CITIC Securities: Secondary bond fund shareholding hits a new record, and the supply-demand imbalance of convertible bonds is acute

CITIC Securities Research Report analyzes the holdings of convertible bonds in the Fixed Income + Funds in the first quarter of 2026, stating that in the first quarter of 2026, the share of primary bond funds remained basically stable, while the share of secondary bond funds continued its high growth trend, with net asset value increasing to about 2 trillion yuan. Since the third quarter of 2025, the quarter-on-quarter growth rate of secondary bond fund shares has exceeded 20% for three consecutive quarters, and the scale of secondary bond funds has continued to hit new highs. Due to the shrinking of convertible bond assets, except for secondary bond funds, the investment amount in convertible bonds across various types of Fixed Income + Funds has decreased, and the convertible bond positions of Fixed Income + Funds have hit their lowest level since 2020. It is recommended that from a short-term perspective, active views on convertible bond assets be adopted, gradually replenishing positions as the price center fluctuates; while from a medium- to long-term perspective, caution should be exercised regarding high premium rates, and attention should be paid to the upward slope of the subsequent equity market. (People’s Financial News)