Economic Policy and Market Outlook - The Politburo meeting on July 30 provided a framework for economic development over the next five years and set the stage for the second half of 2023's economic policies [1] - The absence of explicit mentions of "real estate" in the recent meeting indicates a shift in focus, although the need to stabilize the housing market remains critical [3] - The meeting emphasized maintaining liquidity and promoting a decline in comprehensive financing costs, suggesting a potential for interest rate cuts in the future [2] Stock Market Dynamics - The Shanghai Composite Index has rebounded over 30% since last year, indicating a positive trend in the stock market, which the meeting aims to consolidate [4][5] - The effectiveness of measures taken by the Central Huijin Investment Ltd. and other entities in stabilizing the stock market has been acknowledged, but further support from fundamental economic conditions is necessary for continued growth [5] Commodity Prices and Supply Chain Management - Recent rebounds in commodity prices are contingent on supply-demand dynamics, with the government focusing on regulating excessive competition rather than merely raising prices [6][7] - The meeting highlighted the need for capacity management in key industries, including photovoltaic, cement, and automotive sectors, to ensure sustainable growth [6] Macro Policy Adjustments - The macroeconomic policy has shifted towards increased investment in consumer spending and improving living standards, with a notable rise in government leverage [8] - The government's ability to implement counter-cyclical policies is crucial for boosting confidence and stimulating demand in the face of economic contraction [8]

近期，有一批"固收+"基金净值创下新高，也算是风水轮流转了。过去三年中， "含权量"更高的"固收+"，多少有点活在纯债基金的阴影下。 然而，从长期来说，股票资产的隐含收益率还是要高于债券。当理财收益持续下行，"固收+"或成为应对低利率时代的一个解法。 "固收+"有很多流派，堪称百花齐放。但其中最值得关注的，仍是几家固收大厂的解题思路。道理很简单，"固收+"终究是以固收为基础，大厂往往已经建 立了完善的信评体系，是银行理财替代需求浪潮中的核心力量。 以招商基金为例，这家固收大厂在发挥固收投资优势的基础上，近年来在"+"端也持续焕新升级，多元资产投资团队完善壮大，为增厚收益提供更多元化 的可能。 "固收+"产品本身是一种攻守兼备的基金，最大的价值是为投资者提供某种风险收益较为平衡的解决方案。其理想状态是比权益基金波动小，在收益方面 则能跑赢纯债基金。 2025年上半年末，居民部门存款162.03万亿元人民币，比年初又增加了5万亿。这是一个看似很矛盾的场景——一面是存款利率的不断下降，另外一面却 是居民存款的持续增长。其背景是权益市场持续震荡超3年，投资者风险偏好显著下降，风险规避情绪达到阶段性高峰。 招商瑞文A的 ...

Core Viewpoint - The article emphasizes the importance of understanding the root causes of "involution" in the context of declining investment returns and risk appetite in the capital market, suggesting that addressing these issues is crucial for effective "anti-involution" measures [2]. Group 1: Investment Returns and Involution - The return on investment for large-scale manufacturing enterprises has been declining, with profit margins decreasing from 5.35% in 2021 to 4.25% in the first five months of 2024 [5][11]. - The revenue generated per 100 yuan of assets for these enterprises has also dropped from 107 yuan in 2022 to 85.2 yuan in the first five months of 2024 [5][11]. - The phenomenon of "involution" is characterized by intensified competition among enterprises, leading to price wars that result in increased volume but reduced profits [11][19]. Group 2: Supply and Demand Dynamics - The persistent "supply exceeds demand" situation is attributed to previous investment expansions, with manufacturing investment growth outpacing overall investment growth from 2021 to 2024 [21][27]. - The average accounts receivable period for large-scale manufacturing enterprises has lengthened from 54 days in 2022 to 71.7 days in the first five months of 2024, indicating increased financial pressure [16][30]. - The capacity utilization rate for these enterprises has decreased from 75.8% in 2022 to 74.2% in the first half of 2024, reflecting a growing surplus in production capacity [19][27]. Group 3: Government Policies and Economic Structure - Local governments are incentivized to boost manufacturing investment to meet GDP targets, often leading to distorted market resource allocation through aggressive investment policies [28][30]. - Recent policies have increased financial support for manufacturing, with long-term loans to the sector growing significantly, providing substantial funding for investment expansions [30][32]. - The article highlights the need for a balanced approach to address both supply-side issues and consumer demand, suggesting that effective "anti-involution" strategies should focus on increasing household income and promoting consumption [72].

Core Insights - The report indicates that the number of investors holding wealth management products increased by 8.37% year-on-year, reaching 136 million by the end of June [1][4] - The average annualized yield of wealth management products fell to 2.12%, down 68 basis points from 2.8% in the same period last year [1][4] - The total scale of the wealth management market reached 30.67 trillion yuan, with a year-to-date increase of 720 billion yuan [2][3] Investor Trends - The number of personal investors increased by 10.29 million in the first half of the year, indicating a strong influx of new investors [1][4] - The risk appetite of individual investors has shifted, with an increase in the proportion of those with higher risk preferences [4][6] Market Dynamics - The gap between the scale of wealth management products and public funds has widened, with public fund assets totaling 34.39 trillion yuan, a year-to-date increase of 1.56 trillion yuan [2][3] - The growth in wealth management products was primarily driven by the second quarter, contributing approximately 1.53 trillion yuan to the total scale [3] Product Composition - Cash management products have seen a significant decline, with a reduction of nearly 1 trillion yuan in the first half of the year, now accounting for 25.79% of open-ended wealth management products [7][8] - The proportion of risk-rated products has shifted, with a notable increase in the share of higher-risk products [6][9] Asset Allocation - Wealth management products have increased their allocation to public funds, cash, and deposits, while reducing exposure to credit bonds [10][11] - By the end of June, the total investment assets of wealth management products reached 32.97 trillion yuan, with a significant portion allocated to bonds [10][11]

Core Viewpoint - The surge in public fund self-purchases reflects confidence in the long-term market outlook, with Fangzheng Fubang Fund recently investing over 25 million yuan in its equity funds, committing to hold for at least one year [1][2]. Group 1: Fund Self-Purchase Actions - Fangzheng Fubang Fund announced the use of its own funds to purchase equity fund products, demonstrating confidence in the long-term stability and healthy development of the Chinese capital market [2][5]. - The total self-purchase amount is no less than 25 million yuan, with a commitment to hold the purchased products for no less than one year [2][5]. - This follows a previous self-purchase of 5 million yuan in April for the Fangzheng Fubang CSI All Share Free Cash Flow ETF, which is one of the first approved ETFs in its category [5]. Group 2: Market Sentiment and Strategic Outlook - The self-purchase trend is seen as a positive signal to investors, indicating that the company is optimistic about the market and trusts its fund managers [5]. - The company maintains an optimistic outlook for the second half of the year and into 2025, expecting macro policies to remain accommodative, which may alleviate profit pressures in related industries [5]. - Key drivers for A-shares in the latter half of 2025 are anticipated to be a combination of policy easing, asset scarcity, and industrial upgrades [5]. Group 3: Investment Management and Product Strategy - Fangzheng Fubang Fund emphasizes long-term and value investment principles, aiming to create value for fund shareholders [5][6]. - The company is enhancing its core research and investment capabilities, focusing on a multi-strategy research and investment system to strengthen its investment management [6][7]. - The fund has a diverse product lineup, including innovative thematic products and passive index funds, with a focus on sectors like humanoid robots and military technology [7][8]. Group 4: Performance Metrics - Fangzheng Fubang Fund's equity research team has achieved a return of 31.49% for the Fangzheng Fubang Xinhong A fund over the past year, ranking in the top 12% of its peers [7]. - In fixed income, the fund's products have shown strong performance, with an absolute return of 11.6% over the past three years, placing it in the top 9% among 150 fund companies [8]. - The fund's assets under management reached 80.861 billion yuan in 2024, reflecting a year-on-year growth of 32.20% [8].

Group 1 - The core viewpoint is that the domestic market in China is expected to show a "dual bull" pattern in both equity and bond markets in the second half of the year, driven by structural investment opportunities in new economy sectors and a low-growth, low-inflation environment in the bond market [1] - The A-share market, despite uncertainties, is likely to benefit from a loose liquidity environment and recognition from decision-makers of the stock market's impact on public confidence and consumption [1] - In the cyclical sector, there are structural opportunities in non-ferrous metals, but a comprehensive rebound in the sector requires significant improvement in macro demand [1] Group 2 - The technology sector is expected to experience a clear domestic and international divergence, with overseas demand for computing power exceeding expectations, particularly in hardware segments benefiting from global AI infrastructure, such as GPU supply chains and optical modules [2] - The bond market is influenced by China's rapid demographic changes and complex geopolitical situation, with a focus on consumption and technology as new growth points for the economy [2] - The investment strategy for the second half of the year should consider allocations to fixed income plus, equity assets, overseas short-term bonds, and gold to capitalize on potential benefits from China's economic transformation [2]

Summary of Conference Call Records Industry Overview - The Hong Kong stock market is primarily driven by southbound funds and passive investments, with significant increases in trading volume but no notable changes in active allocation ratios, indicating that long-term foreign capital has not significantly entered the market [1][4] - The market is experiencing a structural rally with rapid sector rotation, necessitating investor attention to specific sectors and industry dynamics [1][5] - The phenomenon of AH premium narrowing has been observed, with some companies trading at higher prices in Hong Kong than in A-shares, attributed to alignment with industrial development trends and foreign capital preferences [1][8] Key Points and Arguments - **Liquidity as a Dominant Factor**: The primary driver of the recent market activity has been liquidity rather than fundamentals, with a significant influx of southbound funds [2][10] - **Structural Market Characteristics**: The market has shown a high level of structural activity, with different sectors taking turns as hotspots, leading to a disparity between index returns and actual investment returns [5][6] - **Investment Opportunities**: The ongoing influx of southbound funds, which accounted for 8.2 trillion RMB this year, has positioned them as a dominant force in the market, particularly in ETFs and trading funds [10][11] - **Future Market Outlook**: The Chinese market is expected to continue facing a "money surplus but lack of quality assets" situation, which will sustain structural market trends [11][12] - **IPO and Placement Dynamics**: The balance of supply and demand in the market is expected to remain stable, with estimated IPO and placement absorption power around 3 trillion RMB, matching the supply from southbound funds and foreign capital [13][14] Important but Overlooked Content - **Sector-Specific Insights**: The electric equipment industry is expected to benefit significantly from the Yaxia Hydropower Station project, which has a total investment of approximately 1.2 trillion RMB, catalyzing long-term growth in related sectors [3][40] - **Impact of Policies on Industries**: The "anti-involution" policy is influencing the basic materials sector by reducing production capacity, which may benefit long-term industry development despite short-term profitability pressures [25][26] - **Investment Strategy Recommendations**: Investors are advised to position themselves during market lows rather than chasing highs, focusing on structural opportunities rather than overall index performance [18][19] Conclusion - The Hong Kong stock market is characterized by a liquidity-driven structural rally, with significant implications for various sectors, particularly in the context of ongoing policy changes and macroeconomic conditions. Investors are encouraged to adopt a strategic approach that emphasizes sector rotation and specific investment opportunities while being mindful of the broader market dynamics.

Summary of Conference Call Notes Industry Overview - The notes primarily discuss the bond market and macroeconomic conditions in China, focusing on interest rates, government financing, and corporate profitability [1][3][5]. Key Points and Arguments 1. **Economic Conditions**: June economic data shows significant divergence in supply and demand, with household income growth lagging behind GDP growth. External demand for exports to the U.S. has sharply declined, indicating persistent insufficient total demand [1][3]. 2. **Government Financing**: It is projected that government financing will decrease by over 2 trillion yuan in the second half of 2025, following a peak in social financing growth in July. This decline in financing is expected to contribute to lower interest rates [1][4]. 3. **Corporate Profitability**: Corporate profit margins are under pressure due to declining total demand and trade tensions, resulting in low investment returns. The central bank maintains a moderately loose monetary policy, alleviating concerns about policy tightening [1][5]. 4. **Interest Rate Projections**: The current central level for the 10-year government bond yield is 1.5%, with the current yield at 1.7%. Short-term projections suggest that rates may decline further, potentially falling below 1.5% [1][7]. 5. **Liquidity Management**: The central bank's operations indicate a stable interest rate level around 1.8% during tight liquidity periods. The reasonable range for current operations is estimated between 1.4% and 1.7% [1][8]. 6. **Asset-Liability Matching**: Banks are achieving a yield of approximately 1.5% on mortgages, while the yields on 10-year and ultra-long government bonds are 1.7% and 1.9%, respectively. Insurance companies are also adjusting their guaranteed rates below 2%, making long-term bonds attractive [1][9]. 7. **Redemption Pressure**: Current redemption pressure is primarily preventive and not indicative of a trend, similar to the situation in August 2024. The market is not expected to experience significant volatility due to this preventive redemption [2][10]. 8. **Market Outlook**: The third quarter is expected to see increased volatility in funding rates, but the overall range will remain between OMO reductions of 20 basis points and increases of 20 basis points, indicating a more accommodative environment compared to the second quarter [2][11]. Additional Important Content - The notes emphasize the lack of significant counter-cyclical demand policies to address the ongoing economic challenges, which could further impact total demand and interest rates [1][3]. - The analysis suggests that the bond market is not at risk of a trend reversal to bearish conditions, as the fundamental factors driving interest rates downward remain unchanged [3].

Market Overview - The market is expected to continue rising in August, driven by liquidity conditions[5] - As of July 28, the Wind All A Index surpassed its peak from October 8 of the previous year, indicating a bullish market sentiment[5] Market Drivers - The upward market movement is attributed to ample incremental capital and improved supply-demand dynamics, particularly in cyclical stocks[7] - Recent trends show a significant increase in public and retail investor participation, with new fund issuance in June reaching nearly 30 billion, the highest monthly level since 2022[8] Investment Strategy - The report recommends focusing on large financial and technology assets, highlighting the potential for banks and insurance companies to benefit from reduced economic risks and lower liability costs[9] - Technology assets are suggested for contrarian trading due to their low trading congestion, with historical performance showing a strong correlation with trading dynamics[9] Key Stock Recommendations - The August stock selection includes: Hong Kong Tech 50 ETF, Fuda Co., Su Neng Co. (automotive), Zhujiang Co., Core International (trading), Wanhua Chemical, Dongcai Technology (chemicals), and others[17] - The report emphasizes the importance of sectors like steel and pharmaceuticals, which are expected to perform well due to demand recovery and policy support[9] Risks - Potential risks include unexpected economic downturns and insufficient policy support, which could impact market performance[18]

Report Industry Investment Rating The document does not mention the industry investment rating. Core Viewpoints of the Report - In the second quarter, the stock and bond markets both performed well, boosting the expansion of the fund industry. Although bond funds face certain redemption pressure in the short term, the current internal economic momentum is weak, the logic of asset shortage continues, and the monetary policy guides sufficient liquidity. There is no pressure for a trend adjustment in the bond market. It is expected that the scale of bond funds will continue to increase steadily in the third quarter, and the scale increase of equity - containing products may exceed that of the second quarter [6]. - The share and net asset value of the entire market's funds increased in the second quarter. The scale of bond funds increased significantly. In terms of positions, the overall allocation ratio of the entire market's funds to bonds and stocks decreased, while the allocation ratio of cash increased significantly. Among them, the bond allocation mainly showed an increase in the allocation of treasury bonds, financial bonds, and credit bonds, and a decrease in the allocation of policy - financial bonds and inter - bank certificates of deposit [6]. - The performance of equity - containing products rebounded more. Among them, the performance of long - term bonds was better than that of short - term bonds, and the performance of hybrid second - tier bond funds was better than that of hybrid first - tier bond funds. Although the performance of hybrid funds was good, the scale declined. The main reasons are that the return gap between hybrid funds and second - tier bond funds is not obvious, and the risk level is higher; and the return of hybrid funds is lower than that of stock - type funds, and the recovery of risk appetite drives the scale of stock - type funds to rise, thus suppressing the hybrid funds [7]. Summary According to the Directory 1. Fund Total Scale Rises, Bond Allocation Scale Increases - **1.1 Fund Market Scale: Fund Shares and Net Asset Value Both Increase** - As of the end of the second quarter of 2025, there were approximately 1.29 trillion funds in total, with a market share of about 30.90 trillion shares and a net asset value of about 33.72 trillion yuan. Compared with the end of the first quarter of 2025, the number of various funds increased by 2.44%, the market share increased by 5.14%, and the net asset value increased by 6.68% [21]. - The net asset value of hybrid funds slightly decreased, while that of other types of funds increased. The net asset value of bond - type funds increased significantly. The total share of bond funds in the second quarter of 2025 was 9.60 trillion shares, a 6.27% increase from the end of the first quarter of 2025; the net asset value of bond - type funds was about 10.91 trillion yuan, an 8.54% increase from the end of the first quarter of 2025 [25][32]. - The outstanding shares of pure - bond funds and hybrid bond funds increased. The new - issue shares of actively managed and passively managed bond funds both increased slightly quarter - on - quarter but decreased significantly year - on - year [36][45]. - **1.2 Fund Asset Allocation: Bond Allocation Ratio Decreases Slightly, Cash Allocation Ratio Increases** - As of the end of the second quarter of 2025, the total asset value of funds increased by 8.42% compared with the end of the first quarter of 2025. The market value of stocks held increased by 4.09% quarter - on - quarter, the market value of bonds held increased by 7.69% quarter - on - quarter, and the market value of cash held increased significantly by 32.30% quarter - on - quarter. The reason for the increase in cash allocation by funds is mainly due to the increase in the cash allocation ratio of money market funds [53]. - The proportion of funds held in stocks, bonds, and other assets decreased, while the proportion of cash held increased. At the end of the second quarter of 2025, the proportions of stocks, bonds, cash, and other assets were 19.64%, 57.80%, 12.88%, and 9.15% respectively, among which the proportion of bond - holding assets decreased by 0.39 pct quarter - on - quarter [53]. - **1.3 Fund Bond - Holding Analysis: The Allocation of Financial Bonds Increased the Most Quarter - on - Quarter** - As of the end of the second quarter of 2025, the total value of bonds held by all funds was about 21.21 trillion yuan, a 7.69% increase from the end of the first quarter of 2025. Among them, interest - rate bonds, financial bonds, credit bonds, inter - bank certificates of deposit, and other bonds increased by 7.71%, 12.82%, 8.96%, 5.33%, and 5.78% respectively quarter - on - quarter [55][56]. - The proportion of inter - bank certificates of deposit held by funds decreased the most. In the bond positions of funds at the end of the second quarter of 2025, the allocation ratios of interest - rate bonds, financial bonds, and credit bonds increased by 0.01 pct, 0.59 pct, and 0.23 pct respectively quarter - on - quarter, while the allocation ratios of inter - bank certificates of deposit and other bonds decreased by 0.78 pct and 0.05 pct respectively quarter - on - quarter [56]. 2. Bond Fund Bond - Holding Analysis - **2.1 All Bond Funds: The Total Bond - Holding Scale Increases, the Allocation Proportion of Treasury Bonds Increases, and the Allocation Proportion of Policy - Financial Bonds Decreases** - As of the end of the second quarter of 2025, the total value of bonds held by bond - type funds was about 12.5207 trillion yuan, a 10.01% increase from the end of the first quarter of 2025. Among them, the market value of interest - rate bonds, financial bonds, credit bonds, inter - bank certificates of deposit, and other bonds increased by 405.9 billion yuan, 292.5 billion yuan, 380.6 billion yuan, 28.2 billion yuan, and 32.4 billion yuan respectively, with quarter - on - quarter growth rates of 7.96%, 13.05%, 11.87%, 8.85%, and 6.29% respectively [61][65]. - The allocation ratios of interest - rate bonds, inter - bank certificates of deposit, and other bonds decreased. The market value of treasury bonds and policy - bank bonds held by all bond funds accounted for 6.46% and 37.52% of the bond investment market value respectively, with quarter - on - quarter changes of 1.29 pct and - 2.13 pct respectively. The allocation ratios of enterprise bonds and short - term financing bills increased, while the allocation ratio of medium - term notes decreased [65][67]. - **2.2 Medium - and Long - Term Pure - Bond Funds: In Terms of Allocation Proportion, Reduce the Allocation of Policy - Financial Bonds and Increase the Allocation of Treasury Bonds** - As of the end of the second quarter of 2025, the total value of bonds held by medium - and long - term pure - bond funds was about 7.7616 trillion yuan, a 5.38% increase from the end of the first quarter of 2025. Among them, interest - rate bonds, financial bonds, credit bonds, inter - bank certificates of deposit, and other bonds changed by 4.47%, 6.50%, 5.86%, 0.45%, and 11.96% respectively quarter - on - quarter [71]. - In the second quarter, the allocation ratios of financial bonds and local government bonds in medium - and long - term bond funds increased the most, while the allocation ratio of interest - rate bonds decreased significantly. The market value of treasury bonds and policy - bank bonds held by medium - and long - term pure - bond funds accounted for 6.74% and 42.63% of the bond investment market value respectively, with quarter - on - quarter changes of 1.33 pct and - 1.76 pct respectively. The allocation ratios of enterprise bonds and short - term financing bills decreased, while the allocation ratio of medium - term notes increased [71][74]. - **2.3 Short - Term Pure - Bond Funds: In Terms of Allocation Proportion, Reduce the Allocation of Non - Financial Credit Bonds and Increase the Allocation of Financial Bonds** - As of the end of the second quarter of 2025, the total value of bonds held by short - term pure - bond funds was about 128.05 billion yuan, a 21.29% increase from the end of the first quarter of 2025. Among them, interest - rate bonds, financial bonds, credit bonds, inter - bank certificates of deposit, and other bonds increased by 28.73%, 52.18%, 13.26%, 13.10%, and 27.17% respectively quarter - on - quarter [79]. - Compared with the first quarter of 2025, short - term pure - bond funds reduced the allocation ratios of credit bonds and inter - bank certificates of deposit and increased the allocation ratios of interest - rate bonds, financial bonds, and other bonds. The market value of treasury bonds and policy - bank bonds held by short - term pure - bond funds accounted for 2.02% and 11.70% of the bond investment market value respectively, with quarter - on - quarter changes of 0.62 pct and 0.17 pct respectively. The allocation ratios of enterprise bonds, short - term financing bills, and medium - term notes decreased [79][81][82]. - **2.4 Hybrid First - Tier Bond Funds: Increase the Allocation of Cash and Bonds, Mainly Increase the Allocation of Interest - Rate Bonds and Financial Bonds** - At the end of the second quarter of 2025, the total asset value of hybrid first - tier bond funds was about 99.45 billion yuan, a 14.55% increase from the end of the first quarter of 2025. Among them, the market values of stocks, bonds, cash, and other assets changed by 1.85%, 15.00%, 17.19%, and - 3.39% respectively quarter - on - quarter [85]. - As of the end of the second quarter of 2025, the total value of bonds held by hybrid first - tier bond funds was about 96.11 billion yuan, a 15.00% increase from the end of the first quarter of 2025. Among them, interest - rate bonds, financial bonds, credit bonds, inter - bank certificates of deposit, and other bonds changed by 25.48%, 30.68%, 4.17%, 23.63%, and 10.04% respectively quarter - on - quarter. The allocation ratios of interest - rate bonds and financial bonds increased, while the allocation ratio of credit bonds decreased significantly [85]. - In terms of proportion, hybrid first - tier bond funds significantly increased the allocation of treasury bonds and reduced the allocation of various non - financial credit bonds in the second quarter [88]. - **2.5 Hybrid Second - Tier Bond Funds: Increase the Allocation of Cash and Bonds, Mainly Increase the Allocation of Interest - Rate Bonds** - At the end of the second quarter of 2025, the total asset value of hybrid second - tier bond funds was about 94.03 billion yuan, a 6.94% increase from the end of the first quarter of 2025. Among them, the market values of stocks, bonds, cash, and other assets changed by 2.66%, 7.34%, 30.18%, and - 6.07% respectively quarter - on - quarter [90]. - As of the end of the second quarter of 2025, the total value of bonds held by hybrid second - tier bond funds was about 79.61 billion yuan, a 7.34% increase from the end of the first quarter of 2025. Among them, interest - rate bonds, financial bonds, credit bonds, inter - bank certificates of deposit, and other bonds changed by 18.51%, 6.18%, 7.63%, - 16.54%, and - 3.92% respectively quarter - on - quarter. The allocation ratio of interest - rate bonds increased, while the allocation ratios of other types of bonds decreased [91]. - In the second quarter, the allocation ratio of treasury bonds in hybrid second - tier bond funds increased, while the allocation ratio of policy - bank bonds decreased. The allocation ratio of medium - term notes increased, while the allocation ratios of enterprise bonds and short - term financing bills decreased [95]. 3. Analysis of the Structure of Fund Heavy - Positioned Bonds: The Proportion of Treasury Bond Positions Continues to Rise - In the second quarter, bond funds mainly increased the allocation of treasury bonds and reduced the allocation of policy - financial bonds. In the heavy - positioned interest - rate bonds of bond - type funds in the second quarter of 2025, the proportions of treasury bonds, local government bonds, and policy - bank bonds were 11.62%, 1.34%, and 87.04% respectively. Compared with the first quarter of 2025, the allocation ratio of treasury bonds increased by 2.70 pct, the allocation ratio of local government bonds decreased by 0.12 pct, and the allocation ratio of policy - bank bonds decreased by 2.58 pct [97]. - Bond funds increased the allocation ratio of AAA - rated industrial bonds and reduced the allocation ratios of AA +, AA, and below - AA - rated industrial bonds. In the heavy - positioned industrial bonds of bond - type funds in the second quarter of 2025, the proportions of AAA, AA +, AA, and below - AA industrial bonds were 94.81%, 4.59%, 0.60%, and 0.00% respectively [101]. - Bond funds increased the allocation ratios of AAA - and AA - rated urban investment bonds and reduced the allocation ratio of AA + - rated urban investment bonds. In the heavy - positioned urban investment bonds of bond - type funds in the second quarter of 2025, the proportions of AAA, AA +, AA, and below - AA urban investment bonds were 61.30%, 29.45%, 8.91%, and 0.34% respectively [102]. - In terms of regions, at the end of the second quarter of 2025, the heavy - positioned urban investment bonds of bond - type funds were still mainly from Zhejiang, Shandong, and Jiangsu. Notably, in the second quarter, the position - holding ratios of bond funds in regions such as Guangdong and Guangxi Zhuang Autonomous Region increased quarter - on - quarter, while the position - holding ratios in regions such as Hunan and Henan decreased quarter - on - quarter [105][106]. 4. Analysis of Fund Leverage and Duration: Both Leverage Ratio and Duration Increase - In the second quarter, the leverage ratios of medium - and long - term pure - bond funds, first - tier bond funds, and second - tier bond funds increased. The leverage ratios of medium - and long - term pure - bond funds, first - tier bond funds, and second - tier bond funds were 120.20%, 116.61%, and 113.83% respectively, increasing by 2.58 pct, 3.29 pct, and 1.73 pct respectively compared with the first quarter of 2025 [110]. - In the second quarter, the durations of medium - and long - term pure - bond funds, first - tier bond funds, and second - tier bond funds increased. The durations of medium - and long - term pure - bond funds, first - tier bond funds, and second - tier bond funds were 3.76 years, 4.07 years, and 3.83 years respectively, increasing by 0.79 years, 1.19 years, and 0.93 years respectively compared with the first quarter of 2025 [110]. 5. Fund Performance Analysis: The Performance of Equity - Containing Products Rebounded More - In the second quarter of 2025, the median quarterly returns of various funds were ranked as follows: stock - type funds (1.59%) > hybrid funds (1.18%) > second - tier bond funds (1.15%) > ChinaBond Treasury Bond Total Full - Price Index (1.11%) > first - tier bond funds (1.08%) > medium - and long - term pure - bond funds (0.99%) > short - term pure - bond funds (0.67%) > ChinaBond CDB Bond Total Full - Price Index (0.41%) > money - market funds (0.33%) [113]. - Although the performance of hybrid funds was good, the scale declined. The main reasons are that the return gap between hybrid funds and second - tier bond funds is not obvious, and the risk level is higher; and the return of hybrid funds is lower than that of stock - type funds, and the recovery of risk appetite drives the scale of stock - type funds to rise, thus suppressing the hybrid funds [113].