Convertible bond issuance accelerates, year-to-date announcement count up 120% YoY

In 2026, the issuance of convertible bonds is accelerating significantly. According to data from Tonghuashun, as of March 18, there have been 22 new convertible bond plans announced this year, a 120.00% increase compared to the same period last year. The total scale of these new plans is 31.794 billion yuan, up 220.08% from the previous year.

Industry insiders believe that the market’s recovery, combined with favorable policies, is the main reason for the large expansion of convertible bonds. However, an interesting phenomenon is that, due to the market’s improvement, many convertible bonds are triggering conversion red lines and being delisted early, especially bank convertible bonds, which has led to a sharp decline in the overall scale of convertible bonds.

A game of “watering” and “releasing water” is unfolding in the convertible bond market. Industry experts suggest that after policy relaxation, market replenishment will be delayed by 6 to 7 months, and the scale of the convertible bond market is expected to see a significant improvement in the second half of the year.

Increase in Convertible Bond Plans

On March 17, Shentong Express announced plans to raise funds by issuing convertible corporate bonds to unspecified investors, with a total amount not exceeding 3 billion yuan. After deducting issuance costs, all funds will be used for upgrading smart logistics equipment and enhancing trunk transportation networks.

Currently, Shentong Express ranks third in fundraising amount, with Zhongke Shuguang holding the top spot. On February 10, Zhongke Shuguang disclosed plans to issue no more than 8 billion yuan in convertible bonds over six years, with all proceeds dedicated to three core AI computing projects: advanced computing clusters, AI training and inference integrated machines, and domestically produced storage systems.

The second-largest fundraising plan is from Zhongchuang Zhilin. On the evening of January 15, Zhongchuang Zhilin announced plans 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 upgrading of high-end hydraulic components, an intelligent manufacturing R&D center for full-scene applications, and a smart mobile robot manufacturing base, along with working capital.

According to Tonghuashun data, as of March 18, there have been 22 new convertible bond plans announced this year, a 120.00% increase from the same period last year, with a total scale of 31.794 billion yuan, up 220.08%.

The market believes that the current rebound in convertible bonds is mainly due to the implementation of new refinancing regulations.

On February 9, the Shanghai and Shenzhen Stock Exchanges announced optimized refinancing measures, improving review processes for high-quality listed companies with good governance and disclosure standards, further enhancing refinancing efficiency.

Additionally, to better meet the refinancing needs of tech innovation companies, the exchanges revised rules for “light assets and high R&D investment” companies, clarifying listing standards. Companies with delisting risks can raise funds through private placements or convertible bonds, provided the funds are used for core business operations. Zhongke Shuguang was among the first to “test the waters” after the new regulations were announced.

This has undoubtedly given a boost to the convertible bond market, reopening refinancing channels for companies that were previously almost blocked due to delisting risks. As early as November 2023, the Shanghai and Shenzhen exchanges stated that refinancing for companies with delisting or net asset issues would be strictly limited, and those with continuous losses would face restrictions on refinancing intervals.

Since then, the refinancing channels for listed companies’ convertible bonds have been significantly tightened, with a sharp decline in new plans. Data shows that in 2024, new convertible bond issuance was less than 40 billion yuan, nearly 100 billion yuan less than in 2023. In 2025, supply remained low, with only 65 billion yuan of new bonds issued throughout the year.

Convertible Bond Market May Turn Positive in the Second Half

Zhai Tiantian, Deputy Director of Research and Development at Orient Securities, told reporters that on one hand, the rapid development of the tech industry has boosted companies’ financing willingness; on the other hand, the new refinancing regulations implemented on February 9 provided targeted support for tech innovation firms, especially relaxing profit and delisting restrictions, further strengthening their refinancing intentions. As of March 18, 31.82% of the new plans involved specialized and innovative enterprises, an increase of 11.82 percentage points from the same period last year. Under industry policy support and refinancing policies, high-tech companies are expected to become a key force in expanding the convertible bond market.

Liu Youhua, Director of Wealth Research at Paimai.com, also shared similar views. He believes that the recent surge in convertible bond plans is driven by multiple factors. First, regulatory adjustments have optimized financing rules, broadening companies’ funding channels. Second, the market recovery has improved stock valuations, increasing companies’ willingness to raise low-cost funds via convertibles. Additionally, the previous supply contraction created a “asset shortage,” and the increase in plans now reflects a return to normal supply levels matching market demand. Third, policy guidance encourages investment in technological innovation, aligning with companies’ needs for liquidity, R&D investment, and expansion. Leading industry companies have also launched large issuance plans, setting positive examples.

The acceleration in convertible bond issuance also motivates listed companies to participate. According to Huachuang Securities’ latest estimates, the time from board proposal to shareholder approval for convertible bonds increased from less than 100 days in 2023 to around 280–290 days in 2024 and 2025, but quickly decreased again to about 175 days in 2026. The time taken in other approval stages has also shortened since late 2025.

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

However, despite the accelerated issuance, the market still faces challenges. Due to the recent bullish stock market, many convertible bonds have triggered redemption thresholds, especially bank bonds, which have been delisted successively. In the short term, the market remains in a state of “watering” and “releasing water.”

Zhai Tiantian notes that although there are positive changes in new supply, it is difficult to fully compensate for the scale of bank convertible bond delistings in the short term. First, the surge in plans does not equate to rapid issuance; the effective transmission from plans to actual issuance depends on regulatory acceptance. As of March 18, only 11 convertible bonds had been issued this year, an 83.33% increase from last year, with a total issuance scale of 9.016 billion yuan, up 57.35%.

Second, bank convertible bonds tend to be large, with an average issuance size exceeding 10 billion yuan, while the average size of new plans since 2025 is around 1.6 billion yuan. Our estimates suggest that in 2025, delistings of bank bonds could reach trillions of yuan, and in 2026, with maturities and high redemption expectations, delistings could still exceed 300 billion yuan. Relying solely on non-financial corporate bond issuance to fill this gap is unlikely. Additionally, under capital pressure, banks are expected to prefer private placements for capital replenishment, which will further reduce reliance on convertible bonds.

Hejinlong, General Manager of Youmei Investment, also stated that although new plans have surged, it will be difficult to fully offset the market scale reduction caused by bank bond delistings in the short term. As of mid-March 2026, the total convertible bond scale was 530.887 billion yuan, down 22 billion yuan this year, mainly due to large-scale delistings of bank bonds. In the medium to long term, convertible bonds are expected to gradually recover, but market structure may shift towards more focus on new economy sectors, providing more diversified investment options. Meanwhile, demand from “fixed income plus” funds remains strong, especially in a low-interest-rate environment, supporting valuations and liquidity in the convertible bond market for the foreseeable future.