CITIC Construction Investment Securities: Neutral attitude towards convertible bond assets in the short term, optimistic attitude in the long term

On October 30, China Securities Construction Investment Research Report said that it has a neutral attitude towards convertible bond assets in the short term and an optimistic attitude in the long term. The current valuation of convertible bonds has reflected optimistic expectations for the future of the equity market, but the key to whether the current layout can achieve returns lies in the upward slope of equity. At this stage, it is suggested that: (1) the layout of convertible bonds should gradually focus on high-quality fundamental bonds from the overall idea of “spreading BTC”; (2) It is recommended to follow the bonds with a remaining maturity of more than 4 years and (3) the next new bonds with a relatively low valuation.