Market Review - The bond yields experienced fluctuations and declined last week (2025.08.04-2025.08.08), with the China Bond Composite Wealth Index (CBA00201) rising by 0.08% and the China Bond Composite Full Price Index (CBA00203) increasing by 0.05%. The yields of government bonds across various maturities decreased, with 1-year, 3-year, 5-year, and 10-year government bond yields changing by -1.71bp, -1.91bp, -2.32bp, and -1.76bp respectively compared to the previous week [15][16]. - The credit bond yields across various maturities and ratings mostly declined, leading to a significant compression of credit spreads. The funding environment remained loose, and the new VAT policy boosted market sentiment towards bonds [15][16]. Market Observation - The US Treasury market stabilized with slight increases in yields. The overall volatility decreased, and the yields of various maturities saw minor upward movements. The market is currently in a wait-and-see mode regarding potential interest rate cuts in September [17]. - The REITs secondary market experienced fluctuations, with a decrease in trading activity. The CSI REITs Total Return Index fell by 0.33% last week, with property rights performing better than operational rights. The market sentiment for REITs has cooled compared to earlier in the year, and trading activity has declined [17]. Public Fund Market Dynamics - On August 7, 2025, Morgan Stanley's Yingyuan Stable Three-Month Holding Period Mixed FOF was officially announced, raising 2.752 billion yuan on its first day, making it the first public FOF of 2025 to achieve "one-day fundraising." This fund adopts a diversified "fixed income +" strategy, limiting equity assets to no more than 30% [18]. - As of August 6, 2025, a total of 37 new public FOFs were established in the market this year, with a total fundraising scale exceeding 33.7 billion yuan, averaging about 910 million yuan per fund, marking a new high since 2023 [18]. Fund Index Performance Tracking - The Money Enhanced Index rose by 0.03% last week, with a cumulative return of 3.91% since inception [19]. - The Short-term Bond Fund Preferred Index increased by 0.06%, with a cumulative return of 4.13% since inception [20]. - The Medium to Long-term Bond Fund Preferred Index rose by 0.02%, with a cumulative return of 6.48% since inception [5]. - The Low Volatility Fixed Income + Fund Preferred Index increased by 0.31%, with a cumulative return of 3.28% since inception [6]. - The Medium Volatility Fixed Income + Fund Preferred Index rose by 0.42%, with a cumulative return of 3.09% since inception [7]. - The High Volatility Fixed Income + Fund Preferred Index increased by 0.61%, with a cumulative return of 4.71% since inception [8]. - The Convertible Bond Fund Preferred Index rose by 1.60%, with a cumulative return of 15.86% since inception [9]. - The QDII Bond Fund Preferred Index increased by 0.38%, with a cumulative return of 8.91% since inception [10]. - The REITs Fund Preferred Index fell by 0.48%, with a cumulative return of 37.50% since inception [11].

Report Industry Investment Rating No relevant content provided. Core View of the Report - Last week (July 21 - July 25, 2025), bond yields oscillated upwards. The ChinaBond Composite Wealth Index (CBA00201) fell 0.39%, and the ChinaBond Composite Full - Price Index (CBA00203) fell 0.44%. Interest - rate bonds and credit bonds across all tenors and ratings saw yield increases, and most credit spreads widened. The bond market adjusted due to the release of negative factors, the US Treasury yield curve flattened, and the secondary market for REITs declined while trading activity picked up [3][10]. - As of July 25, the total scale of 39 bond ETF products in the market exceeded 500 billion yuan, reaching 510.505 billion yuan, a nearly 200% increase from the beginning of the year, with science - innovation bond ETFs as the core growth driver [4]. Summary by Related Catalogs 1. Weekly Market Observation 1.1. Pan - Fixed - Income Market Review and Observation - **Bond Market Review**: Last week, bond yields oscillated upwards. Interest - rate bonds across all tenors declined, with medium - and long - term yields rising significantly more than short - term ones. Credit bond yields across all tenors and ratings increased, and most credit spreads widened. The 1 - year, 3 - year, 5 - year, and 10 - year Treasury yields rose 3.38bp, 6.64bp, 9.14bp, and 7.07bp respectively [3][10]. - **Bond Market Adjustment**: The bond market adjusted due to the release of negative factors. The central bank's net open - market injection was 10.95 billion yuan last week. The money market was tight at first and then loose, with DR007 and R007 rising 14.56bp and 18.65bp respectively. The bond market adjusted significantly due to factors such as improved fundamental expectations, a higher issuance rate of 30 - year special Treasury bonds, and the stock - bond seesaw effect. In the short term, the broad - money direction is unlikely to change, and the money market may be a disturbing factor. The central bank's support means limited liquidity risk, but the stock market may continue to affect the bond market [10][11]. - **US Treasury Yield Curve**: The US Treasury yield curve flattened. At the beginning of the week, yields declined due to risk - aversion, then rebounded as tensions eased. On Thursday, lower - than - expected initial jobless claims data pushed up short - term yields. In the future, the FOMC meeting may keep interest rates unchanged, and strong economic data may further dampen rate - cut expectations. Short - term yields can be traded on the dips, while caution is advised for long - term bonds [12]. - **REITs Market**: The secondary market for REITs declined, but trading activity picked up. The CSI REITs Total Return Index fell 1.56% last week. After the decline in July, the valuations of REITs projects adjusted, and the cash distribution rate increased. Individual bonds in sectors such as consumption and affordable housing have increased cost - effectiveness [13]. 1.2. Public Fund Market Dynamics - As of July 25, the total scale of 39 bond ETF products in the market reached 510.505 billion yuan, a nearly 200% increase from the beginning of the year. Science - innovation bond ETFs were the core growth driver, with the first batch of 10 products reaching over 100 billion yuan in scale in the first week after listing. The bond ETF market has diverse product types, and there is still room for development in terms of supply, product innovation, and investor structure [4][14][15]. 2. Pan - Fixed - Income Fund Index Performance Tracking | Index Classification | This Week | Last Month | YTD | Since Strategy Inception | | --- | --- | --- | --- | --- | | Short - Term Bond Fund Selection | - 0.08% | 0.07% | 0.59% | 4.00% | | Medium - and Long - Term Bond Fund Selection | - 0.30% | - 0.13% | 0.68% | 6.32% | | Low - Volatility Fixed - Income + Fund Selection | - 0.11% | 0.40% | 1.62% | 2.90% | | Medium - Volatility Fixed - Income + Fund Selection | 0.14% | 1.02% | 2.33% | 2.85% | | High - Volatility Fixed - Income + Fund Selection | 0.42% | 1.34% | 4.68% | 4.42% | | Convertible Bond Fund Selection | 2.24% | 4.77% | 11.60% | 15.09% | | QDII Bond Fund Selection | 0.33% | 0.42% | 3.17% | 8.16% | | REITs Fund Selection | - 1.61% | - 3.99% | 26.83% | 35.47% | 2.1. Pure Bond Index Tracking - **Short - Term Bond Fund Selection Index**: Aims at liquidity management, selects 5 funds with stable long - term returns, strict drawdown control, and significant absolute - return capabilities, and uses 50% Short - Term Pure Bond Fund Index + 50% General Money - Market Fund Index as the benchmark [17]. - **Medium - and Long - Term Bond Fund Selection Index**: Aims at stable returns by investing in medium - and long - term pure bond funds, selects 5 funds, adjusts duration and the ratio of credit and interest - rate bond funds according to market conditions [19]. 2.2. Fixed - Income + Index Tracking - **Low - Volatility Fixed - Income + Selection Index**: Has an equity central position of 10%, selects 10 funds with an equity central position of less than 15% in the past three years and recently, and uses 10% CSI 800 Index + 90% ChinaBond New Composite Full - Price Index as the benchmark [24]. - **Medium - Volatility Fixed - Income + Selection Index**: Has an equity central position of 20%, selects 5 funds with an equity central position between 15% - 25% in the past three years and recently [24]. - **High - Volatility Fixed - Income + Selection Index**: Has an equity central position of 30%, selects 5 funds with an equity central position between 25% - 35% in the past three years and recently, and focuses on funds with strong stock - picking ability in the equity segment [27]. 2.3. Convertible Bond Fund Selection Index - Selects bond - type funds with an average convertible - bond investment ratio of at least 60% in the latest period and at least 80% in the past four quarters as the sample space, and selects 5 funds based on an evaluation system [29][33]. 2.4. QDII Bond Fund Selection Index Tracking - Selects 6 QDII bond funds with stable returns and good risk control based on credit and duration [35]. 2.5. REITs Fund Selection Index Tracking - Selects 10 REITs funds with stable operations, reasonable valuations, and certain elasticity based on the underlying asset type [37].

Market Overview - The bond market experienced a slight increase during the week of June 3 to June 6, 2025, with the China Bond Composite Wealth Index (CBA00201) rising by 0.13% and the China Bond Composite Full Price Index (CBA00203) increasing by 0.09% [12] - Interest rates on bonds generally declined, with short-term rates falling more than long-term rates, while credit bond yields primarily decreased, leading to an expansion in credit spreads [12][13] - The People's Bank of China (PBOC) conducted a 1 trillion yuan reverse repurchase operation to support liquidity in the market, indicating a proactive stance towards market conditions [12][13] REITs Market Dynamics - The total market value of China's REITs surpassed 200 billion yuan, reaching 201.99 billion yuan as of June 5, 2025, marking a historical milestone [14][15] - The Shanghai Stock Exchange accounted for 67% of this total, with a market value of 135.2 billion yuan [14] - The performance of the China Securities REITs Total Return Index increased by 1.58% during the week, with operational rights REITs outperforming property rights REITs [14] Public Fund Market Developments - On June 3, 2025, the Shanghai Municipal Development and Reform Commission issued a notice to enhance project reserves for infrastructure REITs, establishing a dynamic reserve library to support quality projects that do not yet meet issuance criteria [16][17] - The notice encourages collaboration with existing REIT platforms and aims to facilitate asset restructuring to inject projects into listed REITs [16][17] - Since March 2, 2025, various local governments have been promoting public REITs development, supported by national policies aimed at expanding the types of underlying assets for REITs [17] Fund Performance Tracking - Short-term bond fund index rose by 0.04% last week, with a cumulative return of 3.83% since inception [19] - Medium to long-term bond fund index increased by 0.10%, achieving a cumulative return of 6.24% [19] - REITs fund index saw a rise of 0.49%, with a remarkable cumulative return of 36.44% since inception [19]

Market Overview - The bond market experienced fluctuations and closed lower during the week of May 26 to May 30, 2025, with the China Bond Comprehensive Wealth Index (CBA00201) remaining flat and the China Bond Comprehensive Full Price Index (CBA00203) declining by 0.08% [2][11] - Interest rates on bonds generally rose, with short-term rates increasing more than long-term rates, specifically, the yields on 1-year, 3-year, 5-year, and 10-year government bonds rose by 1.5 basis points and 0.6 basis points respectively [11][12] Economic Conditions - The funding environment was relatively loose, but the economic fundamentals remained weak, with a slight increase in the R007 rate to 1.70% due to month-end effects [12] - The manufacturing PMI for May rose by 0.5 percentage points to 49.5%, still below the 50% threshold, indicating ongoing weakness in domestic demand despite some recovery in external demand [12][13] Policy and Regulatory Changes - The first batch of nine credit bond ETFs officially launched a general pledge repo business on May 29, 2025, which is expected to enhance financing channels for investors and improve capital efficiency [3][15] - The approval of these ETFs for general pledge repo business is anticipated to facilitate rapid development in the credit bond ETF market [15] REITs Market Dynamics - The REITs market continued to show strong interest, driven by declining bond yields and expectations of economic recovery, with property types like industrial parks and rental housing performing particularly well [14] - Recent approvals for new REITs indicate a significant acceleration in the market, although the high demand may increase the difficulty of new issuances [14] Fund Performance Tracking - Short-term bond fund indices recorded a slight increase of 0.01% last week, while medium to long-term bond fund indices saw a decrease of 0.02% [4][5] - REITs funds outperformed with a weekly increase of 0.90%, accumulating a year-to-date return of 37.79% [10][17]

Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - Last week (2025.05.26 - 2025.05.30), the bond market oscillated and closed lower. The CBA00201 index basically closed flat, while the CBA00203 index closed down 0.08%. Yields of interest - rate bonds generally rose, with short - term yields rising more than long - term ones. Credit bond yields also generally increased, and major credit spreads mainly compressed [3][10]. - The capital market was relatively loose, but the economic fundamentals remained weak. The tariff policy was volatile, putting pressure on US Treasury bonds. The popularity of REITs continued, and assets were accelerating into the market [3]. - On May 29, 2025, the general pledge repurchase business of the first 9 credit bond ETFs was officially launched, which is conducive to the rapid development of the credit bond ETF market [4]. Summary by Directory 1. Weekly Market Observation 1.1. Pan - fixed - income Market Review and Observation - **Bond Market Review**: The bond market oscillated and closed lower last week. Interest - rate bond yields generally rose, and credit bond yields also increased. Major credit spreads mainly compressed. Specifically, from Monday to Wednesday, short - term credit bond yields rose, and long - term ones oscillated. On Thursday and Friday, due to the change in Trump's tariff policy, credit yields fluctuated significantly following interest rates [10]. - **Capital and Economic Fundamentals**: In May, the capital market was generally loose. After the interest rate cut and reserve requirement ratio cut, the monthly central levels of R001 and R007 declined. Affected by the end - of - month effect last week, the central level of R007 rose slightly to 1.70%. The economic fundamentals were still weak. Although the high - frequency data rebounded due to the rush to export after the reciprocal tariff reduction, domestic demand remained weak. The May PMI rebounded seasonally, but the manufacturing PMI was still below 50%. The new export orders in the manufacturing industry rebounded but were still lower than the March data and the first - quarter average. High - frequency data showed an increase in container shipping bookings to the US, which might improve the June fundamentals. However, domestic demand - priced commodities such as rebar, cement, glass, and asphalt saw price declines. The bond market faces both positive and negative factors, and a cautious approach of high - selling and low - buying may be appropriate [11]. - **Tariff Policy and US Treasury Bonds**: Since the reciprocal tariff implementation, US Treasury bonds have experienced two significant declines. In May, after the three major rating agencies downgraded US Treasury bonds, the market re - evaluated US debt risks. Last week, due to stable US economic data and a court ruling, US Treasury bonds rebounded slightly. Currently, the trading focus of US Treasury bonds has shifted back to the US fundamentals. There are risks of disorderly increases in US Treasury bond yields due to fiscal risks and tariff uncertainties. The stable US fundamentals have postponed the expected time of the Fed's interest rate cut, and tariff issues may reduce overseas demand for US Treasury bonds and cause short - term liquidity problems [12]. - **REITs Market**: REITs have both equity and bond characteristics. This year, due to factors such as the decline in bond yields and the expectation of economic recovery, the popularity of REITs has continued, with property - type assets performing better. After the asymmetric interest rate cut, REITs have entered a high - level consolidation phase, but some specific assets still have upward momentum. In the primary market, high - quality assets are entering the market at an accelerated pace. Last week, the expansion of two REITs was approved. Overall, the C - REITs market is in a stage of rapid expansion, but there are risks in the primary and secondary markets [13]. 1.2. Public Fund Market Dynamics - On May 29, 2025, the general pledge repurchase business of the first 9 credit bond ETFs was officially launched, expected to take effect on June 6. This business can broaden financing channels for investors, improve capital efficiency, and promote the development of the credit bond ETF market. Its application scenarios include obtaining liquidity through pledge, quickly switching asset allocation, and increasing returns through leverage [4][15]. 2. Pan - fixed - income Fund Index Performance Tracking | Index Classification | This Week | Last Month | YTD | Since Strategy Launch | | --- | --- | --- | --- | --- | | Short - term Bond Fund Preferred Index | 0.01% | 0.12% | 0.39% | 3.79% | | Medium - and Long - term Bond Fund Preferred Index | - 0.02% | 0.21% | 0.55% | 6.18% | | Low - volatility Fixed - income + Preferred Index | - 0.02% | 0.35% | 0.58% | 1.84% | | Medium - volatility Fixed - income + Preferred Index | - 0.01% | 0.53% | 0.56% | 1.08% | | High - volatility Fixed - income + Preferred Index | - 0.13% | 0.90% | 2.49% | 2.25% | | Convertible Bond Fund Preferred Index | - 0.03% | 1.05% | 3.68% | 6.92% | | QDII Bond Fund Preferred Index | 0.48% | - 0.48% | 2.21% | 7.14% | | REITs Fund Preferred Index | 0.90% | 5.80% | 29.00% | 37.79% | 2.1. Pure Bond Index Tracking - **Short - term Bond Fund Preferred Index**: Aims at liquidity management, pursues a smooth upward curve while controlling drawdowns. It consists of 5 funds with stable long - term returns, strict drawdown control, and significant absolute return capabilities. The performance benchmark is 50% * Short - term Pure Bond Fund Index + 50% * General Money Market Fund Index [17][18]. - **Medium - and Long - term Bond Fund Preferred Index**: Seeks stable returns by investing in medium - and long - term pure bond funds while controlling drawdowns. It aims for excess returns relative to the medium - and long - term bond fund index and a smooth upward net value curve. It selects 5 funds each period, balancing coupon strategies and band operations, and adjusting the duration and the ratio of credit bond funds to interest - rate bond funds according to market conditions [19]. 2.2. Fixed - income + Index Tracking - **Low - volatility Fixed - income + Preferred Index**: The equity center is set at 10%, and 10 funds are selected each period. It focuses on fixed - income + funds with an equity center of less than 15% in the past three years and recently, emphasizing both risk - return ratios and investment experience [23]. - **Medium - volatility Fixed - income + Preferred Index**: The equity center is 20%, and 5 funds are selected each period. It selects fixed - income + funds with an equity center between 15% and 25% in the past three years and recently, aiming for a certain level of performance elasticity while considering risk - return ratios [24]. - **High - volatility Fixed - income + Preferred Index**: The equity center is 30%, and 5 funds are selected each period. It selects fixed - income + funds with an equity center between 25% and 35% in the past three years and recently, focusing on funds with strong stock - picking abilities in the equity part and stable returns in the bond part [28]. 2.3. Convertible Bond Fund Preferred Index It selects 5 convertible bond funds from a sample space of funds with a high proportion of convertible bonds in their bond portfolios. The selection is based on an evaluation system considering factors such as fund performance, fund manager capabilities, and market adaptability [30][31]. 2.4. QDII Bond Fund Preferred Index Tracking It consists of 6 QDII bond funds with stable returns and good risk control, investing in overseas bonds in regions such as the global market, Asia, and emerging markets, including investment - grade and high - yield products [32]. 2.5. REITs Fund Preferred Index Tracking It consists of 10 REITs funds with stable operations, reasonable valuations, and a certain degree of elasticity, based on the types of underlying assets [36].