The convertible bond market has recently seen a notable adjustment, with the CSI Convertible Bond Index experiencing a maximum decline of 4.91% last week, ranking second only to the mid-April adjustment this year. Market consensus attributes this correction primarily to the overall high valuations. Given the significant proportion of funds pursuing absolute returns in the convertible bond market, high valuations frequently prompt profit-taking amidst stock market fluctuations. Nonetheless, over the weekend, some institutions observed that amid the recent underperformance of the bond market, certain "fixed income+" funds are contemplating a counter-trend investment in convertible bonds during this round of adjustments. Data reveals that public funds augmented their holdings of convertible bonds listed on the Shanghai Stock Exchange by over 9.2 billion yuan in August, with index investments emerging as a prominent strategy. Furthermore, the size of China's largest convertible bond ETF continues to set new benchmarks.