Convertible bonds to watch before the open on July 14 (the external market continues to dip)

Monday, July 13, 2026: Shanghai -2.06%, Shenzhen -3.48%, ChiNext -3.10%, STAR Market 50 -3.42%. The convertible bond index fluctuated and weakened, with trading volume of around 2.83 trillion. 4,683 stocks declined. The market saw shrink in volume and a one-way selloff; during the session, the Shanghai Composite barely held the 3,900-point threshold. High-end tech tracks collapsed across the board. Traditional Chinese medicine and banks surged against the trend. The index showed extreme differentiation, and the “high-to-low switching” effect was significant. [Taoqiba]

Trading: Total for both markets was 2.83 trillion, about 5760 billion yuan less than the previous trading day. This was the 65th consecutive trading day with turnover above 2 trillion. Competition among existing funds intensified. High-end tech chips saw concentrated profit-taking, while sentiment among incremental funds was thick with hesitation. Funds mainly targeted defensive and low-position sectors such as traditional Chinese medicine, banks, oil & gas, and innovative drugs. At the same time, high-end semiconductors, computing hardware, and commercial aerospace saw large-scale profit-taking.
Individual stocks: Gains/losses ≈ 801:4683. More stocks fell than rose. 32 stocks hit limit-up, and 176 hit limit-down. 20cm limit-ups were concentrated in traditional Chinese medicine. Earlier high-end tech small caps saw declines of more than 10%. The switching of capital between high and low was obvious: high-end hard-tech funds exited, while low-end defensive sectors absorbed capital.
Sector differentiation: Traditional Chinese medicine, banks, oil & gas extraction, and innovative drugs strengthened against the trend. Semiconductors, computing hardware, fiber-optic concepts, commercial aerospace, and MLCC all fell across the board. Capital switched sharply between high and low: high-end hard-tech funds cashed out, while low-end defensive sectors absorbed capital.
Capital: Northbound capital had a net outflow of 8.672 billion yuan. Domestic main funds saw a large net outflow. Institutions cashed out high-end semiconductors and computing hardware, and added to low-position targets in traditional Chinese medicine, banks, and oil & gas.

A-share stock recap by sector
Tech tracks (collective collapse)
Cambricon: AI chip leader fell sharply on the close. Turnover across the full day shrank significantly, and total market cap kept declining. Throughout the day, main funds saw a large net outflow. The sector’s “block-holding” sentiment fell apart, and funds continued to cash out hard-tech core assets.
Menge: CPO leader JIC Suichuang weakened and fell hard. The bottom line of the computing hardware sector was lost; institutions cut positions significantly, and the trend turned weaker.
NewEasy: CPO concept followed with weak declines. Within the sector, funds withdrew from upstream optical communications; small-cap enthusiasm dropped sharply, and capital concentrated on cashing out.
BOE A: Glass substrate leader BOE A pulled back weakly. Funds took profits in sub-component targets; catalysts for domestic substitution weakened, and the whole day saw a one-way decline.
Zhaoyi Innovation: Storage chip leader hit the daily limit-down. Full-day turnover exceeded 31.0 billion yuan. Funds fled sharply, and the storage sector suffered a broad setback.
Hengtong Optoelectronics, FiberHome: The fiber-optic concept fell to the daily limit-down across the board. These names had posted larger gains earlier; concentrated profit-taking hit the whole sector, which sank together.
Earlier high-position themes (surged against the trend)
Longshen Rongfa: Traditional Chinese medicine leader hit a 20cm limit-up. Low-position funds continued to take over. Money flowed back into the old medical theme, and with policy-positive catalysts, the medical sector received strong follow-through.
Tianmu Pharmaceutical: Traditional Chinese medicine concept surged to a strong limit-up. Sector heat kept rising, and all in-market funds returned to the medical main line.
Lianhuan Pharmaceuticals: Innovative drug concept hit a strong limit-up. Within the sector, funds focused on upstream raw materials and APIs; small caps were extremely hot, and capital concentrated in tight formation.
Defensive and risk-hedging sectors (collectively stronger)
JiuFeng Energy: Electronic specialty gas concept achieved a two-day consecutive limit-up. Funds fully switched into defensive sectors, and cyclical sectors received bundled support.
ShuiFa Gas: Electronic specialty gas concept hit a one-word limit-up. Cyclical resource heat warmed back up, with effective follow-through throughout the day.
Suzhou Bank: High-dividend banks rallied sharply against the trend, rising more than 6%. As a low-position stabilizing target, it drew a significantly higher level of attention from funds.
CNOOC, Tongyuan Petroleum: Oil & gas concepts surged with fluctuations. Risk-hedging funds made a small allocation, and the whole day saw a one-way rally.
Theme small caps (rotation stayed active)
China Software: AI application concept hit a straight limit-up in the afternoon. The whole day saw a one-way rally. Short-term funds took profit and exited; in-market funds crowded into the AI application main line.
Inspur Software: AI application concept touched limit-up. Within the sector, funds focused on the finer domestic-substitution sub-tracks. Small-cap enthusiasm was extremely high, and capital concentrated into a tight group.

Convertible bonds:
The new-ish section:
On Friday, four newly listed bonds came out: Weike, Nanci, and Jindi topped the bids last Friday. Today, all three looked like they reached the peak right at the open. After the strongest Weike was smashed, it fell back to around the zero line, while Nanci had the first-strongest volume. Hao 26 had the lowest presence— it didn’t even get filled on day one.
Aike: Compared with several of the new Friday listings, its performance was somewhat better, but because there were too many new issues, the available funds got split, so the upside momentum wasn’t enough.
SAIC Auto, Spring Wind, Xiang 26: As more and more new bonds came out, these basically had no meaningful volume.
Shengde: Today once again highlighted its “meme bond” characteristics..
End-of-day rotation: Yinwei in the equity-bond linkage, in this environment, continued to probe lower.
WenTai: With a low premium for the large-cap overall, it continued the equity-bond linkage trend.
Lingkang, Tianhao: When the premium was too high, they cut the premium decisively. Although Lingkang, as a relatively solid defensive concept “board,” isn’t small, the premium was still a hard flaw.
Shengxun: Still got drained by the new-ish issues—it no longer had the flair from a few months ago.

Tomorrow, I’ll mainly focus on (Weike, Aike, Shengde).
Wishing everyone smooth trading. This is mostly hand-typed. If the recap helps you, please give me some encouragement—likes, boosting, and tips/rewards are all welcome. If you have any questions, you can follow first and leave a comment in the comment section. Thank you!
$Weike Convertible (sz123274)$ $Aike Convertible (sh118069)$