Group 1 - The Shenzhen Stock Exchange will officially launch the Shenzhen AAA State-Owned Enterprise Credit Bond Index and the Shenzhen AAA Private Enterprise Credit Bond Index on August 15, 2023, reflecting the overall performance of high-grade credit bonds in the Shenzhen market [1] - This initiative responds to the China Securities Regulatory Commission's action plan aimed at promoting high-quality development of index investment in the capital market, which emphasizes the need to enrich bond ETF product offerings to meet low-risk investment demands [1] - Experts believe that the launch of these indices will enhance the bond index system, provide targeted investment references for investors, and promote the rational allocation of market resources [1][4] Group 2 - As of August 13, 2023, a total of 207 bond indices have been released this year, representing a 39.86% increase compared to the same period last year, with credit bond-related indices accounting for over 60% [2] - The rapid expansion of bond ETF products is evident, with 39 bond ETFs currently available, 18 of which were established this year, making up 46.15% of the total [2] - The introduction of new categories of bond ETFs, such as the first batch of benchmark market-making credit bond ETFs and the first batch of Sci-Tech Innovation Bond ETFs, reflects the trend of diversification in bond indices [3] Group 3 - The expansion of bond indices and ETFs injects new momentum into the capital market and supports the high-quality development of the real economy [4] - The increasing variety of bond indices enhances market transparency and efficiency, allowing investors to quickly identify value opportunities and risk areas [4] - The growth of bond ETF products, which have surpassed 528.82 billion yuan in scale, has significantly improved market liquidity and attracted more funds into the bond market [5][6]

Group 1 - Shenzhen Stock Exchange's subsidiary announced the launch of the Shenzhen AAA State-Owned Enterprise Credit Bond Index and the Shenzhen AAA Private Enterprise Credit Bond Index on August 15, aimed at reflecting the performance of high-grade credit bonds in the Shenzhen market [1] - The launch of these indices responds to the China Securities Regulatory Commission's action plan to promote high-quality development of index investment in the capital market, emphasizing the need to enrich bond ETF products to meet low-risk investment demands [1][2] - Experts believe that these indices will enhance the bond index system, provide targeted investment references for investors, and improve the capital market ecosystem, attracting more funds into high-grade credit bonds [1][4] Group 2 - The bond index supply has been continuously optimized, with a total of 207 bond indices launched this year, representing a 39.86% increase compared to the same period last year, with over 60% being credit bond-related indices [2] - The number of bond ETFs has also significantly increased, with 39 bond ETF products available as of August 13, 2023, of which 18 were launched this year, accounting for 46.15% of the total [2][3] - The introduction of new categories of bond ETFs, such as the first market-making credit bond ETF and the first Sci-Tech Innovation bond ETF, broadens investor choices and enhances the role of bond ETFs in serving the real economy [3][4] Group 3 - The expansion of bond indices and ETFs injects new momentum into the capital market and supports the high-quality development of the real economy, making market operations more transparent and efficient [4][5] - The growth of bond ETFs, which surpassed 528.82 billion yuan, demonstrates an accelerated increase in market activity and liquidity, providing diverse financing channels for the real economy [5] - The development of bond ETFs is favored by institutions like bank wealth management, allowing funds to flow more effectively into the real economy amid volatility in equity assets [5]

Report Summary 1. Investment Rating The provided content does not mention the industry investment rating. 2. Core View On July 4, the liquidity was abundant and loose. The yields of the bond market showed a divergent trend, with the medium - and short - end yields continuing to decline and the long - end yields rising slightly. The convertible bond market also showed divergence following the equity market, and most convertible bond issues declined. The 10 - year government bond yields of major European economies also showed a divergent trend [1]. 3. Summary by Directory 3.1 Bond Market News - **Domestic News**: Minister of Finance Lan Fuan attended the 2025 BRICS Finance Ministers and Central Bank Governors Meeting, expressing China's willingness to deepen BRICS financial cooperation. The New Development Bank of BRICS approved Colombia and Uzbekistan as new members. The central bank solicited public opinions on the revised business rules of the RMB Cross - border Payment System. The Shanghai and Shenzhen Stock Exchanges revised the ETF risk management business guidelines, which will take effect on August 1, 2025 [3][4]. - **International News**: Elon Musk announced the establishment of the "American Party" on July 5, aiming to "avoid US bankruptcy" and indicating participation in the 2026 mid - term elections. This marked the breakdown of his political alliance with Trump [6]. - **Commodities**: On July 4, Brent crude oil futures for September delivery fell 0.72% to $68.30 per barrel, with a weekly increase of 2.24%. Spot gold rose 0.33% to $3337.15 per ounce, with a weekly increase of 1.92%. NYMEX natural gas prices fell 0.53% to $3.387 per ounce [7]. 3.2 Liquidity - **Open Market Operations**: On July 4, the central bank conducted 34 billion yuan of 7 - day reverse repurchase operations at a fixed interest rate of 1.40%. With 525.9 billion yuan of reverse repurchases maturing on the same day, the net withdrawal of funds was 491.9 billion yuan [9][10]. - **Funding Rates**: On July 4, the liquidity was abundant and loose, and major repurchase rates continued to decline. DR001 dropped 0.10bp to 1.314%, and DR007 dropped 4.52bp to 1.422%. Various inter - bank lending and repurchase rates also showed downward trends [11][12]. 3.3 Bond Market Dynamics - **Interest - Rate Bonds**: - **Yield Trends**: On July 4, the trends of major inter - bank interest - rate bonds diverged. The medium - and short - end yields continued to decline due to loose liquidity, while the long - end yields rose slightly due to the stock - bond seesaw effect. For example, the yield of the 10 - year treasury bond active bond 250011 rose 0.15bp to 1.6410% [14]. - **Bond Tenders**: Information on the tendering of several bonds such as 25进出清发02, 25附息国债07(续2), and 25附息国债11(续2) was provided, including issuance scale, winning yields, and multiples [16]. - **Credit Bonds**: - **Secondary - Market Transaction Anomalies**: On July 4, the transaction prices of two industrial bonds deviated by more than 10%, with "H1碧地01" falling more than 66% and "H0中骏02" falling more than 19% [16]. - **Credit Bond Events**: Companies such as Sunac China, Fantasia Holdings, Vanke, and Yida China announced matters related to share issuance, debt restructuring, guarantee balances, and loan defaults [17]. - **Convertible Bonds**: - **Equity and Convertible Bond Indices**: On July 4, the three major A - share indices showed different trends, with the Shanghai Composite Index rising 0.32%, and the Shenzhen Component Index and ChiNext Index falling 0.25% and 0.36% respectively. The convertible bond market also showed divergence, with the CSI Convertible Bond Index and Shanghai Convertible Bond Index rising 0.15% and 0.24% respectively, and the Shenzhen Convertible Bond Index falling 0.01%. Most convertible bond issues declined [18]. - **Convertible Bond Tracking**: Some convertible bonds such as Jingao Convertible Bond proposed to lower the conversion price, and some such as Jingduan Convertible Bond announced early redemptions [24]. - **Overseas Bond Markets**: - **US Bond Market**: The US bond market was closed on July 4 due to the Independence Day holiday [21]. - **European Bond Market**: On July 4, the 10 - year government bond yields of major European economies showed a divergent trend. Germany's 10 - year government bond yield dropped 1bp to 2.57%, France's rose 1bp, and those of Italy and the UK remained unchanged, while Spain's dropped 1bp [22]. - **Price Changes of Chinese - Issued US - Dollar Bonds**: The daily price changes of some Chinese - issued US - dollar bonds as of July 4 were provided, including information on credit entities, bond codes, bond balances, and yields [25].

Core Viewpoint - The A500 index shows positive performance with significant gains in constituent stocks, indicating a potential bullish trend in the market [1][4]. Market Performance - As of July 3, 2025, the A500 index increased by 0.29%, with notable gains from stocks such as Changchun High-tech (+9.24%), Pengding Holdings (+7.29%), and Yiling Pharmaceutical (+6.91%) [1]. - The A500 ETF managed by Harvest (159351) rose by 0.40% [1]. Liquidity and Trading Volume - The A500 ETF had a turnover rate of 4.79% and a trading volume of 767 million yuan [3]. - Over the past month, the average daily trading volume for the A500 ETF was 3.017 billion yuan [3]. - In the past week, the A500 ETF's scale increased by 319 million yuan, and its shares grew by 1.299 billion [3]. - In the last five trading days, there were net inflows on three days, totaling 709 million yuan [3]. Index Composition - As of June 30, 2025, the top ten weighted stocks in the A500 index accounted for 20.67% of the index, including Kweichow Moutai, CATL, and Ping An Insurance [3][6]. - The total number of A500 index funds has reached 120, with a total fundraising scale exceeding 216 billion yuan [3]. Market Outlook - According to Shenwan Hongyuan Securities, the third quarter of 2025 is expected to remain a high-level volatile market, with potential for a "slow bull" market in the upcoming period [4]. - The market is anticipated to enter a final phase before a significant upward movement in the fourth quarter of 2025, with improved supply-demand dynamics expected to enhance profitability starting in 2026 [4].