Issuance Accelerates! Convertible Bond Issuance Expected to Increase in Volume

Refinancing policies have recently been relaxed, leading to a significant acceleration in convertible bond issuance this year.

Wind data shows that as of March 23, 20 A-share listed companies have announced plans to issue convertible bonds, with a total issuance scale exceeding 31 billion yuan, a 230% increase compared to the same period in 2025. Among them, companies like Sugon (603019), Chuangzhi Ling, and STO Express (002468) rank among the top in planned issuance scale.

Industry insiders point out that the acceleration in convertible bond issuance reflects positive signals from policy easing and increased corporate financing needs, offering a new opportunity to alleviate the long-standing supply and demand imbalance in the market.

Policy Relaxation Sparks Issuance Enthusiasm

Recently, STO Express announced that it plans to raise funds through an issuance of convertible bonds to unspecified investors, with a total amount not exceeding 3 billion yuan (including this amount). After deducting issuance costs, all funds will be used for upgrading smart logistics equipment and enhancing trunk line capacity networks.

The company stated that this issuance plan considers the current industry situation, future development trends, and the company’s strategic goals. It was carefully studied by the board of directors and approved by all directors. Implementing this plan will help ensure the company’s sustainable and stable development and increase shareholders’ equity.

Our review shows that STO Express’s plan is the third-largest issuance among new convertible bond plans announced this year. In February, Sugon revealed plans to issue no more than 8 billion yuan in convertible bonds with a 6-year term, with all proceeds allocated to three core AI computing projects: advanced computing clusters, AI training and inference integrated machines, and domestically produced storage systems.

Chuangzhi Ling ranks second in planned issuance amount. Its announcement states an intention to issue convertible bonds totaling no more than 4.35 billion yuan to unspecified investors. The funds will be invested in four key projects: high-end new energy vehicle parts manufacturing base, intelligent upgrades for high-end hydraulic component production systems, an all-scenario smart manufacturing R&D center, and a smart mobile robot (300024) manufacturing base, as well as supplementing working capital.

Wind data shows that so far this year, 20 A-share listed companies have announced plans to issue convertible bonds, with a total amount of about 31.59 billion yuan, a 233% increase compared to 9.48 billion yuan in the same period in 2025.

The core driver of this accelerated issuance is the dual improvement in policy environment and market conditions. In February 2026, the Shanghai and Shenzhen stock exchanges jointly optimized refinancing policies, explicitly supporting high-quality listed companies’ refinancing, increasing the system’s inclusiveness and convenience, aiming to establish demand-driven, rational refinancing mechanisms and provide efficient support for innovative small and medium-sized enterprises.

Meanwhile, to better meet the refinancing needs of tech innovation companies, the exchanges have solicited public opinions on revising rules for “light assets, high R&D investment” companies, clarifying listing standards for main board firms. Companies with delisting risks due to falling below issuance prices can raise funds through private placements, convertible bonds, etc., with proceeds directed toward core business operations.

Wendong Securities believes that the new refinancing rules favor “light assets, high R&D” companies and relax restrictions to shorten the interval for rolling refinancing, encouraging companies to pursue a second growth curve, aiding industrial upgrades. The structural easing clearly targets the broader tech sector. From a macro cycle perspective, this is conducive to improving the dual-high characteristics of high-volatility targets in the medium term and optimizing the valuation/premium structure of high-volatility convertible bonds. However, in the 1-2 year long-term horizon, it may increase tail risks. Additionally, the scarcity of low-volatility targets will not be alleviated solely by new policies, and industry hedging and macro asset hedging strategies are expected to continue playing important roles in constructing low-volatility portfolios.

Convertible Bond Issuance Expected to Increase

The process from issuing a plan to listing a new convertible bond involves: board proposal, shareholder approval, exchange acceptance, listing committee approval, registration approval, and finally issuance and listing.

Since 2026, the issuance process for convertible bonds has accelerated. The time from board proposal to shareholder approval, which was less than 100 days on average in 2023, increased to 280-290 days in 2024 and 2025, but quickly shortened again to about 175 days in 2026. Other stages have also seen reduced durations since late 2025.

Based on issuance announcements this year, 12 convertible bonds have been issued with a total scale of 9.216 billion yuan, including issues like Aiwei, Shantai, and Longjian bonds, each exceeding 1 billion yuan.

Ignoring the impact of the February 2026 refinancing policy expansion on the base of issuers, Huachuang Securities estimates that the probabilities of completing each step within 2026 are approximately: 39.5% for board proposals, 69.7% for shareholder approval, 80.4% for exchange acceptance, 98.3% for listing committee approval, and 99.3% for registration approval. Based on the expected scale of pending plans, the total convertible bonds that could be listed in 2026 are about 106.59 billion yuan. Considering the probabilities of suspension, timely listing, and pending plans, the expected issuance volume within the year is approximately 91.66 billion yuan.

However, despite the clear acceleration, the market for convertible bonds may still be tight due to recent cases of mandatory redemption, especially in the banking sector where bonds have been delisted.

He Jinlong, General Manager of Youmeili Investment, told reporters that in 2026, issuers will face significant redemption and put-back pressures. Under these pressures, the urgency to convert increases, triggering mandatory redemption clauses that could generate profit opportunities for the market. Even if equity markets perform poorly, bonds can still be redeemed through price adjustments. There are 70 bonds maturing in 2026, with a total outstanding scale exceeding 83 billion yuan, which is even higher than the 2025 maturities. Including bonds that may be redeemed early, the market’s delisting scale is expected to reach about 160 billion yuan.

Convertible Bond Valuation Support Becomes Evident

Recently, with the ongoing Iran-U.S. conflict and expanding Iranian strikes, energy crises and stagflation narratives have intensified, prompting global central banks to shift toward hawkish policies. As a result, markets worldwide, aside from oil prices, have generally declined.

The A-share market also saw notable declines, with the Shanghai Composite Index falling 3.63% on March 23, while the CSI Convertible Bond Index declined by 0.96%.

Regarding recent trends in convertible bonds, Zhai Tiantian, an analyst from Dongfang Jincheng Research, told reporters that the small-cap style in equity markets has weakened significantly, dragging down the underlying stocks and causing the convertible bond market to continue oscillating downward. However, because the underlying stocks have fallen sharply, the defensive properties of convertible bonds have become more apparent. As the Iran-U.S. conflict prolongs and global markets begin to price in stagflation and rate hikes, short-term volatility in convertible bonds is expected to follow equity markets. Under low risk appetite, defensive attributes will remain central in allocation.

Zhai further noted that “double low” convertible bonds, due to their strong defensive nature, will be more attractive, especially large-cap convertible bonds and their underlying stocks, which are more likely to attract risk-averse capital. However, attention should be paid to the reduction in holdings of convertible bond ETFs and similar funds; if the debt side unexpectedly loosens, valuation support for large-cap convertible bonds may weaken marginally. Additionally, under recent pressure on underlying stocks, the ongoing game of bond price adjustments warrants close monitoring.

Proofreader: Li Lingfeng

(Editor: Zhang Xiaobo)

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