week I slightly increased my position. This year, after only the first three months, the maximum drawdown is already 8.2%, which is even more than last year’s full year. This year is an unusually restless year for investing…

Yesterday’s market overall performance:

Previous trading day | Convertible bonds up | A-shares down | U.S. stocks up | FTSE A50 up. The U.S. stocks rose slightly overnight. Japan and South Korea’s stock markets that had opened also rose slightly. It’s unclear whether A-shares will follow today and by how much. I expect A-shares to rise slightly today, convertible bonds to trade sideways. External factors are still very significant. We’ll watch whether convertible bonds can hold up today.
In terms of strategy recently: overall it hasn’t stabilized. Reduce operations; don’t add to positions or reshuffle too quickly. If your position is very low, you can start gradually rebalancing to below 50%…

The convertible bond index fell from 2090 on February 13, 2023 to 1753 on February 5, 2024. Then to the current level of 2560. The current median is 134.8, the “temperature” is 82.9 degrees. There are 222 convertible bonds priced above 130 yuan, which is 3 more than the previous day, accounting for 64.7%;
There are 11 below 110 yuan, 1 fewer than the previous day. The price hit the lowest 0/high 1. In April: 1 green and 2 red convertible bonds. Convertible bond trading volume was 66.1 billion yuan, 1.4 billion less than the previous trading day. Turnover rate was 13.4%. It went down to the 2nd day below 60 billion. The convertible bond index rose by 5 points to 2560 points. The average price was 151.6, up 0.8 compared with the previous day. The median premium was 39.5%, up 4 compared with the previous day. A-shares trading volume was 1.67T yuan, 100B less than the previous day. Yesterday opened flat, rose then fell back, and finally finished up slightly. Convertible-bond sentiment “temperature” is still okay; with T-operations, maintain an appropriate position size;

Yesterday: SiTe (思特) led with a 13.4% gain. Concentration of convertible bond trading increased. The top 5 traded products accounted for total convertible bond trading from 21.9% to 31%. The highest single product trading volume was 7.6 billion. Most products saw higher activity. The number of products with trading volume below 10 million increased—from 5 on the previous day to 5. That’s 1.5% of market products by count. The lowest amount fell from 6.97 million to 6.61 million yuan…

Today’s convertible bonds and market-related information:

Yesterday, convertible bonds opened flat, rallied then pulled back, and rose slightly. Trading volume for convertible bonds decreased. The premium rate surged. Today is expected to fall slightly. Convertible bonds still show no signs of having stabilized. It’s either a big rise or a big drop. There are opportunities for theme-driven trading. Overall convertible bond prices and premium rates are both relatively high; with T-operations, and…

Lingang (凌钢) Weil (维尔) last trading day; Guangli (光力) Zhongchong 2 (中宠2) last conversion date; Doctor convertible bond: [Listing]; Aitake (埃泰克): Shenzhen–Shanghai new shares [Subscription]; Hengdao Technology (恒道科技): NEEQ new shares [Subscription]; Shou 22 convertible bond: won’t revise down…

Shandong Zhanggu (山东章鼓): due to false financial records in the annual report, the company’s stock is subject to other risk warnings, and will be suspended on April 7; Minxin Xuteng (明新旭腾): shareholders plan to reduce holdings by no more than 2%; Shuangliang Energy Saving (双良节能): the company received an administrative penalty decision letter; Xianhe Shares (仙鹤股份): one of the company’s actual controllers is suspected of engaging in short-swing trading and received a CSRC filing notice; Haowei Group (豪威集团): plans to repurchase 800 million to 1 billion yuan of shares for employee shareholding or incentives; Wenke (文科): signed a contract of 50.8162 million yuan; Haowei: plans to repurchase 800 million to 1 billion yuan shares for equity incentives…

Today: SaiTe (赛特) is expected to meet the fast redemption requirement one day earlier; today: BaoLai Xianghe (宝莱 祥和) is expected to meet the fast trigger for downwards revision one day earlier.

Today: 0 new convertible bonds listed, 2 new stocks subscribed, 0 convertible bonds subscribed. Today to watch: whether SaiTe convertible bond can hold up, etc.

SaiTe (思特): a concept related to computing power banks; the underlying stock hits the daily limit; small-cap; short time to maturity; watch today.
Chaoda (超达) Zhongbei (中贝) and others show good trends—keep watching.
Watch low-priced options like Hengfeng (恒锋), Haibo (海波), Yaoji (姚记), etc., as rebalancing candidates…

Information summary:
1: During the holiday, there’s no clear change in the Iran–U.S. situation;
2: Expected hotspots: Computing power (Aofei 中贝 亿田); Grid equipment (Jin05 精达 华辰 嘉泽 煜邦) Space solar power (Shuangliang 福22 奥维 帝尔 瑞科 天23 隆22) AI applications (Fengyu 鼎捷 声迅 集智 润达 冠中 姚记 科蓝 思特 普联) Commercial aerospace (Guanglian 再22 神宇 盟升 航宇); Chemical industry (锦鸡 赫达 齐翔2); Chips (茂莱 路维 汇成 晶瑞2 安集 阳谷); Photoresist (晶瑞2 华特 华懋 强力); Also keep an eye on humanoid robots and other concepts…

The following are selected convertible bonds from last weekend. Updated weekly, not daily: (Personal selected-bond records; not investment advice.) Since the median is at a high level, I loosened the selection criteria a bit. Overall quality improved compared with last week. I also considered volatility capacity across the board, of course on the premise that I still like the outlook and intend to hold part of the convertible bond positions. I choose relatively low-priced, relatively small-cap names. As much as possible, I choose active products with rich concepts. These are all intended as “spread-betting” configurations, not recommendations for a single holding: (I also don’t recommend purely debt-like products.)

1: Convertible bonds of micro-cap around 130 yuan (within 300 million) can be included in the list:
Wansun (万讯) Shanshi (山石) Kelan (科蓝) Juhes (聚合) Silu (丝路) Yirui (易瑞) Jiudian 2 (九典2) Hengfeng (恒锋) …

2: Micro-caps within 200M yuan under 150 yuan, with limited downside volatility; can move the premium, with a high ceiling and less drawdown; exclude those that may have strong redemption recently:
AiLu (艾录) Haibo (海波) Jingyuan (京源) …

3: Relatively low-priced, relatively low-premium products. Prices between 140; premium around 30; remaining term 0.5–5.5 years; good for swing trading:

Qiangli (强力) Waitong (威唐) Ultrasonic (超声) Jinpu (金埔) Wantian (皖天) Tiantan (蓝天) Haishun (海顺)…

4: Relatively low-priced “charge” team, around 150; ensures a certain profit/loss ratio; within 500 million; premium around 20:

Wanshun 2 (万顺2) Fengshan (丰山) Lidao (丽岛) …

5: Pure offensive type; premium rate around 15; around 160; size around 400 million; exclude those that may have strong redemption within the next two weeks:
None …

6: Pure defensive type; premium rate not particularly high, around 70; not relying completely on downwards revision; within 1 billion; yield around -3; try to cover as many concepts as possible:

Gongtong (共同) Kesì (科思) Zhejiang Construction (浙建) Haineng (海能) Huitian (回天) Yuxing (裕兴) Dongya (东亚) Zhite (志特) Dongbao (东宝)…

7: Personally more actively watched types; richer concepts; price not too high; decent elasticity; usually around 140…

Kelan (科蓝) Lihe (力合) Jingrui 2 (晶瑞2) Hengfeng (恒锋) Hongwei (宏微) Mingli (铭利) Changhai (长海) Zhengyuan 2 (正元2) Sanjiao (三角) Huaxing (华兴) Yaoji (姚记) Xingrui (兴瑞) Lidao (丽岛) …

Recently, convertible bond adjustments have occurred. Some have started to satisfy strong redemption conditions for several days, while others may not satisfy them. The premium rates have already been driven down. For example: OiOu (帝欧) Garden (花园) Huaxing (华兴) Waitong (威唐) Hangxin (航新) Sanjiao (三角) Aidi (艾迪) Changhai (长海) SaiTe (赛特) Yong02 (永02)…

Under the current situation, strong redemption pressure is fairly obvious, which limits the upside. Therefore, I avoid choosing names that are too expensive as much as possible…

The overall strategy is: not to research deeply, not to concentrate, to spread the bets, to “eat volatility,” and to play the “whack-a-mole” mode. Use width instead of depth, while defending against risks, and aiming for average returns. You can pair this with a conditions list and a grid order list. Make the most of volatility. Don’t recommend based on any single holding. Also, all selected convertible bonds are for my personal summary and use, not investment recommendations. Investment is risky; enter with caution.

For investing in convertible bonds, never forget the original intention. Convertible bonds, as things look now, are very good products for retail investors. Convertible bond investing is a marathon. You must stick to the right path. Stay away from an investor mindset that chases hype. This is the truth and the cause and effect. All practices are like dreams and illusions, like dew that’s also like lightning and sparks. It should be done just so. And one should not cling; yet one gives rise to one’s mind. Even a drop, though small, gradually becomes something great…