Market Overview - A-shares experienced a rebound after an initial decline, with major indices showing significant gains by the end of the week, driven by positive news and upcoming policy windows [1] - The Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index rose by 1.91%, 3.73%, and 5.69% respectively [1] - The ETF market saw an average decline of 1.16%, with bond ETFs performing slightly better, increasing by 0.20% [1] ETF Performance - Technology ETFs showed strong upward movement, with the top-performing ETFs being predominantly in the fintech and software sectors, led by the Financial Technology ETF from Huaxia with a gain of 14.33% [2] - The demand for AI technology is highlighted by Nvidia's strong financial performance, with a 73% year-on-year growth in its data center business [3] Fund Flow Trends - The ETF market saw a net inflow of 37.24 billion yuan, with bond ETFs leading the inflow at 183.05 billion yuan [6][9] - Defensive assets, particularly bond and bank ETFs, continue to attract significant investment, indicating a cautious market sentiment [6][9] Sector Insights - The insurance capital from the mainland has increasingly influenced the pricing of Hong Kong dividend assets, as domestic insurers seek stable, high-dividend investments [5] - The report from Shenwan Hongyuan suggests that while a full bull market is not yet established, factors such as "asset scarcity" and foreign capital inflow are laying the groundwork for continued investment in A-shares [3] Upcoming ETF Listings - Nine new ETFs are set to launch next week, including several enhanced index funds aimed at tracking the A500 index and focusing on technology and consumer sectors [11]

Core Viewpoint - The inclusion of multiple credit bond ETFs, such as Bosera Credit Bond ETF (159396), Shanghai Stock Exchange Corporate Bond ETF (511070), and Corporate Bond ETF (511030), into the general pledge repo application has been approved by China Securities Depository and Clearing Corporation Limited (CSDC) [1] Group 1 - The recent notice from China Securities indicates that eligible credit bond ETF products can pilot the general pledge repo business on the exchange [1] - Bosera fund manager Zhang Lei believes that the inclusion of credit bond ETFs into the general pledge repo will provide several benefits for investors, including enhanced returns [1] - The convenience of exchange pledging is highlighted as a significant advantage for investors [1] Group 2 - From a liquidity perspective, credit bond ETFs exhibit significantly better on-market liquidity compared to individual corporate bonds [1]

Group 1 - The South Fund's Shanghai Stock Exchange Corporate Bond ETF (code: 511070) has surpassed 10 billion yuan in scale, becoming a significant benchmark in the credit bond ETF market, reflecting broad market recognition and providing investors with diverse asset allocation options [1] - The ETF closely tracks the Shanghai benchmark market-making corporate bond index, with all constituent bonds rated AAA and over 99% issued by central and state-owned enterprises, ensuring strict control of credit risk [3] - The ETF offers low fees, high transparency, and efficient trading mechanisms, making it a preferred choice in the market, with a duration of approximately 4 years and a static yield between the implied ratings of AA+ and AAA- for 5-year bonds [3] Group 2 - The ETF has shown higher returns over the past year and two years compared to the median returns of medium to long-term pure bond funds, indicating strong elasticity [3] - As of May 28, the ETF's average daily trading volume over the past month was 3.46 billion yuan, with a daily turnover rate of 47.9%, highlighting its active trading and high liquidity [3] - A pilot program for general pledged repurchase business for credit bond ETFs is set to be implemented soon, allowing eligible ETFs with a scale exceeding 2 billion yuan to participate, potentially enhancing fund utilization efficiency for investors [4]