Group 1: Credit Bond Yield Strategy - The credit bond yield strategy shows advantages as credit bonds have demonstrated strong anti-drawdown characteristics in the current adjustment market, with their adjustment pace and magnitude closely following government bonds [1][9] - The current market conditions suggest that credit bonds still possess certain yield value, warranting continued attention, although the protection space of credit spreads is insufficient [1][9] - Historical data indicates that September is typically a challenging month for the bond market, with a less than 15% probability of interest rates declining in September over the past seven years [1][16] Group 2: Market Dynamics and Fund Behavior - Credit bonds are expected to continue fluctuating weakly in September, but the adjustment magnitude is relatively controllable, as the net selling momentum of funds may weaken [2][20] - Funds significantly sold off credit bonds with maturities over five years in July and August, totaling over 370 billion yuan, leading to a noticeable reduction in long-term bond positions [2][20] - Despite the large net selling, credit bonds did not experience sustained negative feedback, indicating a potential stabilization in the market [2][20] Group 3: Investment Strategies - Investment strategies should focus on ordinary credit bond varieties, particularly those with good credit quality and larger outstanding amounts, such as 3Y/AAA+ and AAA bonds yielding around 1.88% and 1.90% respectively [3][23] - For urban investment bonds, the yields for bonds with maturities under 2 years have been compressed to historical low levels, suggesting a focus on high-quality issuers in favorable regions [3][23] - The report recommends prioritizing 4Y and 6Y perpetual bonds while avoiding lower-rated options, maintaining a focus on liquidity and flexibility in bond selection [3][23] Group 4: Policy Impact on Economic Growth - Recent policies aimed at boosting high-tech industries and expanding domestic demand are expected to stimulate economic growth, as indicated by rising manufacturing and service sector PMIs [4][27] - The manufacturing PMI rose to 49.4%, while the non-manufacturing PMI reached 50.3%, reflecting an overall improvement in economic conditions [4][27] - The service sector is showing significant recovery, with business activity indices indicating strong growth in capital market services and transportation sectors [4][28]

Domestic Insights - The August PMI manufacturing price index increased, likely due to the upward shift in upstream commodity prices, which may hinder future corporate profit recovery[2] - The current domestic market is in a new bull market phase, with wealth effects expected to boost service consumption as a highlight for Q4 economic growth[2] - September is a critical observation window for RMB appreciation, especially if US-China negotiations show substantial progress[2] Overseas Insights - In August, non-farm payrolls added only 22,000 jobs, significantly below the expected 75,000, indicating a moderate slowdown in employment rather than a rapid decline[15] - The unemployment rate rose to 4.3% in August from 4.2% in July, reinforcing concerns about employment risks discussed at the Jackson Hole meeting[15] - The weak non-farm data suggests the Federal Reserve may lower interest rates by 75 basis points this year, with weak dollar trading likely to continue in the coming weeks[15] Liquidity and Market Trends - The overall liquidity tightened this week, with the benchmark interest rate down approximately 7.412 basis points[19] - The average daily transaction volume in the interbank pledged repo market increased by about 2417.16 billion CNY, reaching 73138.95 billion CNY[20] - Government bond issuance pressure decreased, with a net repayment of 1184.54 billion CNY and a planned issuance of 8376.7 billion CNY next week[21] Asset Performance - The Shanghai Composite Index fell by 1.18% this week, while the Shenzhen Component Index decreased by 0.83%[39] - Gold prices showed an upward trend, while international crude oil prices experienced a downward trend[37] - The US 10-year Treasury yield declined, reflecting a mixed performance in European bond yields[39]

1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - Employment data in the US is under pressure again, leading to a significant decline in US Treasury yields. The market's expectation for the interest - rate cut amplitude at the September meeting has increased significantly [1][3][9][11]. - The US manufacturing and service industries show different trends, with the manufacturing industry moving from contraction to expansion, while the service industry is still in a good expansion state but with a slowdown in expansion speed. EIA crude oil inventories increased significantly, contrary to market expectations [2][10]. - Global stock markets are mixed, with European markets generally under pressure. Precious metals in the commodity market hit new highs, and risk preferences are polarized. Non - US and non - European currencies have generally weakened against the RMB [4][15][16][17]. 3. Summary According to the Relevant Catalogs 3.1 Macro - economic Indicator Review Employment - In July, JOLTS job openings were lower than expected, dropping to a 10 - month low (7.181 million, lower than the forecast of 7.380 million and the previous value of 7.357 million) [9]. - In August, the US ADP employment increase was only 54,000, far lower than the expected 73,000 and the previous value of 106,000, indicating a significant weakening of employment growth momentum [9]. - The number of initial jobless claims this week exceeded expectations, rising to 237,000, higher than the forecast of 230,000 and the previous value of 229,000, confirming the cooling trend of the labor market [9]. - The month - on - month growth rate of average hourly wages in August met expectations and was the same as the previous value (0.3%) [9]. - In August, the seasonally - adjusted non - farm payroll employment increase was only 22,000, far lower than the expected 75,000 and a more than 70% drop from the previous value, further lowering the market's expectations for the employment market [9]. - The unemployment rate in August rose to 4.3%, in line with expectations and slightly higher than the previous value of 4.2%. The market's expectation for the interest - rate cut amplitude at the September meeting increased significantly [1][9]. Economy - In August, the US Markit manufacturing PMI increased significantly to 53.0, returning above 50 and indicating that the manufacturing industry moved from the contraction range in July to the expansion range [2][10]. - In August, the US ISM manufacturing PMI was 48.7, lower than expected but up 0.7 points from the previous value [2][10]. - In August, the US Markit services PMI was lower than expected and declined from the previous value, but it was still above 50, indicating that the service industry was still in a good expansion state [2][10]. - In August, the US ISM non - manufacturing PMI rebounded above expectations, reaching 52.0 and remaining above 50 for three consecutive months [2][10]. - The US EIA crude oil inventory this week increased significantly to 2.415 million barrels, far exceeding the expected - 2.000 million barrels and the previous value of - 2.392 million barrels [2][10]. 3.2 Main Overseas Market Interest Rate Review US - From August 29 to September 5, 2025, the 1 - year and 10 - year US Treasury yields dropped by 18bp and 13bp respectively, to 3.05% and 4.1%. Employment data put pressure on the market, and the Fed's attitude remains cautious. The market's expectation for a 50bp interest - rate cut at the September meeting has heated up again, but the possibility is still low. Multiple 25bp interest - rate cuts this year are more likely, and the possibility of consecutive interest - rate cuts is small [3][11]. Europe and Japan - The Japanese bond market was stable with small fluctuations. The 1 - year and 10 - year Japanese bond yields fluctuated by - 0.34bp and - 0.8bp respectively, to 0.7% and 1.62%. - The German bond market was also stable. The 2 - year and 10 - year German bond yields fluctuated by 3.00bp and 0bp respectively, to 1.96% and 2.71% [3][14]. 3.3 Other Asset Class Reviews Equity - Global stock markets were mixed. The Hong Kong Hang Seng Index (+1.36%), the US NASDAQ (+1.14%), and the Indian Sensex30 (+1.13%) led the gains, supported by the rebound of the technology and financial sectors. In contrast, the German DAX (-1.28%), A - shares (-1.18%), and the Vietnamese VN30 (-1.07%) declined significantly, mainly affected by macro - economic and capital - market pressures, and European markets were generally under pressure [4][15]. Commodity - Precious metals performed brightly. London silver rose by 5.01%, and London gold rose by 4.82% this week, breaking through the historical high of $3,587 per ounce, highlighting the surge in market risk - aversion demand. Crude oil and agricultural products generally declined, while some black - series commodities rose slightly. Bitcoin rebounded by 2.12%, showing a polarized risk preference [4][16]. Foreign Exchange - Non - US and non - European currencies have generally weakened against the RMB. The US dollar and the euro exchange rates against the RMB rose by 0.08% and 0.10% respectively, while the Japanese yen, Russian ruble, and Indian rupee exchange rates against the RMB fell by 0.71%, 1.14%, and 0.62% respectively [4][17]. 3.4 Market Tracking The report provides multiple charts, including the US Treasury auction panel, FED WATCH latest target - rate expectations, the simulated trends of the US dollar, US stocks, US Treasuries, gold, and Bitcoin, the trends of global major stock indices, the weekly changes in bond yields of major global economies, the weekly changes in major commodities, the weekly changes in major foreign exchange rates against the RMB, and the latest economic data panels of the US, Japan, and the Eurozone [12][13][19][20][22][26][29][32][39][46].

Core Insights - Brazil's GDP reached 3.2 trillion reais (approximately 583.6 billion USD) in Q2, with a quarter-on-quarter growth of 0.4% and a year-on-year growth of 2.2%, slightly above expectations [1] Economic Performance - The value added by the services sector was 1.9 trillion reais, with a quarter-on-quarter growth of 0.6% and a year-on-year growth of 2% [1] - The industrial sector's value added was 638 billion reais, showing a quarter-on-quarter growth of 0.5% and a year-on-year growth of 1.1% [1] - The agricultural sector's value added was 239.1 billion reais, with a quarter-on-quarter decline of 0.1% but a year-on-year growth of 10.1% [1] Consumption and Investment - Household consumption expenditure increased by 2.2% year-on-year, while government consumption expenditure grew by 0.7% [1] - Gross fixed capital formation saw a year-on-year increase of 6.6% [1] Trade Dynamics - Exports and imports of goods and services grew by 1.6% and 9% year-on-year, respectively [1] Economic Challenges - Analysts attribute the weak GDP growth in Q2 to high interest rates and a slowdown in agricultural growth, with federal government fiscal stimulus measures beginning to lose effectiveness [1]

Core Viewpoint - Shandong province has announced a new policy package aimed at promoting the service industry, with a focus on providing financial support to high-growth and newly registered service enterprises [1][4]. Group 1: Financial Support and Policy Details - The new policy includes an additional 1 billion yuan in fiscal funds to support high-growth service enterprises and their construction projects [1]. - The existing 2 billion yuan provincial service industry development guidance fund will continue to be implemented, targeting newly registered enterprises and key projects in high-end and high-quality service sectors [3][4]. - Eligible high-growth service enterprises can receive up to 2 million yuan in funding support [4]. Group 2: Company Perspectives and Reactions - Companies like Binhai District Zhanhua Winter Jujube Brand Management Co., Ltd. are optimistic about the new policy, planning to apply for suitable projects to benefit from the funding [2]. - Seven Soldiers Group emphasizes the need for substantial funding for ongoing projects, such as the "Business Empowerment Platform," and intends to apply for financial assistance [3]. - The Shunli Smart Cold Chain Logistics Co., Ltd. project, with a total investment exceeding 10 million yuan, has already secured 400,000 yuan from the provincial service industry development guidance fund [3]. Group 3: Implementation and Future Recommendations - The implementation details for the funding application process have been outlined in previous policy documents, and interested enterprises are encouraged to consult local development and reform bureaus [5]. - Suggestions for future policy improvements include exploring a mechanism that connects government initiatives with the needs of manufacturing enterprises, promoting tailored services and innovations [5].

Core Viewpoint - The Kenyan government plans to tighten Special Economic Zones (SEZs) policies through the amendment of the Business Act 2025, aiming to eliminate housing subsidies for speculative real estate development and focus on incentives for manufacturing, exports, and services [1] Group 1: Policy Changes - The amendment will cancel housing subsidies for speculative real estate developers, retaining only housing benefits directly for SEZ employees [1] - The revision includes clarifying tax stability for investors, easing access for educational institutions, regulating outsourcing companies, and expanding capital gains tax exemptions [1] Group 2: Government Intentions - The government's actions reflect a commitment to reinforce the industrial orientation of SEZs and curb policy deviations that have led to misuse of the SEZ framework [1]

Report Information - Report Title: Stock Market Adjustment, Bond Market Rebound - Report Date: September 5, 2025 - Researcher: Liu Yang - Contact: liuyang18036@greendh.com - Futures Practitioner Qualification Number: F3063825 - Futures Trading Consultation Number: Z0016580 [3] Industry Investment Rating - Not provided Core Viewpoints - The overall trend of the main contracts of Treasury bond futures this week was to rise first and then fall. There is an obvious seesaw effect between stocks and bonds. The yield curve of Treasury bond cash bonds has changed little. The manufacturing PMI in August continued to be below the boom - bust line, with production expanding and demand being slightly weak. The non - manufacturing business activity index increased slightly. The export of South Korea in August showed a certain growth. The wholesale price of agricultural products continued to rise, and the inflation pressure was limited in the short term. If the stock market continues to be strong, it may suppress the bond market; if the stock index adjusts, it will be beneficial to bond bulls [5][7][12] Summary by Directory Treasury Bond Futures Weekly Market Review - The main contracts of Treasury bond futures showed a trend of rising first and then falling this week. On Monday, they refused to fall and rebounded to close a medium - positive line. On Tuesday, there was a small - scale fluctuation adjustment. On Wednesday, they attacked again and closed a medium - positive line. On Thursday, they rose and then fell slightly. On Friday, they fell sharply. For the whole week, the 30 - year Treasury bond fell 0.18%, the 10 - year Treasury bond rose 0.12%, the 5 - year Treasury bond rose 0.07%, and the 2 - year Treasury bond fell 0.03% [5] Stock - Bond Seesaw - The Wind All - A Index hit a new high on Monday this week, then fell for three consecutive days from Tuesday to Thursday, and rebounded sharply on Friday. Although the Treasury bond futures showed independence on some single days, the overall stock - bond seesaw effect was obvious [7] Changes in the Yield Curve of Treasury Bond Cash Bonds at Maturity - As of September 5, compared with August 29, the 2 - year Treasury bond yield rose 1 BP to 1.41%, the 5 - year Treasury bond yield fell 2 BP to 1.61%, the 10 - year Treasury bond yield fell 1 BP to 1.83%, and the 30 - year Treasury bond yield fell 3 BP to 2.11% [9] Manufacturing PMI in August - The official manufacturing PMI in August was 49.4%, remaining below the boom - bust line for the fifth consecutive month. Large - scale enterprises continued to expand in the boom range, medium - sized enterprises' prosperity declined, and small - scale enterprises hovered at a low level. The PMI of the equipment manufacturing industry and high - tech manufacturing industry increased. The procurement volume index increased, indicating that corporate procurement activities accelerated [12] Production and Demand in the Manufacturing Industry in August - The production index in August was 50.8%, showing continuous expansion. The new order index was 49.5%, indicating that market demand was still slightly weak. Industries such as medicine and computer communication electronics had rapid production and demand release, while industries such as textile and clothing and chemical raw materials had insufficient production and demand [14] New Export Orders and Import Index in the Manufacturing Industry in August - The new export order index in August was 47.2%, and the import index was 48.0%. The new export order index changed little compared with July. After the Sino - US economic and trade talks in Stockholm, the two sides agreed to suspend the implementation of 24% tariffs for 90 days, and China's export growth in August might be acceptable [17] Price Indexes in the Manufacturing Industry in August - The purchase price index of major raw materials in August was 53.3%, and the ex - factory price index was 49.1%. The purchase price index of raw materials continued to be in the expansion range, and the expansion amplitude increased in August. The prices of some industries rose, while those of some industries were below the critical point. The average value of the Nanhua Industrial Products Index in August was basically the same as that in July [19] Inventory Indexes in the Manufacturing Industry in August - The raw material inventory index in August was 48.0%, and the finished - product inventory index was 46.8%. The finished - product inventory index fell to a relatively low level again. From January to July, the cumulative year - on - year growth of manufacturing profits was 4.8%, and the year - on - year growth of finished - product inventory was 2.3%. Manufacturing enterprises were cautious about increasing inventory [22] Business Expectation Indexes in the Manufacturing Industry in August - The employment index in August was 47.9%, hovering at a relatively low level. The business activity expectation index was 53.7%, showing a slight rebound in the expectation of future prosperity [24] Non - Manufacturing Business Activity Index in August - The non - manufacturing business activity index in August was 50.3%. The construction industry business activity index was 49.1%, and the service industry business activity index was 50.5%. Some industries such as capital market services and transportation were in a high - level boom range, while industries such as retail and real estate had weak prosperity [26] Construction Industry Indexes in August - The new order index in August was 40.6%, and the employment index was 43.6%. The business activity expectation index was 51.7%. Affected by weather conditions, the prosperity of the construction industry slowed down [29] Service Industry Indexes in August - The new order index in August was 47.7%, and the employment index was 45.9%. The business activity expectation index was 57.0%, showing a slight upward trend [31] South Korea's Exports in August - South Korea's exports increased by 1.3% year - on - year in August. The daily average export amount calculated by working days increased by 5.8% year - on - year. The semiconductor export amount reached a record high, and the automobile export also showed strong momentum [34] Agricultural Product Price Index - The Agricultural Product Wholesale Price 200 Index on September 5 was 117.93, higher than that on August 31 but significantly lower than the same period last year, indicating that the price continued to rise but was still lower than last year [37] Nanhua Industrial Products Index - The Nanhua Industrial Products Index continued to decline after hitting a closing high on July 25. It declined slightly in August and fluctuated narrowly this week, indicating limited short - term inflation pressure [39] Capital Interest Rates - After the end of the month, the capital interest rates fell to a low level this week. The weighted average of DR001 was between 1.31% - 1.32%, and the weighted average of DR007 was around 1.44%. The average issuance interest rate of one - year AAA inter - bank certificates of deposit was around 1.66%. The central bank carried out a 100 - billion - yuan 3 - month (91 - day) repurchase operation on Friday, which fully offset the due amount [41] Market Logic and Trading Strategies - The manufacturing PMI in August continued to be below the boom - bust line, with economic downward pressure still obvious. The service industry business activity index expanded moderately. The strong rebound of the Wind All - A Index on Friday corresponded to the unilateral decline of Treasury bond futures. If the stock market continues to be strong, it may suppress the bond market; if the stock index adjusts, it will be beneficial to bond bulls. The trading - type investment should conduct band operations [44][45]

Economic Indicators - The manufacturing PMI for August is 49.40%, an increase of 0.1 percentage points from the previous value[1] - The production index rose by 0.3 percentage points to 50.80%, while the new orders index increased by 0.1 percentage points to 49.50%[1] - The new export orders index recorded 47.20%, up by 0.1 percentage points, and the import index rose to 48.00%, an increase of 0.2 percentage points[1][2] Price Trends - The raw material purchase price index increased by 1.8 percentage points to 53.30%, marking three consecutive months of rise[2] - The factory price index rose by 0.8 percentage points to 49.10%, also showing a three-month upward trend[2] - The price gap between raw material purchases and factory prices increased by 1.00 percentage point to 4.20 percentage points[2] Sector Performance - The non-manufacturing PMI for August is 50.3%, up by 0.2 percentage points, indicating accelerated expansion[2] - The service sector PMI reached 50.5%, an increase of 0.5 percentage points, with capital market services showing strong growth[2][3] - The construction sector PMI fell to 49.1%, down by 1.5 percentage points, affected by adverse weather conditions[2][3] Investment Recommendations - The economic weak recovery pattern continues, with manufacturing supply PMI above the critical point for four consecutive months[3] - Focus on high-rated short-duration credit bonds while controlling low-rated risks in credit bonds[3] - The bond market is expected to maintain a "bull steep" trend, with long-end bonds offering better value[3]

Report Industry Investment Rating The provided content does not mention the report industry investment rating. Core Views of the Report - Overseas markets: Since August, the US has raised tariffs, with its economy remaining resilient, inflation rising, and employment slowing unexpectedly. The Fed has hinted at rate cuts, leading to a decline in US Treasury yields and a slight depreciation of the US dollar. The eurozone economy is showing signs of improvement, with inflation remaining moderate, and the euro is expected to appreciate slightly against the US dollar. Japan's economy presents a mixed picture, with tariffs suppressing exports and core inflation cooling, and the yen is expected to fluctuate slightly against the US dollar. The narrowing of the Sino-US yield spread, the release of domestic entities' foreign exchange settlement demand, and the inflow of foreign capital into the domestic stock market have led to a slight appreciation of the RMB against the US dollar, and it is expected to continue to appreciate slightly in the short term [3]. - Macroeconomic fundamentals: In July, both demand and production converged, with the demand side experiencing a larger decline, partly due to falling prices. The production side showed a slight decline, indicating the implementation of anti-involution policies, but overall, it remained resilient. Export data slightly exceeded expectations, but there is downward pressure in the future. The bond market has largely anticipated the weakness in aggregate demand but is sensitive to the upward shift in the price center. As the inflation center rises, the bottom of bond yields will gradually increase [3]. - Monetary policy and liquidity: Since August, the central bank has made net injections, and the short-term capital price center has shifted downward. Looking ahead, the stock market may experience short-term fluctuations, and there are concerns about market overheating and capital idling. The supply of government bonds will remain high, and there will be pressure on the maturity of interbank certificates of deposit, leading to fluctuations in the end-of-quarter capital market. Overall, although there are more disturbances in the capital market, the downward trend in financing costs continues, and liquidity does not have a basis for a trend tightening [4]. - Interest rate bond strategy: Since August, bond yields have first declined and then risen due to fluctuations in industrial product prices under anti-involution policies. Looking ahead, aggregate demand remains weak, but the bond market's reaction to fundamentals is gradually dulling. There are increasing interference factors in the bond market, including the impact of anti-involution policies on prices, the stock market's rise, and the increase in bond interest income tax. However, given the weak demand, the possibility of a significant increase in interest rates is low, and the interest rate center is expected to rise, with the oscillation range also shifting upward. Trading desks can seize repair opportunities when interest rates rise, while allocation desks can intervene when interest rates reach the upper limit of the range, and medium- and long-term bonds are more valuable for allocation [4]. - Credit bond strategy: In August, the "stock-bond seesaw" effect continued to suppress the bond market, and the redemption pressure of funds intensified the volatility of long-term interest rates. As the bond market adjusts, the cost-effectiveness of medium- and high-grade credit bonds with a maturity of three years has increased, but the credit spread is still relatively low. It is recommended to focus on defensive strategies, appropriately reduce duration, and pay attention to coupon opportunities for bonds with a maturity of less than three years. The central bank has taken measures to maintain a balanced and loose liquidity environment, and the pressure on further significant price increases for certificates of deposit may be controllable [5]. Summary by Relevant Catalogs Part I: Overseas Markets - US economic situation: Since August, the US manufacturing and service sectors have expanded significantly. However, the employment market has slowed unexpectedly, and core inflation has continued to rise. The Fed is likely to implement a preventive 25-basis-point rate cut in September. The Fed has been gradually reducing its balance sheet, leading to a marginal convergence of US dollar liquidity. The primary demand for US Treasury bonds has weakened again, and long-term Treasury bond yields face upward pressure. The US dollar is expected to depreciate slightly in the short term [8][10][16]. - Eurozone economic situation: The eurozone economy is showing signs of improvement, with inflation remaining moderate. The euro has appreciated against the US dollar and is expected to continue to appreciate slightly in the short term [31][34]. - Japanese economic situation: Japan's economy presents a mixed picture, with external challenges increasing and core inflation cooling. The yen has appreciated against the US dollar and is expected to fluctuate slightly in the short term [39][44]. - RMB exchange rate situation: Since July, the inversion of the Sino-US Treasury yield spread has gradually decreased, and domestic entities' foreign exchange settlement demand has continued to be released. The RMB has appreciated slightly against the US dollar and is expected to continue to appreciate slightly in the short term [49][55]. - Gold market situation: In August, the price of gold fluctuated upward within a range. Non-commercial net long positions decreased slightly, while gold ETFs continued to flow in. Emerging central banks continued to purchase gold, supporting the medium- and long-term price of gold. It is expected that the price of gold will fluctuate at a high level in the short term [58][65]. Part II: Domestic Macroeconomy - Investment situation: From January to July, the growth rate of fixed asset investment continued to decline, with the growth rates of real estate, infrastructure, and manufacturing investment all falling. Real estate investment is still in the process of bottoming out, and the growth rate of real estate sales has slightly rebounded, while the land transaction premium rate has decreased. The downstream demand for steel is weak, and the price increase is not well supported [71][75][80]. - Consumption situation: In July, the growth rate of consumption continued to decline, mainly due to the diminishing effect of subsidies and the decline in automobile consumption [83]. - Export situation: From January to July, the cumulative year-on-year growth rate of exports was 6.1%, and the growth rate in July was 7.2%, showing strong resilience. However, due to factors such as the increase in tariffs and the overdraft effect of pre-exporting, the export growth rate is expected to decline in the future [86]. - Production situation: From January to July, the cumulative year-on-year growth rate of industrial added value was 6.3%, showing a slight slowdown. The operating rates of the steel and coal industries have generally increased [90][93]. - Employment situation: In July, the urban surveyed unemployment rate increased seasonally, and the employment demand of small and medium-sized enterprises decreased rapidly [96]. - Inflation situation: In July, the year-on-year growth rate of CPI was 0%, and the year-on-year growth rate of core CPI was 0.8%, showing an upward trend. The year-on-year growth rate of PPI stopped falling, and it is expected that the decline will gradually narrow in the future [99][102]. - VAT new policy: Since August 8, 2025, the interest income of newly issued government bonds, local government bonds, and financial bonds will be subject to VAT. This policy will lead to an increase in the spread between new and old bonds, benefit interbank certificates of deposit and credit bonds, and have an impact on financial institutions [103][104][106]. Part III: Liquidity and Monetary Policy - Liquidity review: In August, the central bank made net injections, and the short-term capital price center shifted downward, while the long-term capital price center changed little. The trading volume of pledged repurchase decreased in the middle and late August. The growth rate of M1 and M2 exceeded expectations, and the growth rate of social financing increased [116][121][130]. - Liquidity outlook: In September, the supply of government bonds is expected to remain high, and the maturity pressure of interbank certificates of deposit is large, leading to increased disturbances in the end-of-quarter capital market. However, given the weak demand, the downward trend in financing costs continues, and liquidity does not have a basis for a trend tightening [133]. Part IV: Interest Rate Bond Strategy - Interest rate bond trend: Since August, bond yields have generally shown an upward trend, mainly due to the rise of the stock market and the increase in bond interest income tax. The yield curve has become steeper, and the medium- and long-term spreads are relatively large [137][138][142]. - Investment strategy: Trading desks can seize repair opportunities when interest rates rise, while allocation desks can intervene when interest rates reach the upper limit of the range, and medium- and long-term bonds are more valuable for allocation [4].

Core Insights - Hubei Province is experiencing a significant digital transformation in its manufacturing sector, with key metrics indicating progress in automation and digital tool adoption [1][2] Group 1: Digital Transformation Metrics - As of June, the CNC rate for key processes in large-scale industrial enterprises in Hubei reached 69.7%, ranking 7th nationally [1] - The penetration rate of digital R&D design tools in large-scale industrial enterprises is 90.7%, placing Hubei 6th in the country [1][2] - The number of industrial enterprises utilizing cloud services has reached 58% of the total, with 58,000 companies adopting cloud technology [1] Group 2: Policy and Strategic Initiatives - Hubei has implemented a series of plans such as the "Manufacturing Digital Transformation Implementation Plan" and "Hubei Digital Economy Promotion Measures" to support industrial digitalization [1] - The province is focusing on a phased approach to digital transformation, moving from "expansion" to "quality improvement" during the 14th Five-Year Plan period [1] Group 3: Sector-Specific Developments - In the primary sector, Hubei is enhancing the digitalization and intelligence of agricultural machinery and facilities, establishing smart farms and demonstration bases [1] - In the secondary sector, Hubei has certified 113 enterprises under the integration management system, ranking 2nd nationally, and has 55 factories listed in the national 5G factory directory [2] - In the tertiary sector, Hubei is building supply chain platforms in key industries, serving over 200,000 SMEs with a transaction volume exceeding 200 billion [2] Group 4: Future Plans - The Hubei Economic and Information Technology Department plans to continue advancing the digital, networked, and intelligent evolution of traditional industries to provide robust support for development [2]