Core Viewpoint - The article emphasizes the attractiveness of the Hong Kong Stock Connect Dividend Low Volatility Index, highlighting its high dividend yield, low volatility, and favorable valuation as a stable investment option in the current market environment [2][13]. Group 1: Dividend Yield and Selection Mechanism - The Hong Kong Stock Connect Dividend Low Volatility Index utilizes a three-year average dividend yield as a core selection criterion, targeting large-cap stocks with a minimum yield of 6%, resulting in a weighted average dividend yield of 6.07% as of July 2025, which is the highest among dividend indices [3][4]. - The index ranks above the Hang Seng High Dividend Index (4.8%) and the A-share Dividend Index (5.2%) in terms of dividend yield [3]. Group 2: Low Volatility and Defensive Strategy - The index features a low annualized volatility of 2.97%, which is 31% lower than the Hang Seng Dividend Index (4.3%), providing a defensive shield against market fluctuations [6]. - During significant market downturns, the ETF associated with this index experienced an average drawdown of only 2.1%, compared to a 5.8% drawdown for the CSI 300 Index [6]. Group 3: Valuation and Sector Allocation - As of Q2 2025, the index's price-to-book (PB) ratio stands at 0.63, indicating a valuation in the lowest 10% historically and nearly 50% lower than similar A-share dividend products [8]. - The index has a high concentration in three sectors: banking (32%), coal (18%), and transportation (14%), which are known for their high dividends and strong defensive characteristics [9]. Group 4: Performance and Policy Support - The index has demonstrated strong performance, with a 10.96% excess return over the Hang Seng Total Return Index in the past three months and a two-year annualized return of 30%, ranking it among the top three in the Hong Kong dividend product category [10]. - Approximately 75% of the index's holdings are in state-owned enterprises, benefiting from recent policy incentives aimed at improving market valuations for high-dividend assets, with 12 companies initiating buyback plans totaling over HKD 20 billion [13].

Core Viewpoint - The investment strategy of Minsheng Jianyin Fund focuses on low volatility and high certainty in bond investments, emphasizing high-grade bonds while avoiding credit digging and sinking [1][2] Group 1: Investment Strategy - The fund manager, Pei Yuxiang, employs a macro tracking approach, strict risk control, and flexible trading strategies to achieve stable investment returns [1][2] - The strategy includes a cautious selection of convertible bonds, only engaging in trades when clear opportunities arise [1][2] - Pei Yuxiang maintains a focus on high-grade bonds, with a low tolerance for volatility and drawdown, and avoids excessive leverage during market fluctuations [2][3] Group 2: Market Outlook - For the second half of the year, the bond market is expected to retain investment value, driven by stable economic trends, policy expectations, and external environments [1][7] - The fund manager believes that despite low absolute yield levels, there remains a configuration opportunity in the bond market due to the relative spread compared to policy rates [6][7] - The anticipated downward trend in bond market yields is expected to continue, with a significant decline projected in the second half of the year [7] Group 3: Research Framework - The solid research framework of the company includes macro, industry, and micro-level analyses to assess credit risks effectively [3][4] - The team emphasizes dynamic adjustments to macro assessments through frequent communication and data validation [4] Group 4: Recent Adjustments - In the second quarter, the management strategy became more aggressive due to a more relaxed funding environment and a shift in the central bank's stance towards the bond market [6] - Adjustments made in late March to early April included increasing duration and leverage in the portfolio [6]

Core Viewpoint - The investment strategy of Minsheng Jianyin Fund focuses on low volatility and high certainty in bond investments, emphasizing high-grade bonds while avoiding credit digging and sinking [1][3] Group 1: Investment Strategy - The fund manager, Pei Yuxiang, employs a macro tracking approach, strict risk control, and flexible trading strategies to achieve stable investment returns [1][3] - Pei's investment style is characterized by a focus on high-grade bonds, with a low tolerance for volatility and drawdown, aiming to control the duration of the bond portfolio [1][2] - The strategy for "fixed income +" involves selective convertible bond investments, only engaging in trades when clear opportunities arise [2][3] Group 2: Market Outlook - Pei believes that bonds still hold investment value due to favorable relative spreads and a downward trend in interest rates, as long as the core factors of economic trends, policy expectations, and external environments remain unchanged [1][5] - The second quarter saw a more aggressive management strategy due to a more relaxed funding environment compared to the first quarter, leading to adjustments in duration and leverage [3][4] Group 3: Risk Management - The team emphasizes communication and early positioning to dynamically adjust macro assessments, especially during periods of market volatility [3][4] - A quantitative model is utilized to assist decision-making, guiding actions for increasing or decreasing positions based on model outputs [3][4] Group 4: Current Market Conditions - Despite a strong performance in the A-share market, Pei assesses that there are still opportunities in the bond market based on relative spreads and future trends [4][5] - The absolute yield levels of bonds may be low, but they still present value compared to policy rates, with a potential spread of about 30 basis points for high-grade short-term credit bonds [4][5]