Financial Data and Key Metrics Changes - In Q3 2025, total revenue reached approximately $277 million, reflecting a 71% year-on-year increase and an 8% sequential increase [23] - GAAP net income for Q3 was approximately $32 million, significantly ahead of expectations, driven by strong net interest income and reduced fixed costs [26] - The contribution margin was 57%, down approximately one percentage point from the prior quarter due to lower conversion rates impacting acquisition costs [25] Business Line Data and Key Metrics Changes - Transaction volume across the platform was approximately 428,000, up 128% year-on-year and 15% sequentially, representing around 300,000 new borrowers [24] - New products, including small-dollar loans, auto, and home loans, accounted for nearly 12% of originations and 22% of new borrowers in Q3, with transaction volume for these products growing around 300% year-on-year [8][9] - The average loan size decreased to approximately $6,670, a 12% decline from the prior quarter, influenced by borrower requests for lower amounts and a shift towards smaller loan products [24] Market Data and Key Metrics Changes - Consumer demand remained strong, with over two million applications submitted in Q3, a 30% increase from Q2, marking the highest level in over three years [6] - The Upstart Macro Index (UMI) showed a modest increase in July and August, which led to a temporary reduction in approval rates and an increase in interest rates [7][8] - Despite macroeconomic caution, there were no signs of material deterioration in consumer credit strength, with indications of improvement noted [8] Company Strategy and Development Direction - The company aims to leverage AI technology to lead the trillion-dollar credit industry, focusing on rapid growth, profitability, and AI leadership [5] - Upstart is expanding its auto retail business, having doubled the number of lending rooftops and achieved over 70% sequential growth in transaction volume [9] - The company is also working on a hybrid product called an auto-secured personal loan, which is gaining traction [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the macroeconomic environment, emphasizing the importance of precise risk pricing [8] - The outlook for Q4 includes expected total revenues of approximately $288 million, with a focus on maintaining profitability and managing costs effectively [31] - Management anticipates that improvements in repayment speeds could lead to a long-anticipated tailwind for growth prospects heading into next year [23] Other Important Information - The company has added seven new bank and credit union partners in Q3, achieving a new all-time high in monthly available funding [10] - Upstart's platform has generated over $50 billion in AI-powered loans since inception, showcasing the strength of its AI capabilities [12] - The company is focused on reducing R&D-related balance sheet holdings and transitioning new products into the scale-up phase [26][27] Q&A Session Summary Question: Application demand and guidance - A participant inquired about the strong application demand and how it aligns with the guidance provided, which was below expectations. Management noted that while applications grew significantly, the model's conservatism impacted transaction volume [34][35] Question: Impact of recent credit events in the auto sector - Another participant asked if recent negative credit events in the auto sector affected expansion plans. Management confirmed that there was no direct impact, although increased diligence was observed in the market [39][40] Question: Quality of leads from marketing improvements - A question was raised regarding the quality of leads generated from new marketing capabilities. Management indicated that while application volume increased, the model's conservatism led to a lower conversion rate [46][48] Question: Repayment speeds and credit implications - A participant asked about the increase in repayment speeds and its implications for credit performance. Management suggested that faster repayments could indicate improving consumer health, although it may lead to lower interest income in the short term [72][74] Question: Conversion rate drivers - A question was posed about the factors affecting the conversion rate. Management clarified that the primary driver was the model's conservatism, which impacted approvals and loan sizes [64][65] Question: HELOC product economics - A participant inquired about the economics of the HELOC product. Management indicated that while take rates would be healthy, they would be more modest compared to personal loans, but with larger loan sizes [82]

Quantitative Models and Construction Methods 1. Model Name: Stock Timing Model - **Construction Idea**: The model is based on the comprehensive judgment of economic growth and liquidity easing[18] - **Construction Process**: - Construct timing factors from two core dimensions: economic growth and liquidity easing[18] - Factors include PMI YoY smoothed value, manufacturing fixed asset investment completion amount cumulative YoY, CPI YoY smoothed value, and new medium and long-term loans cumulative value YoY[19] - Use the formula: $$ \text{Factor} = \begin{cases} 1 & \text{if indicator improves} \\ 0 & \text{otherwise} \end{cases} $$ - Backtest using CSI 800 total return as the benchmark[19] - **Evaluation**: The model effectively captures stock market cycles, avoiding downturns[21] 2. Model Name: Bond Timing Model - **Construction Idea**: The model analyzes from the perspective of monetary liquidity supply and demand[23] - **Construction Process**: - Factors include DR007, SHIBOR, and social financing scale stock YoY smoothed value[24] - Use the formula: $$ \text{Factor} = \begin{cases} 1 & \text{if short-term average < long-term average} \\ 0 & \text{otherwise} \end{cases} $$ - Backtest using ChinaBond Treasury Total Net Price Index as the benchmark[24] - **Evaluation**: The model captures bond market trends, minimizing drawdowns[25] 3. Model Name: All-Weather Strategy - **Construction Idea**: The model adjusts risk budgets for different assets based on timing signals[17] - **Construction Process**: - Use a risk parity model to allocate risk contributions of assets[30] - Adjust risk budgets based on stock and bond timing signals[32] - Optimize the model: $$ \begin{array}{c} \min \sum_{i=1}^{N} \left( RC_i - b_i \sigma_p \right)^2 \\ \text{s.t.} \sum_{i=1}^{N} \omega_i = 1 \\ 0 \leq \omega_i \leq 1 \end{array} $$ - Backtest using a combination of CSI 800, ChinaBond Treasury Total Wealth Index, CSI Convertible Bond Index, S&P 500 ETF, and AAA Credit Bonds[31] - **Evaluation**: The strategy provides higher absolute returns while controlling risk[38] Model Backtest Results Stock Timing Model - Annualized Return: 14.1%[21] - Benchmark Annualized Return: 5.4%[21] - Excess Annualized Return: 8.7%[21] - Monthly Win Rate: 56.7%[21] Bond Timing Model - Annualized Return: 2.3%[25] - Benchmark Annualized Return: 1.1%[25] - Excess Annualized Return: 1.1%[25] - Monthly Win Rate: 68.3%[25] All-Weather Strategy - Annualized Return: 6.1%[38] - Benchmark Annualized Return: 5.1%[38] - Excess Annualized Return: 1.0%[38] - Maximum Drawdown: 2.6%[38] - Sharpe Ratio: 2.04[38] Quantitative Factors and Construction Methods 1. Factor Name: Value-Growth Rotation Factor - **Construction Idea**: The factor is based on economic recovery, liquidity, and market sentiment[47] - **Construction Process**: - Factors include manufacturing fixed asset investment completion amount, PPI YoY smoothed value, M2 YoY smoothed value, social financing YoY smoothed value, medium and long-term loan growth YoY smoothed value, market turnover rate, and margin balance percentile[48] - Use the formula: $$ \text{Factor} = \begin{cases} 1 & \text{if indicator improves} \\ 0 & \text{otherwise} \end{cases} $$ - Backtest using the National Growth Index and National Value Index[48] - **Evaluation**: The factor captures the cyclical characteristics of value and growth styles[47] 2. Factor Name: Size Rotation Factor - **Construction Idea**: The factor is based on economic prosperity, liquidity, and market sentiment[55] - **Construction Process**: - Factors include manufacturing fixed asset investment completion amount, PPI YoY smoothed value, gold daily return rate, government bond yield, credit spread, M1 YoY smoothed value, market turnover rate, and margin balance percentile[56] - Use the formula: $$ \text{Factor} = \begin{cases} 1 & \text{if indicator improves} \\ 0 & \text{otherwise} \end{cases} $$ - Backtest using the CSI 300 Index and CSI 1000 Index[57] - **Evaluation**: The factor captures the cyclical characteristics of large-cap and small-cap styles[55] Factor Backtest Results Value-Growth Rotation Factor - Annualized Return: 9.2%[51] - Benchmark Annualized Return: 1.7%[51] - Excess Annualized Return: 7.5%[51] - Monthly Win Rate: 60.2%[51] Size Rotation Factor - Annualized Return: 9.2%[59] - Benchmark Annualized Return: 0.1%[59] - Excess Annualized Return: 9.0%[59] - Monthly Win Rate: 58.3%[59] Industry Rotation Solution 1. Factor Name: Macro Factor - **Construction Idea**: The factor is based on the second-order changes in economic growth and liquidity[67] - **Construction Process**: - Factors include PMI, social financing scale, manufacturing fixed asset investment completion amount, CPI, M2 growth rate, 10-year government bond yield, and credit spread[70] - Use the formula: $$ \text{Factor} = \begin{cases} 1 & \text{if indicator improves} \\ 0 & \text{otherwise} \end{cases} $$ - Backtest using industry indices[73] - **Evaluation**: The factor captures the marginal inflection points of macro trends[67] 2. Factor Name: Fundamental Factor - **Construction Idea**: The factor is based on historical prosperity, prosperity changes, and prosperity expectations[79] - **Construction Process**: - Factors include industry component stock median, industry profitability, and industry consensus profit expectations[79] - Use the formula: $$ \text{Factor} = \begin{cases} 1 & \text{if indicator improves} \\ 0 & \text{otherwise} \end{cases} $$ - Backtest using industry indices[82] - **Evaluation**: The factor captures the core of industry prosperity[79] 3. Factor Name: Technical Factor - **Construction Idea**: The factor is based on index momentum, leading stock momentum, and K-line patterns[87] - **Construction Process**: - Factors include industry index relative excess return IR, leading stock sharp ratio, and K-line pattern score[89] - Use the formula: $$ \text{Factor} = \begin{cases} 1 & \text{if indicator improves} \\ 0 & \text{otherwise} \end{cases} $$ - Backtest using industry indices[96] - **Evaluation**: The factor captures the technical evaluation of industry trends[87] 4. Factor Name: Crowding Factor - **Construction Idea**: The factor is based on financing inflows, turnover rate, and transaction proportion[100] - **Construction Process**: - Factors include industry financing buy amount, industry turnover rate, and industry transaction amount proportion[101] - Use the formula: $$ \text{Factor} = \begin{cases} 1 & \text{if indicator improves} \\ 0 & \text{otherwise} \end{cases} $$ - Backtest using industry indices[104] - **Evaluation**: The factor captures the crowding level of industries[100] Industry Rotation Backtest Results Macro Factor - Annualized Return: 42.9%[73] - Benchmark Annualized Return: -22.8%[73] - Excess Annualized Return: 65.7%[73] Fundamental Factor - Annualized Return: 11.3%[85] - Benchmark Annualized Return: 2.8%[85] - Excess Annualized Return: 8.5%[85] - IC Mean: 8.2%[85] Technical Factor - Annualized Return: 9.7%[97] - Benchmark Annualized Return: 2.8%[97] - Excess Annualized Return: 6.9%[97] - IC Mean: 8.2%[97] Crowding Factor - Annualized Return: -2.9

Economic Overview - China's GDP for the first three quarters reached 10,150.36 billion yuan, with a year-on-year growth of 5.2% at constant prices [2] - Quarterly GDP growth rates were 5.4% in Q1, 5.2% in Q2, and 4.8% in Q3 [3] Sector Performance - Agricultural value added grew by 3.6%, with summer grain and early rice production increasing by 190,000 tons compared to the previous year, indicating a stable overall grain production outlook [3] - Industrial value added for large-scale enterprises increased by 6.2% year-on-year [3] - Service sector value added rose by 5.4% [3] Market Dynamics - Retail sales of consumer goods totaled 36,587.7 billion yuan, reflecting a year-on-year increase of 4.5% [3] - Manufacturing investment grew by 4.0% year-on-year [3] - Total goods import and export reached 33,607.8 billion yuan, also up by 4.0% [3] Inflation and Employment - The national Consumer Price Index (CPI) decreased by 0.1% year-on-year, while the core CPI, excluding food and energy, increased by 0.6%, a rise of 0.2 percentage points compared to the first half of the year [3] - The average urban unemployment rate was 5.2% [3] - Per capita disposable income reached 32,509 yuan, with a nominal growth of 5.1% and a real growth of 5.2% after adjusting for price factors [3] Policy Implications - The overall economic performance indicates a stable yet progressive trend, with high-quality development showing positive results [4] - There are ongoing risks and challenges in the economic environment, necessitating stronger foundational support for recovery [4] - Future macroeconomic policies will focus on stabilizing employment, businesses, markets, and expectations, while promoting sustainable and healthy economic development [5]

Report Industry Investment Rating No relevant content provided. Core View of the Report The bond market sentiment is fragile. The recovery of risk appetite suppresses the bond market. Meanwhile, the expectation of continued interest rate cuts by the Federal Reserve and the increasing global trade uncertainty add to the uncertainty of foreign capital inflows. Overall, the bond market fluctuates between the expectations of stable growth and monetary easing. Short - term attention should be paid to policy signals at the end of the month [3]. Summary According to the Directory 1. Interest Rate Pricing Tracking Indicators - China's CPI (monthly) has a 0.00% month - on - month change and a - 0.40% year - on - year change; China's PPI (monthly) has a 0.00% month - on - month change and a - 2.90% year - on - year change [9]. - Social financing scale is 433.66 trillion yuan, with a month - on - month increase of 2.40 trillion yuan and a growth rate of 0.56%; M2 year - on - year is 8.80%, with no month - on - month change; manufacturing PMI is 49.40%, with a month - on - month increase of 0.10% and a growth rate of 0.20% [10]. - The US dollar index is 98.48, with a day - on - day increase of 0.63 and a growth rate of 0.64%; the offshore US dollar against the Chinese yuan is 7.1292, with a day - on - day increase of 0.010 and a growth rate of 0.14%; SHIBOR 7 - day is 1.58, with a day - on - day decrease of 0.01 and a decline rate of 0.38%; DR007 is 1.60, with a day - on - day increase of 0.02 and a growth rate of 0.96%; R007 is 1.51, with a day - on - day decrease of 0.05 and a decline rate of 3.26%; the yield of inter - bank certificates of deposit (AAA) for 3 months is 1.61, with a day - on - day increase of 0.00 and a growth rate of 0.12%; the AA - AAA credit spread (1Y) is 0.09, with a day - on - day increase of 0.00 and a growth rate of 0.12% [11]. 2. Overview of the Treasury Bond and Treasury Bond Futures Market The report provides multiple figures about the treasury bond futures market, including the closing price trend, price change rate, precipitation of funds, position ratio, net position ratio, long - short position ratio, spread between national development bonds and treasury bonds, and treasury bond issuance [15][17][19]. 3. Overview of the Money Market Fundamentals It provides figures on bank - to - bank pledged repurchase transaction statistics and local government bond issuance [29]. 4. Spread Overview It includes figures on Shibor interest rate trends, yields of inter - bank certificates of deposit (AAA) at maturity, cross - period spreads of treasury bond futures, and spreads between spot bond term spreads and futures cross - variety spreads [32][35]. 5. Two - Year Treasury Bond Futures The report provides figures on the implied interest rate and treasury bond yield of the two - year treasury bond futures main contract, the IRR of the TS main contract and the funding rate, and the three - year basis and net basis trends of the TS main contract [52][55]. 6. Five - Year Treasury Bond Futures It provides figures on the implied interest rate and treasury bond yield of the five - year treasury bond futures main contract, the IRR of the TF main contract and the funding rate, and the three - year basis and net basis trends of the TF main contract [57][61]. 7. Ten - Year Treasury Bond Futures The report provides figures on the implied yield and treasury bond yield of the ten - year treasury bond futures main contract, the IRR of the T main contract and the funding rate, and the three - year basis and net basis trends of the T main contract [64][66]. 8. Thirty - Year Treasury Bond Futures It provides figures on the implied yield and treasury bond yield of the thirty - year treasury bond futures main contract, the IRR of the TL main contract and the funding rate, and the three - year basis and net basis trends of the TL main contract [71][77]. Strategy - Unilateral: As the repurchase rate rises, the price of treasury bond futures fluctuates [4]. - Arbitrage: Pay attention to the decline of the 2512 basis [4]. - Hedging: There is medium - term adjustment pressure, and short - side investors can use far - month contracts for appropriate hedging [4].

Report Industry Investment Ratings No relevant information provided. Core Views of the Report - The short - term geopolitical risks dominate the rebound of oil prices, and the value of call options to protect short positions remains. Precious metals have an unchanged medium - term upward trend but increased short - term volatility. The copper market is still vigilant about macro - economic fluctuations and actual consumption. Most commodities are affected by factors such as supply, demand, geopolitical risks, and policy changes, showing different trends including upward, downward, and range - bound oscillations [2][3][4] Summary by Commodity Categories Metals - **Crude Oil**: Overnight international oil prices continued to rebound, with the Brent 11 - contract up 1.89%. Last week's decline in US EIA inventories and geopolitical risks supported the market. Short - term geopolitical risks drive the price rebound [2] - **Precious Metals**: Overnight, precious metals oscillated and declined. Powell's speech and Fed officials' views on interest rate cuts led to increased short - term volatility. The medium - term upward trend remains unchanged, but it's advisable to stay on the sidelines [3] - **Copper**: Overnight, LME copper hit a new high this year. The global second - largest copper mine Grasberg declared force majeure, reducing the 2026 production target. Technically, LME copper has the potential to break through, but attention should be paid to capital allocation and macro - economic indicators [4] - **Aluminum**: Overnight, the rise in copper prices drove non - ferrous metals to oscillate strongly. In September, aluminum's apparent consumption was below expectations, and there was limited upward momentum [5] - **Cast Aluminum Alloy**: It follows the fluctuations of SHFE aluminum. Tight scrap aluminum supply and tax policy adjustment expectations may make it more resilient [6] - **Alumina**: The operating capacity reached a new high, and the inventory continued to rise. Supply is in excess, and the price is weakly running, with support around 2800 yuan [7] - **Zinc**: The internal and external markets diverged. The zinc ingot export window is close to opening, but the export volume is expected to be limited. Domestic consumption is weak, and the inventory accumulation expectation is strong [8] - **Lead**: The profit of secondary lead is recovering, and the restocking demand before the festival is approaching the end. The market is in a state of weak supply and demand, oscillating between 17,000 - 17,300 yuan [9] - **Nickel and Stainless Steel**: SHFE nickel oscillated, and the market trading was dull. The short - term macro - favorable factors have been exhausted, and nickel prices are expected to decline [10] - **Tin**: Overnight, tin prices oscillated. There are supply - side themes, but the market is still concerned about consumption. It's advisable to stay on the sidelines in the short term [11] Energy and Chemicals - **Fuel Oil & Low - Sulfur Fuel Oil**: Overnight, the fuel oil market continued to rise, driven by geopolitical news. In the short term, geopolitical conflicts may push up prices, but in the medium term, the demand is in the off - season, and the supply is expected to be loose [22] - **Asphalt**: The weekly shipment volume increased significantly. The 10 - month production plan shows a year - on - year increase. The inventory level decreased. The supply - demand balance pattern continues, and there is support below [23] - **Liquefied Petroleum Gas**: The refinery's self - use of LPG increased, and the import was affected by typhoons. The demand increased slightly. The market is expected to oscillate at the bottom [24] - **Urea**: The urea futures price rose yesterday. Agricultural sales improved slightly, but supply still exceeded demand, and the inventory continued to accumulate [25] - **Methanol**: The main methanol contract stopped falling and stabilized. The port inventory decreased, and the pre - festival restocking demand provided support, but high - inventory expectations limited the upside [26] - **Pure Benzene**: The futures price continued to rebound, driven by the rise in oil prices. The weekly operating rate decreased slightly, and the port inventory declined, but the high - import expectation and poor downstream profits were negative factors [27] - **Benzene Ethylene**: The market supply is abundant, and the downstream purchases on demand, with poor trading atmosphere [28] - **Polypropylene, Plastic & Propylene**: The propylene supply is increasing, and the market trading improved slightly. The polyethylene inventory accumulated, and the price was under pressure. The polypropylene supply is still loose, and the spot market lacks strong support [29] - **PVC & Caustic Soda**: PVC is in a pattern of loose supply and demand, and the inventory pressure is large. Caustic soda is in a pattern of weak reality and strong expectation, and the futures price may oscillate [30] - **PX & PTA**: The strong expectation of PX weakened, and the valuation declined. The PTA profit is still poor, and the downstream has restocking expectations before the festival [31] - **Ethylene Glycol**: The price continued to fall, and the new - device production impact was digested. The short - term oil price provides upward momentum, but the expectation is weak, and there is a risk of inventory accumulation [32] - **Short - Fiber & Bottle Chip**: The short - fiber inventory decreased, and the demand improved. The bottle chip was affected by the typhoon, and the long - term over - capacity is a pressure [33] - **Glass**: The glass futures price rose significantly due to industry meetings and price - increase plans. The short - term price may oscillate strongly, but it may return to a weak state if capacity reduction doesn't materialize [34] - **Soda Ash**: It followed the rise of glass. The long - term supply is in excess, and it's advisable to look for opportunities to short at high prices, but be cautious near the cost [36] Agricultural Products - **Soybean & Soybean Meal**: The soybean meal market should be observed. The short - term negative factors may end, and there is a long - term cautious bullish view [37] - **Soybean Oil & Palm Oil**: The mid - term soybean and palm oil are expected to trade in a range. The supply of palm oil has a driving force in the fourth - quarter. Protective call strategies can be considered to hedge risks [38] - **Rapeseed Meal & Rapeseed Oil**: The rapeseed - related futures prices are still under short - term pressure. The oil - meal ratio may be boosted in autumn and winter [39] - **Soybean No. 1**: The domestic soybean price rebounded from a low level. Attention should be paid to the purchase volume and price of domestic soybeans and the performance of imported soybeans [40] - **Corn**: The Dalian corn futures may continue to be weak at the bottom around the National Day due to new - grain supply and weak downstream demand [41] - **Live Pig**: The live - pig futures price is bearish. Attention should be paid to the re - entry of secondary fattening and the government's support policy [42] - **Egg**: The egg futures adjusted weakly. The short - term price increase is limited, and long - term contracts can be considered for long positions [43] - **Cotton**: The US cotton price oscillated. The domestic cotton supply is expected to be abundant, and the demand support is limited. It's advisable to stay on the sidelines after the breakdown [44] - **Sugar**: The US sugar oscillated. The Brazilian sugar production may remain high, and the domestic sugar production expectation for the next season is relatively good [45] - **Apple**: The apple futures price oscillated downward. The expected high inventory in the new season is a negative factor [46] - **Timber**: The futures price oscillated. The supply is low, the demand in the peak season is weak, and it's advisable to stay on the sidelines [47] - **Pulp**: The pulp futures oscillated at a low level. The port inventory is high, the supply is loose, and the demand is average. It's advisable to stay on the sidelines or trade in a range [48] Others - **Stock Index**: The A - share market may oscillate strongly at a high level in the short term. It's advisable to increase the allocation of technology - growth sectors in the medium term and consider the Hang Seng Tech Index [48] - **Treasury Bond**: The treasury - bond futures prices fell, and the yield curve may steepen. Attention should be paid to the central bank's MLF operations [49]

Investment Rating - The industry is rated as outperforming the market, with a projected increase of over 5% relative to the benchmark index in the next six months [1][118]. Core Insights - The macroeconomic indicators are showing marginal recovery, leading to an overall rebound in engineering machinery sales [1]. - In the first seven months of 2025, excavator sales reached 137,658 units, representing a year-on-year increase of 17.8% [19][26]. - The report highlights a structural divergence in the sales of various types of cranes, with tower cranes and truck cranes experiencing declines due to the ongoing downturn in the real estate market, while crawler cranes are benefiting from strong demand in large-scale energy projects [54]. Summary by Sections 1. Macroeconomic Tracking - As of July 2025, China's manufacturing PMI recorded at 49.3%, indicating a contraction, while the production PMI was at 50.5%, signaling expansion [2][6]. - The Producer Price Index (PPI) decreased by 3.6% year-on-year, while the Consumer Price Index (CPI) showed a slight increase of 0.4% month-on-month [11][12]. - Fixed asset investment in China reached 288,229 billion yuan in the first seven months of 2025, growing by 1.6% year-on-year, with infrastructure investment up by 7.3% [14]. 2. Sales Overview of Chinese Engineering Machinery - In the first seven months of 2025, various machinery sales showed mixed results: - Excavators: 137,658 units (+17.8%) - Concrete machinery: 183,700 units (-2.14%) - Tower cranes: 3,181 units (-36.8%) - Crawler cranes: +13.1% - Truck cranes: +3.3% [19][27][30][38][48]. - The report indicates that the sales of forklifts reached 857,939 units, marking a 12% increase year-on-year [104][111]. 3. Investment Opportunities - The report emphasizes that domestic infrastructure investment remains resilient, with machinery related to construction, such as road rollers and pavers, expected to benefit in the long term [102]. - The government has increased the issuance of special bonds for local governments, which is anticipated to drive demand for engineering equipment [102].

Group 1: Report Industry Investment Rating - No information provided Group 2: Core Viewpoints of the Report - The short - term view of TL2509 is to oscillate, the medium - term view is to oscillate, the intraday view is to oscillate strongly, and the overall view is to oscillate, with the core logic being weak macro - economic indicators and rising expectations of monetary easing [1] - For varieties such as TL, T, TF, and TS, the intraday view is to oscillate strongly, the medium - term view is to oscillate, and the overall view is to oscillate. The core logic is that the downside risk of treasury bond futures has eased, and there is strong support below. The medium - and long - term upward logic is solid, but short - term driving force is limited, so they will mainly oscillate in the short term [5] Group 3: Summary by Related Catalogs Variety Viewpoint Reference - Financial Futures Stock Index Sector - For TL2509, the short - term (within one week) view is oscillation, the medium - term (two weeks to one month) view is oscillation, the intraday view is oscillation with a strong bias, and the overall view is oscillation. The core logic is that macro - economic indicators are weak and expectations of monetary easing are rising [1] Main Variety Price and Market Driving Logic - Financial Futures Stock Index Sector - For varieties TL, T, TF, and TS, the intraday view is oscillation with a strong bias, the medium - term view is oscillation, and the overall view is oscillation. Yesterday, treasury bond futures oscillated. Recently, overseas geopolitical factors have cooled, the Fed's interest - rate cut expectation has risen, and the downside risk of treasury bonds has eased in the short term. Coupled with the central bank's net injection of liquidity in the open market, there is strong support below treasury bond futures. In terms of monetary policy expectations, May's credit and inflation data were weak, requiring a loose monetary environment for policy support, so the medium - and long - term upward logic of treasury bond futures is solid. However, subsequent policies need guidance from the important meeting in July, and short - term driving force is expected to be limited [5]

Group 1: Report Industry Investment Rating - Not provided Group 2: Core Viewpoints of the Report - The short - term trend of the stock index is mainly range - bound, with an upward mid - term trend and a slightly stronger intraday trend. The policy - side positive expectations provide strong support, but the short - term policy driving force is insufficient [1][5] Group 3: Summary by Related Catalogs Variety Viewpoint Reference - Financial Futures Stock Index Sector - For IH2509, the short - term view is "oscillation", the mid - term view is "rise", the intraday view is "oscillation with a slight upward bias", and the reference view is "range - bound oscillation". The core logic is that the positive policy expectations provide strong support [1] Main Variety Price Market Driving Logic - Financial Futures Stock Index Sector - The varieties include IF, IH, IC, and IM. The intraday view is "oscillation with a slight upward bias", the mid - term view is "rise", and the reference view is "range - bound oscillation". The core logic is that the domestic macro - economic indicators have weakened marginally recently, and the weak performance of credit and inflation data indicates that there is still downward pressure on domestic demand. More policies to support demand are needed, so the expectation of policy benefits has increased. However, there is no clear policy signal in the short term, and the incremental policy signals are expected to come out after the Politburo meeting in July. Although the market sentiment has recovered, the short - term policy driving force is insufficient. Attention should be paid to the overseas uncertainties such as the Middle East situation and the Sino - US tariff war [5]

Group 1: Report Industry Investment Rating - No relevant content in the provided report Group 2: Core Views of the Report - The short - term, medium - term, and overall view of TL2509 is "oscillation", with an intraday view of "oscillation on the strong side". The core logic is that macroeconomic indicators are weak and the expectation of monetary easing is rising [1]. - For the TL, T, TF, and TS varieties, the intraday view is "oscillation on the strong side", the medium - term view is "oscillation", and the overall reference view is "oscillation". The market has a strong expectation of medium - to - long - term interest rate cuts due to weakening macroeconomic indicators and the Fed's expected rate cuts. However, the short - term expectation of further rate cuts is weak, so the short - term is expected to maintain an oscillating consolidation [5]. Group 3: Summary by Related Catalogs Variety View Reference - Financial Futures Stock Index Sector - For the TL2509 variety, the short - term view is "oscillation", the medium - term view is "oscillation", the intraday view is "oscillation on the strong side", and the overall view is "oscillation". The core logic is the weak macroeconomic indicators and the increasing expectation of monetary easing [1]. Main Variety Price Market Driving Logic - Financial Futures Stock Index Sector - The varieties include TL, T, TF, and TS. The intraday view is "oscillation on the strong side", the medium - term view is "oscillation", and the reference view is "oscillation". Yesterday, treasury bond futures oscillated in a narrow range. There is a strong expectation of medium - to - long - term interest rate cuts because of weakening macroeconomic indicators and the Fed's expected rate cuts. But the short - term expectation of further rate cuts is weak as the effect of the May rate cut needs to be tested and the second - half macro - policies await the guidance of the July Politburo meeting. So, the short - term is expected to be in oscillating consolidation [5].

1. Report Industry Investment Rating - No relevant content provided 2. Core Viewpoints of the Report - For the TL2509 variety, the short - term, medium - term, and overall views are "oscillation", with an intraday view of "oscillation on the stronger side". The core logic is that macro - economic indicators are weak, and the expectation of monetary easing is rising [1]. - For varieties TL, T, TF, TS, the intraday view is "oscillation on the stronger side", the medium - term view is "oscillation", and the overall reference view is "oscillation". The core logic is that last Friday, treasury bond futures closed up in oscillation. The 6 - month LPR announced by the central bank was in line with market expectations, but the market expects future LPR cuts. In the long - term, the logic of upward - trending treasury bonds is solid due to moderately loose monetary policy, but in the short - term, the possibility of interest - rate cuts is low, and the upward momentum of treasury bonds has not been released. So, in the short - term, treasury bond futures are expected to remain in oscillation [5]. 3. Summary by Related Catalogs 3.1 Variety Viewpoint Reference - Financial Futures Stock Index Sector - Time - period definitions: Short - term is within one week, medium - term is from two weeks to one month [1]. - For the TL2509 variety, short - term is "oscillation", medium - term is "oscillation", intraday is "oscillation on the stronger side", overall view is "oscillation", and the core logic is weak macro - economic indicators and rising monetary easing expectations [1]. 3.2 Main Variety Price and Market - Driving Logic - Financial Futures Stock Index Sector - Varieties include TL, T, TF, TS. The intraday view is "oscillation on the stronger side", the medium - term view is "oscillation", and the reference view is "oscillation" [5]. - Last Friday, treasury bond futures closed up in oscillation. The 6 - month LPR announced by the central bank was in line with market expectations, but the market expects future LPR cuts because of weakening macro - economic indicators and the need for a loose monetary environment for macro - policies in the second half of the year, as well as the rising expectation of Fed rate cuts and reduced exchange - rate pressure. In the long - term, the upward logic of treasury bonds is solid due to moderately loose monetary policy, but in the short - term, the possibility of interest - rate cuts is low, and the upward momentum of treasury bonds has not been released. Short - term treasury bond futures are expected to remain in oscillation [5].