Group 1 - The core viewpoint emphasizes the development of science and technology innovation bonds (科创债) and the introduction of related ETFs to enhance investment in technology innovation sectors [1][2] - The China Securities Regulatory Commission (CSRC) plans to accelerate the launch of science and technology innovation bond ETFs, with six initial products reported on the Shanghai Stock Exchange [1] - Since the pilot program began in 2021, the issuance of science and technology innovation bonds has rapidly increased, with a total of 1,273 bonds and a market balance exceeding 1.3 trillion yuan [1] Group 2 - The introduction of science and technology innovation bond ETFs is expected to guide social funds towards key technology innovation areas, supporting the high-quality development of tech companies [1] - The bond ETF market on the Shanghai Stock Exchange has seen significant growth, with 20 products and a total scale of 274.7 billion yuan, which is over five times the scale at the beginning of 2024 [1] - The Shanghai Stock Exchange has also launched four benchmark corporate bond ETFs this year, with a total scale exceeding 56 billion yuan, indicating a focus on high-grade credit bond ETFs [2]

Macro Strategy - The report indicates a cautious outlook on the "loan off-season" and emphasizes the observation of the effects of monetary easing, with May to June being a critical period for assessing the impact of incremental policies [1][6][7] - Financial data from April shows an increase in social financing scale, with new social financing of 16.34 trillion yuan, a year-on-year increase of 3.61 trillion yuan, and a recovery in the growth rate of social financing stock to 8.7% [6][7] - The report highlights that the weighted average interest rate for new loans in April was approximately 3.2%, which is about 50 basis points lower than the same period last year, indicating a continued low-interest environment [6][7] Fixed Income - The report discusses the current state of China's sci-tech bond market, noting that it is in its early development stage compared to overseas markets, characterized by a smaller market size, shorter issuance periods, and higher ratings [2][8] - It forecasts that as the sci-tech bond market matures, there will be rapid growth in market size and a diversification of issuance entities, particularly from high-tech industries, which will better match the long R&D cycles of innovative enterprises [2][11] Industry Analysis - The engineering machinery industry is experiencing a significant upturn, with excavator sales in April increasing by 18% year-on-year, indicating a strong growth trend [3][12] - The report notes that domestic excavator sales reached 49,109 units in the first four months of 2025, a 32% increase year-on-year, driven by factors such as the replacement of aging equipment and improved funding conditions [12][13] - It recommends several companies in the engineering machinery sector, including Sany Heavy Industry, Zoomlion, and LiuGong, as they are expected to benefit from the ongoing upcycle in the industry [3][12] Company Recommendations - The report highlights Beike-W (02423.HK) as a leading player in the domestic real estate brokerage industry, with Q1 2025 revenue of 23.3 billion yuan, a 42.4% year-on-year increase, and adjusted net profit slightly exceeding expectations [4][14] - The company is projected to see continued growth in its second-hand housing business, driven by an increase in transaction volume and market coverage [4][15] - The report maintains profit forecasts for Beike-W for 2025-2027, with adjusted net profits of 9.7 billion, 11.62 billion, and 13.62 billion yuan, respectively, indicating a positive outlook for the company's performance [4][15]

1. Report Industry Investment Rating There is no information provided regarding the report industry investment rating in the given content. 2. Core Viewpoints of the Report - The Chinese science - innovation bond market is in the early stage of development, with characteristics such as small market size, short issuance terms, high ratings, and issuers concentrated in traditional industries. In contrast, the US represents a mature science - innovation bond market [1][5]. - The overall static yield of European and American science - innovation bonds is significantly higher than that of China by about 300BP. The relative return space of European and American science - innovation bonds is more attractive, and the potential capital gains from narrowing spreads are more substantial [4]. - In the future, the Chinese science - innovation bond market may experience rapid growth in market size and move towards the structure of mature overseas markets, such as longer issuance terms, more diversified issuer credit qualifications, and an increase in high - tech and high - tech industry issuers [5]. 3. Summary by Relevant Catalogues 3.1 US Science - Innovation Bond Market Status - **Market Size**: As of May 4, 2025, the outstanding balance of US science - innovation bonds was $257.3116 billion, with 4,462 bonds [11]. - **Bond Maturity**: Medium - and long - term bonds dominated, with bonds over 3 years accounting for 75.97% and a weighted average remaining maturity of about 9.97 years [1][13]. - **Coupon Rate**: The average coupon rate was about 4.48%, mainly in the high - rate range, due to high risks of science - innovation enterprises and long bond terms [1][15]. - **Credit Rating**: The rating distribution was wide, mainly medium - to high - rated, with investment - grade bonds accounting for about 76.90%. The market had a certain tolerance for low - rated bonds [1][16]. - **Issuer Industry**: Issuers were mainly from high - tech industries, and the market supported the financing of high - tech industries [1][18]. - **Comparison with China**: The US market was about 10 times larger than China's. US bonds had longer terms, higher financing costs, more medium - quality bonds, and higher "science and technology content" [1][22]. 3.2 Japanese Science - Innovation Bond Market Status - **Market Size**: As of May 4, 2025, the outstanding balance of Japanese science - innovation bonds was $138.341 billion, with 686 bonds [23]. - **Bond Maturity**: Medium - and short - term bonds were the main types, with bonds within 5 years accounting for 58.14% and a weighted average remaining maturity of about 4.67 years [24]. - **Coupon Rate**: The average coupon rate was about 0.86%, mainly in the low - rate range, due to the low - interest - rate environment in Japan [25]. - **Credit Rating**: Ratings were mainly medium - to high - rated, with no low - rated bonds, indicating high credit requirements for issuers [29]. - **Issuer Industry**: Issuers showed a combination of traditional manufacturing and high - tech industries, with more bonds issued in industries with strong technological and industrial bases [30]. - **Comparison with China**: The Japanese market was about 2/3 the size of China's. Japanese bonds had slightly longer terms, lower financing costs, more medium - quality bonds, and a better balance between traditional and emerging industries in terms of "science and technology content" [32]. 3.3 European Science - Innovation Bond Market Status - **Market Size**: As of May 4, 2025, the outstanding balance of European science - innovation bonds was $105.9911 billion, with 2,192 bonds [35]. - **Bond Maturity**: Maturity distribution was relatively balanced, with a weighted average remaining maturity of about 5.45 years. Medium - and short - term bonds were slightly more common [36]. - **Coupon Rate**: The average coupon rate was about 4.08%, with a wide distribution range, mainly in the medium - to high - rate range [37]. - **Credit Rating**: Ratings were widely distributed, mainly medium - rated, with medium - quality bonds being relatively common [41]. - **Issuer Industry**: Issuers were mainly from European advantageous industries, and bond - issuing purposes included both technological innovation and upgrading [42]. - **Comparison with China**: The European market was about 4.5 times larger than China's. European bonds had more evenly distributed terms, higher financing costs, more low - rated bonds, and higher "science and technology content" [3][46]. 3.4 Comparison of Yield Spaces between Overseas and Domestic Science - Innovation Bonds - **Overall Valuation Yield**: As of April 30, 2025, the valuation yields of US and European science - innovation bonds were 5.43% and 4.62% respectively, while those of China and Japan were 2.07% and 1.25% respectively. The high yields in Europe and the US were due to the overlap with high - yield bond markets and higher benchmark interest rates [4][48]. - **Credit Spread**: The credit spreads of European and American science - innovation bonds were 263BP and 126BP respectively, while that of China was 59BP, indicating more attractive relative returns in Europe and the US [4][48]. - **High - Rating Bonds**: After excluding the impact of credit quality, the yield gap between China's high - rating science - innovation bonds and those in Europe and the US significantly narrowed, indicating that diversified credit qualifications and benchmark interest rates had a significant impact on the secondary - market attractiveness of science - innovation bonds [4]. - **Short - and Medium - Term Bonds**: The yield gaps between China's short - and medium - term science - innovation bonds and those in Europe and the US widened as the duration increased, suggesting that the yield space of China's medium - and long - term science - innovation bonds was affected by economic fundamentals and market supply [4]. 3.5 Development Potential of the Chinese Science - Innovation Bond Market - Compared with overseas markets, the Chinese science - innovation bond market is in the early stage of development. In the future, it may experience rapid growth in market size and move towards a structure similar to that of mature overseas markets, such as longer issuance terms, more diversified issuer credit qualifications, and an increase in high - tech and high - tech industry issuers [5].