Investment Rating - The report maintains an "Accumulate" rating for BYD, indicating a projected stock price increase of 5% to 15% relative to the industry index over the next six months [5]. Core Views - BYD's overseas sales have significantly increased, with cumulative exports exceeding 500,000 vehicles from January to July 2025, showcasing the company's strong market expansion capabilities [2]. - The company has actively reduced inventory in response to national calls against excessive competition, reflecting a strategic shift to balance supply and demand [8]. - The recent production and sales data indicate a proactive approach to inventory management, with production in July 2025 at 318,000 units, a slight decrease of 0.92% year-on-year, while sales rose by 0.56% to 344,000 units [1]. Financial Summary - Revenue projections show a steady increase from 602.3 billion CNY in 2023 to 1,423.9 billion CNY by 2027, with a compound annual growth rate (CAGR) of approximately 19% [1]. - Net profit attributable to shareholders is expected to grow from 30.0 billion CNY in 2023 to 82.8 billion CNY in 2027, reflecting a robust growth trajectory [1]. - The report forecasts a return on equity (ROE) of 20.8% in 2023, increasing to 24.1% by 2027, indicating strong profitability [1]. Market Position and Strategy - BYD's market share in the export of new energy buses is notable, with a 27.29% share in the first half of 2025, highlighting its leadership in the sector [10]. - The establishment of a new factory in Brazil marks a significant step in BYD's global strategy, enhancing local production capabilities and supply chain collaboration [8]. - The company's proactive response to industry challenges, including price competition, positions it favorably for sustainable growth in the new energy vehicle market [8].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In the week from July 28 to August 1, 2025, the domestic stock market was generally in a downward trend, with most major stock indices and style indices showing declines. The trading activity of A - shares has been fluctuating upwards recently, approaching the level of December 2024. The bond market had mixed performance, with pure - bond indices rising and the Shanghai - Shenzhen convertible bond index falling. The commodity market also showed mixed trends, with some commodities rising and others falling. In the ETF market, the trading volume of comprehensive ETFs increased, while that of theme ETFs decreased. There was a net outflow of funds from most broad - based indices in comprehensive ETFs, and significant inflows into heavy - weight sectors such as banks, consumption, and liquor in industry - themed ETFs [2][9][15][18][32]. 3. Summary According to the Table of Contents 3.1 Fund Market Overview 3.1.1 Stock Market - Last week, major domestic stock indices declined. The large - cap indices such as CSI 300, SSE 50, and SSE Composite Index had weekly changes of - 1.75%, - 1.48%, and - 0.94% respectively. The small - and medium - cap indices like CSI 500, CSI 1000, and ChiNext Index had changes of - 1.37%, - 0.54%, and - 0.74% respectively. Style indices showed mixed trends, with financial, cyclical, consumer, growth, and stable style indices having changes of - 1.61%, - 2.28%, - 0.41%, - 0.32%, and - 2.27% respectively. Among the growth styles, large - cap, mid - cap, and small - cap growth style indices changed by - 0.35%, 0.94%, and - 2.26% respectively. The trading activity of A - shares has been fluctuating upwards recently, approaching the level of December 2024, with trading volume showing a pattern of rebound, decline, and then rebound over the past year [9]. 3.1.2 Bond Market and Futures Market - Last week, the Shanghai - Shenzhen convertible bond index fell by - 1.39%. Pure - bond indices rose, with the Shanghai Treasury Bond, Shanghai Corporate Bond, and Shenzhen Local Government Bond indices rising by 0.07%, 0.05%, and 0.02% respectively. The main futures contracts of major stock indices showed mixed trends, with CSI 300, SSE 50, and CSI 500 futures rising by 0.55%, 0.65%, and 0.14% respectively. The prices of 10 - year, 5 - year, and 2 - year Treasury bond futures rose by 0.22%, 0.13%, and 0.02% respectively [15][16]. 3.1.3 Commodity Market - In the past week, the commodity market showed mixed trends. The CRB Poultry Spot, CRB Edible Oil Spot, and Nanhua Agricultural Product Index changed by 0.01%, - 0.48%, and - 1.05% respectively. Among domestic key commodity futures, INE Crude Oil, SHFE Asphalt, and CZCE Thermal Coal futures changed by 3.79%, 1.41%, and 0.00% respectively [18][21]. 3.2 ETF Market Quotation Statistics - By screening ETFs through indicators such as fund size and trading volume, the most representative ETFs in different sectors of comprehensive and industry - themed categories are selected for long - term tracking. Monitoring indicators such as large - and small - cap style classification, changes in circulating shares, net - bought funds, and trading volume can provide references for market style switching and fund flow [23]. 3.3 Domestic Stock - Type ETF Trading Activity Ranking - Using the weekly turnover rate of funds as a measure of ETF trading activity, last week's trading hotspots were mainly concentrated in comprehensive indices such as ChiNext 50 and ChiNext, as well as sectors such as Steel ETF, Coal ETF, and Bank ETF [24]. 3.4 Large - and Small - Cap Style Monitoring 3.4.1 Comprehensive Stock ETF - As of last week, the trading volume of comprehensive ETF funds increased. The trading volume of comprehensive ETFs was 69.484 billion yuan, an increase of 5.046 billion yuan from the previous week. Among them, the trading volume of large - and mid - cap style comprehensive ETFs was 34.555 billion yuan, an increase of 0.528 billion yuan, and that of small - and mid - cap comprehensive ETFs was 35.702 billion yuan, an increase of 4.833 billion yuan. The circulating shares of comprehensive ETF funds decreased by 4.178 billion shares compared to the previous week [26]. 3.4.2 Thematic Stock ETF - As of last week, the average weekly change of 32 thematic ETFs was - 1.57%. The average weekly change of large - cap style ETFs was - 2.76%, and that of small - and mid - cap style ETFs was - 0.59%. The total trading volume of thematic ETFs decreased by 3.582 billion yuan compared to the previous week. The trading volume of large - cap style ETFs decreased by 6.615 billion yuan, while that of small - and mid - cap style ETFs increased by 3.033 billion yuan. The circulating shares of thematic ETFs increased by 15.599 billion shares compared to the previous week [27]. 3.5 Sector Fund Flow Tracking - In terms of returns, comprehensive ETFs showed mixed trends. The top three were the Innovation - Growth 50 ETF, 1000 ETF, and ChiNext, with changes of - 0.49%, - 0.55%, and - 0.65% respectively. The bottom three were the Shenzhen 100 ETF, 300 ETF, and 300 ETF, with changes of - 1.88%, - 1.73%, and - 1.67% respectively. Industry - themed ETFs also showed mixed trends. The top three were the 5G ETF, Pharmaceutical ETF, and Biomedical ETF, with changes of 3.47%, 2.00%, and 1.86% respectively. The bottom three were the Coal ETF, Non - Ferrous Metals ETF, and New Energy Vehicle ETF, with changes of - 5.11%, - 4.97%, and - 4.16% respectively. In terms of fund flow, most broad - based indices in comprehensive ETFs had a small net outflow of funds, while heavy - weight sectors such as banks, consumption, and liquor in industry - themed ETFs had significant inflows [32]. 3.6 Commodity ETF - Last week, the commodity ETF funds showed mixed trends. The Gold ETF, Bosera Gold, Soybean Meal ETF, Non - Ferrous Metals Futures ETF, and Energy Chemicals ETF changed by - 0.77%, - 0.76%, - 0.15%, - 1.75%, and - 6.00% respectively. The total circulating shares of tracked commodity ETFs increased by 0.317 billion shares compared to the previous week, and the total trading volume increased by 1.887 billion yuan [36]. 3.7 Overseas ETF - Last week, among the tracked overseas ETF funds, the Nasdaq ETF, H - share ETF, and Hang Seng ETF changed by 0.40%, - 2.45%, and - 2.19% respectively. The total circulating shares of tracked overseas ETF funds increased by 0.018 billion shares compared to the previous week, and the total trading volume increased by 0.929 billion yuan [38]. 3.8 Money Market ETF - As of the end of last week, the overnight SHIBOR rate was 1.39%, a decrease of 0.24% from the previous week, and the one - week SHIBOR rate was 1.50%, a decrease of 0.05% from the previous week. The seven - day annualized yield of Huabao Tianyi increased by 0.02% to 1.07%, and that of Yinhua Rili decreased by 0.03% to 1.04%. In terms of circulating shares, Huabao Tianyi's circulating shares decreased by 0.467 billion shares, while Yinhua Rili's increased by 2.824 billion shares [42].

Report Information - Report Title: Transactional Index Fund Capital Flow Weekly Report [1] - Data Date: July 28, 2025 - August 1, 2025 [1] - Report Issuer: Great Wall Securities Industrial Finance Research Institute [1] - Analyst: Jin Ling [1] - Report Date: August 6, 2025 [1] Domestic Passive Stock Funds Comprehensive and Industry Themes - **Fund Performance**: In the week from July 28 to August 1, 2025, most domestic passive stock funds showed negative growth. For example, the Shanghai - Shenzhen 300 had a scale of 983.449 billion yuan, a weekly decline of 1.64%, and a net capital outflow of 9.263 billion yuan; the CSI 500 had a scale of 140.12 billion yuan, a decline of 1.21%, and a net outflow of 3.149 billion yuan. However, the Science and Technology Innovation 100 rose by 0.57%, and the Science and Technology Innovation 200 rose by 3.27% with a net inflow of 0.93 billion yuan [4]. - **Capital Flow**: The large - finance sector had a net capital inflow of 6.207 billion yuan, and the large - consumption sector had a net inflow of 3.065 billion yuan; while the large - technology sector had a net outflow of 1.106 billion yuan, and the large - manufacturing sector had a net outflow of 1.474 billion yuan [4]. Style Strategies and Other Classifications - **Style Performance**: Among style strategies, the dividend and dividend - low - volatility strategies had net capital inflows of 1.223 billion yuan and 1.338 billion yuan respectively, while the growth and value strategies had net outflows of 0.065 billion yuan and 0.043 billion yuan respectively [4]. - **Other Classifications**: The central - state - owned enterprise special valuation concept (China Special Valuation) had a net inflow of 0.235 billion yuan, and the regional funds had a net outflow of 0.017 billion yuan [4]. Overseas - Related Funds Comprehensive and Industry Themes - **Fund Performance**: Overseas - related funds also showed mixed performance. The Nasdaq 100 rose by 0.38% with a net inflow of 0.282 billion yuan, while the German DAX fell by 3.03% but still had a net inflow of 0.192 billion yuan [5]. - **Capital Flow**: The Hong Kong - stock technology sector had a large net inflow of 9.816 billion yuan, and the China Internet sector had a net inflow of 0.447 billion yuan; the Hong Kong - stock medical sector rose by 3.76% with a net inflow of 0.262 billion yuan [5]. Style Strategies - **Style Performance**: In style strategies, the dividend and dividend - low - volatility strategies in overseas - related funds had net inflows of 0.012 billion yuan and 0.0262 billion yuan respectively [5]. Bond and Commodity Funds Bond Funds - **Interest - Rate Bonds**: Among interest - rate bonds, the 30 - year bond had a scale of 8.969 billion yuan, a rise of 0.60%, and a net inflow of 2.512 billion yuan; the 5 - 10 - year bond had a scale of 38.952 billion yuan, a rise of 0.33%, but a net outflow of 0.574 billion yuan [6]. - **Credit Bonds**: For credit bonds, the high - grade bonds had a net inflow of 0.053 billion yuan, and the urban investment bonds had a net inflow of 0.4 billion yuan; the short - term financing bonds had a net outflow of 1.746 billion yuan [6]. - **Convertible Bonds**: Convertible bonds had a scale of 43.859 billion yuan, a decline of 1.54%, but a net inflow of 3.154 billion yuan [6]. Commodity Funds - **Gold and Others**: Gold funds had a scale of 70.887 billion yuan, a decline of 0.78%, but a net inflow of 3.973 billion yuan; the bean - meal funds had a scale of 4.193 billion yuan, a decline of 0.15%, and a net inflow of 0.009 billion yuan [6]. Index - Enhanced Funds - **Fund Performance**: Index - enhanced funds generally showed a negative growth trend. For example, the Shanghai - Shenzhen 300 index - enhanced fund had a scale of 3.209 billion yuan, a decline of 1.80%, and a net inflow of 0.049 billion yuan; the CSI 500 index - enhanced fund had a scale of 1.978 billion yuan, a decline of 1.07%, and a net inflow of 0.014 billion yuan [6].

Investment Rating - The report maintains an "Outperform" rating for the telecommunications industry [4] Core Insights - Major cloud providers are increasing capital expenditures to enhance data center capabilities and liquid cooling technologies, driven by AI demand [2][3] - AI-driven growth is evident in the financial results of leading companies like Google, Microsoft, Meta, and Amazon, with significant revenue and profit increases reported [1][23] Summary by Sections Financial Performance of Major Companies - Google reported FY25Q2 revenue of $96.428 billion, a 14% year-over-year increase, with net profit rising 19% to $28.196 billion. Google Cloud revenue grew 32% to $13.6 billion [1][23] - Microsoft achieved FY25 revenue of $281.724 billion, a 14.93% increase, with net profit of $101.8 billion, up 16%. Microsoft Cloud revenue increased by 21% to $106.266 billion [1][34] - Meta's FY25Q2 revenue reached $47.5 billion, a 22% increase, with net profit growing 36% to $18.3 billion [1] - Amazon reported FY25Q2 revenue of $167.7 billion, a 13% increase, with AWS revenue at $30.87 billion, up 18% [1] Capital Expenditure Trends - Google plans to increase its 2025 capital expenditure from $75 billion to $85 billion, focusing on servers and data centers [2][29] - Microsoft reported FY25Q4 capital expenditure of $24.2 billion, with a total of $88.2 billion for the fiscal year, a 58.35% increase [2][37] - Meta's capital expenditure for FY25Q2 was $17 billion, a 100% increase, with expectations for FY25 to be between $66 billion and $72 billion [2] AI and Data Center Developments - The AI hardware performance is experiencing exponential growth, with significant advancements in training and inference capabilities [3][6] - The global data center market is projected to exceed $108.6 billion in 2024, with a compound annual growth rate of 14.9% [6] - Liquid cooling technology is gaining traction, with the global market expected to surpass 200 billion yuan in 2025 [6] Market Overview - The telecommunications sector is outperforming the broader market, with a projected growth trajectory [4] - The report highlights the importance of AI in reshaping marketing processes and driving revenue growth across various sectors [31][32]

Investment Rating - The report maintains a "Buy" rating for several companies including Jin Feng Technology, Daikin Heavy Industries, and Yun Da Co., while recommending "Hold" for others like Tai Sheng Wind Energy and Jin Lei Co. [1][4] Core Insights - The report highlights a significant increase in offshore wind power grid connections, with a year-on-year growth of 200% in the first half of 2025, indicating a positive trend in the industry [2][3][4] - The National Development and Reform Commission emphasizes the need to eliminate "involution" competition and promote reforms in the bidding system, which is expected to stabilize and potentially increase wind turbine prices [2][4] - The report notes that the wind power sector is experiencing accelerated construction and a strong demand for large-scale products, which is expected to enhance profitability for key players [4][7] Industry Dynamics - The report outlines that in the first half of 2025, the total installed capacity of wind power reached 572.60 million kW, with a year-on-year increase of 22.70% [25][30] - The total new installed capacity for wind power in the first half of 2025 was 51.39 GW, representing a 98.88% increase compared to the same period in 2024 [25][28] - The average bidding price for offshore wind turbines has shown a downward trend, currently averaging 3266.17 yuan/kW [3][53] Market Performance - The wind power equipment index reported a TTM price-to-earnings ratio of 33.17 and a market-to-book ratio of 1.69 [14][21] - The wind power equipment sector outperformed the broader market, with a weekly increase of 1.86%, ranking 12th among 124 sub-sectors [14][17] Company Performance - Key companies such as Jin Feng Technology and Yun Da Co. are highlighted for their strong market positions and expected benefits from the ongoing industry trends [4][7] - The report identifies specific companies for investment based on their market advantages and growth potential, including Daikin Heavy Industries and Tai Sheng Wind Energy [7]

Investment Rating - The report maintains a "Buy" rating for Hikvision, expecting the stock price to outperform the industry index by over 15% in the next six months [5][17]. Core Insights - Hikvision's financial performance shows improvement in cash flow and gross margin, indicating a marginal enhancement in fundamentals despite short-term revenue growth challenges [3][2]. - The company has embraced AI technology, integrating it into most product lines, which is expected to drive future growth [3]. - The report forecasts revenue growth from 98 billion yuan in 2025 to 115.8 billion yuan in 2027, with net profit projected to increase from 13.3 billion yuan to 16.8 billion yuan during the same period [3]. Financial Summary - **Revenue**: Projected to grow from 89.34 billion yuan in 2023 to 115.84 billion yuan in 2027, with a CAGR of approximately 9.5% [1]. - **Net Profit**: Expected to decline from 14.11 billion yuan in 2023 to 11.98 billion yuan in 2024, before recovering to 16.8 billion yuan by 2027 [1]. - **Gross Margin**: Improved to 45.19% in the first half of 2025, reflecting a slight year-on-year increase [2]. - **Cash Flow**: Operating cash flow turned positive in the first half of 2025, amounting to 5.34 billion yuan, which is 94% of net profit [2]. - **EPS**: Expected to rise from 1.53 yuan in 2023 to 1.82 yuan in 2027 [1]. Business Performance - **Domestic Business**: The domestic business faces significant pressure, primarily due to a sharp decline in SMBG (Small and Medium Business Group) revenue [2]. - **Innovation Business**: Despite a slowdown, the innovation business grew by 13.92% year-on-year, contributing 28% to total revenue [2]. - **AI Integration**: The company has launched hundreds of AI model products, enhancing its competitive edge across various industries [3].

Investment Rating - The report maintains an "Outperform" rating for the industry [4] Core Insights - The report emphasizes the significance of the Yarlung Tsangpo River downstream hydropower project, which aims to harness the region's abundant hydropower potential and drive economic development [1][10] - The development of large-capacity impulse turbines, with a single unit capacity of approximately 800 MW, represents a world-first achievement, addressing extreme challenges in high-altitude and high-head environments [1][10] - The gas-insulated transmission line (GIL) technology is highlighted for its advantages in high-capacity power transmission, low losses, and adaptability to various environments, making it a preferred choice in special scenarios [2][26] Summary by Sections 1. Large Capacity Impulse Turbines - The Yarlung Tsangpo River downstream hydropower project is set to utilize impulse turbines with a capacity of 800 MW, surpassing current global standards [1][10] - The project faces significant technical challenges due to high water heads and extreme environmental conditions, necessitating advanced turbine designs and manufacturing techniques [10][11] 2. Gas-Insulated Transmission Lines (GIL) - GIL technology is recognized for its ability to efficiently transmit high voltage and large currents in confined spaces, making it suitable for urban and challenging geographical environments [2][26] - The report notes successful applications of GIL in various projects, including the Su Tong GIL comprehensive corridor, which is the highest voltage and largest capacity GIL project globally [27][33] 3. High-Altitude Electrical Equipment - The report discusses the need for altitude adjustments in electrical equipment due to the unique challenges posed by high-altitude environments, particularly in the Yarlung Tsangpo River project [2][3] - The development of high-altitude, high-seismic equipment is crucial for the effective transmission and consumption of clean energy [2][3] 4. Reliable Key Supply Chain - The report identifies key companies in the supply chain for hydropower equipment, including Harbin Electric, Dongfang Electric, and China XD Electric, among others [3][4] - The supply chain's reliability is essential for supporting the ambitious hydropower projects outlined in national plans [3][4]

Investment Rating - The report assigns a "Buy" rating to the company, expecting the stock price to outperform the industry index by over 15% in the next six months [4][19]. Core Views - The company is acquiring 100% equity of KEM TECH CORP's subsidiary, Haisholi Optoelectronics Technology (Suzhou) Co., Ltd., for 2 billion KRW, and 100% equity of INNOWAVE VIETNAM CO., LTD. for 1 billion KRW, enhancing its overseas presence and entering the Samsung supply chain [1][2]. - The acquisitions are expected to strengthen the company's position in the optical electronics and semiconductor sectors, particularly in the Korean market, which is a strategic focus for overseas expansion [2]. - The company reported a revenue of 1.49 billion CNY in Q1 2025, a year-on-year increase of 29.02%, with a reduction in net losses, indicating improved profitability [3]. Financial Summary - Revenue projections show a growth trajectory from 321 million CNY in 2023 to 1,298 million CNY in 2027, with a compound annual growth rate (CAGR) of approximately 51.4% in 2024 [1][11]. - The net profit is expected to turn positive by 2026, with estimates of -81 million CNY in 2025, 153 million CNY in 2026, and 225 million CNY in 2027 [1][9]. - The company's return on equity (ROE) is projected to improve from -7.6% in 2024 to 13.5% in 2027, reflecting a recovery in profitability [1][11]. Market Position and Product Development - The company is focusing on semiconductor optoelectronics, MEMS, and precision optics, with products being developed for various applications including communication, consumer electronics, and smart vehicles [9]. - The report highlights the increasing penetration of periscope lenses in high-end smartphones, projecting the market size for periscope cameras in China to reach 287.2 billion CNY by 2025 [8]. - The company has developed several optical components and solutions, including diffraction optical elements and optical micro-lens arrays, which are expected to enhance its competitive edge in the market [8].

Investment Rating - The report maintains a rating of "Add" for the company [4] Core Views - The company is experiencing temporary pressure on performance, but continues to optimize its channel structure and overseas layout [9] - The waterproofing industry is a stable growth segment within the building materials sector, with increasing industry concentration [9] - The company is actively expanding its non-waterproof and overseas businesses, highlighting its competitive advantages as an industry leader [9] Financial Summary - For 2023, the company is projected to achieve a revenue of 32,823 million yuan, with a year-on-year growth rate of 5.2% [1] - The net profit attributable to the parent company is expected to be 2,273 million yuan, reflecting a year-on-year growth of 7.2% [1] - The company anticipates a significant rebound in net profit for 2025, reaching 1,296 million yuan, which represents a year-on-year increase of 1,098.2% [1] - The operating income for the first half of 2025 is reported at 135.69 billion yuan, a decrease of 10.84% year-on-year, while the net profit attributable to the parent company is 5.64 billion yuan, down 40.16% year-on-year [1][2] - The company’s gross margin and net margin for the first half of 2025 are 25.40% and 4.03%, respectively, showing a decline of 3.82 and 2.08 percentage points year-on-year [2] Channel and Retail Business - The company’s engineering and retail channel revenues totaled 114.06 billion yuan in the first half of 2025, accounting for 84.06% of total revenue, indicating an increase in channel revenue proportion [3] - Retail business revenue reached 50.59 billion yuan, a decrease of 6.98% year-on-year, but its revenue share increased by 1.54 percentage points [3][8] - The company is enhancing its retail business through the integration of its construction coating retail segment and the establishment of a C-end service brand [8] Overseas Expansion - The company is advancing its overseas layout with multiple initiatives, including the construction of bases in Houston, Saudi Arabia, Canada, and Malaysia [8] - The focus is on optimizing costs and enhancing service capabilities in North America and Europe [8]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The current VAT policy on bonds is short - term positive and long - term neutral. In the short term, it is beneficial to existing bonds, potentially triggering a pre - layout market for "snapping up old bonds." However, the expected continued decline in interest rates on Monday did not occur, as the improvement in the stock market weakened the bond market, and the "rumor" of the China Development Bank bonds drove up the long - term Treasury bond rates. In the medium term, the policy impact on the bond market tends to be neutral. Despite the intention to divert funds to the stock market, the trend of funds chasing the bond market is difficult to completely reverse due to the "asset shortage" and loose liquidity [2][3][21][22] 3. Summary by Relevant Catalogs 3.1 Interest Rate Bonds Data Review for Last Week - **Funds Interest Rates**: In the week of August 1st, after a slight increase at the end of July, the funds interest rates started to decline. DR001 reached 1.46% on July 28th and then fluctuated down to 1.31%, with a weekly fluctuation of 15BP; R001 rose to 1.56% on July 31st and dropped to 1.35% on August 1st, with a weekly fluctuation of 21BP. DR007 fell from 1.58% on July 28th to 1.42% on August 1st, a decline of 16BP; FR007 dropped from 1.64% to 1.50%, a weekly decline of 14BP [8] - **Open Market Operations**: The central bank's reverse repurchase volume increased slightly to 1.66 trillion yuan, with a similar total maturity volume. The net capital injection was small, and the daily net injection decreased gradually [8] - **Sino - US Market Interest Rate Comparison**: The inversion of the Sino - US bond yield spread slightly decreased. The US 6 - month SOFR rate rose from 4.20% on July 28th to 4.24% on August 1st; the Chinese 6 - month SHIBOR rate remained stable at 1.61%. As of August 1st, the 6 - month interest rate spread between China and the US was - 263BP, with a slightly wider inversion; the 2 - year and 10 - year bond yield spreads were - 227BP and - 252BP respectively, with a slight reduction in the long - and short - term spreads [13] - **Term Spreads**: The term spread of Chinese bonds slightly contracted, while that of US bonds slightly expanded. The 2 - year Chinese bond yield was 1.43%, and the 10 - year was 1.71%, with the 10 - 2 year spread narrowing from 30BP to 28BP. The US bond yield slightly declined, with the 2 - year yield rising to 3.94% and then dropping 25BP to 3.69% on August 1st, and the 10 - year yield dropping 19BP to 4.23%. The 10 - 2 year term spread of US bonds widened 3BP to 54BP [16] - **Interest Rate Term Structure**: The yield curve of Chinese bonds steepened, while that of US bonds flattened and shifted downward. The overall change in the Chinese bond yield curve was small, with the 3 - month yield dropping 2BP and the 3 - 5 year yields dropping about 1 - 2BP. Except for the 3 - month yield, the overall US bond yields dropped about 20BP [16] 3.2 Key Bond Market Events Last Week - **New Policy on Bond Interest Taxation**: On August 1st, the Ministry of Finance and the State Taxation Administration announced that starting from August 8th, the interest income from newly issued national bonds, local government bonds, and financial bonds will be subject to VAT. The interest income from bonds issued before August 8th and the continued issuance after that date will remain VAT - exempt until maturity [23][24] - **Weak PMI Data**: The National Bureau of Statistics data showed that the manufacturing PMI in July was 49.3%, a 0.4 - percentage - point decrease from the previous month, indicating a decline in manufacturing prosperity. In July, the manufacturing industry entered the traditional off - season, and factors such as high temperatures and floods in some areas led to the decline of PMI data [24]