Report Industry Investment Rating No information provided in the content. Core Viewpoints - Last week, the bond market weakened overall, with long - term bond yields rising significantly. Affected by rumors of new regulations on public fund sales and the stock market's shock recovery, market sentiment weakened further, and bond fund redemption pressure increased. However, on Friday, the bond market recovered due to the weakening expectation of November PMI and the increasing expectation of loose monetary policy. The yield curve steepened upward as short - term bond yields rose less than long - term ones because of the loose funding situation. [2] - This week (the week of December 1st), the bond market will continue to fluctuate. The November manufacturing PMI is still in the contraction range, and the weak fundamental pattern remains unchanged, which is generally favorable to the bond market. December is a traditional allocation month, and institutional investors such as insurance companies may make advance arrangements, providing some support to the bond market. However, due to the uncertainty of the new regulations on public fund sales, stock market disturbances, and weak expectations of interest rate cuts, market sentiment is generally cautious, and the bond market's reaction to fundamental positives will be limited. In the short term, it is difficult for the bond market to break through the volatile market. [2] Summary by Directory 1. Last Week's Market Review 1.1 Secondary Market - The bond market weakened overall last week, with long - term bond yields rising significantly. The 10 - year Treasury bond futures main contract fell 0.30% cumulatively last week. On Friday, the 10 - year Treasury bond yield rose 2.46bp compared with the previous Friday, and the 1 - year Treasury bond yield rose slightly by 0.09bp, with the term spread continuing to widen. [3] - From November 24th to 28th, the bond market showed different trends each day. It was generally under pressure from Monday to Thursday due to various factors such as stock market performance and rumors of new regulations. On Friday, it recovered due to the weakening expectation of November PMI and the increasing expectation of loose monetary policy. [3] 1.2 Primary Market - Last week, 140 interest - rate bonds were issued, an increase of 64 compared with the previous week. The issuance volume was 716 billion yuan, an increase of 229.5 billion yuan, and the net financing amount was 477.5 billion yuan, an increase of 134.3 billion yuan. The issuance volume of Treasury bonds, policy - financial bonds, and local government bonds increased compared with the previous week. The net financing amount of local government bonds increased, while that of Treasury bonds and policy - financial bonds decreased. [9] - The subscription demand for interest - rate bonds last week was generally acceptable. The average subscription multiple of 4 issued Treasury bonds was 2.52 times, that of 20 issued policy - financial bonds was 3.80 times, and that of 116 issued local government bonds was 18.59 times. [13] 2. Last Week's Important Events - In November, China's manufacturing PMI index was 49.2%, up 0.2 percentage points from October, in line with market expectations mainly due to the recent efforts of growth - stabilizing policies and positive results from China - US economic and trade talks. The non - manufacturing PMI was 49.5%, down 0.6 percentage points from October. Looking forward, the manufacturing PMI index may decline in December due to factors such as the impact of US high tariffs on global trade and China's exports and the continued adjustment of the domestic real - estate market. [13] 3. Real - Economy Observation - Most high - frequency data on the production side declined last week, including blast furnace operating rates, petroleum asphalt plant operating rates, daily pig iron production, and semi - steel tire operating rates. [14] - On the demand side, the BDI index continued to rise, while the CCFI index declined slightly. The sales area of commercial housing in 30 large and medium - sized cities continued to increase slightly. [14] - In terms of prices, pork prices first rose and then fell, showing an overall downward trend, while most commodity prices rose, including copper, crude oil, and rebar prices. [14] 4. Last Week's Liquidity Observation - The central bank's net injection of funds through open - market operations last week was 435.8 billion yuan. [25] - R007 and DR007 both rose, the inter - bank certificate of deposit issuance rate of joint - stock commercial banks rose, the national and joint - stock direct - discount rates for various terms rose, the volume of pledged repurchase transactions decreased significantly, and the leverage ratio in the inter - bank market first decreased and then increased, showing an overall downward trend. [26][27][28]

Report Summary 1. Investment Rating The report does not mention the industry investment rating. 2. Core Viewpoints - Last week, the external environment improved significantly, and the equity market rebounded with fluctuations. The strength of small and micro - cap stocks boosted the underlying stocks of convertible bonds. However, due to the impact of Vanke's bond extension event, the convertible bond market was the primary target for "fixed - income +" funds to reduce positions during net redemptions because of its good liquidity, resulting in a slight decline and a significant digestion of the previously rapidly rising valuation level. The convertible bond ETFs were divided, with a total net redemption of RMB 1.345 billion in convertible bonds. - Looking ahead, factors such as the new regulations for bond funds and year - end profit - taking sentiment increase the uncertainty on the demand side of the convertible bond market, amplifying price fluctuations. However, the basic pattern of weak supply and strong demand in the convertible bond market is unlikely to change substantially, and the impact is expected to be limited. The large - cap bottom - position convertible bonds with rapidly falling valuations have significant left - hand layout value. In the short term, convertible bonds are expected to follow the equity market in a high - to - low, structural market. After the Central Economic Work Conference provides direction for the market, an end - of - year pre - emptive market is expected to start, with hard - tech, new - consumption, and anti - involution - related convertible bonds remaining the key directions [2]. 3. Summary by Directory Policy Tracking - On November 25, the National Energy Administration issued the "Implementation Opinions on Promoting High - Quality Development of 'Artificial Intelligence +' Energy", proposing eight categories of scenarios, 37 key tasks, and more than a hundred specific applications to accelerate the application of artificial intelligence in the energy field. It plans to organize "Artificial Intelligence +" energy pilot projects to explore a new paradigm for the integrated development of "Artificial Intelligence +" energy [3]. - On November 27, six ministries including the Ministry of Industry and Information Technology issued the "Implementation Plan for Enhancing the Adaptability of Consumer Goods Supply and Demand to Further Promote Consumption", proposing five measures and setting phased development goals. By 2027, three trillion - level consumption areas and ten billion - level consumption hotspots are expected to be formed [3]. Secondary Market - **Equity Market**: Last week, major equity market indices rose collectively. The Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index rose by 1.40%, 3.56%, and 4.54% respectively. Overseas, the US retail data was lower than expected, and the core PPI increase also declined, leading to a resurgence of the December interest - rate cut expectation. Coupled with new progress in the Russia - Ukraine situation, most global capital markets rebounded, and commodities generally rose. Domestically, the equity market rebounded with fluctuations, but trading volume hit a nearly four - month low due to a wait - and - see attitude. Small and micro - cap stocks strengthened significantly, and there was policy speculation ahead of the Central Economic Work Conference. Vanke experienced a double - kill in stocks and bonds due to bond extension and market - based debt disposal rumors [5]. - **Convertible Bond Market**: Major convertible bond market indices fell collectively. The CSI Convertible Bond Index, Shanghai Convertible Bond Index, and Shenzhen Convertible Bond Index fell by 0.27%, 0.50%, and 0.01% respectively, with an average daily trading volume of RMB 61.571 billion, a marginal decrease of RMB 4.105 billion from the previous week. The convertible bond ETFs were divided, with a total net redemption of RMB 1.345 billion in convertible bonds. Structurally, small - cap convertible bonds outperformed last week, and low - rated and high - priced convertible bonds rose against the trend, while high - rated and large - cap convertible bonds underperformed. In terms of valuation, the conversion value of the convertible bond market increased marginally to the 75.3% quantile since 2020, but the convertible bond price decreased marginally, and the valuation level dropped significantly by 7.8 percentage points to the 49.9% quantile. In terms of trading sentiment, the trading activity of both underlying stocks and convertible bonds declined [7][8]. - **Industry Performance**: Most convertible bonds in various industries rose last week. Convertible bonds in the steel and building materials industries led with average increases of over 2% and 1%, respectively, while those in the food and beverage and transportation industries fell by over 0.5%. In terms of valuation, the average conversion premium rate quantile since 2020 decreased by 13.03 percentage points to the 48.07% quantile, and the median conversion premium rate quantile decreased by 11.35 percentage points to the 48.54% quantile. Convertible bonds in industries such as household appliances, food and beverage, building decoration, and automobiles followed the upward trend more slowly, and their valuation quantiles decreased by more than 20 percentage points [10]. - **Individual Bonds**: Among 401 convertible bonds, 208 rose and 181 fell. Among the rising bonds, Dazhong Convertible Bond and Chun 23 Convertible Bond led the market with increases of over 14% and 13% respectively, benefiting from the lithium - mining and consumer - electronics markets. Tianyuan Convertible Bond also strengthened significantly, rising by over 10%. Among the falling bonds, Bo 23 Convertible Bond, Wei 24 Convertible Bond, and Xinhua Convertible Bond fell significantly by over 14%, 9%, and 8% respectively under the expectation of early redemption [11]. Primary Market - **Issuance and Listing**: No new convertible bonds were issued last week, Zhuomei Convertible Bond was listed, and no convertible bonds were delisted. As of November 28, the outstanding scale of the convertible bond market was RMB 565.308 billion, a decrease of RMB 168.585 billion from the beginning of the year and a decrease of RMB 33.28 billion from the previous week. Zhuomei Convertible Bond had a 57.3% daily limit on the first - listing day and rose by over 74.9% in the first week, with a conversion premium rate of 92.69% as of last Friday, exceeding the market median level [30]. - **Conversion and Redemption**: Ten convertible bonds had a conversion ratio of over 5% last week, an increase of three from the previous week. Among them, Qibin Convertible Bond, Wei 24 Convertible Bond, Hongfa Convertible Bond, and Yuguang Convertible Bond announced early redemption, and Xinhua Convertible Bond and Yong 02 Convertible Bond announced that they were about to trigger early redemption. Mingdian Zhuan 02, Fenghuo Convertible Bond, Ying 19 Convertible Bond, and Dongfeng Convertible Bond are about to expire and be delisted [31]. - **Issuance Progress**: The issuance of convertible bonds by Shang Sheng Electronics was approved by the exchange, and the issuance of convertible bonds by Lianrui New Materials was approved by the CSRC. As of last Friday, seven convertible bonds were approved by the CSRC and waiting to be issued, with a total scale of RMB 4.718 billion, and six convertible bonds passed the review committee, with a total scale of RMB 7.458 billion [32]. - **Clause Tracking**: No convertible bonds announced a downward revision of the conversion price last week, and four convertible bonds announced early redemption. Tianneng Convertible Bond and Lanfan Convertible Bond announced that the board of directors proposed a downward revision of the conversion price; Sanfang Convertible Bond and Jin 23 Convertible Bond announced no downward revision of the conversion price; Qixiang Zhuan 2, Changhong Convertible Bond, and Lepu Zhuan 2 announced that they were about to trigger the condition for a downward revision of the conversion price. Zhongneng Convertible Bond, Hongfa Convertible Bond, Wei 24 Convertible Bond, and Zhongqi Convertible Bond announced early redemption; Fuxin Convertible Bond announced no early redemption; Nenghui Convertible Bond, Meinuo Convertible Bond, Shenglan Convertible Bond, Limin Convertible Bond, Huamao Convertible Bond, and Xinhua Convertible Bond announced that they were expected to trigger the early - redemption condition [34].

Manufacturing PMI Insights - In November 2025, China's manufacturing PMI rose to 49.2%, an increase of 0.2 percentage points from October, aligning with market expectations[1] - The manufacturing new orders index increased by 0.4 percentage points to 49.2%, driven by the implementation of the "two 500 billion" growth stabilization policies[2] - The manufacturing production index rebounded to 50.0%, up 0.3 percentage points from the previous month, indicating a return to non-contraction territory[3] Economic Factors - The recent "anti-involution" policies have led to a rise in raw material prices, with the main raw material price index increasing by 1.1 percentage points to 53.6%[4] - The production expectations index for manufacturing improved by 0.3 percentage points to 53.1%, reflecting a more optimistic outlook among manufacturers[5] - The construction PMI rose to 49.6%, up 0.5 percentage points, supported by the completion of 500 billion new policy financial tools[7] Service Sector Performance - The non-manufacturing business activity index fell to 49.5%, a decrease of 0.6 percentage points, marking the first entry into contraction territory for the year[6] - The service sector's decline is attributed to weakened consumer demand and significant adjustments in the real estate market[6] Future Outlook - The overall macroeconomic environment remains stable but shows signs of weakness, with the comprehensive PMI output index falling below the equilibrium line for the first time this year[8] - Projections indicate a potential decline in the manufacturing PMI to around 49.1% in December, influenced by external trade pressures and ongoing adjustments in the real estate market[8]

1. Report Industry Investment Rating - No relevant content provided 2. Core Viewpoints of the Report - On November 24, the liquidity was ample, with major repo rates hovering at low levels; the bond market showed a narrow - range oscillation; the convertible bond market's main indices followed the upward trend, and most convertible bond issues rose; yields on U.S. Treasuries of various maturities generally declined, and yields on 10 - year government bonds of major European economies generally decreased [1] 3. Summary by Relevant Catalogs 3.1 Bond Market News 3.1.1 Domestic News - President Xi Jinping had a phone call with U.S. President Trump, emphasizing that the Busan meeting had set the right course for China - U.S. relations, and both sides should maintain the positive momentum [3] - On November 25, the central bank conducted 100 billion yuan of MLF operations, with a net injection of 10 billion yuan in November, marking the ninth consecutive month of increased roll - overs, in line with market expectations [3] - As of November 21, the issuance of science - innovation bonds in the inter - bank market exceeded 530 billion yuan, with the proportion of issuance scale exceeding 10% for the first time, 5 percentage points higher than before [4] 3.1.2 International News - On November 24, Fed Governor Waller and San Francisco Fed President Daly signaled dovish stances, with Waller advocating a rate cut at the next meeting and Daly supporting a December rate cut [5][6] 3.1.3 Commodities - On November 24, international crude oil futures prices turned up, while international natural gas prices turned down. WTI January crude oil futures rose 1.34% to $58.84 per barrel, Brent January crude oil futures rose 1.29% to $63.37 per barrel, COMEX December gold futures rose 0.36% to $4094.2 per ounce, and NYMEX natural gas prices fell 1.55% to $4.506 per ounce [7] 3.2 Liquidity 3.2.1 Open Market Operations - On November 24, the central bank conducted 338.7 billion yuan of 7 - day reverse repurchase operations, with a net injection of 55.7 billion yuan as 283 billion yuan of reverse repurchases matured on the same day [9] 3.2.2 Funding Rates - On November 24, the liquidity was ample, with major repo rates hovering at low levels. DR001 dropped 0.22bp to 1.319%, and DR007 rose 2.95bp to 1.470% [10] 3.3 Bond Market Dynamics 3.3.1 Interest - rate Bonds - **Spot Bond Yield Trends**: On November 24, the bond market showed a narrow - range oscillation with lower trading volume. By 20:00, the yield of the 10 - year Treasury bond active issue 250016 dropped 0.05bp to 1.8120%, and the yield of the 10 - year CDB bond active issue 250215 remained flat at 1.8740% [13] - **Bond Tendering Results**: Information on the tendering of multiple bonds including 25贴现国债72, 25附息国债23, etc., was provided, covering details such as term, issuance scale, winning yield, and bid - to - cover ratios [14] 3.3.2 Credit Bonds - **Secondary - market Transaction Anomalies**: On November 24, no credit bond transaction prices deviated by more than 10% [15] - **Credit Bond Events**: Multiple companies such as Fanhai Holdings, Fangyuan Real Estate, and Baolong Industry had bond - related events including non - payment, extension of redemption dates, and holder meetings [16] 3.3.3 Convertible Bonds - **Equity and Convertible Bond Indices**: On November 24, the A - share market rose, with over 4200 stocks increasing. The Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index rose 0.05%, 0.37%, and 0.31% respectively. The convertible bond market also rebounded, with the CSI Convertible Bond, Shanghai Convertible Bond, and Shenzhen Convertible Bond indices rising 0.22%, 0.14%, and 0.34% respectively [17] - **Convertible Bond Tracking**: News such as the approval of Shang Sheng Electronics' convertible bond issuance and the possible early redemption of Nenghui Convertible Bond were reported [24] 3.3.4 Overseas Bond Markets - **U.S. Treasury Market**: On November 24, yields on U.S. Treasuries of various maturities generally declined. The 2 - year U.S. Treasury yield dropped 5bp to 3.46%, and the 10 - year yield dropped 2bp to 4.04%. The 2/10 - year U.S. Treasury yield spread widened by 3bp to 58bp, and the 5/30 - year spread narrowed by 2bp to 107bp [20][21] - **European Bond Market**: On November 24, yields on 10 - year government bonds of major European economies generally declined, except for Germany and Spain where yields remained unchanged [23] - **Price Changes of Chinese - Issued U.S. Dollar Bonds**: Price changes of Chinese - issued U.S. dollar bonds of multiple companies such as Ctrip Group, Pinduoduo, and iQiyi were presented, including daily changes, credit entities, bond balances, and other information [25]

Report Summary 1. Investment Rating No investment rating for the industry is provided in the report. 2. Core View On November 21, the liquidity situation continued to ease, but market sentiment remained weak, leading to a volatile adjustment in the bond market. The convertible bond market followed the decline of the equity market, with most convertible bond indices and individual bonds falling. Yields of U.S. Treasury bonds across various maturities generally declined, and yields of 10 - year government bonds in major European economies mostly decreased as well [1]. 3. Summary by Directory 3.1 Bond Market News - **Domestic News** - Starting from next June, savings bonds (electronic) will be included in the scope of personal pension products [3]. - From January to October this year, the number of newly - established foreign - invested enterprises in China increased by 14.7% year - on - year, while the actual use of foreign capital decreased by 10.3% year - on - year [3]. - The issuance of government bonds has entered a dense period, which is an important manifestation of the continuous implementation of proactive fiscal policies [3]. - **International News** - On November 21 local time, New York Fed President John Williams said there is room for further interest rate cuts in the near term [4]. - The preliminary value of the U.S. Markit Composite PMI in November reached the fastest growth in four months, with the service industry accelerating and the manufacturing industry slowing down [5]. - **Commodities** - On November 21, international crude oil futures prices continued to fall, while international natural gas prices turned up [6]. 3.2 Liquidity - **Open Market Operations** - On November 21, the central bank conducted 375 billion yuan of 7 - day reverse repurchase operations, with a net injection of 162.2 billion yuan [8]. - **Funding Rates** - Due to the end of the tax period and continuous net injections by the central bank, the liquidity situation continued to ease on November 21. Key funding rates such as DR001 and DR007 declined [9]. 3.3 Bond Market Dynamics - **Interest - Rate Bonds** - **Spot Bond Yields** - On November 21, despite the stock market decline, the bond market fluctuated and adjusted due to weak market sentiment. Yields of 10 - year Treasury bonds and 10 - year China Development Bank bonds increased slightly [12]. - **Bond Tendering** - On November 21, the 3 - year "25进出清发007(增发15)" was tendered, with a issuance scale of 2 billion yuan and a winning yield of 1.6542% [13]. - **Credit Bonds** - **Secondary Market Transaction Anomalies** - On November 21, the trading price of one industrial bond, "H0中骏02", deviated by more than 10%, rising by over 71% [13]. - **Credit Bond Events** - Multiple companies announced important events, including debt restructuring, bond exchange offers, regulatory warnings, and cancellations of bond issuances [14][15]. - **Convertible Bonds** - **Equity and Convertible Bond Indices** - On November 21, the three major A - share indices fell, and the convertible bond market also declined. Most convertible bond indices and individual bonds fell, with a decrease in trading volume [16]. - **Convertible Bond Tracking** - On November 24, "卓镁转债" will be listed. Multiple convertible bonds announced price adjustments, potential redemptions, etc. on November 21 [18][19]. - **Overseas Bond Markets** - **U.S. Bond Market** - On November 21, yields of U.S. Treasury bonds across various maturities generally declined, and the yield spreads between different maturities changed [20][21]. - **European Bond Market** - On November 21, except for the 10 - year government bond yield in the UK, which increased, yields of 10 - year government bonds in other major European economies generally declined [23]. - **Chinese - Issued U.S. Dollar Bonds** - As of the close on November 21, prices of some Chinese - issued U.S. dollar bonds changed, with some rising and some falling [25].

Report Summary Industry Investment Rating No information provided on the industry investment rating. Core View On November 20, the liquidity continued to ease, the bond market mainly oscillated, the yields of interest - rate bonds changed within 1bp, the main indices of the convertible bond market declined collectively, most convertible bond issues fell, the yields of US Treasury bonds across maturities generally declined, and the yields of 10 - year government bonds in major European economies generally rose [1]. Summary by Section 1. Bond Market News - **Domestic News** - The 1 - year and 5 - year - plus LPR remained unchanged at 3.0% and 3.5% respectively, marking six consecutive months of no change [3]. - The Ministry of Commerce urged Japan to correct its wrong remarks on Taiwan. If Japan persists, China will take necessary measures [3]. - The Ministry of Commerce hoped that the Netherlands would take practical actions to solve the Nexperia issue and restore the security and stability of the global semiconductor supply chain [4]. - 50 cities were short - listed for the pilot program of new consumption models, and the central government will provide up to 400 million yuan per city in subsidies [4][5]. - **International News** - The US added 119,000 non - farm jobs in September, more than double the expected 51,000, but the unemployment rate reached 4.4%, the highest since October 2021. The September non - farm report deepened the Fed's internal division [6]. - **Commodities** - On November 20, WTI December crude futures fell 0.50% to $59.14/barrel, Brent January crude futures fell 0.20% to $63.38/barrel, COMEX December gold futures fell 0.56% to $4,060/ounce, and NYMEX natural gas prices fell 1.62% to $4.490/ounce [7]. 2. Liquidity - **Open - Market Operations** - On November 20, the central bank conducted 300 billion yuan of 7 - day reverse repurchase operations at a fixed interest rate of 1.40%, with a net injection of 110 billion yuan after 190 billion yuan of reverse repurchases matured [9]. - **Funding Rates** - On November 20, the liquidity continued to ease, and major repurchase rates continued to decline. DR001 dropped 5.69bp to 1.365%, and DR007 dropped 2.74bp to 1.486%. Other rates such as Shibor also showed varying degrees of decline [10][11]. 3. Bond Market Dynamics - **Interest - Rate Bonds** - **Spot Bond Yield Trends** - On November 20, the bond market mainly oscillated, and the yield changes of interest - rate bonds were within 1bp. The yield of the 10 - year Treasury bond active issue 250016 rose 0.30bp to 1.8100%, and the yield of the 10 - year CDB bond active issue 250215 rose 0.25bp to 1.8720% [13]. - **Bond Tendering** - Various bonds such as 25 Guokai Qingfa bonds and 25 Jinchujian bonds were tendered, with different issuance scales, winning yields, and multiples [14]. - **Credit Bonds** - **Secondary - Market Transaction Anomalies** - On November 20, the trading price of one industrial bond, "21 Taixin 06", deviated by more than 10%, rising more than 11% [15]. - **Credit Bond Events** - Events such as bond payment extension proposals, issuance cancellations, commercial paper overdue payments, and companies being restricted from high - end consumption or undergoing reorganization occurred among multiple companies [18]. - **Convertible Bonds** - **Equity and Convertible Bond Indices** - On November 20, the A - share market declined, with the Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index falling 0.40%, 0.76%, and 1.12% respectively. The main indices of the convertible bond market also declined, with the CSI Convertible Bond Index, Shanghai Convertible Bond Index, and Shenzhen Convertible Bond Index falling 0.23%, 0.27%, and 0.23% respectively [19]. - **Convertible Bond Tracking** - On November 21, Maolai Convertible Bond started online subscription, and Qizhong Convertible Bond was listed. Multiple convertible bonds announced redemption - related matters [22]. - **Overseas Bond Markets** - **US Treasury Bonds** - On November 20, the yields of US Treasury bonds across maturities generally declined. The 2 - year yield dropped 3bp to 3.55%, and the 10 - year yield dropped 3bp to 4.10%. The inflation - adjusted break - even inflation rate of 10 - year US Treasury bonds dropped 3bp to 2.24% [23][25]. - **European Bonds** - On November 20, except for the 10 - year UK government bond yield which dropped 1bp, the 10 - year government bond yields of other major European economies generally rose [26]. - **Chinese - Issued US - Dollar Bonds** - As of the close on November 20, the daily price changes of Chinese - issued US - dollar bonds varied, with some bonds rising and some falling [28].

1. Report Summary - On November 19, the funding situation eased, with major repo rates declining; the bond market weakened overall; the convertible bond market rebounded, with most convertible bond issues rising; yields on U.S. Treasuries across various tenors generally increased, and the yields on 10-year government bonds of major European economies showed divergent trends [1][2] 2. Bond Market News 2.1 Domestic News - The Ministry of Finance issued 4 billion euros of sovereign bonds in Luxembourg on November 18, with a subscription total exceeding 100 billion euros. The 4-year and 7-year bonds were issued at rates of 2.401% and 2.702% respectively, and all bonds will be listed on the Hong Kong Stock Exchange and the Luxembourg Stock Exchange [5] - The Ministry of Finance advanced the budget for part of the central government's urban affordable housing project subsidies for 2026 on November 19 to support related work [6] - The Bond Connect's October 2025 report showed that northbound trading volume reached 572.3 billion yuan, and northbound swap trading reached 410.4 billion yuan [6][7] 2.2 International News - The Fed's meeting minutes on November 19 revealed significant differences among policymakers regarding a December rate cut, with many believing it may not be appropriate [8] 2.3 Commodities - On November 19, WTI December crude oil futures fell $1.30, or 2.14%, to $59.44 per barrel; COMEX gold futures rose 0.36% to $4081.10 per ounce; NYMEX natural gas prices rose 4.44% to $4.564 per ounce [9] 3. Funding Situation 3.1 Open Market Operations - On November 19, the central bank conducted 310.5 billion yuan of 7-day reverse repurchase operations at a fixed rate, resulting in a net injection of 115 billion yuan after 195.5 billion yuan of reverse repos matured [11] 3.2 Funding Rates - On November 19, as the impact of tax payments diminished, the funding situation eased, and major repo rates declined. DR001 dropped 10.64bp to 1.422%, and DR007 fell 1.08bp to 1.513% [12] 4. Bond Market Dynamics 4.1 Interest Rate Bonds - **Spot Bond Yields**: On November 19, the bond market weakened due to the rise of heavyweight sectors in the stock market. The yield on the 10-year Treasury bond active issue 250016 rose 0.20bp to 1.8070%, and the yield on the 10-year CDB bond active issue 250215 rose 0.15bp to 1.8695% [15] - **Bond Tenders**: Details of several bond tenders on November 19 were provided, including the 25 Attached Coupon Treasury Bond 20 (Reissued) and others [17] 4.2 Credit Bonds - **Secondary Market Transactions**: On November 19, the trading price of one industrial bond, "H0 Zhongjun 02," deviated by more than 10%, dropping by more than 75% [17] - **Credit Bond Events**: Several companies announced events, such as New World Development increasing the issuance cap of new perpetual bonds and Qiandongnan Investment being listed as a dishonest被执行人 [18] 4.3 Convertible Bonds - **Equity and Convertible Bond Indexes**: On November 19, the A-share market was divided, and the convertible bond market rebounded. The CSI Convertible Bond Index, Shanghai Stock Exchange Convertible Bond Index, and Shenzhen Stock Exchange Convertible Bond Index rose 0.24%, 0.21%, and 0.29% respectively [19] - **Convertible Bond Tracking**: Several companies announced events related to convertible bonds, such as Baolong Industry suspending trading of four domestic corporate bonds and Guangzhou Metro Group canceling the issuance of "25 Guangzhou Metro SCP011" [20] 4.4 Overseas Bond Markets - **U.S. Bond Market**: On November 19, yields on U.S. Treasuries across various tenors generally increased, with the 10-year yield rising 1bp to 4.13% [22] - **European Bond Market**: On November 19, the yields on 10-year government bonds of major European economies showed divergent trends [25] - **Daily Price Changes of Chinese Dollar Bonds**: As of the close on November 19, price changes of various Chinese dollar bonds were reported [26]

Group 1: LPR Pricing and Market Expectations - The LPR rates for November remain unchanged at 3.0% for the 1-year term and 3.5% for the 5-year term, consistent with market expectations[1] - The stability in LPR pricing is attributed to the unchanged policy interest rates since the last announcement on October 20, indicating no significant changes in the pricing basis[2] - The lack of motivation for banks to lower LPR rates is due to historically low net interest margins, despite a slight decrease in financing costs in the money market[2] Group 2: Economic Outlook and Policy Implications - Recent economic indicators show a decline in domestic investment, consumption, and industrial production, with export growth turning negative, raising concerns about economic momentum[3] - To stabilize economic performance in Q4 2023 and Q1 2024, it is anticipated that monetary policy may shift towards a new round of interest rate cuts and reserve requirement ratio reductions by year-end[3] - The low current price levels provide sufficient room for monetary policy to adopt a moderately accommodative stance, including potential interest rate cuts[3] Group 3: Housing Market Policies - There is an expectation for stronger policies to stabilize the housing market, potentially leading to a reduction in the 5-year LPR to lower residential mortgage rates significantly[4] - This move is seen as crucial for alleviating high actual mortgage rates and stimulating housing market demand[4]

1. Report Summary - On November 18, the capital market remained tight, the bond market fluctuated narrowly, the main indices of the convertible bond market declined collectively, most convertible bond individual securities fell, the yields of US Treasury bonds of various maturities generally declined, and the yields of 10-year government bonds in major European economies showed divergent trends [2] 2. Bond Market News 2.1 Domestic News - The National Bureau of Statistics released the unemployment rate data by age group for October. The unemployment rate of the 16 - 24 age group (excluding students) was 17.3%, 7.2% for the 25 - 29 age group, and 3.8% for the 30 - 59 age group [4] - Multiple "two - major" construction projects started recently. The State Council executive meeting proposed to plan and promote "two - major" construction in the overall situation of the 15th Five - Year Plan [4] - 12 departments including the Beijing Branch of the central bank issued an implementation plan to encourage eligible science and technology innovation enterprises to raise funds through the bond market and support the bond issuance of consumer - related enterprises [5] - The Fourth China - Germany High - level Financial and Economic Dialogue reached consensus on deepening offshore RMB market cooperation and welcoming German institutions to issue panda bonds in China [6] 2.2 International News - For the week ending October 18, the initial jobless claims in the US were 232,000, and the continuing claims rose to 1.957 million. The government shutdown affected the release of key economic data [8] 2.3 Commodities - On November 18, WTI December crude oil futures rose 1.39% to $60.74 per barrel, Brent January crude oil futures rose 1.07% to $64.89 per barrel, COMEX December gold futures fell 0.2% to $4066.5 per ounce, and NYMEX natural gas prices rose 0.29% to $4.370 per ounce [9] 3. Capital Situation 3.1 Open Market Operations - On November 18, the central bank conducted 407.5 billion yuan of 7 - day reverse repurchase operations at a fixed - rate and quantity - tender method, with an operating rate of 1.40%. The net investment of funds on the day was 3.7 billion yuan [11] 3.2 Capital Interest Rates - On November 18, the capital market remained tight. DR001 rose 1.66bp to 1.529%, and DR007 rose 0.03bp to 1.524% [12] 4. Bond Market Dynamics 4.1 Interest - rate Bonds - The yields of interest - rate bonds changed slightly. The yield of the 10 - year treasury bond active bond 250016 rose 0.15bp to 1.8040%, and the yield of the 10 - year CDB active bond 250215 fell 0.05bp to 1.8675% [15] - Several bonds were tendered, with different issuance scales, winning yields, and multiples [16] 4.2 Credit Bonds - Two industrial bonds had trading price deviations of over 10%. "23 Vanke 01" rose over 11%, and "H0 Baolong 04" rose over 37% [16] - There were multiple credit - related events such as debt reduction, companies being included in the list of dishonest executors, warnings from the trading association, rating adjustments, and ineffective bondholder meetings [18] 4.3 Convertible Bonds - The three major A - share indices fell 0.81%, 0.92%, and 1.16% respectively. The main indices of the convertible bond market also declined, with the CSI Convertible Bond, Shanghai Convertible Bond, and Shenzhen Convertible Bond indices falling 0.55%, 0.31%, and 0.78% respectively [18][19] - There were multiple convertible - bond - related events such as issuance approvals, conversion price adjustments, and early redemption announcements [23] 4.4 Overseas Bond Markets - In the US bond market, the yields of US Treasury bonds of various maturities generally declined. The 2 - year yield fell 2bp to 3.58%, and the 10 - year yield fell 1bp to 4.12%. The inflation - protected 10 - year Treasury bond's break - even inflation rate fell 1bp to 2.27% [22][25] - In the European bond market, the yields of 10 - year government bonds in major European economies showed divergent trends. The yields of German bonds remained unchanged, while those of France, Italy, and the UK rose [26] - The daily price changes of Chinese - funded US dollar bonds showed different trends for different credit entities [28]

Report Summary of Gold Weekly (2025.11.10 - 2025.11.16) 1. Investment Rating No investment rating for the industry is provided in the report. 2. Core Viewpoints - Multiple Fed officials' hawkish remarks led to a rise - then - fall in gold prices last week. Although the prices ended up significantly higher overall, they faced pressure in the second half of the week. This week, gold prices are expected to oscillate at a high level, with no unilateral trend likely [3][4]. 3. Summary by Directory 3.1 Last Week's Market Review - **Gold Spot and Futures Prices**: Last Friday (Nov 14), Shanghai gold futures closed at 953.20 yuan/gram, up 3.47% from the previous Friday; COMEX gold futures closed at 4084.40 dollars/ounce, up 1.91%. Gold T + D spot prices rose 3.31% to 947.98 yuan/gram, and London gold spot prices increased 2.05% to 4082.16 dollars/ounce [3][5]. - **Gold Basis**: The international gold basis (spot - futures) was - 15.40 dollars/ounce last Friday, down 14.30 dollars/ounce from the previous Friday. The Shanghai gold basis was - 2.52 yuan/gram, down 1.14 yuan/gram [8]. - **Gold Domestic - Foreign Spread**: The gold domestic - foreign spread was - 6.47 yuan/gram last Friday, up from - 18.76 yuan/gram the previous Friday. The gold - oil ratio rose slightly, the gold - silver ratio declined, and the gold - copper ratio remained stable [10]. - **Position Analysis**: Gold ETF holdings increased last week. The world's largest SPRD gold ETF fund held 1044.00 tons, up 1.94 tons. Domestic gold T + D trading volume rose 3.45%. Gold CFTC asset management institutions' long and short positions both increased, with long net positions rising slightly. COMEX gold futures inventory decreased, while SHFE gold inventory increased by 810 kg to 90426 kg [14]. 3.2 Macroeconomic Fundamentals - **Important Economic Data**: The US Senate and House passed a temporary appropriation bill to end the 43 - day government shutdown, with funds until January 30, 2026. The 10 - month ADP private - sector employment decreased by 45,000, the largest drop in two and a half years. The release schedule for important US data was set, with September non - farm payrolls due on November 20 [17][18][19]. - **Fed Policy Tracking**: Due to data gaps from the government shutdown, Fed officials' hawkish stances increased. New York Fed President Williams said the Fed would start buying assets to maintain sufficient reserves when the level is reached [29][30]. - **US Dollar Index Trend**: The US dollar index declined slightly last week, down 0.28% to 99.28, as the market worried about weakening employment data [31]. - **US TIPS Yield Trend**: The US 10 - year TIPS yield rose slightly last week as hawkish remarks from Fed officials made the market predict a less - than - 50% chance of a December rate cut [33][37]. - **International Important Event Tracking**: On November 14, Ukraine attacked Russia's Novorossiysk port, reducing global crude supply by about 2.0%. On November 16, it attacked a Russian refinery, and Russia continued to advance in Ukraine [35].