Core Viewpoint - The article discusses the challenges faced by investment firms in managing liquidity and funding new projects when capital is tied up in existing investments, and explores potential solutions such as acquiring invested companies and utilizing new financial instruments like science and technology bonds to alleviate funding difficulties [1][10]. Group 1: Liquidity Challenges - Investment firms are experiencing a liquidity crunch as funds are locked in existing projects, making it difficult to invest in new opportunities [1][7]. - The low interest rates on bank loans present a potential solution, but banks prefer tangible assets over equity stakes in invested companies [1][2]. Group 2: Proposed Solutions - One suggested approach is for investment firms to acquire their invested companies, allowing these companies to take loans and return funds to the investment firm [2][3]. - Another strategy involves leveraging state-owned limited partners (LPs) to acquire invested companies, enhancing their creditworthiness and enabling them to issue bonds for funding [3][10]. Group 3: Risk Management - The article highlights the importance of negotiating "contingent agreements" or "drawer agreements" to protect the investment firm's interests, ensuring that if other shareholders have similar agreements, the firm can benefit from the same terms [4][5]. - Continuous monitoring of invested companies' performance is crucial to identify potential triggers for these agreements and act accordingly [3][4]. Group 4: Regulatory Changes - The introduction of science and technology bonds allows investment firms to issue bonds directly, simplifying the fundraising process and reducing reliance on complex and potentially unethical maneuvers [10][11][12]. - This regulatory change is seen as a positive development, instilling greater confidence in the industry and motivating firms to pursue legitimate funding avenues [12].

Report Industry Investment Rating No relevant content provided. Core Viewpoints - In the week from July 21 - 25, 2025, the bond market adjusted. The net value of benchmark market - making credit bond ETFs and science - innovation bond ETFs declined significantly, and the overall net subscription of science - innovation bonds was 5.56 billion yuan. Institutions may have redeemed ETF shares to cope with liquidity shocks [4]. - After the adjustment, some science - innovation bonds have fallen to a point where they offer value. For allocation portfolios, some exchange - traded science - innovation bonds with a remaining term of 4 - 5 years are worth considering; for trading portfolios, short - term index component science - innovation bonds are more attractive [4]. - The science - innovation bond ETF is expected to expand further. After the adjustment, index component science - innovation bonds with a widening relative spread have certain value, and investors can participate at the current adjusted points and wait for the spread to recover [46]. Summary by Directory I. First Batch of Science - Innovation Bond ETFs Expanded Rapidly in One Week after Listing - On July 17, 2025, 10 science - innovation bond ETFs were listed. By July 25, the total scale exceeded 100 billion yuan, with a growth rate of over 250% [15]. - The 10 products were all raised on July 7, 2025, and the total raised scale was about 29 billion yuan, indicating strong market demand [15]. - There are differences in product elements such as redemption methods, product durations, and component bond capacities among these 10 science - innovation bond ETFs [20]. II. Index Component Bonds of Science - Innovation Bond ETFs Led the Decline in this Adjustment - In terms of net value fluctuations, the net value of benchmark market - making credit bond ETFs and science - innovation bond ETFs declined by about 0.3% in a week [29]. - In terms of subscription and redemption data, the overall net subscription of science - innovation bonds was 5.56 billion yuan, while short - term financing ETFs and benchmark market - making credit bond ETFs with good liquidity were more affected by redemptions, suggesting that institutions may have redeemed shares for liquidity reasons [4]. - In terms of the performance of underlying component bonds, science - innovation bond index component bonds had a faster adjustment speed and a larger adjustment range. Exchange - traded non - science - innovation index component science - innovation bonds and inter - bank science - innovation bonds were relatively more resilient [35]. III. Which Science - Innovation Bonds Have Fallen to an Attractive Level? - After the adjustment, the overall yield of science - innovation bonds increased, and the inversion between the average valuation of short - term component bonds and the 1 - year AAA certificate of deposit yield improved significantly. However, the yields of 1 - year - below and 1 - 2 - year science - innovation bond index component bonds of AAA grade were still 1 - 2 BP lower than the 1 - year AAA certificate of deposit yield [39]. - The relative spread between exchange - traded and inter - bank science - innovation bonds of the same issuer showed differentiation. Index component science - innovation bonds with a widening relative spread have certain value, and investors can participate at the current adjusted points [44]. - For allocation portfolios, some exchange - traded science - innovation bonds with a remaining term of 4 - 5 years are worth considering due to the relatively large increase in valuation compared to their inter - bank counterparts and the attractive static coupon income [46]. - For trading portfolios, it is more advisable to focus on 1 - 2 - year index component science - innovation bonds that have adjusted significantly, have a large outstanding scale, and a valuation higher than 1.67% [49].

1. Report Industry Investment Rating The provided content does not mention the industry investment rating. 2. Core Viewpoints of the Report - The new - listed sci - tech bond ETF is expected to take over the outstanding performance of credit bond ETFs. In the short term, sentiment support may drive the sci - tech bond ETF to outperform credit bond ETFs; in the long term, it has the characteristics of controllable risks and stable returns [7]. - In the current interest - rate environment, bond - type assets still play a "ballast" role in the asset portfolio, and credit bonds are the preferred choice for bond - type asset allocation. Sci - tech bonds are the "new hot spot" among credit bond assets [30]. - The sci - tech bond ETF has a certain industry linkage with the equity market and is suitable for long - term investors expecting small asset fluctuations and stable returns [36]. 3. Summary According to Relevant Catalogs 3.1 Sci - tech Bond ETF Value Analysis - The tracking index of the GF Sci - tech Bond ETF includes high - quality sci - tech bonds listed on the Shanghai Stock Exchange, covering industries of high importance and strong stability. The index calculation method is the total market - value weighted method, with a monthly sample - adjustment cycle [4][18]. - The Shanghai AAA Sci - tech Corporate Bond Index has good offensive performance in a bond bull market. Since 2023, its cumulative return is 14.78%, and the annualized return rate is 4.68%, similar to the yields of mainstream credit indexes in the market [20]. - In the current low - inflation environment, the real yield of fixed - income assets has increased since 2024. Bond - type assets are the main part of fixed - income assets in the investment portfolio, and credit bonds are the preferred choice for bond - type asset allocation [30]. - Sci - tech bonds are the "new hot spot" among credit bond assets. The central bank's creation of the "sci - tech innovation bond risk - sharing tool" has created a good investment environment for sci - tech bonds [31]. 3.2 Information Introduction of GF Sci - tech Bond ETF (511120) 3.2.1 Product Basic Situation Introduction - The GF Sci - tech Bond ETF was established on July 10, 2025, and officially listed for trading on July 17, 2025. The product's issuance and fundraising scale reached 2.968 billion yuan, and after listing, the scale increased to 5.662 billion yuan, with an increase rate of 90.73%. The average daily trading volume is about 2.738 billion yuan, and the turnover rate is 48.35% [37]. - The product has a management fee of 0.15% and a custody fee of 0.05%, which has an advantage over traditional active bond funds [37]. - It uses a physical subscription and redemption mechanism. The income distribution adopts the cash - dividend method, with no mandatory dividend commitment [37][41]. 3.2.2 Characteristics Introduction of Shanghai AAA Sci - tech Bond Index - It is expected to be included in the pledge library, with a potentially higher pledge discount coefficient than the Shanghai Market - Making Corporate Bond Index [42]. - It belongs to the medium - duration index, more offensive in a bull market compared to short - term financing ETFs and urban investment bond ETFs [42]. - The underlying bonds are for supporting the development of the sci - tech innovation field, with clear capital uses [42]. - It has a relatively high credit level, and its sample bond stock scale exceeds 970 billion yuan, with a larger strategic capacity [42][43]. 3.2.3 Applicable Scenarios of GF Sci - tech Bond ETF - From a long - term investment perspective, it is suitable for credit - bond allocation enhancement strategies in a low - interest - rate environment and can replace corporate bonds and active bond funds [44]. - From a short - term investment perspective, it can be applied to investment strategies such as spread trading, arbitrage trading, and credit short - selling [44]. 3.3 Comparison with Mainstream Bond ETF Products - The GF Sci - tech Bond ETF has a more neutral duration. It is more suitable for obtaining richer returns in a declining interest - rate environment compared to short - duration products and can better control the retracement range compared to long - duration products [45]. - The tracking index of the GF Sci - tech Bond ETF has advantages such as a large number of issuers, a large market capacity, and high single - bond balances, which are conducive to risk dispersion, strategy reserve, and bond - replenishment operations [7][48].

1. Report Industry Investment Rating No information provided. 2. Core Views of the Report - The science - innovation bonds still have relative value, especially the inter - bank science - innovation bonds. The scale of science - innovation bond funds is expected to have significant room for improvement, and the total scale of science - innovation bond ETFs focusing on high - grade corporate bonds may reach 139.4 billion yuan this year. The current valuation of science - innovation bonds is not expensive, and the inter - bank science - innovation medium - term notes are relatively more recommended [3][4]. - The premium and discount of science - innovation bond ETFs will bring redemption and arbitrage opportunities. When the premium or discount amplitude exceeds 0.245%, there may be certain arbitrage space. In the short - term rapid bear market of credit bonds, ETFs are expected to be better bottom - fishing tools [4]. 3. Summary by Related Catalogs 3.1 Features and Yield Levels of Science - Innovation Bond ETFs - The first batch of science - innovation bond ETFs have made the yield of component bonds about 7BP lower than that of ordinary corporate bonds on average. These ETFs are an important tool for regulators to support science - innovation bonds this year. With their establishment and the increase in shares, they directly benefit the performance of component bonds and indirectly benefit other exchange - listed bonds of the same issuer. The component bonds of the science - innovation bond index tracked by the first batch of science - innovation bond ETFs are all high - grade public - offering science - innovation corporate bonds listed on the exchange, so these bonds have performed well recently [4][6]. - As of July 15, the component bonds of the benchmark market - making credit bond index were 6.1BP lower than ordinary corporate bonds, the component bonds of the science - innovation bond index were 7BP lower than ordinary corporate bonds, and the general corporate bonds that were component bonds of both indexes were 12.2BP lower than ordinary corporate bonds [4]. 3.2 Comparison of Different Indexes and Bonds - There is a large overlap in the underlying bonds of the first batch of science - innovation bond ETFs and the first batch of benchmark market - making credit bond ETFs. There are about 254 bonds included in both the AAA benchmark market - making credit bond index and the three AAA science - innovation bond indexes, with a total scale of 527.7 billion yuan, accounting for about 50% of the total scale of both indexes [7]. - The yield of science - innovation bond index component bonds is significantly lower than that of non - component corporate bonds, and the yield of science - innovation bonds that are component bonds of both types of indexes is even lower. Also, the yield of science - innovation bond index component bonds is lower than that of the same - issuer science - innovation medium - term notes [12]. 3.3 Investment Value of Science - Innovation Bonds - From the perspective of physical bonds, science - innovation bonds still have relative value, and investors are advised to pay more attention to inter - bank science - innovation bonds. The scale of science - innovation bond funds is expected to continue to rise. The current interest rate of science - innovation bonds is slightly higher than that of green bonds, so science - innovation bonds are expected to outperform other bonds in the future [15]. - The yield of science - innovation medium - term notes significantly exceeds that of science - innovation corporate bonds, and as science - innovation bond funds are expected to include inter - bank science - innovation bonds in their investment scope, inter - bank science - innovation bonds may outperform exchange - listed science - innovation bonds in the future [18]. 3.4 Investment Opportunities of Science - Innovation Bond ETFs - The premium and discount of science - innovation bond ETFs will bring two types of investment opportunities at the ETF level: redemption and arbitrage, and discount regression trading. The redemption and arbitrage cost is about 0.245%, so when the premium or discount amplitude of science - innovation bond ETFs exceeds 0.245%, there may be certain arbitrage space. The first batch of science - innovation bond ETFs had a small premium and discount amplitude on the listing day, so it is expected to be difficult to realize arbitrage for the time being [19][22]. - In the short - term rapid bear market of credit bonds, ETFs are expected to be better bottom - fishing tools. It is recommended that investors participate in bottom - fishing opportunities on the right side [4].

- The quantitative model discussed is the "Shanghai AAA Technology Innovation Corporate Bond Index" (950167.CSI), which is tracked by the "Guangfa AAA Technology Innovation Corporate Bond ETF (511120)"[11][40][44] - The model construction is based on selecting high-credit-quality corporate bonds from technology innovation companies listed on the Shanghai Stock Exchange, with a focus on "AAA-rated entities and AA+ implicit ratings"[11][40][44] - The model uses a market capitalization-weighted approach for index calculation. Monthly sample adjustments ensure dynamic optimization of the maturity structure, balancing interest rate fluctuation space and portfolio stability. The index includes 686 bonds as of July 15, 2025, with a dispersed weight distribution where the top 10 bonds account for only 5.5% of the total market value[11][40][44] - Evaluation of the model highlights its strict selection criteria, ensuring high credit quality and low default risk. It also demonstrates strong performance in terms of yield and stability, making it suitable for defensive and growth-oriented investment strategies[11][40][44] - Testing results show the index achieved a cumulative growth of 14.75% and an annualized return of 4.76% from its base date on June 30, 2022, to July 18, 2025. This significantly outperformed the Wind Medium-Long-Term Pure Bond Index, which had a cumulative growth of 10.04% and an annualized return of 3.29% during the same period[5][44][49] - The ETF tracking the index, Guangfa AAA Technology Innovation Corporate Bond ETF (511120), offers advantages such as T+0 trading, low fees (0.20% annual management and custody fees), and real-time price transparency, providing a "stock-like" bond investment experience[34][39][40] - The ETF's yield analysis shows a 100% positive return rate for both 6-month and 1-year holding periods, with average returns of 2.3% and 5.02%, respectively, and maximum returns of 4.22% and 6.74%[45][47][49] - The ETF's annualized yield of 4.69% surpasses benchmarks like the Wind Pure Bond Index (3.17%) and the ChinaBond Total Wealth 1-3 Year Index (2.87%), with an information ratio of 2.11 and 2.19 against these indices, respectively, indicating superior risk-adjusted performance[49][50][51]

Group 1 - The core viewpoint is that the market for science and technology innovation bonds (科创债) in China has surpassed 2.2 trillion yuan by 2025, with a continuous increase in the proportion of high-quality innovation enterprises [1][2] - The ETF (Exchange-Traded Fund) market is seen as a crucial tool for asset allocation and economic development, with significant growth potential as capital market reforms progress [2][3] - The focus of the market this year is on obtaining trading profits, with ETFs providing a natural trading advantage due to their high liquidity [3][4] Group 2 - Insurance capital is in the early stages of engaging with bond ETFs, particularly credit bond ETFs, and is expected to increase its allocation as product variety and liquidity improve [4][5] - The introduction of the science and technology innovation bond ETF is viewed as an important innovation in capital market products, promoting technological innovation and optimizing market structure [2][3] - The dual fund manager model adopted by Penghua Fund for its science and technology innovation bond ETF aims to enhance asset allocation and operational management, supporting product scale growth [5]

Core Viewpoint - The China Securities Regulatory Commission (CSRC) announced the acceleration of the launch of Sci-Tech Innovation Bond ETFs, with the first batch approved on July 2, 2025, marking a significant development in the domestic market for these financial instruments [1][5]. Group 1: Sci-Tech Innovation Bonds - Sci-Tech Innovation Bonds are designed to provide funding support specifically for technology innovation enterprises, distinguishing them from general credit bonds [1]. - As of June 20, 2025, the index for these bonds includes 792 samples with a total market value of 10,247 billion, a duration of 3.88 years, and over 70% of the components rated AAA, indicating strong credit quality [1][2]. - The funds raised through these bonds are primarily directed towards cutting-edge sectors such as semiconductors, artificial intelligence, new energy, and high-end manufacturing, aligning with national technology innovation strategies [4]. Group 2: Performance and Market Dynamics - The annualized return of the CSI AAA Sci-Tech Innovation Bond Index from its inception on June 30, 2022, to June 20, 2025, is 4.64%, outperforming other major credit bond indices during the same period [2]. - By the end of May 2025, the total outstanding amount of Sci-Tech Innovation Bonds reached 24.5 trillion, reflecting a 40% increase from the previous year, highlighting their role as a key driver in the expansion of the credit bond market [5]. - The first batch of Sci-Tech Innovation Bond ETFs raised nearly 30 billion in just one day, demonstrating strong investor interest and market enthusiasm [5]. Group 3: Future Outlook - Industry experts predict that the market for Sci-Tech Innovation Bonds will continue to expand under favorable policy conditions, with the first batch of ETFs potentially reaching a total scale of 300 billion to 500 billion [6]. - The majority of issuers for these bonds are state-owned enterprises, central enterprises, or high-quality private enterprises, which, along with local government guarantees, contribute to a relatively low default risk [6].

Core Viewpoint - The launch of the Science and Technology Innovation Bond ETF (科创债ETF) by Huaxia (551550) marks a significant development in the bond market, providing investors with a new tool to access the growth of technology innovation companies while enhancing market liquidity and trading activity [1][3][11]. Group 1: Product Overview - The Science and Technology Innovation Bond ETF is designed to track the China Securities AAA Technology Innovation Company Bond Index, which includes bonds from companies with a focus on technological innovation [3][5]. - The ETF has a total scale of 141 billion yuan, with a net inflow of 111 billion yuan on its first trading day, indicating strong market interest and demand [1][11]. - The ETF features low investment thresholds, T+0 trading flexibility, and a low fee rate of 0.2% per year, making it an attractive option for investors [1][3]. Group 2: Market Context - As of May 2025, the total scale of science and technology innovation bonds reached 2.45 trillion yuan, reflecting a 40% year-on-year growth, positioning them as a key driver in the credit bond market [8]. - The issuance of the first batch of science and technology innovation bond ETFs was completed in just one day, raising nearly 30 billion yuan, highlighting the high demand and enthusiasm from institutional investors [10][11]. - The bond market is experiencing a significant expansion, with the total scale of bond ETFs surpassing 4 trillion yuan, indicating a growing interest in fixed-income investment products [11]. Group 3: Investment Characteristics - The underlying bonds in the index are primarily rated AAA, with over 70% of the components having high credit quality, which enhances the investment value in a low-interest-rate environment [4][5]. - The index has shown an annualized return of 4.64% since its inception, outperforming other major credit bond indices during the same period [5][14]. - The science and technology innovation bonds are primarily directed towards sectors such as semiconductors, artificial intelligence, and renewable energy, aligning with national strategies for technological advancement [7][10].

Group 1 - The first batch of 10 Sci-Tech Bond ETFs was collectively listed on July 17, with a total trading volume exceeding 800 billion yuan on the first day, indicating strong market interest and recognition of investment value [1][8][10] - All 10 ETFs achieved positive returns on their first trading day, with price increases ranging from 0.07% to 0.17%, showcasing overall stability despite noticeable differentiation among products [4][5][6] - The rapid process from approval to listing took only one month, with the products being fully subscribed on the first day of issuance, raising a total of 29 billion yuan [7][10] Group 2 - The trading volume of the 10 ETFs on the first day reached 809.12 billion yuan, attracting significant market attention and indicating a potential for continued liquidity and activity [8][9] - The ETFs are designed to meet investor needs efficiently, utilizing a T+0 trading mechanism, physical subscription and redemption model, and market maker pricing system [8][12] - Institutional investors are becoming the main force in allocation, while individual investors are also showing high enthusiasm, reflecting a diverse investor structure that supports future liquidity [8][14] Group 3 - The investment opportunities in Sci-Tech Bond ETFs are viewed positively, with annualized returns of over 4% for the indices they track, which is slightly higher than short-term pure bond fund indices [11][14] - The comprehensive fee rate for the Sci-Tech Bond ETFs is low at 0.2%, which includes a management fee of 0.15% and a custody fee of 0.05% [12] - The ETFs are suitable for medium-term allocation, providing a stable investment tool that can effectively match medium to long-term funding needs [13][14]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The issuance of the first batch of Sci - tech Innovation Bond ETFs has landed, empowering the continuous expansion of the Sci - tech Innovation Bond market. As of July 15, 2025, 10 Sci - tech Innovation Bond ETFs have raised a total of 28.988 billion yuan, accounting for about 96.63% of the planned fundraising scale cap [1][13]. - Through the analysis of the underlying component bonds of the tracking indices of Sci - tech Innovation Bond ETFs, it is found that there are differences in the term structure, issuer structure, coupon rate, and yield distribution among the three major indices, and the excess spread of Sci - tech Innovation Bonds varies due to the issuer's qualifications [1]. - The issuance of Sci - tech Innovation Bond ETFs will increase the allocation demand for Sci - tech Innovation Bonds, improve market liquidity, and attract medium - and long - term funds into the Sci - tech Innovation Bond market [1][8]. 3. Summary by Relevant Catalogs 3.1 First Batch of Sci - tech Innovation Bond ETFs Issued, Empowering the Continuous Expansion of the Sci - tech Innovation Bond Market - On June 18, 2025, the first batch of 10 Sci - tech Innovation Bond ETFs were submitted collectively, approved on July 2, and scheduled for issuance on July 7. Among them, 6 products track the CSI AAA Sci - tech Innovation Corporate Bond Index, 3 track the SSE AAA Sci - tech Innovation Corporate Bond Index, and 1 tracks the SZSE AAA Sci - tech Innovation Corporate Bond Index [1][13]. - As of July 15, 2025, these 10 ETFs raised a total of 28.988 billion yuan, accounting for about 96.63% of the planned fundraising scale cap [1][13]. 3.2 Analysis of the Component Bond Structure of the Tracking Indices of Sci - tech Innovation Bond ETFs - **Component Bond Quantity and Scale**: As of July 4, 2025, the number of component bonds of the CSI, SSE, and SZSE AAA Sci - tech Innovation Corporate Bond Indices was 825, 678, and 146 respectively, with outstanding scales of 107.4735 billion yuan, 93.0605 billion yuan, and 14.183 billion yuan respectively [1][16]. - **Remaining Term Structure**: The remaining term structures of the three indices are basically the same, mainly short - and medium - term within 5 years. The Shenzhen index has a relatively lower component bond term center, and the term distribution of the index component bonds is consistent with that of the existing Sci - tech Innovation Corporate Bonds [1][17]. - **Issuer Structure**: The issuers of the component bonds of the three indices are all AAA - rated with high credit quality, mainly central and local state - owned enterprises. The Shenzhen index has a more diverse issuer structure in terms of enterprise nature and industry distribution [1][22]. - **Coupon Rate Distribution**: The coupon rates of the component bonds of the three indices are mainly concentrated in the 2 - 2.5% range. The coupon rate center of the Shenzhen index has shifted upward [1][26]. - **Yield Distribution**: The yield distribution of the CSI and SSE indices is more balanced, while the yield of the Shenzhen index shows significant polarization [1][28]. - **Excess Spread**: The excess spread of perpetual and non - perpetual Sci - tech Innovation Bonds of the top ten issuers by market value in the index component bonds is between - 2.45 and 23.94BP and between - 7.78 and 32.97BP respectively. The compression space of the excess spread of the Shenzhen index is relatively large [1][29]. 3.3 Impact of the Issuance of Sci - tech Innovation Bond ETFs on the Sci - tech Innovation Bond Market - **Increase Allocation Demand for Sci - tech Innovation Bonds**: Sci - tech Innovation Bond ETFs have advantages such as low fees, high position transparency, and efficient trading mechanisms. With the issuance of the first batch of ETFs, the scale is expected to continue growing, bringing about allocation demand for component bonds. The market of Sci - tech Innovation Corporate Bonds may have started [1][34][35]. - **Improve Market Liquidity of Sci - tech Innovation Bonds**: The launch of ETFs will strengthen the market liquidity of Sci - tech Innovation Corporate Bonds, facilitate investors' participation, compress liquidity premiums, and improve pricing efficiency [1][8][38]. - **Attract Medium - and Long - Term Funds into the Sci - tech Innovation Bond Market**: The launch of Sci - tech Innovation Bond ETFs can match the allocation needs of institutional investors such as social security funds, pensions, and insurance funds, attracting medium - and long - term funds into the market [8][43].