The excitement surrounding Chinese stocks has negatively impacted much of the country's debt market, except for convertible bonds, which have seen a positive trend. The CSI Convertible Bond Index, which tracks the performance of convertible notes on the Shanghai and Shenzhen stock exchanges, increased by 0.3% on Monday to its highest level since 2015. This rise is attributed to the growing interest in convertible bonds as Chinese equity markets rally. These bonds are on track for a seventh consecutive month of gains, marking the longest winning streak since early 2020.

Concerns regarding the maturity of these bonds this year have caused some market uncertainty, but the situation is improving due to a better balance of supply and demand. While there were fears about a potential increase in repayments, the redemption of debt by several issuers, such as China Citic Bank Corp., has improved market sentiment.

This article contains information sourced from Bloomberg, with contributions from Mengchen Lu.