Core Viewpoint - The year-end bonus situation in the financial industry is uncertain and disappointing for many employees, with significant disparities in bonus distribution across different firms and departments [1][12]. Group 1: Year-End Bonus Distribution - Year-end bonuses in the financial sector are facing delays and reductions, with many employees still waiting for their bonuses months after the usual distribution time [4][8]. - Some employees at a certain AMC brokerage received only 0.9 months' worth of bonuses, with many fresh graduates receiving less than 10,000 yuan, marking a decline for the second consecutive year [5][14]. - There are allegations that part of the fixed performance pay has been withheld, leading employees to suspect that this may be used to fund the year-end bonuses, effectively making the bonuses a delayed payment of their regular compensation [6] . Group 2: Impact on Financial Institutions - The delay in year-end bonuses is particularly prevalent among state-owned financial institutions, which may be awaiting the implementation of a pending reform before distributing bonuses [11][12]. - Despite facing growth pressures, most banks are still reporting profit increases, suggesting that they could allocate funds for bonuses, yet many employees remain skeptical about receiving them [10][12]. - The ongoing salary reforms in state-owned financial enterprises have led to significant changes in compensation structures, with average salaries for fund managers and mid-level management dropping from over one million to below 600,000 yuan [14]. Group 3: Future Outlook - Although there is a glimmer of hope for the distribution of year-end bonuses in banks, the specific amounts remain uncertain, and it is likely that bonuses will be lower than in previous years [13][14]. - The financial industry's year-end bonus situation reflects broader trends in compensation and employee morale, with potential implications for investor confidence in these institutions [12][15].

香港金管局于2021年发布"强制性背景查核计划"运作框架。在计划下，所有银行会通过协定机制分享讯 息，并获取准员工过去7年的相关背景资料，从而作出更明智的聘用决定。该计划首阶段于2023年5月正 式分阶段实施，涵盖约3500名银行高级职位人员。银行至今通过计划共进行约700宗背景查核，当中只 有9宗涉及负面讯息，显示计划能识别潜在的"烂苹果"，防止银行员工转职时隐瞒其不当行为纪录。 智通财经APP获悉，7月24日，香港金管局副总裁阮国恒表示，银行业"强制性背景查核计划"第二阶段 将于9月30日实施，涵盖范围进一步扩大至包括约5万名担任持牌或已获注册从事证券、保险或强积金受 规管活动的员工，占整体银行从业员超过一半。 他表示，该局将与其他监管机构探讨将计划扩展至其他金融界别，共同应对曾有不良操守行为的从业员 在业界流窜的现象。他期待计划的落实和扩展能将"烂苹果"从体系中排除，促进香港金融业的长足发 展，同时加强公众对行业操守行为和公平待客的信心。 阮国恒在该局的专栏《汇思》撰文称，银行正在为第二阶段实施做好前期准备工作，包括与将被涵盖的 银行员工及持份者沟通，更新招聘内部流程、提供员工培训，以确保计划的第二阶段 ...

Report Industry Investment Rating No relevant content provided. Core Viewpoints - The intensity of anti-involution policies may be the biggest source of expectation divergence. In the short term, the bond market may remain weak, and the window for going long on bonds in the third quarter may be postponed. In the long term, anti-involution may help shorten the time required for a moderate recovery of inflation, and profound changes may be gradually occurring beneath the seemingly calm economic fundamentals [1][2][3]. - Compared with supply-side reform, the current anti-involution has a broader scope and can be seen as an upgraded version. It faces more complex supply-demand contradictions, a more challenging macro environment, and involves a wider range of industries [1][10]. - The market has different views on the ultimate intensity of anti-involution. Some investors believe that relying solely on supply-side anti-involution may not achieve policy goals due to weak demand, but it is unwise to underestimate the determination of the current anti-involution policies [2][18][19]. Summary by Directory 1. Fixed-income Perspective on the "Anti-involution Trading" Market - The anti-involution policy has driven the simultaneous rise of the equity and commodity markets, suppressing bond market sentiment and creating a seesaw effect between stocks/commodities and bonds. Understanding this policy is crucial for predicting the future bond market [10]. - The anti-involution policy has evolved from a framework to specific measures, triggering a "anti-involution trading" market in the commodity market. Compared with supply-side reform, anti-involution faces more complex supply-demand contradictions, a more challenging macro environment, and involves a wider range of industries [10][11][14]. - There are differences in investors' views on the ultimate intensity of anti-involution. Some think that the policy may fall short of expectations due to weak demand, but the current stage may just be the beginning of the policy implementation, and its intensity may exceed expectations. Moreover, demand-side issues should be viewed dialectically, and there is a possibility of positive feedback in the economy [2][18][19]. - In the short term, the bond market is likely to be influenced by the performance of the equity and commodity markets. The equity market has a bullish atmosphere, and the upcoming Sino-US-Sweden negotiations may boost the market. The commodity market may have a trend reversal, similar to the "924 market" in the equity market in 2024. The short-term bond market may be weak, and the window for going long may be postponed [3][22][23]. - In the long term, the impact of anti-involution on inflation needs further observation, but it may shorten the time for a moderate inflation recovery, and underlying changes may be taking place in the economic fundamentals [3][24].

Group 1 - The core viewpoint of the articles is that the recent announcements from Dongwu Securities and Tianfeng Securities indicate a recovery in the financing environment for the securities industry, driven by increased capital demand and market activity [1][2][3] - Dongwu Securities plans to raise up to 6 billion yuan through a private placement to enhance its subsidiaries, technology finance, wealth management, and market-making businesses, reflecting a broader trend of securities firms seeking to bolster their capital through both equity and debt financing [1][2] - The securities industry has seen a significant decline in equity financing in recent years due to market downturns, with a shift back to equity financing expected as market conditions improve [2][3] Group 2 - The financing strategies of securities firms differ from those of banks and insurance companies, with securities firms relying more on capital markets for direct financing, while banks and insurers depend on deposits and premiums [4][5] - The current trend suggests that securities firms are increasingly using equity financing to support innovative business expansions in areas like technology finance and wealth management, as opposed to traditional banking activities [4][5] - The anticipated mergers and acquisitions in the securities industry are expected to be supported by equity refinancing, which provides necessary capital for strategic investments and resource optimization [6][7]

Core Viewpoint - The issuance of the Sci-Tech Innovation Bond ETF has renewed market interest in sci-tech bonds, with expectations for continued growth in market size due to the potential for passive management in domestic bond funds and possible fee reductions [1][6]. Group 1: Market Dynamics - The recent adjustment in the bond market has seen credit bonds perform relatively well, supported by demand despite fluctuations in interest rates [2]. - From July 14 to July 18, net purchases of non-financial credit bonds reached 13.2 billion, a week-on-week increase of 3.9 billion; fund net purchases totaled 34 billion, and insurance companies net bought approximately 9.1 billion [2]. - The total growth of credit bond ETFs reached 70.8 billion, with the Sci-Tech Innovation Bond ETF contributing 66.9 billion, indicating strong market interest [2]. Group 2: ETF Performance and Structure - The first batch of 10 Sci-Tech Innovation Bond ETFs was launched on July 17, 2025, with a total fund size reaching 76.5 billion and a trading volume exceeding 80 billion, showcasing high turnover rates [4]. - The top ten holdings of the Sci-Tech Innovation Bond ETFs show a diverse range of institutional investors, with some products having over 60% of their holdings concentrated among the top ten [3]. Group 3: Future Growth Potential - The market for credit bond ETFs is expected to grow, with passive index products currently representing only 15% of the total bond fund market, indicating significant room for expansion [6]. - The domestic bond fund market is projected to continue its growth trajectory, driven by lower fees and the advantages of ETF structures, which allow for efficient credit bond allocation [5][6]. - The issuance of sci-tech bonds has significantly increased, with 424 bonds announced by July 3, 2025, totaling 632.7 billion, reflecting strong institutional demand [4][7]. Group 4: Investment Opportunities - The current market environment suggests that demand will be a key factor influencing the performance of sci-tech bonds, with expectations of continued compression in yield spreads [6][7]. - There are currently 25 bonds within the Sci-Tech Innovation Bond ETF with excess spreads above 5 basis points, totaling 26.2 billion, indicating potential investment opportunities [7].

Core Points - The People's Bank of China has released a draft decision to amend certain regulations, focusing on enhancing the functions of bond registration, custody, and settlement institutions, optimizing information disclosure mechanisms, and improving the liquidity of pledged bonds and the efficiency of fund utilization [1][2] Group 1: Regulatory Changes - The amendments primarily involve the issuance of financial bonds in the interbank market, non-financial corporate debt instruments, and the management of bond registration, custody, and settlement [2] - The draft includes significant updates to three management measures, specifically the "Measures for the Administration of Financial Bond Issuance in the National Interbank Bond Market," "Measures for the Administration of Non-Financial Corporate Debt Financing Instruments in the Interbank Bond Market," and "Measures for the Administration of Bond Registration, Custody, and Settlement in the Interbank Bond Market" [2][3] - The definition and scope of bond registration and custody institutions have been updated, explicitly including the Shanghai Clearing House as a legal entity [2][3] Group 2: Information Disclosure - The revised regulations require issuers to submit relevant information disclosure documents through the financial bond issuance management information system to the interbank lending center, which will then forward these documents to the bond registration and custody institutions [3][4] - The changes aim to enhance the role of the interbank lending center in managing financial bond issuance information and ensuring compliance with disclosure requirements [4] Group 3: Pledged Bonds - A significant change is the removal of the previous requirement for pledged bonds to be frozen, which is expected to enhance liquidity and efficiency in the bond market [7][9] - The new regulations allow bond registration and custody institutions to provide pledge registration services without freezing the pledged bonds, enabling them to be reused or traded during the pledge period [9][10] - This adjustment is anticipated to improve the utilization of collateral and facilitate the development of a multi-tiered bond market, aligning domestic practices with international standards [9][10][11]

Group 1: Fund Management Updates - Wang Lang has been appointed as the new deputy general manager of Baoying Fund as of July 22, 2023, previously holding positions at Penghua Fund and Guoshou Anbao Fund [1] - As of the end of Q2 2023, there are 24 funds with over 10 billion yuan in assets, a decrease from 27 funds in the same period last year and 26 funds at the end of Q1 2023 [2] - The largest fund remains the E Fund Blue Chip Select managed by Zhang Kun, with a latest size of 34.943 billion yuan, down by 3.965 billion yuan from the end of Q1 [2] Group 2: Market Trends and Performance - The allocation ratio of public funds to Sci-Tech Innovation Board stocks reached a record high of 15.36% by the end of Q2 2023, an increase of 0.19 percentage points from Q1 [3] - The excess allocation ratio for the Sci-Tech Innovation Board also rose from 7.5% to 7.72% [3] Group 3: Notable Fund Manager Insights - Fund manager Ge Lan expressed optimism about the innovative drug sector, highlighting advancements in dual antibodies and ADC technologies, as well as increasing collaboration between domestic companies and multinational pharmaceutical firms [4] - Ge Lan noted that domestic innovative drugs are gaining global recognition, with multiple products expected to have overseas licensing opportunities [4] Group 4: ETF Market Overview - The market experienced a rally with major indices reaching new highs; the Shanghai Composite Index rose by 0.65%, the Shenzhen Component Index by 1.21%, and the ChiNext Index by 1.5% [5] - The total trading volume in the Shanghai and Shenzhen markets was 1.84 trillion yuan, a decrease of 199 billion yuan from the previous trading day [5] - Rare earth permanent magnet stocks surged, with the Rare Metal ETF rising by 7.49% [6] Group 5: Future Outlook - Despite rising geopolitical tensions, improvements in global supply and demand, along with low inventory levels, are expected to boost small metal prices, enhancing corporate profitability and growth potential [9] - The valuation attractiveness of industry leaders is expected to become more pronounced, with a focus on rare metal-related ETFs [9]

Core Viewpoint - The market experienced a significant upward trend on July 24, with all three major indices reaching new highs for the year, indicating strong investor sentiment and market recovery [1]. Market Performance - The Shanghai and Shenzhen markets recorded a total trading volume of 1.84 trillion yuan, a decrease of 19.9 billion yuan compared to the previous trading day, with over 4,300 stocks rising across the market [2]. Sector Highlights - The Hainan Free Trade Zone concept stocks saw a collective surge, with over 20 stocks, including Hainan Airport, hitting the daily limit [3]. - Rare earth permanent magnet stocks also experienced substantial gains, with Guangsheng Nonferrous Metals reaching the daily limit [3]. - The super hydropower sector rebounded, with multiple stocks, including China Power Construction, hitting the daily limit [3]. Lithium Market Dynamics - The lithium carbonate sector saw a significant increase, with the main futures contract reaching a limit up at 77,240 yuan per ton, marking an 8% rise [4]. - Lithium mining stocks surged, with Tibet Mining and Yongshan Lithium Industry hitting the daily limit, and Tianqi Lithium A shares also achieving a rare limit up, marking its first limit up this year [4]. - A notice from the Yichun Natural Resources Bureau required local lithium mining companies to prepare resource verification reports by September 30, which some industry insiders view as a move to combat excessive competition in the lithium sector [5]. Vaccine Sector Movement - The biopharmaceutical vaccine sector saw a midday rally, with Zhifei Biological hitting the daily limit and Watson Bio rising over 14%, alongside other stocks like Kangtai Biological and Sanofi Health also experiencing gains [5]. Securities Sector Performance - The securities sector, often referred to as the "bull market flag bearer," performed well, with stocks like Guosen Securities and Bank of China Securities leading the gains [6].

Financial Performance Highlights - KB Financial Group's 1H25 net profit reached ₩3.436 trillion, a 23.8% year-over-year increase[12, 17] - The Group's ROE for 1H25 was 13.03%, a 2.23%p increase year-over-year[8, 14] - Non-bank subsidiaries contributed 39% to the Group's net profit[16, 17] Shareholder Returns - The company plans a total shareholder return of ₩1.15 trillion, including a ₩850 billion share buyback and cancellation[8] - A proactive return of ₩300 billion was implemented in 2Q25[8, 11] - The CET-1 ratio as of June 2025 reached 13.74%[8, 11] Financial Analysis - Group net interest income slightly decreased by 0.4% year-over-year to ₩6.3687 trillion[24] - Group net non-interest income increased by 10.9% year-over-year to ₩2.7233 trillion[29] - Group G&A expenses increased by 4.1% year-over-year to ₩3.3553 trillion[35] Asset Quality - The Group's NPL ratio was 0.72%, with an NPL coverage ratio of 138.5%[48] - Provision for credit losses totaled ₩1.3107 trillion in 1H25, a 33.6% increase year-over-year[41] Subsidiary Performance - KB Kookmin Bank reported a net profit of ₩2.1876 trillion and an ROE of 11.63%[84] - KB Securities recorded a net profit of ₩338.9 billion and an ROE of 10.10%[87] - KB Insurance's net profit was ₩558.1 billion with an ROE of 20.51%[90]

1. Report Industry Investment Rating - No relevant content provided 2. Core View of the Report - The "Decision of the People's Bank of China on Amending and Repealing Certain Rules (Draft for Comment)" may lead to the transformation of bond repurchase in the inter - bank market from pledged repurchase to outright repurchase in the future, with outright repurchase potentially becoming the core of China's bond repurchase. Although there are currently few outright repurchase transactions, it has supporting facilities, experience, and is conducive to international integration [1][11]. - In the short term, the impact on the bond market may be neutral. Unfreezing pledged bonds can increase asset supply, enhance liquidity, and provide a short - selling channel for investors, but risk prevention is also necessary [3][18]. 3. Summary by Relevant Catalog 3.1 Understanding "Canceling the Freeze on Pledged Bonds for Bond Repurchase" - On July 18, 2025, the central bank proposed canceling the freeze on pledged bonds for bond repurchase, which is a modification of Article 31 of the "Administrative Measures for Bond Registration, Custody, and Settlement in the Inter - bank Bond Market" [8]. - As of the end of June 2025, the balance of pledged repurchase in the inter - bank bond market was 24.30 trillion yuan, while the balance of outright repurchase was 203.4 billion yuan, less than 1% of the pledged repurchase balance. Pledged repurchase only has a financing function, and the ownership of pledged bonds does not transfer, reducing their liquidity and being unfavorable to the rights and interests of the fund lender in case of default or rapid interest rate increases. Outright repurchase has both financing and short - selling functions, and the fund lender has greater operational flexibility [8][11]. 3.2 Outright Repurchase Has Supporting Facilities and Experience - In terms of facilities, the term of outright repurchase has been extended to 365 days, the accounting treatment has been clarified, and the function of quoting and trading multiple bonds in a single outright repurchase has been launched [2][12]. - In terms of experience, the central bank launched an open - market outright reverse repurchase operation tool in October 2024, and by June 2025, the balance reached 4.60 trillion yuan, replacing part of the MLF [2][12]. - Switching to outright repurchase is conducive to international integration. The main forms of international bond market repurchase are classic repurchase and buy/sell - back transactions, where bond ownership transfers. China's offshore repurchase business has started to revitalize pledged bonds [2][16]. 3.3 Future Outlook - In the short term, the impact on the bond market may be neutral. Although the central bank's statement has raised market expectations for bond trading, currently, the net sale of national bonds does not match the central bank's policy tone [3][18]. - Canceling the freeze on pledged bonds can increase asset supply, enhance liquidity, relieve institutional liability - side pressure, and provide a short - selling channel for investors, but it is necessary to prevent a sharp increase in the leverage ratio of the bond market [3][18]. - If the switch from pledged repurchase to outright repurchase occurs, the scale of pledged bonds involved is estimated to be 14.76 trillion yuan based on the central bank's balance sheet and 8.22 trillion yuan based on the monthly trading volume of pledged repurchase in June 2025, assuming a 90% pledge ratio [3][19].