It was another favorable trading day with more stocks advancing than declining, though some investors celebrated while others faced losses. Among the major broad-based indices, the ChiNext Index led gains with a rise of 1.73%, followed by the STAR 50 Index, which climbed 1.71%. In contrast, the Micro-cap Index fell 0.28%, and the SSE 50 Index declined 0.05%. Within the Shenwan primary industry indices, the communications sector led the gains with an increase of 4.36%, followed by electronics, which rose 3.27%, and the diversified sector, which advanced 3.11%. On the downside, social services fell 0.73%, banking dropped 0.71%, and transportation declined 0.66%. A total of 2,657 stocks advanced, while 2,390 declined, with the median gain standing at 0.08%.

Fifty-seven stocks, including CRRC, Luzhou Laojiao, China Communications Construction, China Railway Construction, Pien Tze Huang, Haid Group, Shanghai RAAS, Wingtech Technology, Jinshiyuan, and Oppein Home Group, hit one-year lows during the session. Among them, two stocks—Betaine and Qingyue Technology—reached all-time lows. Meanwhile, 218 stocks, such as Zhongji Innolight, Eoptolink, Dongshan Precision, Yangtze Optical Fibre and Cable, Shennan Circuits, Wus Printed Circuit, Shengyi Technology, Avary Holding, Hengtong Optic-Electric, and Xcxn Creation Data, reached one-year highs. Of these, 105 stocks, including the aforementioned names, achieved all-time highs during the session.

Seventeen stocks, including Guosheng Technology, Shengyang Shares, *ST Zhongyan, Baili Technology, *ST Lihang, *ST Guohua, Lianxiang Shares, Aoto Electronics, *ST Sailong, and *ST Haihua, fell by the daily limit. Conversely, 62 stocks, such as Dongshan Precision, Avary Holding, Hengtong Optic-Electric, Sanan Optoelectronics, CITIC Metal, Yongding Shares, Changguang Huaxin, Yunnan Germanium, Orient Cable, and Andon Health, rose by the daily limit.

The average gain for 336 convertible bonds was 0.79%, while their underlying stocks rose by an average of 0.76%. The 20 convertible bonds in the author’s primary portfolio advanced by an average of 0.14%, while their corresponding underlying stocks declined by an average of 0.25%. The author sold Blue Sky Convertible Bond and purchased Shenhao Convertible Bond today. Blue Sky Convertible Bond’s underlying stock experienced a decline in performance, transforming it from a high-dividend stock to a non-dividend-paying one.

The sustainability of high dividends, as seen in companies like Blue Sky Gas, can be assessed through three key factors: First, a dividend payout ratio exceeding 100% may indicate potential borrowing or asset sales to fund dividends. Last year, Blue Sky Gas’s dividend payout ratio reached 101.36%. Second, the health of operating cash flow is critical. If a company’s net operating cash flow consistently falls below its total dividend payments, it suggests that its core business lacks sufficient "self-sustaining" capability, raising the risk that dividends are funded by debt or depletion of reserves. In 2025, Blue Sky Gas’s net operating cash flow decreased by 27.32% year-over-year, indicating deteriorating profitability and further undermining the sustainability of its high dividends. Third, Blue Sky Gas reported a 35.01% year-over-year decline in net profit attributable to shareholders in its first-quarter 2026 report, highlighting persistent operational deterioration as the root cause of its dividend suspension.

Different investment targets and strategies require tailored approaches. For those employing diversified quantitative rotation strategies, exposure to Blue Sky Convertible Bond may have minimal impact. Today, the underlying stock fell 6.25%, while the convertible bond declined only 1.80%. A 5% position would have resulted in a mere 0.09% impact, with an even smaller effect if sold earlier in the day. The author’s decision to sell was driven by quantitative ranking rather than loss-cutting.

For investors focused on dividend ETFs, it is advisable to examine whether the index incorporates exclusion mechanisms. Some optimized dividend strategy indices, such as the CSI Selected High Dividend Strategy Index, use "proposed dividend yield" as a core stock-selection criterion, effectively avoiding the trap of "historical high dividends followed by sudden suspensions." For those developing custom dividend strategies, incorporating similar factors during backtesting can help mitigate risks.

After nine consecutive declining sessions following Mr. Mao’s decision to cut losses on Wingtech Convertible Bond, as discussed on the Jisilu platform yesterday, the bond finally rebounded by 2.04% today. The bad news is that Mr. Mao has now turned bullish on the ChiNext market; the good news is that this optimism has not yet translated into actual investment.

Among over 5,000 listed stocks, 144 contain the character for "light" in their names. These stocks averaged gains of 1.81% for the day, 3.23% for the week, 16.54% for the month, and 23.55% for the year, significantly outperforming the broader market. The top performers included Yangtze Optical Fibre and Cable, up 254.07% year-to-date, Minbao Optoelectronics, which gained 271.69%, and Changguang Huaxin, which rose 197.49%. It seems stocks with "light" in their names are indeed shining brightly. However, chasing such trends carries risks—if the light dims, regrets may follow.