1. Report Industry Investment Rating - Stock Index: Neutral [1] - Treasury Bonds: Bearish [1] 2. Core Viewpoints - April economic data declined compared to March but remained resilient under the tariff war. Social retail sales were up 5.1% year-on-year, supported by the "trade-in" policy. Social credit demand was weak in April, with cumulative new RMB loans reaching 10.06 trillion yuan, a year-on-year increase of 2.86%, and M2 up 8% year-on-year. The China-US joint statement and subsequent policies are expected to boost the stock market [1]. - The internal policy push is the main theme for the stock index in 2025. The revenue growth rate of A-share listed companies has narrowed for three consecutive quarters, and the net profit has rebounded by about 4%. However, ROE is still at the bottoming stage. These measures will help companies repair their balance sheets and lift the stock market valuation [1]. - Treasury bond futures showed mixed performance, with the 30-year and 10-year contracts up 0.03%, the 5-year down 0.04%, and the 2-year down 0.03%. The central bank's reverse repurchase operation and other factors have changed the bond market environment, and the short-term bond market is expected to be weak [1][2]. 3. Summary by Directory 3.1 Research Views - **Stock Index**: April economic data was resilient, and policies such as the central bank's reserve requirement ratio and interest rate cuts, and the entry of long-term funds into the market, are expected to support the stock market. The revenue and profit of A-share listed companies are showing signs of improvement, and the stock market valuation is expected to rise [1]. - **Treasury Bonds**: Treasury bond futures had mixed performance, and the bond market environment has changed due to policy and economic factors. The short-term bond market is expected to be weak [1][2]. 3.2 Daily Price Changes - **Stock Index Futures**: All major contracts of stock index futures declined, with IM down 1.56%, IC down 1.31%, IF down 0.89%, and IH down 0.53% [3]. - **Stock Indexes**: All major stock indexes declined, with the CSI 1000 down 1.68%, the CSI 500 down 1.45%, the SSE 50 down 0.49%, and the SSE 300 down 0.91% [3]. - **Treasury Bond Futures**: The 30-year and 10-year contracts rose, while the 5-year and 2-year contracts fell. The 30-year contract was up 0.15%, and the 10-year contract was up 0.02% [3]. - **Treasury Bond Yields**: The yields of 2-year, 5-year, 10-year, and 30-year treasury bonds showed different trends [3]. 3.3 Market News - In May, the 5-year LPR was 3.5%, down from 3.6% last month, and the 1-year LPR was 3%, down from 3.1% last month [4]. 3.4 Chart Analysis - **Stock Index Futures**: Charts show the trends of major contracts and their basis [6][7][9][10][11]. - **Treasury Bond Futures**: Charts show the trends of major contracts, yields, basis, inter - period spreads, and cross - variety spreads [13][15][16][17]. - **Exchange Rates**: Charts show the trends of various currency exchange rates, including the US dollar, euro, pound, and yen against the RMB and other currencies [20][21][22][24][25]

Group 1 - The domestic money market interest rates continue the trend of "short-term rise and long-term decline" as the demand for funds increases ahead of the Dragon Boat Festival, pushing up short-term rates [1] - As of May 20, the overnight, 1-week, and 2-week Shanghai Interbank Offered Rates (Shibor) were reported at 1.509%, 1.556%, and 1.65%, respectively, showing increases of 10.3, 6.6, and 9.4 basis points compared to May 13 [1] - The People's Bank of China (PBOC) announced a 0.1 percentage point reduction in the 7-day reverse repurchase rate effective May 8, and a 0.5 percentage point reduction in the reserve requirement ratio for financial institutions effective May 15, injecting approximately 1 trillion yuan of long-term liquidity into the market [1] Group 2 - On May 20, the 1-year Loan Prime Rate (LPR) and the 5-year LPR were both reduced by 0.1 percentage points to 3% and 3.5%, respectively, marking the first LPR cut in eight months [1] - The PBOC is expected to inject liquidity through reverse repos to stabilize the impact of the upcoming Dragon Boat Festival and month-end on the money market [2] - The expectation is that the money market interest rates will continue to exhibit the "short-term rise and long-term decline" trend in the following week [2]

Report Industry Investment Ratings - Iron ore: Short - term high - level allocation [2] - Coking coal and coke: Weak shock [2] - Rebar and wire rod: Shock [2] - Glass: Shock [2] - Soda ash: Shock [2] - CSI 300: Shock [4] - SSE 50: Rebound [2] - CSI 500: Upward [4] - CSI 1000: Upward [4] - 2 - year treasury bond: Shock [4] - 5 - year treasury bond: Shock [4] - 10 - year treasury bond: Decline [4] - Gold: High - level shock [4] - Silver: Strong - biased shock [4] - Pulp: Shock [6] - Logs: Shock [6] - Soybean oil: Shock [6] - Palm oil: Shock [6] - Rapeseed oil: Shock [6] - Soybean meal: Weak - biased shock [6] - Rapeseed meal: Weak - biased shock [6] - Soybean No. 2: Weak - biased shock [6] - Soybean No. 1: Shock [6] - Live pigs: Shock [8] - Rubber: Strong - biased shock [8] - PX: Wait - and - see [8] - PTA: Wait - and - see [9] - MEG: Wait - and - see [9] - PR: Wait - and - see [9] - PF: Wait - and - see [9] Core Viewpoints - The driving force for the previous policy - and - sentiment - driven rise in the black industry has gradually weakened, and it will return to fundamentals in the short term. The financial market is affected by factors such as LPR cuts and deposit rate cuts, and the precious metal market is influenced by multiple factors including central bank gold purchases and geopolitical risks. The light industry and agricultural product markets are facing different supply - and - demand situations, and the polyester industry is affected by factors such as oil prices and raw material supply [2][4][6][8] Summary by Related Catalogs Black Industry - **Iron ore**: The driving force for the previous policy - and - sentiment - driven rise has weakened. Supply is expected to increase, iron - water production has declined from a high level, port inventory is relatively high, and demand is the key. The improvement in steel - demand expectations due to the easing of the trade war is offset by the seasonal weakening of actual demand. Conservative investors can try long - short spreads, and aggressive investors can focus on short - selling opportunities in the far - month contracts [2] - **Coking coal and coke**: The supply - and - demand pattern of coking coal remains loose. Coking enterprises' profits have improved, but steel mills' procurement willingness has decreased, and coke supply has increased, with an overall supply - surplus pattern [2] - **Rebar**: The driving force for the previous rise has weakened, demand is falling slowly in the short term, inventory is still being depleted, but the rainy season may affect inventory depletion. Supply remains high, and attention should be paid to the impact of the suspension of a 24% tariff on exports [2] - **Glass**: Some production lines have resumed operation, daily output has fluctuated slightly, spot prices have fallen slightly, and inventory has increased significantly. The real - estate industry is in an adjustment period, and demand is difficult to recover significantly [2] Financial Market - **Stock index futures/options**: The previous trading day saw gains in major stock indexes. The latest LPR has been cut, and banks have lowered deposit rates. The Sino - US tariff issue has achieved phased results, and the market's risk - aversion sentiment has eased. Long positions in stock indexes can be held [4] - **Treasury bonds**: The yield of the 10 - year treasury bond has risen, and market interest rates are consolidating. The central bank has carried out reverse - repurchase operations, and long positions in treasury bonds can be held lightly [4] - **Gold**: The pricing mechanism of gold is shifting, and factors such as central bank gold purchases, currency credit, and geopolitical risks are affecting its price. The logic for the current price increase has not completely reversed, and the price is expected to be in a high - level shock [4] Light Industry and Agricultural Products - **Pulp**: Spot prices are stable, raw - material prices have fallen, the papermaking industry's profitability is low, and demand is in the off - season. Pulp prices are expected to be in a shock [6] - **Logs**: Downstream demand is in the off - season, supply pressure has weakened, and prices are expected to be in a bottom - level shock [6] - **Oils and fats**: Palm oil production is in a seasonal increase period, and inventory has risen. The supply of three major oils is abundant, and it is in the traditional consumption off - season, but pre - festival stocking has improved spot consumption. Prices are expected to be in a shock [6] - **Meals**: Sino - US trade relations have eased, US soybean inventories may tighten, and domestic soybean supply has become more abundant. Meal prices are expected to be in a weak - biased shock [6] - **Live pigs**: The average slaughter weight has increased slightly, demand from slaughter enterprises has decreased, and post - festival consumption has declined seasonally. However, secondary fattening demand provides support, and prices are expected to be in a shock [8] - **Rubber**: Domestic rubber output is stable, Thai raw - material prices are high, demand from tire enterprises is recovering, inventory accumulation has slowed down, and prices are expected to be in a strong - biased shock [8] Polyester Industry - **PX**: The acceleration of the Russia - Ukraine peace talks may suppress oil - price rebounds, PX load has recovered, and prices are expected to fluctuate with oil prices [8] - **PTA**: The acceleration of the Russia - Ukraine peace talks may suppress oil - price rebounds, PXN spreads are around $272/ton, and short - term supply and demand are in a de - stocking state, mainly affected by raw - material price fluctuations [9] - **MEG**: Domestic production load has decreased, ports are expected to de - stock, raw - material prices are weak, and the market fluctuates widely due to macro - sentiment fluctuations [9] - **PR**: Mainstream polyester factories may cut production, and prices may be adjusted downward due to cost factors [9] - **PF**: Although downstream buyers are cautious, international oil prices have risen, and supply - side factors are favorable. The market is expected to be in a narrow - range consolidation [9]

Core Viewpoint - The recent interest rate cuts on deposits and loans by major banks signal a proactive approach by the government to lower financing costs for businesses and reduce the burden on residents, reflecting a commitment to stabilize economic growth [1][2][3]. Group 1: Interest Rate Cuts - Major state-owned banks and some joint-stock banks have initiated the first round of deposit rate cuts this year, with the largest reductions of 25 basis points for three-year and five-year deposits, and one-year fixed deposit rates falling below 1% [1][3]. - The one-year LPR and five-year LPR have been reduced by 10 basis points, now standing at 3% and 3.5% respectively, marking the first rate cut since 2025 [1][4]. - The reduction in deposit rates is greater than the LPR cut, which helps lower banks' funding costs and creates room for further LPR adjustments [3]. Group 2: Economic Implications - Analysts suggest that the dual reduction in LPR and deposit rates is a positive signal from policymakers aimed at stimulating effective financing demand and stabilizing credit levels amid external uncertainties [2][3]. - The recent monetary policy easing is expected to boost market risk appetite, as evidenced by the rise in A-share indices and the Hang Seng Index [1]. Group 3: Housing Loan Impact - The LPR cut directly affects mortgage rates, with the average mortgage rate expected to decrease to 3% following the 10 basis point reduction [6]. - For a 1 million loan over 30 years, the total repayment amount could decrease by approximately 20,000, with monthly payments reduced by about 55 [6]. - In Guangzhou, the actual mortgage rate remains unchanged at 3% due to adjustments in the banks' pricing strategies, despite the LPR cut [6][7].

Core Viewpoint - The article discusses the current market dynamics, highlighting the impact of interest rate adjustments on both the stock and bond markets, as well as shifts in consumer spending behavior and preferences in entertainment activities. Group 1: Market Dynamics - The trading volume indicates significant divergence in market sentiment, with low volumes suggesting indecision and high volumes indicating consensus on price levels, leading to energy accumulation and release cycles [1] - The central bank conducted a 3.57 billion yuan reverse repurchase operation, resulting in a net injection of 1.77 billion yuan, contributing to a balanced and slightly loose funding environment [1][2] - The recent adjustments in deposit rates and LPR (Loan Prime Rate) led to a slight increase in stock prices and a modest rise in bond yields, with the 10-year government bond yield moving to approximately 1.666% [1][2] Group 2: Consumer Spending Trends - In 2024, the average per capita consumption in the national catering sector decreased to 39.8 yuan, a year-on-year decline of 6.6%, with the proportion of consumers increasing spending dropping from 50.0% in 2023 to 31.3% [4] - The contribution of the 20-39 age group to consumption growth has fallen from 30.3% to 19.1% since 2018, reflecting a shift in entertainment preferences towards more contemplative activities like park visits and City Walks [6] - A significant decline in traditional entertainment activities is noted, with KTV and bars experiencing a drop of 87% and 65% respectively, while activities like park visits and City Walks have seen substantial increases of 226% and 218% [8]

Core Viewpoint - The recent interest rate cut by the People's Bank of China (PBOC) is expected to lower mortgage costs for residents, with a significant impact on the housing market and overall economic financing costs [1][3][7]. Group 1: Interest Rate Changes - The PBOC announced a reduction in the Loan Prime Rate (LPR) by 10 basis points, with the 1-year and 5-year LPR now at 3.0% and 3.5% respectively [1][2]. - This reduction is anticipated to decrease the total repayment amount for a typical mortgage of 1 million yuan over 30 years by approximately 19,000 yuan [3][5]. - The average interest rate for new personal housing loans was about 3.1% as of April, indicating a downward trend in borrowing costs [7]. Group 2: Impact on Banks and Financing Costs - Major state-owned and joint-stock banks have initiated a seventh round of deposit rate cuts, with reductions of 15 to 25 basis points, which is greater than the LPR cut [1][9]. - The adjustments in deposit rates are expected to lower banks' funding costs, potentially leading to a positive impact on net interest margins [10]. - The overall financing costs for the real economy are projected to continue declining, supporting effective financing demand [7][10]. Group 3: Future Outlook - Analysts predict that further interest rate cuts may occur in the second half of the year, as external demand slows and domestic price levels remain low [2][6]. - The PBOC's recent policy adjustments are seen as necessary to stimulate effective financing demand and stabilize credit levels amid ongoing economic uncertainties [7][8]. - The banking sector is expected to face continued pressure on net interest margins, with forecasts indicating a downward trend in the coming years [11][12].

Core Viewpoint - The recent decline in government bond futures and the first decrease in LPR rates this year indicate a potential shift in monetary policy, with expectations of further interest rate cuts in the second half of the year due to external uncertainties and low domestic inflation [3][4]. Group 1: Government Bond Futures - As of May 20, 2025, all government bond futures are down, with the 30-year main contract falling by 0.10%, the 10-year by 0.02%, the 5-year by 0.08%, and the 2-year by 0.04% [3]. - The 30-year government bond ETF (博时) rose by 0.01%, with a latest price of 111.86 yuan, indicating active market trading [3]. Group 2: LPR Rates - On May 20, 2025, the 1-year LPR is set at 3.0% and the 5-year LPR at 3.5%, both down by 10 basis points from previous values, marking the first decline in LPR this year [3]. Group 3: 30-Year Government Bond ETF (博时) - The 30-year government bond ETF (博时) has reached a new high in scale at 6.783 billion yuan and a new high in shares at 60.5697 million [4]. - The ETF has seen continuous net inflows over the past 8 days, with a maximum single-day net inflow of 226 million yuan, totaling 491 million yuan in net inflows [4]. - The ETF's performance over the past year shows a net value increase of 15.91%, ranking 3rd out of 378 index bond funds [5]. Group 4: Performance Metrics - The ETF has a maximum monthly return of 5.35% since inception, with a historical one-year profit probability of 100% [5]. - The management fee for the ETF is 0.15%, and the custody fee is 0.05%, with a tracking error of 0.071% over the past year [5].

国有六大行均官宣下调存款利率，最大降幅25个基点 5月20日，工商银行、中国银行、建设银行、农业银行、邮储银行、交通银行下调人民币存款利率，一年期定期存款利率下破1%。 工商银行下调人民币存款利率，其中活期利率下调5个基点至0.05%；定期整存整取三个月期、半年期、一年期、二年期均下调15个基点，分别为0.65%、 0.85%、0.95%、1.05%；三年期和五年期均下调25个基点，分别至1.25%和1.3%。定期零存整取、整存零取、存本取息三种期限均下调15个基点。7天期通 知存款利率下调15个基点至0.3%。 | 项目 | 年利率% | | --- | --- | | 、城乡居民及单位存款 | | | (一)活期 | 0. 05 | | (二)定期 | | | 1. 整存整取 | | | 三个月 | 0. 65 | | 半年 | 0. 85 | | 一年 | 0. 95 | | 二年 | 1.05 | | 三年 | 1. 25 | | 五年 | 1. 3 | | 2. 零存整取、整存零取、存本取息 | | | 一年 | 0. 65 | | 三年 | 0. 85 | | 五年 | 0. 85 | | 3. ...

Group 1 - The core viewpoint of the articles indicates that the bond market is experiencing a bullish trend, with the 10-year treasury futures closing up by 0.13% and most interbank bond yields declining by approximately 1 basis point [1] - The LPR (Loan Prime Rate) was lowered by 10 basis points, with the 1-year LPR now at 3% and the 5-year LPR at 3.5%, down from 3.1% and 3.6% respectively [1] - The central bank continued to inject liquidity through OMO (Open Market Operations), leading to a more relaxed funding environment compared to the previous week [1] Group 2 - April economic data showed a marginal weakening in retail sales and investment, falling below expectations, while industrial production maintained strong resilience [1] - Market expectations suggest a potential reduction in deposit rates this week, which has positively influenced bond market sentiment [1] - The政金债券ETF (Government Financial Bond ETF) has a total scale of approximately 46.2 billion, making it the largest bond ETF in the market, with a duration of around 7.5 years, suitable for clients looking to adjust duration easily [1]

Core Viewpoint - The banking sector is experiencing a rebound, supported by recent monetary policy adjustments and positive market sentiment following trade negotiations [1][2]. Group 1: Market Performance - As of May 20, the China Securities Bank Index (399986) rose by 0.51%, with notable increases in stocks such as Shanghai Pudong Development Bank (1.67%) and Ningbo Bank (1.58%) [1]. - The Tianhong Bank ETF (515290) increased by 0.63%, with a recent weekly gain of 0.92%, and its latest scale reached 40.12 billion [1]. - The Tianhong Bank ETF has shown a 26.48% increase in net value over the past year, ranking in the top 2 among comparable funds [3]. Group 2: Monetary Policy Impact - The People's Bank of China announced a reduction in the one-year Loan Prime Rate (LPR) to 3% from 3.1% and the five-year LPR to 3.5% from 3.6%, which is expected to lower financing costs for the real economy [1]. - Economic analysts believe that the LPR cut will help stabilize the economic fundamentals by reducing overall financing costs [1]. Group 3: Fund Performance Metrics - The Tianhong Bank ETF has a Sharpe ratio of 1.63, ranking in the top 3 among comparable funds, indicating higher returns for the same level of risk [4]. - The maximum drawdown for the Tianhong Bank ETF this year is 5.45%, which is relatively low compared to its benchmark [4]. - The fund's management fee is 0.50%, and the custody fee is 0.10%, with a tracking error of 0.111% over the past two years, the highest precision among comparable funds [5]. Group 4: Top Holdings - As of April 30, the top ten weighted stocks in the China Securities Bank Index accounted for 65.11% of the index, including major banks like China Merchants Bank and Industrial and Commercial Bank of China [5].