浙商证券浙商早知道-20250522

Market Overview - On May 21, the Shanghai Composite Index rose by 0.21%, the CSI 300 increased by 0.47%, the STAR Market 50 fell by 0.22%, the CSI 1000 decreased by 0.23%, the ChiNext Index rose by 0.83%, and the Hang Seng Index increased by 0.62% [3][4] - The best-performing industries on May 21 were coal (+2.55%), non-ferrous metals (+2.05%), electric equipment (+1.11%), banking (+0.71%), and pharmaceutical biology (+0.63%). The worst-performing industries were beauty care (-1.09%), electronics (-0.93%), media (-0.87%), social services (-0.87%), and machinery equipment (-0.83%) [3][4] - The total trading volume of the A-share market on May 21 was 12,143.73 billion yuan, with a net inflow of 1.427 billion HKD from southbound funds [3][4] Important Insights - In the bond market, the strategy focuses on 5-7 year mid-term interest rate bonds and 2-3 year credit bonds, which are considered to have a balanced risk-reward profile. Opportunities for long-term bonds should be approached with caution until the risk-reward ratio improves [5] - Since late March, long-term bond yields have not significantly broken previous lows, indicating a consensus among market participants regarding psychological price points. Current long-term government bond yields have already priced in much information, making it unlikely for the 10-year and 30-year government bond yields to fall below 1.60% and 1.80%, respectively [5] - Market concerns regarding the volatility of funding prices are limiting the potential for a steepening yield curve. The current external nature of funding prices has led to uncertainty, preventing the curve from steepening as expected. Therefore, it is suggested to use 5-7 year interest rate bonds or 2-3 year credit bonds as a base to mitigate risks associated with long durations and unexpected funding price fluctuations [5]