1. Report Industry Investment Rating There is no information provided in the content about the report industry investment rating. 2. Core View of the Report The report indicates that the issuance of science and technology innovation bonds has recovered. In the bond market, science and technology innovation bonds show a pattern of "shrinking volume but strong price". They have an advantage in withstanding market declines, and with the continuous release of policy dividends, the market liquidity of science and technology innovation bonds is expected to further improve. However, it is necessary to be vigilant about the phased impact of ETF fund fluctuations on component bonds [2][3][4]. 3. Summary According to the Directory 3.1 First Part: "Shrinking Volume but Strong Price" of Science and Technology Innovation Bonds 3.1.1 First Sub - part: Primary Issuance Scale and Structure - The supply in the primary market of science and technology innovation bonds has recovered. The new supply scale in the week from March 9 to March 13, 2026, reached 5.755 billion yuan, with the issuance of 1 - 3 - year varieties on the exchange booming. The subscription enthusiasm for science and technology innovation bonds this week exceeded that of non - science and technology innovation credit bonds in the same period, especially for index component bonds, indicating that the market not only recognizes the policy dividends of science and technology innovation bonds but also has a greater demand for high - quality component bonds [2][12]. 3.1.2 Second Sub - part: Secondary Trading Activity and Pricing - **Rating and Industry Distribution**: The ratings of outstanding science and technology innovation bonds are highly concentrated. Bonds with an implied rating of AA+ and above account for 73.7%, and AA - rated medium - quality individual bonds account for 22.1%, reflecting the financing needs of some small and medium - sized science and technology innovation entities. The industry distribution is dominated by traditional industries, with bonds in the construction and decoration, public utilities, and comprehensive industries accounting for 38.2%. The textile and apparel, communication, and non - bank financial industries have an excess spread of more than 16bp compared with the valuation of all credit bonds in the industry [3][20]. - **Liquidity**: In the past two weeks, the weekly trading volume of science and technology innovation bonds has remained stable at around 1,000 transactions, but the turnover rate in the latest week has declined marginally to 1.65%. The continuous outflow of funds from science and technology innovation bond ETFs has suppressed the liquidity of component bonds [3][27]. - **Yield**: This week, science and technology innovation bonds remained strong in terms of pricing. They were still traded at a low valuation, and the performance of short - and medium - term science and technology innovation bonds on the exchange was more stable than that of non - science and technology innovation general credit bonds. The average transaction yield of 1 - 3 - year varieties remained at 1.85%, and the yield of 3 - 5 - year varieties decreased by nearly 4bp compared with the previous week [3][31]. - **Internal Pricing Comparison**: Recently, the spread between index component bonds and non - component bonds of science and technology innovation bonds has narrowed to 19.5bp, and the spread between inter - bank varieties and component bonds has been compressed to 1.4bp. For 1 - 3 - year bonds, there is still a compression space of 19.1bp between inter - bank varieties and index component bonds [4][37].