China Securities Journal: Banking stocks' strong performance activates the mechanism for forced redemption of convertible bonds. Pressure on banks for capital replenishment temporarily alleviated.

Against the backdrop of strong performance of banking stocks, several bank convertible bonds have triggered forced redemption clauses since the beginning of this year, including Southern Bank convertible bonds, Hangzhou Bank convertible bonds, and Chengdu Bank convertible bonds. Wind data shows that as of the time of reporting, there are a total of 10 bank convertible bonds in the market, including SPDB convertible bonds, CIB convertible bonds, and CCB convertible bonds. Among them, the SPDB convertible bonds will mature on October 28, 2025, with an issuance size of 50 billion yuan. Since the beginning of this year, the size of bank convertible bonds has been rapidly decreasing, and after the maturity of SPDB convertible bonds in October, the most drastic shrinkage of bank convertible bond size this year will occur. At that time, the size of bank convertible bonds in the market will shrink to below 100 billion yuan, and the proportion of bank varieties in the convertible bond market size may decrease.