Core Insights - The report analyzes the current leverage levels in the A-share market by examining the margin financing and securities lending (two-way financing) ratios across major indices, styles, and industries as of October 9, 2025 [1][10]. Group 1: Broad Indices - The top three broad indices with the highest two-way financing ratios are: CSI 1000 (6.47%), CSI 500 (5.66%), and Shenzhen Component Index (4.94%) [2][11]. - The overall two-way financing ratio for all A-shares is 4.62%, which has increased by 0.41 percentage points since June 30, 2025 [2][11]. Group 2: Style Indices - Among the five major style indices, the growth style (5.14%) and financial style (4.72%) have the highest two-way financing ratios [3][13]. - The financial style saw the largest increase in two-way financing ratio, rising by 0.96 percentage points since June 30, 2025 [3][13]. Group 3: Industry Analysis - The top five industries with the highest two-way financing ratios are: Comprehensive Finance (7.94%), Non-Bank Finance (6.51%), Comprehensive (6.30%), Computer (6.05%), and Real Estate (6.01%) [4][15]. - The two-way financing ratio for the emerging financial services sector II is the highest at 8.20%, followed by Multi-Domain Holdings II (7.85%) and Passenger Vehicles II (7.69%) [4][16]. Group 4: Individual Stocks - There are 350 stocks in the A-share market with a two-way financing ratio exceeding 10%, accounting for approximately 6.4% of all A-shares [20][21]. - Among these, 76 stocks have seen their two-way financing ratios increase by more than 5 percentage points since June 30, 2025 [20][21].

Core Viewpoint - The bond market is experiencing fluctuations with a potential strengthening trend in credit bonds as leverage levels may gradually recover due to low funding costs [1][7]. Market Performance - On May 7, the bond market showed weakness, with government bond futures closing down across the board. The 30-year main contract fell by 0.62%, while the 10-year main contract decreased by 0.19% [2]. - The yield on the 10-year government bond increased by 1.25 basis points to 1.7075%, and the 30-year government bond yield rose by 2.7 basis points to 1.89% [2]. Funding Conditions - The central bank conducted a reverse repurchase operation of 1,955 billion yuan at a rate of 1.50%, resulting in a net withdrawal of 3,353 billion yuan for the day [5]. - The Shibor rates for overnight and 7-day terms decreased by 4.5 basis points and 4.6 basis points, respectively, indicating a continued easing of funding conditions [5]. Institutional Insights - Huatai Fixed Income suggests that the bond market may see increased volatility in May and June, with a higher probability of interest rates breaking lower [7]. - Guosheng Fixed Income anticipates a gradual recovery in market leverage, with credit bonds likely to strengthen from the short end [7]. - Huachuang Securities emphasizes the importance of the trend in secondary market repurchase rates, predicting a narrowing of the yield curve as funding rates approach 1.4% [7].