Report Summary 1. Report Industry Investment Rating No industry investment rating is provided in the report. 2. Core Viewpoints - In the week of 2025.07.14 - 2025.07.18, bond yields fluctuated narrowly, with interest - rate bonds showing differentiated performance across maturities and credit bond yields declining. The equity market strengthened, and the bond market was affected by various factors such as central bank policies, tariff effects, and changes in risk preferences [3]. - The issuance of two digital currency funds by Huaxia Fund (Hong Kong) marks a breakthrough in the application of RMB assets in blockchain finance, and the tokenized currency funds have advantages over traditional ones [4]. 3. Summary by Directory 3.1 Weekly Market Observation 3.1.1 Pan - Fixed - Income Market Review and Observation - **Bond Market Review**: Bond yields fluctuated narrowly. The ChinaBond Composite Wealth Index (CBA00201) rose 0.08%, and the ChinaBond Composite Full - Price Index (CBA00203) rose 0.03%. Interest - rate bonds had differentiated performance, with mid - and short - term yields better than long - term ones. Credit bond yields declined, and credit spreads compressed [10]. - **Market Influencing Factors**: The central bank maintained a stable tax - period capital market, with a net open - market injection of 1261.1 billion yuan. The bond market was affected by factors such as stable fundamentals, under - expected incremental policies, and the stock - bond seesaw effect. The long - term US Treasury yields rose due to tariff concerns, and the REITs secondary market was suppressed by the increasing risk preference in the equity market [11][12][13]. - **Outlook and Suggestions**: The bond market's favorable environment is unlikely to reverse in the short term, but caution is advised due to potential volatility. For US Treasuries, short - term investors should wait for adjustment opportunities, and long - term investors should monitor tariff issues. For REITs, investors who have profited should consider taking profits and stay cautious [11][12][13]. 3.1.2 Public Fund Market Dynamics - Huaxia Fund (Hong Kong) issued the Huaxia US Dollar Digital Currency Fund and the Huaxia RMB Digital Currency Fund. The Huaxia RMB Digital Currency Fund is the world's first tokenized money - market fund denominated in RMB, forming a complete currency - tokenized fund series covering HKD, USD, and RMB [4]. - Tokenized currency funds have advantages over traditional ones in terms of trading time, settlement cycle, and trading channels [15]. 3.2 Pan - Fixed - Income Fund Index Performance Tracking 3.2.1 Pure - Bond Index Tracking - **Short - Term Bond Fund Preferred Index**: Aims at liquidity management, selects 5 funds with stable long - term returns, strict risk control, and significant absolute - return capabilities, and has a performance benchmark of 50% * Short - Term Pure - Bond Fund Index + 50% * Ordinary Money - Market Fund Index [17]. - **Medium - and Long - Term Bond Fund Preferred Index**: Invests in medium - and long - term pure - bond funds, selects 5 funds with both return and risk - control capabilities, and adjusts the duration and the ratio of credit - bond funds and interest - rate bond funds according to market conditions [20]. 3.2.2 Fixed - Income + Index Tracking - **Low - Volatility Fixed - Income + Preferred Index**: Has an equity center of 10%, selects 10 funds with an equity center within 15% in the past three years and recently, and has a performance benchmark of 10% CSI 800 Index + 90% ChinaBond New Composite Full - Price Index (CBA00303.CS) [23]. - **Medium - Volatility Fixed - Income + Preferred Index**: Has an equity center of 20%, selects 5 funds with an equity center between 15% - 25%, and has a performance benchmark of 20% CSI 800 Index + 80% ChinaBond New Composite Full - Price Index (CBA00303.CS) [25]. - **High - Volatility Fixed - Income + Preferred Index**: Has an equity center of 30%, selects 5 funds with an equity center between 25% - 35%, and has a performance benchmark of 30% CSI 800 Index + 70% ChinaBond New Composite Full - Price Index (CBA00303.CS) [27]. 3.2.3 Convertible Bond Fund Preferred Index Selects 5 convertible - bond funds from a sample space based on multiple evaluation criteria, including the fund's long - and short - term returns, risk - adjusted returns, and the fund manager's timing and bond - selection abilities [33]. 3.2.4 QDII Bond Fund Preferred Index Tracking Selects 6 QDII bond funds with stable returns and good risk control, whose underlying assets are overseas bonds covering various regions and types [35]. 3.2.5 REITs Fund Preferred Index Tracking Selects 10 REITs funds with stable operations, reasonable valuations, and certain elasticity, whose underlying assets are mainly high - quality infrastructure projects [37].

Market Overview - The bond market experienced narrow fluctuations last week (July 14-18, 2025), with the China Bond Composite Wealth Index (CBA00201) rising by 0.08% and the China Bond Composite Full Price Index (CBA00203) increasing by 0.03%. Short- to medium-term yields outperformed long-term yields, with 1-year, 3-year, 5-year, and 10-year government bond yields decreasing by 0.55bp, 1.56bp, 1.44bp, and 0.54bp respectively [12][14] - The central bank's liquidity support stabilized the funding environment during the tax period, leading to a strong equity market and fluctuating bond yields. The central bank injected a net of 12,611 billion yuan into the market, with 17,868 billion yuan in injections and 5,257 billion yuan in withdrawals [14] - The long-end U.S. Treasury yields rose due to concerns over inflation driven by tariff issues, while short-end yields remained stable under the expectation of interest rate cuts [15] Public Fund Market Dynamics - Huaxia Fund Management Company (Hong Kong) launched the world's first RMB-denominated tokenized money market fund, marking a significant advancement for RMB assets in the blockchain financial application sector. This fund series includes USD, HKD, and RMB tokenized funds [17][18] - The new fund series adopts a dual distribution model, allowing investors to transact through traditional financial institutions and licensed virtual asset trading platforms [17][19] Fund Performance Tracking - Short-term bond funds rose by 0.05% last week, with a cumulative return of 4.08% since inception [3] - Medium- to long-term bond funds increased by 0.08%, achieving a cumulative return of 6.64% since inception [4] - Low-volatility fixed income plus funds rose by 0.17%, with a cumulative return of 3.01% since inception [5] - Medium-volatility fixed income plus funds increased by 0.36%, with a cumulative return of 2.71% since inception [6] - High-volatility fixed income plus funds also rose by 0.36%, achieving a cumulative return of 3.99% since inception [7] - Convertible bond funds increased by 0.78%, with a cumulative return of 12.56% since inception [8] - QDII bond funds decreased by 0.18%, with a cumulative return of 7.80% since inception [9] - REITs funds rose by 0.35%, achieving a cumulative return of 37.68% since inception [10]