Core Viewpoint - Bank of America Securities maintains a "Neutral" rating on Sun Hung Kai Properties (00016) due to slightly disappointing performance expectations for the fiscal year 2025 [1] Group 1: Company Performance - The company is benefiting from a rebound in the Hong Kong residential market, but the low profit margin from property development may lead to flat earnings per share and dividends in the short term [1] - The target price for Sun Hung Kai Properties has been slightly increased from HKD 94 to HKD 95 [1] Group 2: Earnings Forecast - The earnings per share forecast for fiscal years 2026 to 2027 has been adjusted downwards by 1% to 4% due to changes in property sales recognition timing [1] - Unless there is a significant increase in Hong Kong property prices in the short term, earnings per share for fiscal years 2026 to 2027 are expected to remain relatively flat [1] Group 3: Market Comparison - Compared to peers with a 4% yield, the potential for further compression of Sun Hung Kai Properties' yield is considered limited [1]

Group 1 - The core viewpoint of the report is that Conch Venture (00586.HK) reported a 9% year-on-year increase in net profit to 1.29 billion RMB in the first half of the year, primarily benefiting from the significant profit contribution from its associate company, Conch Cement [1] - Excluding this contribution, the core net profit for the first half decreased by 6% to 446 million RMB [1] - The company declared its first interim dividend of 0.1 HKD per share, resulting in a payout ratio of only 12% [1] Group 2 - Bank of America forecasts a revenue yield of 5.1% for the company this year, with an upward adjustment to 6.5% to 8.4% for 2026 to 2027 [1] - The target price for Conch Venture has been raised from 10.1 HKD to 12 HKD, maintaining a "Buy" rating [1] - As of August 28, 2025, Conch Venture's stock closed at 10.55 HKD, down 2.31%, with a trading volume of 16.23 million shares and a turnover of 170 million HKD [1] Group 3 - Conch Venture has a market capitalization of 19.354 billion HKD, ranking second in the environmental engineering and services industry [1] - Key performance indicators show a Return on Equity (ROE) of 4.43%, a net profit margin of 42.79%, and a debt ratio of 40.05% [1] - The company ranks 12th in ROE, 1st in net profit margin, and 14th in debt ratio compared to industry averages [1]

Overall Summary - **Report Period**: August 11 - August 17, 2025 [1][11] - **Investment Rating**: Not provided - **Core View**: The issuance guidance rates from the Dealer Association showed a differentiated trend, with high - grade rates rising and medium - low - grade rates falling. Credit bond issuance volume decreased, and net financing turned negative. Secondary - market trading volume declined, yields rose, and credit spreads showed mixed trends. Currently, the allocation cost - effectiveness is low. In the long run, yields are in a downward channel, but due to high prices, the allocation pace can be slowed. For relative returns, credit - sinking and duration - stretching are not cost - effective, and high - grade short - term bonds can be considered for defense [1][60] 1. Primary Market 1.1 Issuance and Maturity Scale - Total credit bonds issued 350 with an amount of 260.56 billion yuan, a 29.04% decrease from the previous period. Net financing was - 12.116 billion yuan, a decrease of 203.684 billion yuan [11] - Enterprise bonds had zero issuance with a net financing of - 16.575 billion yuan, a decrease of 11.059 billion yuan [11] - Corporate bonds issued 126 with an amount of 96.654 billion yuan, an 8.73% increase; net financing was 43.48 billion yuan, an increase of 10.703 billion yuan [11] - Medium - term notes issued 116 with an amount of 92.57 billion yuan, a 43.70% decrease; net financing was 20.422 billion yuan, a decrease of 92.531 billion yuan [11] - Short - term financing bills issued 91 with an amount of 61.219 billion yuan, a 39.28% decrease; net financing was - 52.858 billion yuan, a decrease of 104.478 billion yuan [11] - Private placement notes issued 17 with an amount of 9.613 billion yuan, a 22.10% decrease; net financing was - 6.585 billion yuan, a decrease of 6.319 billion yuan [11] 1.2 Issuance Interest Rates - The issuance guidance rates from the Dealer Association showed a high - grade up and medium - low - grade down trend, with a change range of - 3 BP to 2 BP [1][15] - For 1 - year terms, the rate change was between - 1 BP and 2 BP; for 3 - year terms, between - 2 BP and 2 BP; for 5 - year terms, between - 3 BP and 2 BP; for 7 - year terms, between - 3 BP and 2 BP [15] - For key AAA and AAA grades, the rate change was between 0 BP and 2 BP; for AA + grade, between - 1 BP and 1 BP; for AA grade, between - 3 BP and - 1 BP; for AA - grade, between - 3 BP and - 2 BP [15] 2. Secondary Market 2.1 Market Trading Volume - Total credit - bond trading volume was 775.373 billion yuan, a 7.29% decrease from the previous period [19] - Enterprise bonds, corporate bonds, and medium - term notes' trading volumes decreased, while short - term financing bills and private placement notes' trading volumes increased [1][19] 2.2 Credit Spreads - For medium - and short - term notes, most credit spreads narrowed, especially for 5 - year terms, except for the 3 - year AAA - grade spread which widened [22][25] - For enterprise bonds, most credit spreads narrowed, especially for 5 - year terms, except for the 3 - year AA + grade which remained unchanged [29] - For urban investment bonds, credit spreads showed a differentiated trend. 1 - year and 5 - year spreads generally narrowed, while 3 - year and 7 - year spreads generally widened [1][39] 2.3 Term Spreads and Rating Spreads - For AA + medium - and short - term notes, 3Y - 1Y, 5Y - 3Y, and 7Y - 3Y term spreads widened. Rating spreads for 3 - year medium - and short - term notes generally narrowed [47] - For AA + enterprise bonds, 3Y - 1Y and 7Y - 3Y term spreads widened, 5Y - 3Y narrowed. Rating spreads for 3 - year enterprise bonds had mixed trends [52] - For AA + urban investment bonds, 3Y - 1Y and 7Y - 3Y term spreads widened, 5Y - 3Y narrowed. Rating spreads for 3 - year urban investment bonds had mixed trends [53] 3. Credit Rating Adjustment and Default Bond Statistics 3.1 Credit Rating Adjustment - No company rating (including outlook) adjustments during the period [58] 3.2 Default and Extension Bonds - No credit - bond defaults or extensions during the period [59] 4. Investment Views Credit Bonds - From an absolute - return perspective, supply shortages and strong allocation demand support credit bonds. Although fluctuations are inevitable, yields are in a downward channel in the long run. Due to high prices, the allocation pace can be slowed, and bonds can be added during adjustments. Pay attention to interest - rate bond trends and coupon values. Consider bonds of relevant entities underperforming in the Sci - tech Innovation Bond ETF [1][60] - From a relative - return perspective, since rating spreads are at historical lows, credit - sinking and duration - stretching are not cost - effective. High - grade short - term bonds can be used for defense [1][60] Real Estate Bonds - With the real - estate market gradually stabilizing, high - risk - appetite funds can consider early layout, focusing on the balance between risk and return. Allocate to central and state - owned enterprises with stable historical valuations and high - quality private - enterprise bonds with strong guarantees. Long - term allocation can increase returns, and trading opportunities from undervalued real - estate bonds can be explored [2][62] Urban Investment Bonds - In the context of stable growth and prevention of systemic risks, the probability of urban investment bond defaults is low. They can still be a key allocation for credit bonds. The short - term credit risk is low, and the current strategy can be positive. However, during the process of local financing platform clearance and transformation, some urban investment bonds may face valuation fluctuations. Future opportunities in the reform and transformation of "entity - type" financing platforms can be monitored [2][62]

Group 1 - Credit bond yields have generally risen, with financial bond spreads widening more than non-financial credit bonds. The 5-year and 7-year spreads for lower-rated bonds narrowed significantly, by 4-8 basis points [2][10] - The 3-year financial bonds saw a notable widening in spreads, particularly for perpetual bonds, with 3-year spreads widening by 3-4 basis points [2][10] - The overall turnover rate of credit bonds decreased from 1.99% to 1.93%, indicating a decline in market activity. The weighted average transaction duration for all credit bonds fell from 3.1 years to 3.0 years [3][10] Group 2 - Institutional behavior shows an increased allocation to credit bonds by wealth management and insurance sectors, while funds have reduced their holdings in secondary capital bonds. Wealth management has focused on increasing positions in bonds with maturities of one year or less [4][10] - Market sentiment remains cautious, with a recommendation to prioritize defensive strategies. It is suggested to adopt a short-duration strategy to enhance returns while maintaining portfolio stability [5][10] Group 3 - The average yield for city investment bonds with an implied rating of AA- and above is 2.12%, with significant variations across provinces. High-yield city investment bonds are concentrated in longer-term bonds [13][17] - The average yield for industrial bonds with an implied rating of AA- and above is 1.90%, with the textile and social services sectors showing higher yields [17]

Core Viewpoint - The article discusses the psychological factors influencing investors during a bull market, emphasizing that smaller investors often chase high returns, leading to significant losses, while advocating for a diversified investment strategy to achieve stable returns over time [6][9][42]. Group 1: Investor Behavior in Bull Markets - Smaller investors tend to pursue high returns during bull markets, which can lead to substantial losses [9]. - Historical data shows that in the 2015 bull market, 85% of investors with the least capital lost a total of 250 billion, while the top 0.5% gained 254 billion [7]. - The fear of missing out and the tendency to sell during market dips can exacerbate losses for smaller investors [15][18]. Group 2: Investment Strategy - Diversified investment, including assets like gold and bonds, can provide stable returns of 8%-15%, regardless of A-share market conditions [35]. - A long-term, stable return strategy is more beneficial than chasing short-term high returns, as consistent positive returns compound over time [39]. - Regular contributions from salary can gradually increase investment capital, which is advantageous for smaller investors [42].

1. Report Industry Investment Rating No information about the industry investment rating is provided in the report. 2. Core View of the Report - Credit bonds adjusted following interest rates, with medium - to long - term high - grade bonds having a larger upward amplitude. Credit spreads mostly declined, with medium - to long - end low - grade varieties having a larger compression amplitude [2][5]. - Urban investment bond spreads had limited changes, with spreads of external rating AAA and AA+ platforms generally up 1BP compared to last week, and AA - rated platforms remaining flat [2][9]. - Industrial bond spreads slightly declined overall, and the spreads of mixed - ownership real estate bonds significantly decreased. Central and state - owned enterprise real estate bond spreads remained flat, while mixed - ownership real estate bond spreads dropped 15BP and private real estate bond spreads rose 7BP [2][17]. - Perpetual and secondary capital (Two - Yong) bonds performed weakly with rising spreads, and the yields of 3 - 5 - year high - grade varieties significantly increased [2][29]. - The excess spreads of industrial perpetual bonds increased, while those of urban investment perpetual bonds narrowed [2][31]. 3. Summary by Relevant Catalog 3.1 Credit Bonds Adjusted Following Interest Rates, with Medium - to Long - Term High - Grade Bonds Having a Larger Upward Amplitude - Affected by the rising equity market and policies such as discount interest and state - owned enterprise purchases, interest - rate bonds weakened significantly this week. The yields of 1Y, 3Y, 5Y, 7Y, and 10Y China Development Bank bonds increased by 3BP, 4BP, 8BP, 7BP, and 8BP respectively [5]. - Credit bond yields also increased, with medium - to long - term high - grade varieties having a larger upward amplitude. For example, the yield of 1Y AAA - rated credit bonds increased by 2BP, and the yields of other grades increased by 3BP [5]. - Credit spreads mostly declined, with medium - to long - end low - grade varieties having a larger compression amplitude. Rating spreads and term spreads showed differentiation [5]. 3.2 Urban Investment Bond Spreads Had Narrow Fluctuations - The spreads of external rating AAA and AA+ urban investment platforms generally increased by 1BP compared to last week, and AA - rated platforms remained flat. Most platform spreads changed within 1BP [9]. - By administrative level, the credit spreads of provincial and municipal platforms generally remained flat, while the credit spreads of district - county platforms increased by 1BP [14]. 3.3 Industrial Bond Spreads Slightly Declined, and the Spreads of Mixed - Ownership Real Estate Bonds Significantly Decreased - Industrial bond spreads slightly declined overall. Central and state - owned enterprise real estate bond spreads remained flat, mixed - ownership real estate bond spreads dropped 15BP due to events such as state - owned enterprise purchases, and private real estate bond spreads rose 7BP [17]. - The spreads of AAA and AA+ coal bonds decreased by 1BP respectively, and the spreads of AA - rated coal bonds remained flat. The spreads of AAA - rated steel bonds remained flat, and the spreads of AA+ - rated steel bonds decreased by 1BP. The spreads of all grades of chemical bonds decreased by 1BP [17]. 3.4 Two - Yong Bonds Performed Weakly with Rising Spreads, and the Yields of 3 - 5 - Year High - Grade Varieties Significantly Increased - This week, Two - Yong bonds performed weakly with rising spreads, and overall they performed worse than ordinary credit bond varieties. The yields of 3 - 5 - year high - grade varieties significantly increased [29]. - For 1Y bonds, the yields of all grades of secondary capital bonds increased by 2 - 3BP, and the spreads compressed by 0 - 1BP; the yields of all grades of perpetual bonds increased by 4BP, and the spreads increased by 1BP [29]. 3.5 The Excess Spreads of Industrial Perpetual Bonds Increased, and the Excess Spreads of Urban Investment Perpetual Bonds Narrowed - This week, the excess spreads of industrial AAA - rated 3Y perpetual bonds increased by 2.76BP to 10.17BP, at the 15.70% quantile since 2015. The excess spreads of industrial AAA - rated 5Y perpetual bonds increased by 0.01BP to 11.83BP, at the 23.40% quantile since 2015 [31]. - The excess spreads of urban investment AAA 3Y perpetual bonds decreased by 1.82BP to 3.34BP, at the 0.29% quantile; the excess spreads of urban investment AAA 5Y perpetual bonds decreased by 3.40BP to 7.51BP, at the 3.67% quantile [31]. 3.6 Credit Spread Database Compilation Instructions - The overall market credit spreads, commercial bank Two - Yong spreads, and urban investment/industrial perpetual bond credit spreads are calculated based on ChinaBond medium - and short - term bill and ChinaBond perpetual bond data. The historical quantiles are since the beginning of 2015 [38]. - The credit spreads of industrial and urban investment individual bonds are calculated by subtracting the yield to maturity of the same - term China Development Bank bonds (calculated by linear interpolation) from the ChinaBond valuation (exercise) of individual bonds, and then the industry or regional urban investment credit spreads are obtained by the arithmetic average method [38].

Report Industry Investment Rating No relevant content provided. Core View of the Report - This week, the new VAT regulations have disrupted market expectations. Interest - rate bonds have fluctuated narrowly, with policy - bank bonds performing weaker than treasury bonds. Credit spreads have compressed across the board. The spreads of urban investment bonds, industrial bonds, and secondary perpetual bonds have mostly declined, while the excess spreads of 5Y industrial perpetual bonds have increased and those of urban investment bonds have remained largely stable [2]. Summary According to the Table of Contents 1. New VAT Regulations Disrupt Interest Rates, Credit Spreads Compress Across the Board - The new VAT regulations have disturbed market expectations. Interest - rate bonds fluctuated narrowly, and policy - bank bonds underperformed treasury bonds. The 10Y policy - bank bond yield rose 2BP, while the 1Y and 7Y yields of China Development Bank bonds remained flat, and the 3Y and 5Y yields declined 1BP respectively. Ordinary credit bonds were not affected by the new regulations, performing stronger than interest - rate bonds, with most yields declining, and high - grade varieties performing slightly better. Credit spreads compressed across the board [2][5]. 2. Urban Investment Bond Spreads Mostly Decline by 2 - 3BP - The spreads of externally rated AAA, AA +, and AA urban investment platforms declined by 2BP, 3BP, and 3BP respectively compared to last week. By administrative level, the spreads of provincial, prefecture - level, and district - county - level platforms generally declined by 3BP [2][9]. 3. Industrial Bond Spreads Mostly Decline, Spreads of Mixed - Ownership Real - Estate Bonds Compress Significantly - The spreads of central and state - owned enterprise real - estate bonds declined by 1 - 3BP, those of mixed - ownership real - estate bonds declined by 19BP, and those of private real - estate bonds declined by 249BP. The spreads of AAA and AA + coal bonds declined by 2BP and 3BP respectively, and those of AA coal bonds remained flat. The spreads of all grades of steel bonds declined by 2 - 3BP, and the spreads of AAA and AA + chemical bonds declined by 1BP and 3BP respectively [2][18]. 4. Yields of Secondary Perpetual Bonds Decline Across the Board, Medium - and Low - Grade Varieties Perform Slightly Better - This week, the yields of secondary perpetual bonds declined across the board, with medium - and low - grade varieties performing slightly better, and the spread reduction of high - grade 3 - 5 year varieties being smaller. The 1Y yields of all grades of secondary perpetual bonds declined by 3 - 4BP, and the spreads compressed similarly. The 3Y yields of AAA - secondary perpetual bonds declined by 2 - 3BP, with spreads compressing by 1 - 2BP; the yields of AA + and AA grades declined by 4 - 5BP, with spreads compressing by 3 - 4BP. The 5Y yields of AA + and above grades declined by 1 - 2BP, with spreads compressing by 0 - 1BP; the yields of AA grades declined by 4 - 6BP, with spreads compressing by 3 - 4BP [2][24]. 5. Excess Spreads of 5Y Industrial Perpetual Bonds Increase, Excess Spreads of Urban Investment Bonds Remain Largely Stable - This week, the excess spreads of industrial AAA 3Y perpetual bonds increased by 0.25BP to 7.41BP, at the 7.41% percentile since 2015; the excess spreads of industrial AAA 5Y perpetual bonds increased by 4.17BP to 11.82BP, at the 23.04% percentile since 2015. The excess spreads of urban investment AAA 3Y perpetual bonds increased by 0.56BP to 5.16BP, at the 2.79% percentile; the excess spreads of urban investment AAA 5Y perpetual bonds decreased by 0.42BP to 10.91BP, at the 13.94% percentile [2][26]. 6. Explanation of Credit Spread Database Compilation - The overall market credit spreads, commercial bank secondary perpetual spreads, and urban investment/industrial perpetual bond credit spreads are calculated based on ChinaBond medium - and short - term notes and ChinaBond perpetual bond data, with historical percentiles starting from the beginning of 2015. The credit spreads related to urban investment and industrial bonds are compiled and statistically analyzed by the R & D center of Cinda Securities, also with historical percentiles starting from the beginning of 2015 [28][31].

Group 1 - The core viewpoint emphasizes the need to consider the impact of consumption tax reduction on yield and market trust in Japan's fiscal situation [1]

Core Viewpoint - The bond market experienced significant fluctuations, with both government and credit bond yields showing varied movements on July 29, as reported by the China Bond Information Network [1]. Group 1: Bond Market Overview - The China Bond Composite Index (net price) decreased by 0.1783% to 108.6615, while the China Bond Composite Index (wealth) fell by 0.1694% to 255.581 [1]. - The average market value yield was reported at 1.9343%, with an average duration of 6.066 [1]. Group 2: Government Bond Yields - The yield curve for government bonds saw an increase, with the 3-month yield rising by 1 basis point (BP) to 1.36%, the 2-year yield up by 3 BP to 1.44%, and the 10-year yield also increasing by 3 BP to 1.75% [1]. Group 3: Credit Bond Yields - The credit bond market showed mixed results, with the AAA-rated short-term note yield curve seeing a 1 BP decrease in the 3-month yield to 1.65%, while the 3-year yield increased by 3 BP to 1.90%, and the 5-year yield rose by 3 BP to 2.02% [1]. - For A-rated short-term notes, the 1-year yield increased by 1 BP to 6.97% [1].

1. Report Industry Investment Rating No information provided in the content. 2. Core Viewpoints of the Report - From July 21 - 25, the stock and commodity markets strengthened, and the bond market adjusted significantly. Credit bonds showed vulnerability, with reasons including low yields and credit spreads weakening the cushioning effect of coupons on valuation fluctuations, and bond market adjustments and tightened liquidity leading to preventive redemptions of funds by wealth management products, resulting in selling pressure on credit bonds. However, with the central bank's support and seasonal liquidity easing at the beginning of the month, the liquidity may recover, driving the recovery of credit bonds [1][2][11]. - After the adjustment, credit spreads generally remained at low levels. Institutions may prefer credit bond varieties with better liquidity. Among them, short - term urban investment bonds, certain grades of urban investment and industrial bonds with specific maturities had relatively high trading activity during the adjustment period, and their valuation recovery opportunities are worthy of attention. Long - term bonds with maturities over 5 years may face greater valuation fluctuation risks [2][3][17]. - In the bank capital bond market, yields rose across the board from July 21 - 25, and credit spreads widened. After the over - adjustment, there are opportunities. The yields of 4 - 5 - year large - bank capital bonds have become more attractive, and insurance institutions have increased their allocation. Short - term and lower - rated bank capital bonds such as 3 - year AA and 2 - year AA - bank capital bonds may be relatively advantageous choices [5][6][23]. 3. Summary According to Relevant Catalogs 3.1 Urban Investment Bonds: Yields Up Across the Board, Sci - tech Innovation Bonds Underperformed - In the primary market, from July 1 - 27, 2025, the net financing of urban investment bonds was slightly positive. The issuance sentiment weakened, with the proportion of full - subscription multiples over 3 times decreasing, and the proportion of 2 - 3 times increasing. The issuance term changed little, and the issuance rate remained low, with rates for different terms decreasing compared to June [29][31]. - In the secondary market, yields of urban investment bonds rose across the board. The adjustment of previously "over - bought" sci - tech innovation bond components was greater, restricting the growth of the sci - tech innovation bond ETF scale. The trading activity of urban investment bonds decreased, and the buying sentiment declined sharply [11][12][34]. 3.2 Industrial Bonds: Both Issuance and Trading Reduced Maturities, and the Proportion of High - rated Trading Recovered - From July 1 - 27, the issuance and net financing scale of industrial bonds increased year - on - year. The issuance sentiment weakened, with the proportion of full - subscription multiples over 3 times decreasing and that of 2 - 3 times increasing. The proportion of long - term issuance over 5 years decreased significantly, and the issuance rate changed little overall [39][41]. - In terms of trading, the buying sentiment of industrial bonds weakened significantly, with the TKN proportion decreasing and the low - valuation proportion dropping. The trading slightly reduced maturities, and the proportion of high - rated trading recovered [42]. 3.3 Bank Capital Bonds: Long - term Large - bank Bonds Performed Weaker, and Trading "Increased Volume with Falling Prices" - From July 21 - 25, 2025, several banks issued secondary capital bonds and perpetual bonds. In the secondary market, due to increased market risk appetite and tightened liquidity, the yields of bank capital bonds rose across the board, with long - term large - bank secondary capital bonds performing weaker. Credit spreads also widened across the board, and the trading volume increased while the trading sentiment weakened significantly. The trading was mainly concentrated in medium - and long - term varieties with better liquidity, and the trading of city commercial bank capital bonds shifted towards high - grade bonds [45][48][51]. - Regarding TLAC bonds, the spreads between 3Y, 5Y, and 10Y secondary capital bonds and TLAC bonds were analyzed, indicating that 10 - year TLAC bonds were more cost - effective at present. For commercial financial bonds, the credit spread of 3Y AAA commercial financial bonds reached the lower limit of the central position [51][55].