Core Viewpoint - The China Securities Regulatory Commission (CSRC) emphasizes the continuous innovation of bond and futures products to support the real economy, with expectations for new varieties to be launched in the near future [1] Group 1: Recent Developments in Futures and Options - Seven new futures and options products have been launched in 2023, including sugar options, aluminum alloy futures, and propylene futures, reflecting a growing trend in product innovation [2] - The introduction of new products is closely aligned with national strategies such as "strong agriculture, strong manufacturing, and green transformation," aimed at enhancing risk management capabilities for enterprises [2][3] Group 2: Impact on the Real Economy - New futures products like propylene and pure benzene provide effective risk management tools for downstream industries, contributing to the stability and resilience of enterprises [3] - Since the implementation of the Futures and Derivatives Law on August 1, 2022, a total of 50 new futures and options products have been launched, increasing the total number of futures products to 152 [3][4] Group 3: Future Prospects - There is significant potential for further innovation in futures and options products, particularly in the area of green finance, with expectations for products like electricity futures and carbon emission rights futures [5] - The development of carbon emission rights futures is seen as crucial for enhancing the domestic carbon market and providing flexible hedging tools for enterprises [5]

Core Insights - The training program aims to enhance risk management capabilities of enterprises in Inner Mongolia, particularly in coal chemical and soft commodity industries, by utilizing the futures market [1] - The participation rate of listed companies in hedging activities has steadily increased, with 1,503 companies announcing hedging plans in 2024, representing a participation rate of 28.6% [1][2] - The volatility in commodity prices and intense industry competition are driving companies to improve their risk management strategies [2] Group 1: Training and Participation - The training session was attended by nearly a hundred representatives from state-owned enterprises and listed companies in Inner Mongolia, focusing on practical paths for utilizing the futures market for risk management [1] - Companies like Huayou Cobalt, Yuntianhua, and COFCO have integrated futures tools into their overall development strategies, establishing mature risk management models [1][2] - The number of industry clients participating in trading specific commodities, such as soybean meal and glass, has increased by over 20% in 2024 [1] Group 2: Industry Challenges and Solutions - Companies in sectors like chemicals, grain and oil, and livestock often operate near breakeven points, making raw material cost management critical for survival [2] - Sichuan Agricultural Fertilizer Co. has successfully implemented hedging strategies, achieving a profit of 50 yuan per ton through futures contracts [2] - The "five-in-one" methodology for integrating business and finance in hedging practices was proposed to address challenges in applying hedge accounting [3] Group 3: Market and Regulatory Environment - The futures market is recognized as a professional platform for risk management, with a comprehensive system of commodity futures and options covering key sectors of the economy [4] - Inner Mongolia has 29 listed companies with a total market capitalization of 786.88 billion yuan, but only 6 companies, or 20.69%, are engaged in hedging activities, which is below the national average [4] - Local regulatory bodies are working with exchanges to enhance the utilization of futures tools among enterprises to promote high-quality development of the capital market [4] Group 4: Feedback and Future Directions - Attendees expressed that the training deepened their understanding of the futures market's functions and they plan to explore hedging models tailored to their business needs [5]

Core Viewpoint - The launch of propylene futures and options on the Zhengzhou Commodity Exchange marks a significant development in China's chemical industry, enhancing risk management capabilities within the propylene supply chain and contributing to the overall stability of the chemical market [1][5]. Industry Overview - The chemical industry is a cornerstone of modern industrial development, with propylene being a key basic chemical product. It has a wide range of applications in various sectors, including home appliances, automotive, textiles, medical devices, and cosmetics [2]. - China is the world's largest producer and consumer of propylene, with a projected apparent consumption of 55.36 million tons and a market size of approximately 384.5 billion yuan in 2024. The industry has experienced rapid expansion, with an average annual growth rate of 12.8% from 2014 to 2024 [2][5]. - The propylene industry has over 100 production enterprises in China, with the top 10 companies accounting for 56.4% of total capacity. The market has been characterized by significant price volatility due to fluctuations in raw material prices and insufficient terminal demand [3][4]. Risk Management Needs - Prior to the launch of futures, the propylene industry lacked effective price risk management tools, leading to increased uncertainty for enterprises and hindering long-term healthy development [4][6]. - The introduction of propylene futures and options fills a critical gap in risk management, allowing companies to lock in procurement or sales prices and mitigate risks associated with market fluctuations [4][6]. Impact of Futures and Options - The dual design of "futures + options" provides flexible hedging tools for enterprises along the propylene supply chain, enhancing their ability to manage risks and stabilize operations [6][7]. - The listing of propylene futures is a crucial step in improving China's energy and chemical futures market, complementing existing products like crude oil and methanol, and facilitating better risk management strategies [6][7]. International Pricing Influence - The launch of propylene futures is seen as a proactive measure to address uncertainties in the international market and ensure the security of supply chains. It aims to enhance the international pricing influence of Chinese propylene, particularly as domestic companies expand into overseas markets [8][9]. - The futures market is expected to provide authoritative and transparent pricing, improving trade efficiency and meeting the diverse risk management needs of enterprises [8][9]. Future Prospects - The introduction of propylene futures and options is aligned with China's strategy for high-quality development in the chemical industry, facilitating resource allocation and supporting industry consolidation and technological upgrades [9][10]. - As more chemical derivatives are introduced, the risk management ecosystem within China's energy and chemical industries is expected to become more robust, providing strong support for the ongoing transformation and upgrading of the sector [9][10].

Core Viewpoint - The launch of propylene futures and options on July 22 marks a significant development in China's chemical industry, providing essential risk management tools and enhancing pricing mechanisms for the propylene market [1][2][3]. Industry Impact - Propylene is a crucial basic chemical raw material, and its market stability is vital for the high-quality development of the chemical industry and the construction of a manufacturing powerhouse in China [2]. - The introduction of propylene futures and options is expected to improve risk management, enhance pricing efficiency, and strengthen the resilience of the industry chain [3][4]. - The new derivatives will fill the gap in the C3 industry chain, offering direct risk management tools for upstream and downstream enterprises [3]. Market Performance - On the first day of trading, seven contracts were listed, with a total transaction volume of 47,000 lots and a turnover of 6.24 billion yuan, indicating a positive market response [1][4]. - All seven contracts closed in the green, reflecting strong market participation and positive price expectations [4][5]. Participant Engagement - Active participation from entities such as MRC Chemical Group and Zhongji Petrochemical, which executed the first trades, demonstrates the optimism among industry players regarding the new derivatives [5]. - Futures companies are expected to expand their services to the chemical industry, enhancing their capabilities in risk management and inventory optimization through the new products [4][5].

Core Viewpoint - The listing of propylene futures and options on the Zhengzhou Commodity Exchange is expected to enhance risk management tools for the propylene industry, improve pricing mechanisms, and support the transformation of China's chemical products from scale advantages to pricing advantages [3][12][14]. Industry Overview - Propylene is a crucial chemical raw material used in various daily products, including food packaging, sports equipment, and clothing [1]. - In 2024, China's propylene production capacity is projected to reach 69.73 million tons, with an output of 53.41 million tons and a market size of approximately 384.5 billion yuan [10]. Market Dynamics - The demand for propylene is primarily driven by polypropylene (PP), which accounts for 67.7% of propylene usage, followed by acrylonitrile at 6.6% [5]. - From 2014 to 2024, China's polypropylene production is expected to grow from 15.53 million tons to 37.75 million tons, reflecting a cumulative increase of 143.1% and an average annual growth rate of 9.3% [7]. Product Applications - Propylene is used to produce synthetic fibers, resins, and rubber, with significant applications in textiles, home appliances, automotive, and packaging industries [7]. - The production of polypropylene fibers (polypropylene) is expanding, with a projected output of 442,000 tons in 2024, marking a 5.7% year-on-year increase [8][9]. Industry Players - Major companies in the propylene sector include Rongsheng Petrochemical, which has a designed annual production capacity of 1.8 million tons for polypropylene, and Jilin Chemical Fiber, which holds a 40% share of global acrylic fiber production capacity [7][9]. Risk Management and Efficiency - The introduction of propylene futures and options is anticipated to provide companies with more diverse risk management tools, enhancing operational flexibility and efficiency [12][14]. - Companies are expected to utilize these financial instruments to stabilize supply chains, lock in prices, and optimize production costs [12][14]. International Market Influence - The listing of propylene futures and options is expected to enhance the international pricing influence of Chinese propylene, facilitating better participation of domestic companies in global markets [15]. Regulatory Framework - The Zhengzhou Commodity Exchange is committed to maintaining market stability and supporting the real economy by optimizing contract rules and promoting market development [16].

Group 1: Domestic Policy Insights - The Chinese government emphasizes the importance of international operations for domestic enterprises, highlighting the increasing significance of overseas investments for domestic economic development [11] - The recent meeting between Chinese Premier Li Qiang and Brazilian President Lula underscores the strengthening of China-Brazil relations, with bilateral trade reaching a record $181.5 billion in 2023 [11] - The Chinese government is committed to enhancing support for enterprises operating abroad, focusing on financial, insurance, and safety measures to create a better environment for business [11] Group 2: Overseas Policy Insights - The U.S. has initiated a new round of tariff pressures, threatening high tariffs on 25 countries if they do not comply with U.S. demands by August 1 [19] - The tariffs range from 25% to 50% depending on the country, with significant implications for international trade dynamics [19] - The U.S. administration's focus on reducing trade deficits may lead to further escalations in trade tensions, impacting global markets [19] Group 3: Equity Market Analysis - A-shares have shown a positive trend, with major indices like the CSI 500 and Shenzhen Composite Index rising nearly 2% in the past week, driven by improved market sentiment [25] - The net inflow of southbound funds reached 24.119 billion yuan during the second week of July, indicating strong investor interest in A-shares [25] - The MSCI China A-share Index also saw a 1.06% increase, reflecting overall market optimism [25] Group 4: Fixed Income Market Analysis - The People's Bank of China has indicated a shift towards a more accommodative monetary policy, with a net withdrawal of 226.5 billion yuan in open market operations last week [49] - The 10-year government bond yield has shown slight recovery, reflecting market adjustments to the evolving monetary policy landscape [49] - The expansion of the Bond Connect program to include more non-bank institutions is expected to enhance overseas asset allocation opportunities for domestic investors [50] Group 5: Commodity Market Analysis - The prices of non-ferrous metals have continued to decline, while precious metals have rebounded slightly, indicating mixed trends in the commodity market [49] - The IEA reports that global oil supply is expected to exceed demand this year, which may impact oil prices moving forward [49] - The Chinese government has set clear goals for new urbanization, which may influence agricultural and commodity markets in the long term [49]

Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report The report comprehensively presents the overnight market trends of international and domestic futures, important macro - economic and industry - related news, and the trends and investment outlooks of financial markets at home and abroad. It also provides information on upcoming economic data releases and events. Summary by Directory Overnight Night - Market Futures Trends - International precious metal futures rose slightly, with COMEX gold futures up 0.11% at $3346.5 per ounce (weekly gain of 1.79%) and COMEX silver futures up 0.14% at $37.135 per ounce (weekly gain of 2.1%) [2] - International oil prices declined, with the US oil main contract down 0.75% at $66.5 per barrel (weekly gain of 1.5%) and the Brent oil main contract down 0.42% at $68.51 per barrel (weekly gain of 2.56%) [3] - London base metals closed lower, with LME nickel down 1.24% at $15260 per ton (weekly gain of 0.1%), LME copper down 1.03% at $9852 per ton (weekly loss of 0.26%), and LME zinc down 0.55% at $2735.5 per ton (weekly loss of 1.57%) [3] - Most domestic futures main contracts fell, with butadiene rubber down over 2%, 20 - number rubber (NR) down over 1%, and soda ash, rubber, and fuel oil down nearly 1%. Styrene (EB), cotton, rapeseed meal, cotton yarn, and caustic soda rose slightly [3] Important News Macroeconomic News - As of July 4, the Shanghai Export Containerized Freight Index dropped 98.02 points compared to the previous period, and the China Export Containerized Freight Composite Index fell 1.9% [5] - Trump plans to impose tariffs ranging from 60% - 70% and 10% - 20% on different countries starting August 1 [6] - After the China - US London economic and trade talks, both sides confirmed details of implementing the consensus of the leaders' call on June 5 and consolidating the Geneva talks results. The two teams are accelerating the implementation of relevant results [6] - Maersk estimates that the average effective tariff rate for goods shipped to the US is 21%, lower than the peak of 54% before the US suspended reciprocal tariffs in April [7] - In June, the national futures trading market turnover was 739579418 lots, with a trading volume of 527934.14 billion yuan, up 28.91% and 17.25% year - on - year respectively [7] - The technical part of the China - EU electric vehicle negotiation is basically completed, pending the EU's political will [9] Energy and Chemical Futures - The CSRC approved the registration of propylene futures and options at the Zhengzhou Commodity Exchange and will supervise its preparations [11] - OPEC's oil production increased in June after the production - increase agreement, with Saudi Arabia having the largest increase and Iraq's production below the target. OPEC + agreed to increase daily production by 548,000 barrels in August [11] Metal Futures - The Indonesian Nickel Miners Association requested the government to keep the mining quota validity period at three years [13] - In June, Chile's copper exports were 150,295 tons, and copper ore and concentrate exports were 1,126,625 tons. Shipments to China were 29,990 tons and 809,837 tons respectively [15] - Due to frequent train derailments in South Africa, the manganese ore reserves shipped to China in July decreased [15] Black - Series Futures - The Ministry of Housing and Urban - Rural Development conducted research in Guangdong and Zhejiang, emphasizing the importance of promoting the stable and high - quality development of the real estate market [17] - In late June 2025, the national daily crude steel output was 2.75 million tons (down 0.9% month - on - month), pig iron output was 2.38 million tons (up 0.3% month - on - month), and steel output was 4.21 million tons (up 1.3% month - on - month) [17] - As of July 4, the total iron ore inventory at 35 ports in China reached 137.13 million tons, an increase of 210,000 tons from the previous week [17] - The blast furnace operating rate of 247 steel mills was 83.46%, down 0.36 percentage points from the previous week [18] - The total urban inventory this week was 7.2366 million tons, up 81,400 tons (1.14%) from the previous week [20] Agricultural Product Futures - In June, the global food price index rose 0.5% month - on - month, and the global grain output in 2025 is expected to reach 2.925 billion tons, up 0.5% from the previous estimate [22] - Malaysia's palm oil production in June decreased by 4.69% [22] - As of the week of July 4, the self - breeding and self - raising pig farming profit was 119.72 yuan per head, and the profit from purchasing piglets for farming was a loss of 26.26 yuan per head [22] - From June 28 to July 4, the actual soybean crushing volume of oil mills was 2.3322 million tons, with an operating rate of 65.56%, higher than the estimate [22] Financial Market Finance - In 2025, the Hong Kong stock market is booming, with about 200 IPO applications received, double the number at the beginning of the year [24] - The market environment now resembles that at the end of 2014, and sectors like non - ferrous metals, AI hardware, innovative drugs, games, and military industries may be the focus during the interim report season [25] - Many star private equity firms are positive about the stock market in the second half of 2025. They are optimistic about technology - related investment opportunities [25] - Last week, A - shares had a good start in July. The market is expected to fluctuate upwards, and attention is paid to the interim report season [26] - As of July 6, 54 A - share listed companies disclosed their semi - annual performance forecasts, showing good profitability [26] - As of July 6, 688 listed companies received bank loans for stock repurchase and increase, with a total loan limit exceeding 135.86 billion yuan [26] - Well - known fund managers adjusted their positions in the medical and military sectors in the first half of the year [28] - Huadian New Energy will be subscribed for on July 7, with an expected fundraising of about 15.801 billion yuan [28] Industry - Shenzhen introduced measures to support the semiconductor and integrated circuit industry and set up a 5 - billion - yuan private equity fund [29] - As of now, the national wheat purchase has exceeded 50 million tons, and the expected new - season summer grain purchase is about 100 million tons [29] - As of the end of the first half of the year, the total market value of public REITs exceeded 200 billion yuan, and most products had positive returns [29] - Guangdong issued a guidance on resolving historical issues of real estate registration on state - owned construction land [30] - The Hangzhou Bay Embodied Intelligence Innovation Center was launched, simulating six types of industrial scenarios [31] - Chongqing issued policies to support the high - quality development of the science and technology film and television industry, with subsidies of up to 10 million yuan [31] - In the past month, the prices of the white - feather broiler industry chain have dropped significantly [31] Overseas - The 17th BRICS Leaders' Summit opened in Rio de Janeiro, covering six major topics [32] - Putin proposed building an independent settlement and custody system and expanding local - currency settlement within BRICS [32] - Musk said his new party will participate in elections next year [33] - South Korea's special inspection team requested the court to detain former President Yoon Suk - yeol [35] - In June, the global manufacturing PMI was 49.5%, up 0.3 percentage points from the previous month, indicating a slight economic recovery [35] International Stock Markets - CFRA Research raised the target price of the S&P 500 index, expecting it to reach 6850 points in 12 months [36] - US stock funds had a net inflow of $31.6 billion last week, but Bank of America warns of a bubble risk in the US stock market [36] - After Musk announced the new party, Azoria postponed the listing of its Tesla ETF [36] - Jane Street Group was banned from the Indian market, and 48.4 billion Indian rupees (about 4 billion yuan) of illegal income will be confiscated [36] Commodities - In the first half of the year, the national futures market was active, with double - digit growth in trading volume. Gold led the commodity futures market, and precious metals accounted for 17.61% of the national market turnover [37] Bonds - Japan's International Cooperation Agency will issue "Africa・TICAD Bonds" in August, with a total issuance of about 23 billion yen for African infrastructure and education [39] Upcoming Economic Data and Events - Economic data to be released include Japan's June foreign exchange reserves, Germany's May industrial output, etc. [41] - Events include 331.5 billion yuan of reverse repurchases expiring in the Chinese central bank's open market, and the implementation of the rules for program trading in the Shanghai, Shenzhen, and Beijing stock exchanges on July 7 [43]

1. Macro Data Overview - GDP in Q1 2025 grew at a constant - price quarterly - on - quarterly rate of 5.4%, the same as the previous quarter and slightly higher than the same period last year [1] - In June 2025, the Manufacturing PMI was 49.7%, up from 49.5% in the previous month and the same as the same period last year; the Non - manufacturing PMI: Business Activity was 50.5%, up from 50.3% in the previous month and the same as the same period last year [1] - In May 2025, various financial and economic indicators showed different trends, such as changes in social financing scale, M0, M1, M2, financial institution RMB loans, CPI, PPI, fixed - asset investment, retail sales of consumer goods, export and import values [1] 2. Commodity Investment Reference Comprehensive - The CSRC approved the registration of propylene futures and options on the Zhengzhou Commodity Exchange [2] - In June, the national futures market volume was 740 million lots, with a turnover of 52.79 trillion yuan, up 28.91% and 17.25% year - on - year respectively. From January to June, the cumulative volume was 40.76 billion lots, and the cumulative turnover was 339.73 trillion yuan, up 17.82% and 20.68% year - on - year respectively [2] - There were reports of the US resuming exports of EDA software, ethane, aircraft engines and other products to China. After the China - US economic and trade talks in London, both sides are implementing the consensus of the leaders' call on June 5th [2][14] - Experts believe that in June, China's economic growth momentum remained stable, with CPI expected to rise slightly year - on - year and PPI likely to remain at a low level [2][17] - In June, the China Commodity Price Index was 110.8 points, up 0.5% month - on - month, indicating a stable and improving commodity market [3] - US Treasury Secretary Besent said that the trade negotiations were at a stalemate, with busy days ahead. If no agreement was reached by August 1st, tariffs would return to the April level [3][21] Metals - Precious metals were the most active in the futures market in the past six months. Gold futures' turnover in the first half of 2025 exceeded that of the whole of last year, up 149% year - on - year. Gold options' trading volume soared from 28.64 billion yuan in the first half of last year to 101.787 billion yuan this year, up 252.64% year - on - year [5] - India re - classified the import of colloidal precious metals and their compounds from "free" to "restricted", causing disruptions in the electronics manufacturing supply chain [5] Coal, Coke, Steel and Minerals - In the first five months of 2025, China's steel industry was stable, with a 5.2% year - on - year increase in steel production. Industrial steel demand, especially in the automotive and home - appliance manufacturing sectors, increased significantly [6] - Indonesia plans to shorten the mining quota period from three years to one year to improve industry governance and control coal and ore supply [6] - In late June, the price of coke dropped 4.36% month - on - month to 1,096.4 yuan/ton, hitting a record low; the price of rebar dropped 0.95% month - on - month to 3,080.7 yuan/ton, also hitting a record low [6] Energy and Chemicals - High - temperature weather in many parts of China led to a rapid increase in power consumption. On July 4th, the national maximum power load reached 1.465 billion kilowatts, up about 200 million kilowatts from the end of June and nearly 150 million kilowatts from the same period last year [6] - OPEC+ will increase production by 548,000 barrels per day next month, exceeding expectations, as it tries to regain market share during the summer [7] - Malaysia's national oil company will drill three oil wells in Suriname's offshore Block 52 [8] - Saudi Arabia raised the prices of its main crude grades for Asian buyers next month, showing confidence in the market [8] - Qatar set the shipping price of August marine crude oil at a premium of $1.40 per barrel over the Oman/Dubai average, and the price of land - based crude oil at a premium of $1.30 per barrel [8] - Saudi set the price of Arabian Light crude oil for the US in August at a premium of $3.90 per barrel over the Argus Sour Crude Index and for Northwest Europe at a premium of $4.65 per barrel over ICE Brent [8] - Goldman Sachs predicts that OPEC+ will further increase oil supply in September [9] Agricultural Products - As of now, the cumulative purchase of wheat in China has exceeded 50 million tons. The National Food and Strategic Reserves Administration expects the purchase of new - season summer grain to be about 100 million tons, with wheat accounting for over 85 million tons [10] - In the past month, the prices in the white - feather broiler industry chain have dropped significantly. At the beginning of July, the price of live chickens fell below 3 yuan for the second time this year, and the price of chicks dropped by more than half [10] - In late June, the price of live pigs rose 2.82% month - on - month to 14.6 yuan/kg [11] - In late June, the price of corn rose 1.33% month - on - month to 2,370.1 yuan/ton, hitting a new high since mid - July 2024 [12] 3. Financial News Compilation Open Market - This week, 652.2 billion yuan of reverse repurchases will mature in the central bank's open market. Last week, the central bank conducted 652.2 billion yuan of reverse repurchase operations, with a net withdrawal of 1375.3 billion yuan from the open market [13] - On July 4th, the central bank conducted 34 billion yuan of 7 - day reverse repurchase operations at a fixed interest rate. With 525.9 billion yuan of reverse repurchases maturing on the same day, the net withdrawal was 491.9 billion yuan [13] Key News - US President Trump said on July 4th that the US government would start sending letters to trade partners to set new unilateral tariff rates, which would likely take effect on August 1st [14] - The EU accepted price commitments from 34 Chinese enterprises in the anti - dumping case of imported brandy, and these enterprises will not be subject to anti - dumping duties if they meet the commitment conditions [14] - The technical part of the China - EU electric vehicle negotiations is almost completed, and China will impose anti - dumping duties on imported brandy from the EU starting July 5th for a period of 5 years [15] - Chinese Premier Li Qiang attended the 17th BRICS Leaders' Summit and proposed to establish a China - BRICS New Quality Productivity Research Center and a "Golden Heron" Excellence Scholarship [15] - Chinese Finance Minister 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 [16] - The Ministry of Housing and Urban - Rural Development's research team called on local governments to use real - estate regulation policies autonomously to stabilize the real - estate market [16] - The market expects that new RMB loans and social financing in June will increase month - on - month [16] - Local governments are issuing new special bonds to pay off overdue accounts to enterprises. Qinghai plans to issue about 11.7 billion yuan of local government bonds in July, with 1.42 billion yuan for debt repayment [18] - Qilu Bank's convertible bonds were triggered for mandatory redemption [18] - Many local state - owned enterprises and financial institutions are taking measures to prevent and resolve debt risks, such as reforming financing platforms, reducing high - cost non - standard debts, etc. [18][19] - Goldman Sachs significantly lowered its forecast for US Treasury yields, expecting the 2 - year and 10 - year yields to drop to 3.45% and 4.20% by the end of the year respectively [20] - In the euro - zone bond market, the yield of French 5 - year Treasury bonds exceeded that of Italian bonds for the first time since 2005 [20] - Japan's International Cooperation Agency will issue "Africa・TICAD Bonds" in August, with a total issuance of about 23 billion yen [20] - There are various bond - related events, including debt restructuring, shareholding changes, bond redemptions, and credit rating changes [22][23] Bond Market Summary - In the bond market, the yields of major interest - rate bonds in the inter - bank market were generally stable with a slight decline, and Treasury bond futures mostly rose. The money market was loose, and money prices continued to fall [24] - In the exchange - traded bond market, some bonds rose while others fell. The Wande Real - Estate Bond 30 Index rose 0.05%, and the Wande High - Yield Urban Investment Bond Index was flat [24] - The CSI Convertible Bond Index rose 0.15% to 447.46 points, with a trading volume of 75.05 billion yuan. The Wande Convertible Bond Equal - Weighted Index fell 0.25% to 212.72 points [25] - On July 4th, most money - market interest rates declined, and Shibor short - term rates also fell across the board [26][27] - The weighted winning yields of 7 - year and 10 - year Treasury bonds issued by the Ministry of Finance were 1.5302% and 1.6188% respectively, and the winning rate of the 2 - year fixed - rate bond "25 Jinchu Qingfa 02" issued by the Import - Export Bank of China was 1.26% [27] - Inter - bank and bank - to - bank repurchase fixed - rate quotes mostly fell, and European bond yields showed mixed trends [27][28] Foreign Exchange Market - The on - shore RMB closed at 7.1652 against the US dollar at 16:30, down 41 basis points from the previous trading day. The central parity rate of the RMB against the US dollar was 7.1535, down 12 basis points from the previous trading day [29] - In late New York trading, the US dollar index fell 0.13% to 96.99, and most non - US currencies showed different trends [29] Research Report Highlights - Shenwan Hongyuan's fixed - income research team believes that the re - evaluation of banks is not over, and a dumbbell - shaped strategy of bank - like convertible bonds, small - cap growth convertible bonds, and low - price low - volatility convertible bonds is still effective [30][31] - Guosheng Securities' fixed - income research team believes that ultra - long - term credit bonds still have room for yield decline, but the operation requirements for trading desks are high [31] - CITIC Construction Investment's chief economist Huang Wentao believes that in the second half of the year, the external situation will ease, and Hong Kong stocks will become an important gateway for China's technological rise [31] - CITIC Securities believes that since the second quarter of 2025, the bond market has been in a stalemate, and medium - and long - term credit bonds have better cost - effectiveness [31] - CICC's fixed - income research team believes that the impact of the "Big and Beautiful" bill on the US deficit and economy this year is limited, and US Treasury yields may oscillate and decline [32] Today's Reminder - On July 7th, 182 bonds will be listed, 91 bonds will be issued, 77 bonds will require payment, and 349 bonds will pay principal and interest [33][34] 4. Stock Market News - Hong Kong's Financial Secretary Paul Chan Mo - po said that the Hong Kong stock market is booming in 2025, with about 200 IPO applications received so far, double the number at the beginning of the year. The Hong Kong Stock Exchange is promoting the listing of more theme - based ETFs [35] - CITIC Securities' strategy team believes that the current market environment is similar to that at the end of 2014, and the rotation of non - ferrous metals, AI hardware, innovative drugs, games, and the military industry may be the main theme during the interim - report season [35] - Many star private equity funds are positive about the stock market in the second half of 2025. For example,淡水泉 is optimistic about the technology sector, and Chongyang Investment focuses on innovation and competitive industries [36] - Last week, the A - share market had a good start in July, and the market is expected to show an oscillating upward trend. The interim - report season is approaching, and investors are focusing on fundamental - based investment opportunities [36][37] - As of July 6th, 54 A - share listed companies have disclosed their semi - annual performance forecasts, mostly showing good profitability. Many companies have attracted institutional research after disclosing their forecasts [37] - Since the establishment of the stock repurchase, increase, and re - loan program, 688 listed companies have received bank support, with a total loan limit of over 135.86 billion yuan. A - share companies are increasing dividend payments [37] - Well - known fund managers have adjusted their positions in the medical and military sectors in the first half of the year [38]

Core Viewpoint - The approval of propylene futures and options by the China Securities Regulatory Commission signifies a significant enhancement in China's chemical derivatives market, providing better risk management tools for related enterprises [1][3]. Industry Position and Risk Management Needs - Propylene occupies a critical position in the chemical industry chain, linking upstream raw materials like crude oil, coal, and propane to downstream derivatives such as polypropylene, epoxy propane, acrylonitrile, and acrylic acid, which are widely used in packaging, automotive, home appliances, and medical sectors [2][3]. - The propylene industry faces a complex market environment characterized by structural contradictions between expanding upstream capacity and fluctuating downstream demand, leading to significant uncertainty for enterprises [2][3]. - Frequent and substantial price fluctuations have rendered traditional spot trading models inadequate for effective risk management, increasing the demand for specialized risk management tools across the industry chain [2][3]. Contract Design and Practical Needs - The Zhengzhou Commodity Exchange conducted extensive market research in designing the propylene futures and options contracts, setting the trading unit at 20 tons per lot to align with actual trading and transportation practices [3][4]. - The delivery method is physical delivery, with the last delivery day set on the 13th trading day of the contract month, covering all months from January to December, which matches the continuous production and sales characteristics of the propylene industry [3][4]. - The simultaneous launch of futures and options provides enterprises with a richer array of risk management strategies, allowing them to flexibly use different tool combinations based on their risk preferences and market expectations, thereby enhancing the overall risk management level and operational efficiency of the industry chain [3][4].

Core Viewpoint - The approval of propylene futures and options by the China Securities Regulatory Commission marks a significant step in enhancing the carbon three industrial chain, providing essential risk management tools for industry players and promoting high-quality development in the sector [1][2][3]. Group 1: Industry Overview - China is a major producer and consumer of propylene, with a projected apparent consumption of 55.36 million tons in 2024, including domestic supply of approximately 53.41 million tons, imports of 2.02 million tons, and exports of 0.07 million tons [2]. - Propylene serves as a core raw material in petrochemicals, with upstream sources including crude oil, coal, and propane, and downstream applications spanning polypropylene, propylene oxide, and other derivatives used in packaging, automotive, home appliances, and medical sectors [2][3]. Group 2: Market Development - The introduction of propylene futures and options is expected to fill the product gap in the carbon three industrial chain, enhancing the risk management capabilities for upstream and downstream enterprises [2][3]. - The futures and options will provide effective tools for inventory hedging and processing margin hedging, contributing to the healthy development of the national propylene industry chain [3]. Group 3: Contract Specifications - The proposed trading unit for propylene futures contracts is set at 20 tons per hand, aligning with the transportation habits in the industry, as pressure trucks and ships typically handle loads in multiples of 20 tons [4]. - The delivery date for contracts will be the 13th trading day of the delivery month, utilizing a physical delivery method, which is consistent with the continuous production and sales characteristics of the propylene industry [4]. Group 4: Future Outlook - The Zhengzhou Commodity Exchange is committed to ensuring a smooth launch of propylene futures and options, alongside ongoing market cultivation activities to enhance enterprise risk management strategies [5]. - With the addition of propylene futures and options, the total number of futures and options in China's market will rise to 152, indicating a growing diversity in available financial instruments [5].