Market Overview - The Shanghai Composite Index fell by 0.2%, the CSI 300 decreased by 0.1%, the STAR 50 dropped by 0.5%, the CSI 1000 declined by 1.1%, the ChiNext Index decreased by 1.0%, and the Hang Seng Index fell by 1.2% on Thursday [4] - The best-performing sectors on Thursday were banking (+1%), media (+0.1%), and home appliances (0%), while the worst-performing sectors included beauty care (-2.0%), social services (-1.8%), basic chemicals (-1.7%), environmental protection (-1.5%), and real estate (-1.4%) [4] - The total trading volume in the Shanghai and Shenzhen markets was 1,102.7 billion yuan, with a net inflow of 3.88 billion Hong Kong dollars from southbound funds [4] Important Insights Fixed Income Credit Bonds - The core viewpoint indicates that the main value of sci-tech bonds lies in contributing incremental value to the bond market, with an expected annual issuance close to 1.9 trillion yuan, which alleviates asset scarcity issues [5] - In terms of pricing, sci-tech bonds have an average yield spread of approximately 10 basis points compared to ordinary bonds issued by the same entity, suggesting that the market pricing for sci-tech bonds has not changed due to policy shifts [5] Macroeconomic Analysis - The core viewpoint highlights that the fiscal situation in April 2025 showed improvement, with national public budget revenue increasing by 1.9% year-on-year (compared to 0.3% in March), and public budget expenditure rising by 5.8% year-on-year (compared to 5.7% in March) [6] - The second budget also improved, with government fund budget revenue growth recorded at 8.1%, returning to positive growth [6] - The report suggests that to address potential uncertainties, the central government has reserved sufficient tools and policy space, including the possibility of issuing special government bonds and special bonds [6]