1. Report Industry Investment Rating - No relevant information provided in the report. 2. Core Views of the Report - In the fourth quarter of 2025, the performance of short - term pure bond funds recovered in the volatile market, and the scale increased against the trend. The average net value growth rate of short - term pure bonds in the fourth quarter was 0.48%, and the growth rate recovered compared with the previous quarter [1][22]. - The bond assets of short - term pure bond funds accounted for the highest proportion, but the proportion decreased slightly compared with the previous quarter. The proportion of interest - rate bonds, financial bonds, and policy - based financial bonds in bond assets increased [2][27]. - The fund with the highest return rate was fully allocated to policy - based financial bonds, adopted a defensive strategy, reduced leverage, and maintained a low duration, achieving a net value return of 1.06% in the fourth quarter [2]. 3. Summary According to the Directory 2025 Fourth - Quarter Basic Situation of Short - Term Pure Bond Funds 1. Number of Bond Funds - As of the end of the fourth quarter of 2025, there were 368 short - term pure bond funds issued, accounting for 2.70% of the entire fund market. The issuance in the fourth quarter decreased compared with the same period last year [1][9]. 2. Bond Fund Scale - As of the end of the fourth quarter of 2025, 342 short - term pure bond funds disclosed their quarterly reports. The total assets and net assets were 10,821 billion yuan and 9,668 billion yuan respectively, increasing by 915 billion yuan and 767 billion yuan compared with the previous quarter. The average total assets and net assets were 32 billion yuan and 28 billion yuan respectively, rising by 2 billion yuan compared with the previous quarter [10]. 3. Leverage Ratio - At the end of the fourth quarter of 2025, the average leverage ratio of short - term pure bond funds was 1.12 under the overall method, slightly increasing by 0.01 compared with the previous quarter. Under the average method, it was basically the same as the previous quarter [16]. 4. Net Value Growth Rate - In the fourth quarter of 2025, the single - quarter average net value growth rate of short - term pure bonds was 0.48%, and the growth rate recovered compared with the previous quarter. Among the 342 funds that disclosed performance, 308 had a positive net value growth rate, accounting for 90.1% [22]. 2025 Fourth - Quarter Asset Allocation of Short - Term Pure Bond Funds 1. Large - Category Asset Allocation - As of the end of the fourth quarter of 2025, bond assets accounted for 95.6% of the total assets, with a 0.1% decrease compared with the previous quarter. The proportion of repurchase assets was 2.6%, basically unchanged from the previous quarter. Bank deposits and other assets accounted for 1.3% and 0.5% respectively, with a 0.1% increase and no change respectively compared with the previous quarter [27]. 2. Bond Type Allocation - As of the end of the fourth quarter of 2025, the main bond types held by short - term pure bond funds were interest - rate bonds, financial bonds (excluding policy - based financial bonds), and corporate - issued bonds, accounting for 16.8%, 18.4%, and 61.2% of the total bond assets respectively. Compared with the end of the previous quarter, the proportions of interest - rate bonds, financial bonds, and policy - based financial bonds increased [30]. Analysis of High - Performing Funds in the Fourth Quarter of 2025 - Fund A, which had the highest net value return in the fourth quarter, adopted a low - duration and low - leverage strategy. It reduced the portfolio leverage from about 120% in the third quarter to 104% in the fourth quarter and maintained the duration at about 1.4 years. It was fully allocated to policy - based financial bonds, participated in the band trading of mid - term interest - rate bonds, and achieved a net value growth rate of 1.06% in the fourth quarter [40][45].

Core Viewpoint - The current stock-bond seesaw effect highlights the increasing attractiveness of bond assets, making them a quality defensive allocation in a volatile market [1] Economic Environment - The economy is transitioning between old and new growth drivers, resulting in lower returns for the real economy, which creates a favorable environment for the bond market [1] - Continuous loose monetary policy and reasonable expectations for interest rate cuts next year, along with gradually improving inflation data, support the trend of economic recovery and further bolster the bond market [1] Ten-Year Government Bond ETF Performance - The Ten-Year Government Bond ETF (511260) tracks the Shanghai Stock Exchange 10-Year Government Bond Index, selecting bonds with a remaining maturity of 7 to 10 years listed on the exchange [1] - Since its inception, the ETF has consistently achieved new net asset value highs, with historical performance remaining robust [1] - As of the end of Q2, the one-year return rate reached 5.88%, the three-year return rate was 16.13%, the five-year return rate was 22.41%, and the cumulative return since inception was 36.68% [1] - The ETF has maintained positive annual returns for all seven complete natural years from 2018 to 2024, positioning it as a potential asset allocation tool that can navigate through bull and bear cycles [1]

Domestic News - The National Flood Control and Drought Relief Headquarters has initiated a Level 4 emergency response for flood control in Zhejiang, maintaining a Level 3 emergency response for Guangdong and Guangxi [3] - The Ministry of Finance has allocated 40 million yuan in emergency disaster relief funds to support flood and typhoon response efforts in Hainan, Guangdong, and Guangxi due to the impact of Typhoon "Butterfly" [3] - The first flood of the year in Guangxi, named "Beiliu River No. 1 Flood of 2025," was recorded with water levels reaching 33.00 meters, which is at the warning level [3] - From January to May, China's railway construction saw a fixed asset investment of 242.1 billion yuan, a year-on-year increase of 5.9%, contributing to economic growth [3] - The Fourth China-Africa Economic and Trade Expo reported 176 signed projects with a total value of 11.39 billion USD, marking a 45.8% increase in project numbers and a 10.6% increase in project value compared to the previous session [3] - China's trade with five Central Asian countries has expanded from 312.04 billion yuan in 2013 to 674.15 billion yuan in 2024, representing a growth of 116% with an average annual growth rate of 7.3% [3] - The Chinese bond market is becoming a key focus for foreign public funds, with expectations for bonds to provide stable returns amid economic uncertainties [3] International News - Iran has launched a new round of missile attacks against Israel, which has retaliated by targeting Iranian military and nuclear facilities [5] - U.S. President Trump warned Iran against attacking American targets, stating that the U.S. would respond with full force [5] - The escalating conflict between Israel and Iran has led to concerns about a larger regional conflict, causing significant declines in Middle Eastern stock markets, with Egypt's index dropping by 7.4% and Kuwait's by over 5% [6] - The price of WTI crude oil surged over 6% at the beginning of the week, reaching 76.65 USD per barrel, amid fears that the conflict could disrupt oil supplies in the region [6] - New Zealand announced a trial visa waiver for Chinese citizens holding valid Australian visas starting November 2025, which will last for 12 months [6]