Investment Rating - The report maintains an "Outperform" rating for the machinery equipment industry [1]. Core Insights - The machinery equipment industry is experiencing sustained growth, with February exports exceeding expectations. The main drivers are the "replacement cycle and external demand" [1][6]. - Domestic sales of excavators slightly decreased in January-February 2026, while exports continued to grow significantly. The overall upward trend for the year remains unchanged despite short-term fluctuations due to the Spring Festival [6]. Summary by Sections Market Review - In February 2026, the Shenwan Machinery Index rose approximately 7.35%, outperforming the Shanghai Composite Index by 6.26 percentage points and the CSI 300 by 7.26 percentage points [13]. - The performance of different segments includes: - Complete machine manufacturing for earthmoving/concrete/lifting machinery: -1.7% - Complete machine manufacturing for others: 2.5% - Components: 20.7% [13]. Industry Tracking - Excavator sales in January-February 2026 totaled 35,934 units, a year-on-year increase of 13.10%. Domestic sales were 15,478 units, down 9.19%, while exports reached 20,456 units, up 38.8% [18]. - Loader sales for the same period were 21,299 units, a year-on-year increase of 27.9%. Domestic sales were 9,156 units, up 11.5%, and exports were 12,143 units, up 43.9% [18]. Macro Dynamics - In February 2026, the manufacturing PMI fell to 49.0%, indicating a seasonal decline. However, high-tech manufacturing PMI remains in the expansion zone at 51.5% [48]. - The government has clarified its fiscal strategy, planning to issue 4.4 trillion yuan in special bonds and 800 billion yuan in ultra-long-term special bonds to support large-scale equipment updates [48]. Key Targets - Recommended leading manufacturers include: - Zoomlion Heavy Industry (000157) - Sany Heavy Industry (600031) - XCMG (000425) - LiuGong (000528) [6]. - Core component manufacturers to focus on: - Hengli Hydraulic (601100) - Aidi Precision (603638) - Fushite (301446) [6].

Core Insights - The global defense spending is projected to reach $2.63 trillion in 2025, a 2.5% increase year-on-year, with defense spending as a percentage of global GDP rising from 1.89% to 2.01% [4] - China's defense budget for 2026 is set at 1.91 trillion yuan, reflecting a 7% increase from 2025, indicating a stable growth trajectory [4][36] - The upcoming 2027 milestone for China's military development will likely accelerate industry growth and equipment development [4][39] - The military-civilian integration and military trade are expected to open new market opportunities for defense companies [4][6] Section 1: Military Investment Growth - The report highlights the increasing military expenditures by various countries in response to global uncertainties and conflicts, with the U.S. defense budget for 2026 at $901 billion [4][34] - China's defense spending growth remains robust, with a 7% increase planned for 2026, maintaining a long-term upward trend [4][36] - The emphasis on achieving the centenary military goals by 2027 will drive new momentum in the defense sector [4][39] Section 2: Recommended Sectors - Key sectors to focus on include military technology for civilian use, military trade, and low-cost weaponry [6][42] - The commercial aerospace sector is expected to benefit from advancements in military aircraft development, with significant progress in the C919 program [42][44] - The military trade market is anticipated to experience rapid growth due to ongoing international conflicts [6][73] Section 3: Historical Performance and Future Outlook - The military industry has seen fluctuating performance, with a notable recovery in revenue and profit margins since 2025, driven by the end of previous disruptions [14][28] - The defense sector's revenue for Q1-Q3 2025 reached 540.57 billion yuan, a 16.2% year-on-year increase, indicating a positive trend [14][28] - The report suggests that the military industry will continue to recover and grow, supported by domestic demand and military trade opportunities [14][28] Section 4: Inventory and Order Demand - The military sector's inventory increased significantly, with total inventory reaching 366.65 billion yuan by Q3 2025, reflecting strong downstream order demand [21][24] - Prepayments and contract liabilities surged to 405.88 billion yuan, indicating a robust order pipeline [21][24] - The report emphasizes the correlation between inventory levels and order demand, suggesting a positive outlook for future revenue [21][24] Section 5: Cash Flow and Financial Health - The operating cash flow for the military industry showed improvement, with a net cash flow of -30.11 billion yuan for Q1-Q3 2025, an improvement from the previous year [28] - The long cash conversion cycle in the military sector continues to pose challenges, but the situation is expected to improve as previous disruptions are resolved [28]

Investment Rating - The report indicates a positive investment outlook for the storage industry, highlighting a "super growth cycle" driven by explosive demand and rigid supply conditions [1][3]. Core Insights - The storage industry is entering a super cycle due to the unexpected iteration and upgrade of AI large model technology, leading to an explosive increase in global token consumption and a massive demand for data storage, processing, and retrieval [3][4]. - Major overseas manufacturers are shifting limited production capacity towards high-profit HBM and DDR5 products, severely squeezing the capacity for consumer-grade and low-end storage chips, thus widening the supply-demand gap [3][4]. - Storage manufacturers are cautious in their expansion actions following excessive capacity and capital expenditure in the previous cycle, with high-end HBM storage chips facing long cleanroom construction periods and yield ramp-up difficulties, resulting in sustained tight supply in the short term [3][4]. Demand Side: AI Demand Explosion, Super Growth Cycle - The fundamental reason for the current super cycle is the explosive growth in data storage, processing, and retrieval needs driven by the rapid iteration of generative AI technologies [4][28]. - The global consumption of tokens by major AI models in February 2026 is projected to be over ten times that of the same period in 2025, indicating extremely strong demand for computing power and storage [4][28]. - Capital expenditures from the top eight cloud service providers (CSPs) are expected to grow by 25% to approximately $500 billion in 2026, continuing high-intensity investments in computing infrastructure [4][28]. Supply Side: Cautious Expansion Guidance, Extremely Low Manufacturer Inventory - Storage manufacturers, primarily operating under the IDM model, are cautious in their expansion guidance due to significant capital expenditures in the previous cycle [4][78]. - Limited production capacity is being directed towards high-profit HBM and DDR5 products, causing severe pressure on low-end storage chip capacity [4][78]. - Current inventory levels among the three major manufacturers are only 3-5 weeks, at historically low levels, indicating extremely tight supply [4][86]. NAND: AI Demand Driven, Cautious Capacity Expansion - The NAND market is experiencing structural shortages due to the shift of production capacity from NAND and DDR4/DDR3 to higher-margin products, leading to price increases [4][69]. - Major manufacturers are adopting a cautious approach to capacity expansion, focusing on high-end products while avoiding price wars [4][72]. - The NAND market is characterized by a high concentration of major players, with the top five companies holding approximately 90% of the market share [4][73]. DRAM: High-End Demand Explosion, Supply Structure Changes - The demand for high-end DRAM products, particularly HBM and DDR5, has surged due to the explosion of AI computing power, leading to significant price increases [4][51]. - Manufacturers are prioritizing high-margin AI-related products, resulting in a cautious approach to expanding capacity for traditional DRAM products [4][55]. - The overall DRAM market is dominated by three major players, with a combined market share exceeding 91% [4][57].

Economic Growth and Expectations - The GDP growth target for 2026 is set at 4.5%-5%, reflecting a downward adjustment from previous years[8] - The weighted average GDP growth target for local governments in 2026 is approximately 5.10%, down from 5.37% in 2025[13] - The actual economic growth rate for 2026 is expected to reach around 4.9%, with nominal GDP growth projected to rise to about 4.2%[8] Manufacturing and Investment Trends - Manufacturing investment growth is anticipated to rebound to around 2% in 2026, supported by preemptive investments in key projects[5] - The manufacturing PMI in January 2026 fell to 49.3%, indicating a contraction in manufacturing activity[19] - The investment in the manufacturing sector decreased by 8.6% in 2025, marking the lowest level since 2021[21] Real Estate Market Dynamics - Real estate investment in 2025 declined by 17.2%, with a significant drop in new construction area[26] - The confidence index for real estate developers has reached a historical low, impacting land market transactions negatively[28] - The land transaction area in 2025 decreased by 9.66% year-on-year, with a further decline of 18.33% in January 2026[28] Consumer Confidence and Spending - The consumer confidence index showed a recovery, reaching 89.5 in December 2025, which is expected to positively influence retail sales growth[47] - Retail sales growth for 2025 was 3.7%, with an anticipated increase to around 4% in the first quarter of 2026 due to seasonal factors[47] - The average daily sales during the 2026 Spring Festival increased by 5.7% compared to the previous year[47] Infrastructure and Policy Support - A significant increase in project approvals was noted in January 2026, with 3,041 projects approved, 2.75 times the number from the previous year[39] - Infrastructure investment growth is expected to stabilize and potentially reach 6% in 2026, driven by policy support and project initiation[39] - The focus on "AI + manufacturing" is expected to accelerate investment in manufacturing upgrades in 2026[21]

Investment Rating - The report indicates a positive outlook for the semiconductor industry, particularly in the analog and power semiconductor segments, suggesting a potential investment opportunity as the industry enters a new cycle [1][2]. Core Insights - The price war in the analog chip sector has officially ended, with major companies like Texas Instruments initiating price increases, signaling a profit recovery phase for analog manufacturers [4][9]. - The semiconductor price increase is primarily driven by rising supply chain costs and storage price hikes, leading to increased demand from downstream customers [7][8]. - Domestic power semiconductor manufacturers are expected to benefit from structural supply shortages and geopolitical factors, creating significant opportunities for market share gains [16][18]. - System on Chip (SoC) manufacturers with strong supply chain management and technological adaptability are positioned to capture market share and enhance profitability amid rising storage costs [19][20]. Summary by Sections Analog Chips - The analog chip industry has experienced a bottoming phase with high inventory levels, but recent price increases from leading firms mark the beginning of an upward cycle [9][10]. - Major players like Texas Instruments have initiated multiple price hikes, indicating a recovery in profit margins for domestic analog manufacturers [14]. Power Semiconductors - The market is witnessing a structural shift due to geopolitical tensions and supply shortages, creating a significant gap for domestic manufacturers to fill [16][18]. - Companies such as Nexperia and Dongwei are expected to capture market share in the industrial and automotive sectors due to increased demand and supply chain shifts [18]. System on Chip (SoC) - The report emphasizes the importance of supply chain strength and technological capabilities for SoC manufacturers to navigate rising costs and maintain competitive advantages [19][20]. - Companies that can adapt their products to meet storage needs while managing costs effectively are likely to see improved market positions and profitability [19].

1. Report Industry Investment Rating No information provided in the content. 2. Core Viewpoints of the Report - The bond market entered a window of speculation on monetary easing expectations last week, with interest rates showing a volatile trend of rising first and then falling. The yield curve may still have room to steepen. Short - and medium - term bonds are strongly supported by relatively loose capital interest rates, while long - term bonds lack a clear downward driving force. It is recommended to use the bullet strategy and maintain the portfolio duration between 3 - 5 years, and pay attention to the structural trading opportunities of 10 - year CDB bonds [2][90]. 3. Summary According to Relevant Catalogs 3.1 Important Matters - On March 5, the central bank announced a 3 - month (91 - day) 800 billion yuan repurchase operation. With 1 trillion yuan of 3 - month repurchases maturing in March, a net withdrawal of 200 billion yuan was achieved. As of March 6, the outstanding scale of 3 - month repurchases was 2.7 trillion yuan [5]. - In February, the central bank injected 50 billion yuan of liquidity into the market through open - market treasury bond trading, 50 billion yuan less than in January [7]. - The 2026 economic growth target is set at 4.5% - 5%, with a fiscal deficit rate of 4%. New policy - based financial instruments worth 800 billion yuan will be issued, which is expected to boost fixed - asset investment [8]. - At the economic theme press conference on March 6, relevant departments elaborated on the macro - policy orientation for 2026. The NDRC, the Ministry of Finance, and the central bank will work together to amplify the "combination punch" effect of fiscal, monetary, and industrial policies [10]. 3.2 Money Market 3.2.1 Open - Market Operations and Capital Interest Rate Trends - From March 2 to March 6, the central bank conducted 7 - day reverse repurchase operations, injecting 161.6 billion yuan in total, with 1.525 trillion yuan maturing, resulting in a net withdrawal of 1.3634 trillion yuan. It is expected that 427.6 billion yuan of base currency will mature and be withdrawn from March 9 to March 13 [14]. - Despite the large - scale withdrawal of base currency by the central bank through short - term reverse repurchases at the beginning of March, the capital market remained generally loose. DR001 was below 1.3% for three days during the week. As of March 6, R001, R007, DR001, and DR007 were 1.388%, 1.492%, 1.319%, and 1.415% respectively, with changes of 4.78BP, - 1.54BP, 0.05BP, and - 8.85BP compared to March 2 [18]. 3.2.2 Certificate of Deposit (CD) Interest Rate Trends and Repurchase Transaction Situations - In the primary market, the issuance scale of inter - bank CDs last week was 717.2 billion yuan, an increase of 263.25 billion yuan from the previous week. The maturity scale was 587.99 billion yuan, a decrease of 78.77 billion yuan from the previous week, with a net financing scale of 129.21 billion yuan, an increase of 342.02 billion yuan from the previous week [22]. - The issuance interest rates of inter - bank CDs decreased last week. The average issuance interest rates of 3 - month and 1 - year inter - bank CDs of state - owned banks decreased by 4.13BP and 1.42BP respectively; those of joint - stock banks decreased by 2.93BP and 2.19BP respectively [28]. - In the secondary market, most - term inter - bank CDs showed a downward trend supported by relatively loose liquidity [29]. 3.3 Bond Market 3.3.1 Primary Market - Last week, 56 interest - rate bonds were issued, with an actual issuance total of 606.484 billion yuan, a maturity total of 488.205 billion yuan, and a net financing amount of 118.279 billion yuan. The issuance rhythm of treasury bonds and local bonds in the first week of March was slightly behind the same period [31]. - As of March 6, the cumulative net financing scale of various treasury bonds in 2026 was about 0.83 trillion yuan, and that of local bonds was about 2.02 trillion yuan, both higher than the average of the same period from 2022 - 2025 [32]. - The net supply of local bonds increased last week. Among them, 4 treasury bonds were issued, with a net financing of - 1 billion yuan; 30 local bonds were issued, with a net financing of 256.229 billion yuan; 22 policy - financial bonds were issued, with a net financing of - 136.95 billion yuan [40]. - As of last week, 0.8 trillion yuan of special refinancing bonds had been issued, with long - term and ultra - long - term bonds accounting for about 92.32%. Regions with relatively large issuance scales included Jiangsu, Inner Mongolia, Zhejiang, Hunan, and Henan [43]. 3.3.2 Secondary Market - Last week, long - term bonds showed a volatile trend in the speculation of monetary easing expectations during the Two Sessions, and the yield curve steepened. The implied tax rate of 10 - year CDB bonds remained above 9%, and their investment value gradually became prominent [32]. - The turnover rates of the active 10 - year treasury bond (250022) and the active 10 - year CDB bond (250220) increased last week. The average daily trading volume of the 10 - year treasury bond active bond (250022) was 21.677 billion yuan, an increase of about 38.66% from the previous week, and its average turnover rate was 4.91%, an increase of about 1.53 percentage points. The average daily trading volume of the 10 - year CDB bond (250220) was 352.135 billion yuan, an increase of about 144.82% from the previous week, and its average turnover rate was 96.88%, an increase of about 55.67 percentage points [46]. - The average spread between the active 10 - year treasury bond (250022) and the second - active bond (250016) was - 0.04BP; the average spread between the active 10 - year CDB bond (250220) and the second - active bond (250215) widened compared to the previous week [48]. - The 10 - 1 - year treasury bond term spread reached 49.52BP, and the 30 - 1 - year treasury bond term spread widened to 99.54BP. The term spread may still widen [54]. - The long - term local - treasury spread narrowed last week, while the ultra - long - term local - treasury spread widened. As of March 6, the spread between the 10 - year local bond and the 10 - year treasury bond was 19.90BP, narrowing by 2.57BP from the previous week; the spread between the 30 - year local bond and the 30 - year treasury bond was 20.88BP, widening by 0.14BP from the previous week [57]. 3.4 Institutional Behavior Tracking - Last week, the scale of leverage trading was generally at a high level. In the cash market, large banks strengthened their selling efforts, with an increased preference for holding treasury bonds within 5 years. Small and medium - sized banks continued to take profits on treasury bonds within 10 years. Insurance companies increased their buying efforts. Securities firms continued to net - buy treasury bonds between 5 - 10 years and tried to increase their positions in policy - financial bonds between 5 - 10 years. Funds still preferred policy - financial bonds [63][73]. - In January 2026, the leverage ratio of all institutions in the inter - bank market was about 119.30%, a decrease of about 0.07 percentage points from December 2025. The leverage ratios of commercial banks, securities firms, and other institutions in the inter - bank market in January 2026 were about 111.11%, 191.81%, and 132.51% respectively [63]. - The 20 - day moving average of the daily trading volume of inter - bank pledged repurchase last week was 7.5 trillion yuan, a decrease of about 0.21 trillion yuan from the previous week. The average daily leverage trading volume was about 8.64 trillion yuan [68]. 3.5 High - Frequency Data Tracking - Last week, the settlement price of rebar futures increased by 5.97% week - on - week; the settlement price of wire rod futures decreased by 5.71% week - on - week; the settlement price of cathode copper futures increased by 2.04% week - on - week; the cement price index decreased by 0.37% week - on - week; the Nanhua Glass Index increased by 2.02% week - on - week [88]. - The CCFI index decreased by 4.00% week - on - week, and the BDI index increased by 4.75% week - on - week [88]. - The wholesale price of pork decreased by 2.53% week - on - week, and the wholesale price of vegetables decreased by 5.02% week - on - week [88]. - The settlement prices of Brent crude oil futures and WTI crude oil futures decreased by 1.41% and 1.78% respectively week - on - week [88]. - The central parity rate of the US dollar against the RMB last week was 6.92 [88]. 3.6 Outlook for the Future - The yield curve may still have room to steepen. Short - and medium - term bonds are supported by loose capital, while long - term bonds lack a clear downward driving force. It is recommended to use the bullet strategy and maintain the portfolio duration between 3 - 5 years. Pay attention to the structural trading opportunities of 10 - year CDB bonds [90].

Investment Rating - The report maintains an "Outperform" rating for the robotics industry [1]. Core Insights - The robotics index underperformed the market, with a decline of 5.6%, lagging behind the Shanghai Composite Index by 4.7 percentage points and the CSI 300 Index by 4.5 percentage points [5][10]. - The government work report emphasizes embodied intelligence as a crucial component of future industries, promoting the growth of emerging sectors and innovation projects [15]. - Notable investments in the robotics sector include: - Songyan Power completed a Series B financing round of nearly 1 billion, led by a platform from CATL [15]. - Galaxy General Robotics announced a new financing round of 2.5 billion, with participation from various prominent investors [15]. - Parsini secured over 1 billion in financing, achieving a valuation exceeding 10 billion [18]. - Star Era completed a strategic financing round of 1 billion, with a valuation surpassing 10 billion [20]. - Xiaomi's robotics division has made progress in autonomous operations within automotive factories, showcasing advancements in key performance indicators [23]. Summary by Sections Market Review - The robotics index experienced a decline of 5.6% from March 2 to March 8, underperforming major indices [10]. Industry Dynamics - The government report highlights embodied intelligence as a key future industry, encouraging the development of new sectors and innovation initiatives [15]. - Significant financing activities in the robotics sector include: - Songyan Power's nearly 1 billion financing round [15]. - Galaxy General Robotics' 2.5 billion financing round [15]. - Parsini's over 1 billion financing round [18]. - Star Era's 1 billion strategic financing round [20]. - Xiaomi's robotics division is advancing in autonomous operations, with improvements in key metrics [23].

Domestic Developments - The Ministry of Science and Technology issued guidelines for the development of a comprehensive technology insurance system, aiming to support high-level technological self-reliance and innovation through 20 measures[9] - The National Development and Reform Commission held a meeting focusing on expanding domestic demand and stabilizing investment, with a commitment to accelerate targeted policies for private enterprises[10] - A tax data report indicated that by 2025, over 80% of provinces in China will see positive growth in inter-provincial sales, reflecting the progress in building a unified national market[12] International Developments - The U.S. and Israel launched strikes against Iran, leading to significant geopolitical tensions and fluctuations in asset prices, including a rise in oil prices above $80 per barrel[16] - In February, the U.S. manufacturing PMI remained in expansion territory at 52.4, but the input price index surged to a near four-year high of 70.5, indicating rising inflationary pressures[18] - The Eurozone's February CPI rose by 1.9% year-on-year, exceeding expectations, driven by increased service prices, particularly in Italy, which saw a 6.1% rise in restaurant and accommodation costs[21] Market Trends - Brent crude oil prices increased by 15.77% week-on-week, while iron ore prices rose by 0.72%, indicating upward pressure in commodity markets[25] - Real estate sales surged by 63.37% week-on-week, reflecting a strong recovery in the housing market[25] - The DXI index for storage DRAM prices increased by 2.15% week-on-week, suggesting a positive trend in emerging industries[33]

1. Report Industry Investment Rating No information about the report industry investment rating is provided in the given content. 2. Core Viewpoints of the Report - The net inflow of bond ETFs has improved, and the redemption wave of credit - bond ETFs may be coming to an end. Policy expectations have been realized, with relatively limited short - term benefits. The underlying asset trends of bond ETFs may still be mainly related to equity market performance and geopolitical conflict progress. For interest - rate bond ETFs, government bond yields are at a point with low odds and limited winning probabilities, while government financial bond ETFs are more cost - effective. For credit - bond ETFs, the net inflow of benchmark market - making credit - bond ETFs has turned slightly positive, and the redemption wave of science and technology innovation bond ETFs may be over. For convertible - bond ETFs, there may be room for further breakthroughs in the high - end valuation, but attention should be paid to the stop - profit timing [4][8]. 3. Summary According to Relevant Catalogs 3.1 Various Bond ETF Fund Net Inflow Situations - Overall, the net value and share have increased slightly, and the scale of the bond ETF market has risen slightly. Last week, the net inflows of interest - rate bond ETFs, credit - bond ETFs, and convertible - bond ETFs were - 8.50 billion yuan, + 12.02 billion yuan, and + 29.28 billion yuan respectively. The total net inflow of the bond ETF market was + 32.80 billion yuan, with a cumulative net inflow of 10.761 billion yuan this month and a cumulative net inflow of - 97.586 billion yuan this year. As of March 6, 2026, the scale of bond ETF funds was 737.488 billion yuan, + 0.39% compared with the previous week's closing, - 11.06% compared with the beginning of the year, and accounting for 13.91% of the total market ETF scale, with a 27bp increase compared with the previous weekend. Short - term financing and urban investment ETFs were favored. Convertible - bond ETFs had the largest net inflow, and short - term financing ETFs and urban investment bond ETFs also had significant net inflows, while science and technology innovation bond ETFs and government bond ETFs had large net outflows [4][7]. 3.2 Various Bond ETF Share Trends - Only science and technology innovation bond and government bond ETFs faced net redemptions. As of the close on March 6, 2026, the shares of various types of bond ETFs changed to different extents compared with February 27, 2026, and the end of last month. The total share of bond - type ETFs increased by 2.5% compared with February 27 and 3.2% compared with the end of last month [13]. 3.3 Share and Net Value Trends of Each Benchmark Market - Making Credit - Bond ETF - The overall share increased slightly, with contributions from E Fund and Haitong. As of the close on March 6, 2026, the shares of 8 credit - bond ETFs changed to different extents compared with February 27, 2026. The net value continued to rise, with all 8 credit - bond ETFs showing an increase in net value compared with February 27 and the end of last month [21][25]. 3.4 Share and Net Value Trends of Each Science and Technology Innovation Bond ETF - Redemption was concentrated, but the subscription situation improved marginally. The net inflow of shares last week was - 17.64 million shares, a - 0.65% decrease compared with the previous week. Some products had net outflows, while 10 products had net subscriptions, indicating that the redemption wave since the beginning of the year may be over, and the market is expected to stabilize and recover. The net value continued to rise, and the median net values of the first - batch and second - batch science and technology innovation bond ETFs increased compared with the previous week [28][36]. 3.5 Market Performance of Single Bond ETFs Last Week - The net value generally increased. 30 - year government bond ETF, 30 - year ETF Bosera, and government financial bond ETF led the gains. In terms of premium and discount rates, Convertible Bond ETF Haitong, Government Bond ETF Huaxia, and 30 - year Government Bond ETF Bosera had leading premium rates. In terms of scale changes, Short - term Financing ETF Haitong, Convertible Bond ETF Bosera, and Urban Investment Bond ETF Haitong had the largest net inflows [38]. 3.6 Marginal Changes in the PCF Lists of Benchmark Market - Making Credit - Bond and Science and Technology Innovation Bond ETFs - For benchmark market - making credit - bond ETFs, the PCF list of Company Bond ETF E Fund had the largest change in modified duration, which decreased by 0.45 years compared with the previous week due to the removal of many long - duration bonds. Five bonds such as 23 Shaanxi Investment 01 were repeatedly removed from the PCF list. For science and technology innovation bond ETFs, the PCF lists of Science and Technology Innovation Bond ETF Tianhong and Science and Technology Innovation Bond ETF Hua'an had relatively large changes in modified duration. The average modified duration of newly included bonds in Science and Technology Innovation Bond ETF Tianhong was relatively large, and the average modified duration of removed bonds in Science and Technology Innovation Bond ETF Southern and Science and Technology Innovation Bond ETF Tianhong was significantly longer. The bond Yongtongshang K1 was repeatedly removed from the PCF list, and 8 bonds such as 26 CATLK1 were included in multiple science and technology innovation bond ETFs. In terms of coupon - supplement cost, the coupon - supplement prices of Science and Technology Innovation Bond ETF Xingye, Science and Technology Innovation Bond ETF E Fund, and Credit - Bond ETF Haitong fluctuated relatively more [41][45][49]. 3.7 Summary of Changes in Bond ETF Fund Operation and Management Rules - In terms of cash - substitution signs, Science and Technology Innovation Bond ETF Huitianfu changed all the cash - substitution signs in the PCF list to "must" on March 2 and March 3, 2026, and a large amount of funds were redeemed during this period. The cash - refund and - supplement difference settlement period of Science and Technology Innovation Bond ETF China Merchants was changed from T + 2 days to T + 1 days. The main reason is that the underlying science and technology innovation bond sources are relatively abundant, and the recent continuous shrinkage of its scale has also alleviated the coupon - supplement pressure during subscription, creating pre - conditions for shortening the settlement cycle [51][55].

Economic Goals - The GDP growth target for 2026 is set at 4.5%-5%, a decrease from the 5% target in 2025[3] - The weighted average GDP growth target for local governments in 2026 is approximately 5.10%, down from 5.37% in 2025[3] - The urban surveyed unemployment rate target for 2026 is around 5.5%[3] Fiscal Policy - The fiscal deficit rate for 2026 is planned at around 4%, consistent with 2025, amounting to approximately 5.89 trillion yuan, an increase of 230 billion yuan from 2025[3] - General public budget expenditure is expected to reach 30 trillion yuan for the first time, an increase of about 1.27 trillion yuan from the previous year[3] Monetary Policy - The monetary policy remains "moderately loose," with expectations for potential interest rate cuts in the second half of 2026, estimated at 25 basis points for reserve requirement ratio and 10 basis points for interest rates[5] - The issuance of new policy financial instruments is set at 800 billion yuan to stimulate investment[5] Consumption and Investment - A special fund of 1 trillion yuan will be established to promote domestic demand, alongside 2.5 trillion yuan in special bonds for consumer goods replacement[6] - Central budget investment for 2026 is planned at 755 billion yuan, an increase of 20 billion yuan from 2025[6] Green Energy and Innovation - The report emphasizes the development of future industries such as future energy and brain-computer interfaces, with hydrogen production capacity expected to exceed 5 million tons per year by the end of 2024[7] - A national low-carbon transition fund will be established to support green transformation efforts[9]