Chinese Convertible Bonds Rally to Decade-High on Surging Demand

Convertible bonds have emerged as one of the most popular asset classes in China this year, trouncing the performance of local stocks and fixed income.

The CSI convertible bond index has rallied about 8% in 2025 to trade near a decade high. That easily beats the stock benchmark’s 2.1% advance so far this year, while Chinese government bonds have returned just 0.9% in local-currency terms.