In recent months, a notable recovery has been observed in the equity markets, which has consequently heightened investor interest in the convertible bond marketThis renewed enthusiasm is reflected in the continuous ascent of the China Securities Convertible Bond Index, which is consistently reaching new heights amidst the burgeoning market conditions.

The remarkable performance of convertible bonds is further exemplified by the emergence of the first doubling convertible bond this yearOn February 19, spurred by a trading halt on Fulaixincai, the Fuxin convertible bond skyrocketed by 20%, pushing its price above 400 yuan and marking a new historical peakSince the beginning of this year, the Fuxin convertible bond has seen a staggering increase of more than 150%, making it the first convertible bond to have doubled this year.

Market analysts examining the recent performance of the convertible bond sector have highlighted several factors propelling this growthA reduction in supply, altered investor behaviors, and the countdown to maturity for AAA-rated convertible bonds have converged to stimulate the market's advancementsFurthermore, dramatic surges in sectors like artificial intelligence and robotics have fostered profitable outcomes, amplifying investors' confidence in convertible bonds.

The China Securities Convertible Bond Index has been continuously climbing, and its recent performance has demonstrated substantial progressOn February 19, the index increased by 0.95%, reaching 430.01 points with a trading volume of approximately 80.6 billion yuanSince the start of the year, the index has accumulated a growth of 3.73% and a remarkable 18.09% since September 24, 2024.

According to financial analysts at Caixin Securities, the current high valuation of convertible bonds is supported by institutional demand in a low-interest-rate environment and a reduction in the net supply of convertible bondsThe convertible bond market currently exhibits a structural setup where the performance of the stock market remains robust, yet valuations in the convertible sector seem elevated, resulting in a more selective trend in market activities.

Additionally, the surge in technology stocks has further bolstered investor enthusiasm in the convertible bond market

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Caixin Securities notes that the recent outbursts related to artificial intelligence and other tech themes are resonating with the vibrancy of the spring market, enhancing both risk appetite and trading sentiment among investorsHowever, the growing concentration in the TMT (Technology, Media, and Telecom) sector leads to profit-taking pressures, which may reveal ongoing divisions in the marketDespite this, the mid to long-term outlook appears positive, with signals of a 'good start' in social financing and credit, gradually improving economic fundamentals, coupled with market expectations for steady economic growth policies from the upcoming Two Sessions.

Guosen Securities echoed these observations, noting that while catalysts continue to emerge from industrial activities—such as the rapid evolution of the DeepSeek concept, advancements in autonomous vehicles by BYD, and the foreseeable mass production of Tesla's humanoid robots—the financial indicators paint a generally favorable pictureThis synergy is expected to sustain a structural uptrend in the equity marketAs the expectations remain robust, the supportive valuation of convertible bonds is likely to hold steady alongside strong market demand.

Amidst the upward trajectory of the China Securities Convertible Bond Index, numerous convertible bonds have experienced substantive gainsAccording to Wind data, the Fuxin convertible bond has surged over 150% this year, establishing itself as the first bond to double in value for the yearOther notable performers include the Zhenyu convertible bond, nearing a doubling in value, alongside considerable increases in bonds such as the Xiangbeng, Henghui, Yitian, and Xinzhi, all of which have surpassed a 30% increase this year.

An analysis of these bonds reveals that many of the highest performers are centered around the humanoid robot sectorFor example, the Fuxin convertible bond, which has topped the market this year, is linked to Fulaixincai, a company that itself has seen an almost 150% rise this year

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Fulaixincai has transitioned over recent years from its original focus on functional coated composite materials to diversifying into new materials, and since 2017 has made strides into the flexible sensor technology space.

According to the company, flexible sensors, notable for their bendability, lightweight nature, and low power consumption, possess the adaptability to fit unconventional shapes and surfacesThese innovations are poised to revolutionize the hardware architecture across various industries encompassing consumer electronics, healthcare, automotive engineering, and beyond, leading to the creation of more innovative productsSpecific application scenarios span areas such as robotics and embodied intelligence, intelligent manufacturing and industrial inspection, healthcare, consumer electronics, as well as smart traffic systems and automotive applications.

In a recent institutional survey, company representatives stated their commitment to advancing technology in the realms of robotic tactile perception, force feedback, and flexible skin, focusing on developing electronic skin and sensing systems that boast greater sensitivity, a wider operational range, and improved interference resistanceThese advancements aim to enhance the operational efficiency of robots in increasingly complex environments while ensuring seamless and safer interaction with humans.

The Zhenyu convertible bond, which stands as the second-best performer this year, corresponds to Zhenyu Technology, which has seen a greater than 110% increase year-to-datePublicly available information indicates that Zhenyu Technology specializes in the research, design, development, production, and sale of precision progressive stamping molds and their downstream precision components—a high-tech enterprise making significant inroads into this arena.

Recently, Zhenyu Technology announced the establishment of a subsidiary dedicated to advancing its capabilities in the humanoid robotics industry, focusing on the meticulous design and manufacturing of precision components for robotics systems

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