1. Report Industry Investment Rating - Not provided in the given content 2. Core View of the Report - As of July 28, 2025, the valuation yields and spreads of private enterprise industrial bonds and real estate bonds in the outstanding credit bonds are generally higher than other varieties. Compared with last week, the yields of non - financial and non - real estate industrial bonds have been adjusted, and the yields of state - owned enterprise private non - perpetual real estate bonds have increased across the board. In the financial bonds, the yields of various financial varieties have basically increased [3][4][13]. 3. Summary by Relevant Catalogs 3.1 Overall Credit Bond Situation - The weighted average valuation yields and spreads of different types of credit bonds (including urban investment bonds, industrial bonds, and financial bonds) are presented, along with their changes compared to last week [13][15][16]. 3.2 Urban Investment Bonds 3.2.1 Public Urban Investment Bonds - The weighted average valuation yields in Jiangsu and Zhejiang provinces are below 2.4%. Yields exceeding 4.5% are found in prefecture - level and district - county - level areas of Guizhou. Higher spreads are also observed in regions such as Guangxi, Yunnan, and Gansu. Compared with last week, the yields of public urban investment bonds have generally increased, with the 2 - 3 - year varieties having a larger adjustment range [3][26]. - Specific varieties with a large increase in yields include 2 - 3 - year Anhui provincial perpetual bonds, 1 - year - within Gansu prefecture - level non - perpetual bonds, 1 - 2 - year Liaoning prefecture - level non - perpetual bonds, and 2 - 3 - year Hainan provincial perpetual urban investment bonds [26]. 3.2.2 Private Urban Investment Bonds - The weighted average valuation yields in coastal provinces such as Shanghai, Zhejiang, Guangdong, and Fujian are below 2.9%. Yields higher than 4% are found in prefecture - level areas of Guizhou. Higher spreads are also present in Shaanxi, Yunnan, Gansu, etc. Compared with last week, the yields of private urban investment bonds have mainly increased. The varieties with a large increase in yields are 3 - 5 - year Guangxi district - county - level non - perpetual bonds, 1 - 2 - year Ningxia prefecture - level non - perpetual bonds, 2 - 3 - year Guizhou district - county - level non - perpetual bonds, and 1 - 2 - year Guangxi provincial non - perpetual urban investment bonds, with increases of 18.8BP, 15.6BP, 14.1BP, and 12.7BP respectively [3][40]. 3.3 Industrial Bonds - The valuation yields and spreads of private enterprise industrial bonds and real estate bonds are generally higher than other varieties. - For non - financial and non - real estate industrial bonds, the yields have been adjusted. The 2 - 3 - year private enterprise public perpetual varieties have a relatively larger increase, with an average increase of 147.5BP. In real estate bonds, the yields of state - owned enterprise private non - perpetual varieties have increased across the board, and the yields of 1 - 2 - year private enterprise public non - perpetual varieties have increased by 11.1BP [4][13]. 3.4 Financial Bonds - Varieties with high valuation yields and spreads include leasing company bonds, urban and rural commercial bank capital supplementary tools, and securities sub - bonds. - Compared with last week, the yields of various financial varieties have basically increased. In leasing bonds, the 1 - 2 - year varieties have a larger increase, with an average of about 10BP. In general commercial financial bonds, the interest rates of each variety have increased, with an amplitude of 4 to 7BP. In secondary perpetual bonds, the increase in the yields of rural commercial bank secondary capital bonds mostly exceeds that of other bank varieties, and the increase in the yields of rural commercial bank secondary bonds within 1 year and 2 - 3 years is greater than 20BP. In addition, in securities company bonds and sub - bonds, the increase in the yields of 3 - 5 - year securities company private non - perpetual sub - bonds exceeds 10BP [5][13].

Core Viewpoint - The public fund's second quarter reports highlight a significant focus on bond fund investment strategies, with many bond funds experiencing growth in both share and asset scale, reflecting a positive outlook for the bond market in the second half of the year [1]. Group 1: Bond Fund Performance - Multiple bond funds have reported substantial increases in total shares, with the Debon Rui Xing Bond Fund reaching 4.462 billion shares, a 65.44% increase from the previous quarter [2]. - The fixed income asset portfolio of the Debon Rui Xing Bond Fund expanded by 49.45% to 6.189 billion yuan, with various asset types showing increased fair value [2]. - Other products, such as the Huian Yongfu 90-day holding period short-term bond fund and Debon short-term bond fund, also saw their total shares double compared to the previous quarter [3]. Group 2: Market Trends and Strategies - The market's increasing demand for coupon-bearing assets indicates a growing recognition of the value of bond assets, as noted by industry experts [4]. - The bond market has experienced fluctuations in interest rates, with the 10-year government bond currently around 1.65%, leading to a more volatile environment [4]. - Fund managers are adopting refined duration management and cautious credit selection strategies to navigate interest rate volatility, adjusting their portfolios dynamically in response to market conditions [4]. Group 3: Future Outlook - Several institutions are optimistic about the bond market in the third quarter, citing supportive fiscal and monetary policies as key factors [6]. - The Debon Rui Xing Bond Fund's report indicates that ongoing domestic demand and fiscal stimulus measures are likely to create a favorable environment for the bond market [6]. - Expectations for monetary policy easing, including potential interest rate cuts, are anticipated to further drive down bond yields in the second half of the year [6].

Summary of Key Points from Conference Call Industry Overview - The focus is on the credit bond market, particularly the investment strategies for credit bonds in the second half of 2025, with an emphasis on high coupon assets due to their scarcity and the current credit cycle's limitations [1][2][3]. Core Insights and Arguments - **High Coupon Assets**: The scarcity of high coupon assets continues, making them a key strategy for credit bond investment. The credit cycle is unlikely to expand in the short term, and the monetary policy has shifted to support the market, leading to a downward trend in interest rates [1][2]. - **Government Bond Supply**: The supply of government bonds has been front-loaded this year compared to last year, which may affect market supply and demand dynamics. The government has relaxed constraints and increased leverage, resulting in a balanced supply curve for government bonds [8][9]. - **Credit ETF Policy**: The introduction of new policies for credit ETFs has enhanced market liquidity and increased demand for credit bond allocations. This allows various institutions to manage their investments more effectively [20][21]. - **High-Yield and City Investment Bonds**: There has been a rapid contraction in high-yield and city investment bonds, with a significant drop from 23 trillion yuan to 7 trillion yuan. Short-duration high-yield and city investment bonds are favored, and institutions are advised to adopt a moderately aggressive allocation strategy [5][23]. - **Fund Allocation Challenges**: Broad-based funds face limited allocation space, with a negative growth rate in the mid-to-short-term coupon asset sector. Institutions are encouraged to engage in diagonal trading to navigate this environment [6][22]. Additional Important Insights - **Market Dynamics**: The credit bond market is characterized by a supply-demand imbalance, with high coupon assets remaining scarce despite an increase in overall supply from various bond types [4][16]. - **Investment Strategy Recommendations**: The recommendation is to adopt an aggressive credit strategy, focusing on high-yield and city investment bonds, while being cautious of the overall credit risk environment [22][35]. - **Economic Environment**: The current economic conditions, interest rate trends, and credit risk environment suggest a continued preference for high coupon assets, with expectations of further compression in yield spreads [24][26]. - **Sector-Specific Insights**: The manufacturing sector shows signs of improvement, supported by policies encouraging consumption and equipment upgrades, although sustainability remains uncertain [32]. This summary encapsulates the critical insights and strategies discussed in the conference call, focusing on the credit bond market and its dynamics for the upcoming period.

Core Viewpoint - The investment strategy conference held by Ping An Fund highlighted the importance of embracing interest-bearing assets and participating in wave trading for the second half of 2025, while closely monitoring policy changes and economic data for effective risk management [1][2]. Economic Outlook - The economic fundamentals showed signs of recovery in the first half of 2025, but the internal momentum remains relatively weak. Real estate investment continues to drag, manufacturing investment is weak, and infrastructure investment, while gaining traction, is limited in strength. Consumer spending has rebounded with policy support, but overall growth still needs improvement [1]. - Exports are stable overall, but the growth rate is subject to significant fluctuations. Inflation indicators such as CPI and PPI are weak, reflecting insufficient total demand and low capacity utilization, resulting in limited inflationary pressure [1]. Monetary Policy and Market Environment - The central bank's goals have not yet adjusted, with maintaining growth and structural adjustments as primary objectives. Following the recent cuts in reserve requirements and interest rates, the cost of funds has effectively decreased, and weak credit may lead to continued monetary easing. Additionally, a reduction in deposit rates is anticipated to maintain bank interest margins [1][2]. - The bond market is currently in a favorable environment characterized by stable but weak fundamentals and a prudent monetary policy. The stability of the credit assets in the medium to short term can provide reliable interest income and arbitrage value [2]. Investment Strategy - Investors are encouraged to seize opportunities during market adjustments to accumulate interest income. The long-term assets, while stable, are unlikely to exceed expectations, and external demand pressures are expected to increase in the second half of the year due to export effects [2]. - Active participation in wave trading is recommended, as each market panic adjustment may present gaming value for investors [2].

Core Viewpoint - The credit bond ETF market has experienced unprecedented growth, with total scale surpassing 200 billion yuan, driven by a shift in investor preference towards stable income assets and supported by favorable policies [1][3][6]. Group 1: Market Growth and Scale - As of June 23, the total scale of credit bond ETFs reached 204.68 billion yuan, accounting for approximately 57% of the entire bond ETF market [3]. - The initial launch of eight benchmark market-making products at the beginning of the year laid the foundation for this growth, with their combined initial issuance scale of 21.71 billion yuan now exceeding 10 billion yuan each [3]. - The Huaxia Shanghai Stock Exchange Benchmark Market-Making Corporate Bond ETF has seen its scale grow from 3 billion yuan at the start of the year to over 20 billion yuan, contributing significantly to the overall growth of credit bond ETFs [3]. Group 2: Policy Support and Market Dynamics - Continuous policy support has been a driving force for the development of credit bond ETFs, including the inclusion of these products in the bond general repurchase pledge library [3]. - The announcement of the ability to conduct general pledge-style repurchase transactions for credit bond ETFs led to a significant increase in subscription volume, with the market value of newly listed corporate bond ETFs rising from 39.1 billion yuan to 64.9 billion yuan, a 66% increase [4]. Group 3: Product Characteristics and Investor Demand - Credit bond ETFs are characterized by low volatility, low cost, and high liquidity, making them an attractive option for investors seeking stable income assets in a market characterized by "asset scarcity" [2][5]. - The passive nature of bond funds has gained favor among institutions, leading to an expansion in the scale of credit bond ETFs as they offer a combination of lower risk and relatively stable returns [6]. Group 4: Performance and Cost Advantages - Credit bond ETFs have demonstrated robust long-term return capabilities, often outperforming actively managed credit bond funds in terms of returns while exhibiting lower volatility [8][9]. - The average management fee for credit bond ETFs is approximately 0.165%, with a total cost of around 0.22%, which is lower than the average fees for actively managed credit bond funds [10]. Group 5: Future Outlook and Investment Strategies - The demand for stable income assets is expected to continue rising, and credit bond ETFs are likely to become a preferred choice for more investors, with potential for further growth in scale [10]. - Investors are advised to select credit bond ETFs based on their specific needs, such as liquidity management or credit risk exposure, given the current market's limited variety of these products [11].