Convertible Bond Issuance Accelerates, Annual Plan Count Up 120% Year-over-Year

21st Century Business Herald Reporter Ye Maishui

In 2026, the issuance of convertible bonds has significantly accelerated. According to Tonghuashun statistics, 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 new plans is 31.794 billion yuan, a 220.08% increase year-over-year.

Industry insiders believe that the market rebound combined with favorable policies is the main reason for the large expansion of convertible bonds. However, an interesting phenomenon is that, due to the improving market conditions, 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 “adding water” and “releasing water” is unfolding in the convertible bond market. Industry experts believe that after policy relaxation, the market’s 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.

Relaxed refinancing policies lead to a surge in convertible bond issuance plans

On March 17, Shentong Express announced plans to raise funds through an issuance of 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 capacity networks.

Shentong Express’s fundraising amount currently ranks third, behind Zhongke Shuguang. On February 10, Zhongke Shuguang disclosed plans to issue no more than 8 billion yuan in convertible bonds, with a 6-year term. The proceeds will be fully allocated to three core AI computing projects: advanced computing cluster systems, AI training and inference integrated machines, and domestically produced storage systems.

The second-largest fundraising plan belongs to 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 component production systems, an intelligent manufacturing R&D center covering all scenarios, and an intelligent mobile robot manufacturing base, as well as supplementing 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 compared to the same period last year. The total scale of these plans is 31.794 billion yuan, a 220.08% increase year-over-year.

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 information disclosure standards, further increasing refinancing efficiency.

Meanwhile, to better meet the refinancing needs of sci-tech innovation enterprises, the exchanges revised the “light assets, high R&D investment” rules for listed companies, clarifying the criteria for main board companies. Companies listed on the exchanges that have experienced delisting can raise funds through private placements, convertible bonds, and other methods, provided the funds are used for core business operations. Zhongke Shuguang was the first company to “test the waters” after the new regulations were announced.

This undoubtedly gave a boost to the convertible bond market, reopening refinancing channels for companies that had nearly been blocked due to delisting risks. As early as November 2023, during an interview about the optimization of refinancing supervision arrangements, the Shanghai and Shenzhen exchanges stated that refinancing for companies with delisting or net asset value issues would be strictly restricted, and the interval between financing for companies with continuous losses would be tightly controlled. 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 issuances totaled less than 40 billion yuan, nearly 100 billion yuan less than in 2023. In 2025, the supply remained low, with a total of 65 billion yuan issued throughout the year.

Second half of the year may see a “turnaround” in the convertible bond market

Zhai Tiantian, Deputy Director of Research and Development at Orient Securities, told reporters: on one hand, the rapid development of the tech industry has boosted listed companies’ willingness to raise funds; on the other hand, the new refinancing regulations implemented on February 9 provided targeted support for tech innovation companies, especially relaxing profit and “break-even” restrictions, further strengthening their refinancing willingness. As of March 18, 31.82% of the new plans announced this year involve specialized and innovative enterprises, an increase of 11.82 percentage points compared to the same period last year. Under the influence of favorable industry policies and refinancing support, high-tech companies are expected to become an important force in expanding the convertible bond market.

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

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

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

However, it should be noted that although issuance has accelerated, due to the recent bullish stock market, many convertibles have triggered redemption thresholds, especially bank convertible bonds, which have been delisted successively. In the short term, the market remains in a state of “adding water” and “releasing water” simultaneously.

Zhai Tiantian believes that despite positive changes in new convertible bond supply, it is difficult to fully compensate for the scale gap caused by the delisting of bank convertible bonds. First, the surge in issuance plans does not necessarily mean rapid supply growth; although plans are warming up, the effective transmission to actual issuance depends on regulatory acceptance pace. As of March 18, 2024, only 11 convertible bonds had been issued this year, an 83.33% increase from the same period last year, with a total issuance scale of 9.016 billion yuan, up 57.35%.

Second, individual bank convertible bonds tend to have large issuance sizes, averaging over 10 billion yuan per issuance, while since 2025, the average size of new plans has been around 1.6 billion yuan. Our estimates suggest that in 2025, the delisting scale of bank convertible bonds could reach trillions of yuan. In 2026, with maturity and high redemption expectations, delistings could still exceed 300 billion yuan. Relying solely on accelerated issuance of non-financial company convertibles to fill this gap will be challenging. Additionally, under capital replenishment pressures, banks are expected to prefer targeted equity issuance to raise capital, which will further substitute for convertible bond financing.

Hejinlong, General Manager of Youmei Li Investment, also stated that although issuance plans have surged, it remains difficult to fully offset the market scale shrinkage caused by bank convertible 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 long term, convertible bonds are expected to recover gradually, but market structure will also change, gradually tilting toward new economy sectors, providing more diversified investment options. On the demand side, allocation strength remains robust, especially in a low-interest-rate environment, where “fixed income plus” funds continue to seek allocations. Therefore, the convertible bond market still has valuation support and good liquidity in the near future.