Report Industry Investment Rating - The operation rating for CITIC's five - style stability is ★☆☆, indicating a bullish bias but with limited operability in the market [4] Core Viewpoints - In the week ending November 7, 2025, the weekly returns of Tonglian All - A (Shanghai, Shenzhen, Beijing), ChinaBond Composite Bond, and Nanhua Commodity Index were 0.63%, - 0.01%, and - 0.47% respectively. In the public fund market, convertible bond products performed well, the common stock strategy index declined slightly, neutral strategy products mostly rose, non - ferrous metal ETFs weakened slightly, and soybean meal ETFs had better returns. Among CITIC's five styles, only the consumer style declined last Friday, while the stable and cyclical styles were strong. The style rotation chart showed that the relative strength of the growth style decreased, and the relative strength momentum of the financial style rebounded marginally. The average returns of various style funds in the public fund pool underperformed the benchmark index. The market's deviation towards the financial style decreased. The congestion index dropped, with the growth style congestion falling to the medium - percentile range of the past year. In the neutral strategy, the contract basis weakened slightly last week, with the current IH basis close to 1 standard deviation below the three - month average. The average premium rates of IC and IM corresponding index ETFs rebounded to the medium - percentile range of the past three months. The profit factor had a good return performance in the past week, with a weekly excess return of 0.97%, and the excess of the growth factor was significantly compressed. The win - rate of the residual momentum factor decreased, but the factor itself strengthened. The cross - section rotation speed of factors rebounded slightly this week, currently at the medium - percentile range of the past year. According to the latest scoring results of the style timing model, the financial style declined marginally this week, the consumer style strengthened slightly, and the current signal favored the stable style. The return of the style timing strategy last week was 1.85%, with an excess return of 0.97% compared to the benchmark balanced allocation [4] Summary by Relevant Catalogs Fund Market Review - The weekly returns of Tonglian All - A (Shanghai, Shenzhen, Beijing), ChinaBond Composite Bond, and Nanhua Commodity Index were 0.63%, - 0.01%, and - 0.47% respectively [4] - In the public fund market, convertible bond products performed well, the common stock strategy index declined slightly, neutral strategy products mostly rose, non - ferrous metal ETFs weakened slightly, and soybean meal ETFs had better returns [4] Equity Market Style - Among CITIC's five styles, only the consumer style declined last Friday, while the stable and cyclical styles were strong. The style rotation chart showed that the relative strength of the growth style decreased, and the relative strength momentum of the financial style rebounded marginally [4] - The average returns of various style funds in the public fund pool underperformed the benchmark index. The market's deviation towards the financial style decreased. The congestion index dropped, with the growth style congestion falling to the medium - percentile range of the past year [4] Neutral Strategy - The contract basis weakened slightly last week, with the current IH basis close to 1 standard deviation below the three - month average. The average premium rates of IC and IM corresponding index ETFs rebounded to the medium - percentile range of the past three months [4] Barra Factor - The profit factor had a good return performance in the past week, with a weekly excess return of 0.97%, and the excess of the growth factor was significantly compressed. The win - rate of the residual momentum factor decreased, but the factor itself strengthened. The cross - section rotation speed of factors rebounded slightly this week, currently at the medium - percentile range of the past year [4] Style Timing Model - According to the latest scoring results of the style timing model, the financial style declined marginally this week, the consumer style strengthened slightly, and the current signal favored the stable style. The return of the style timing strategy last week was 1.85%, with an excess return of 0.97% compared to the benchmark balanced allocation [4]

Core Insights - The Shanghai Composite Index opened high and continued to rise, while the China Bond Composite Index reported at 243.06 points [1] Group 1: Index Performance - The China Bond Composite Index has decreased by 0.22% over the past month, increased by 0.48% over the past three months, and has risen by 1.06% year-to-date [2] - The index is composed of government bonds, financial bonds, corporate bonds, central bank bills, and corporate short-term financing bonds with a remaining maturity of more than one month, listed on the Shanghai and Shenzhen stock exchanges and the interbank market [2] Group 2: Index Composition and Adjustments - The China Bond Composite Index is based on a reference date of December 31, 2002, with a base point of 100.0 [2] - The sample of the index is adjusted monthly, with adjustments taking effect on the first trading day of each month, and data extracted the trading day before the effective date [2] - In the case of temporary adjustments, if a sample bond is suspended or delisted, it will be removed from the index based on the situation from the effective date of the event [2]

Core Viewpoint - The China Bond Composite Index has shown a slight decline over the past month but has increased over the last three months and year-to-date, indicating a mixed performance in the bond market [2]. Group 1: Index Performance - The China Bond Composite Index reported a decrease of 0.10% over the past month, an increase of 0.44% over the last three months, and a year-to-date increase of 1.02% [2]. - The index is composed of government bonds, financial bonds, corporate bonds, central bank bills, and corporate short-term financing bonds with a maturity of over one month [2]. Group 2: Index Composition - As of the latest data, 76.37% of the index consists of unrated bonds, while 20.40% are rated "AAA" [2]. - The remaining ratings include 0.01% "A" rated, 0.01% "A+" rated, 0.81% "AA" rated, 2.35% "AA+" rated, and 0.04% "AA-" rated, with no bonds rated "BB" or "BBB" [2]. Group 3: Index Adjustment Mechanism - The China Bond Composite Index undergoes monthly adjustments, with the effective date being the first trading day of each month [2]. - In cases of temporary adjustments due to events like suspension or delisting of sample bonds, the index will remove those bonds as necessary [2].