Report Summary Market Overview - The Shanghai Composite Index rose 0.13% to 3771.10 points, the Shenzhen Component Index fell 0.06% to 11919.76 points, and the ChiNext Index fell 0.47% to 2595.47 points. The total trading volume of A-shares in the two markets was 2.4609 trillion yuan. The top-performing sectors were agriculture, forestry, animal husbandry and fishery (1.50%), petroleum and petrochemicals (1.39%), and beauty care (0.98%), while the worst-performing sectors were machinery and equipment (-1.08%), power equipment (-0.98%), and comprehensive (-0.73%) [2][6]. Stock ETFs - The top trading volume stock ETFs were Huaxia CSI A500 ETF (down 0.09% with a discount rate of 0.18%), Huaxia Shanghai Science and Technology Innovation Board 50 ETF (unchanged with a discount rate of 0.07%), and Huatai-PineBridge CSI A500 ETF (up 0.18% with a discount rate of 0.32%) [3][7]. Bond ETFs - The top trading volume bond ETFs were Haifutong CSI Short-term Financing Bond ETF (up 0.02% with a discount rate of 0.00%), Bosera CSI Convertible and Exchangeable Bond ETF (up 0.31% with a discount rate of 0.52%), and Penghua ChinaBond 30-year Treasury Bond ETF (up 0.47% with a discount rate of 0.44%) [4][9]. Gold ETFs - Gold AU9999 rose 0.23% and Shanghai Gold rose 0.30%. The top trading volume gold ETFs were Huaan Gold ETF (up 0.27% with a discount rate of 0.23%), Huaxia Gold ETF (up 0.31% with a discount rate of 0.22%), and E Fund Gold ETF (up 0.27% with a discount rate of 0.21%) [12]. Commodity Futures ETFs - Huaxia Feed Soybean Meal Futures ETF fell 1.43% with a discount rate of -1.10%, Jianxin Yisheng Zhengzhou Commodity Exchange Energy and Chemical Futures ETF rose 0.83% with a discount rate of 1.28%, and Dacheng Non-ferrous Metals Futures ETF fell 0.12% with a discount rate of -0.09% [15]. Cross-border ETFs - The previous trading day, the Dow Jones Industrial Average rose 0.04%, the Nasdaq Composite fell 0.67%, the S&P 500 fell 0.24%, and the German DAX fell 0.60%. Today, the Hang Seng Index fell 0.24% and the Hang Seng China Enterprises Index fell 0.43%. The top trading volume cross-border ETFs were E Fund CSI Hong Kong Securities Investment Theme ETF (down 0.78% with a discount rate of 0.28%), GF CSI Hong Kong Innovative Drugs ETF (up 0.95% with a discount rate of 2.13%), and Huaxia Hang Seng Tech ETF (down 1.32% with a discount rate of -0.44%) [17]. Money Market ETFs - The top trading volume money market ETFs were Huabao Tianyi ETF, Yin Hua Rili ETF, and Jianxin Tianyi Money Market ETF [19].

Market Overview - The bond market showed weak performance last week (August 11-15, 2025), with yields generally rising across major bond types. The China Bond Composite Wealth Index (CBA00201) fell by 0.33%, and the China Bond Composite Full Price Index (CBA00203) decreased by 0.38% [14] - The yields of interest rate bonds across various maturities increased, while credit bonds also faced upward pressure on yields, leading to a narrowing of credit spreads [14][15] - The liquidity in the market showed a slight contraction, highlighting the "see-saw" effect between stocks and bonds. The US Treasury market experienced narrow fluctuations with fluctuating rate cut expectations [15][16] Public Fund Market Dynamics - The first batch of Sci-Tech Bond ETFs has continued to attract significant investment, with total assets surpassing 110 billion yuan, reaching 116.12 billion yuan as of August 15, 2025. Eight products exceeded 10 billion yuan in size, with the largest being the Harvest CSI AAA Technology Innovation Corporate Bond ETF at 20.03 billion yuan [18][19] - The overall market for bond ETFs has expanded significantly, with total assets reaching 538.2 billion yuan, nearly doubling from 179.99 billion yuan at the end of 2024. The number of products exceeding 10 billion yuan increased from 5 to 24 [18][19] Fund Index Performance Tracking - The Money Market Enhanced Index rose by 0.02% last week, with a cumulative return of 3.93% since inception [3][21] - The Short-term Bond Fund Index remained unchanged last week, with a cumulative return of 4.12% since inception [4][21] - The Mid-to-Long-term Bond Fund Index fell by 0.16% last week, with a cumulative return of 6.30% since inception [5][21] - The Low Volatility Fixed Income + Fund Index rose by 0.04%, with a cumulative return of 3.32% since inception [6][21] - The Medium Volatility Fixed Income + Fund Index increased by 0.51%, with a cumulative return of 3.62% since inception [7][21] - The High Volatility Fixed Income + Fund Index rose by 0.44%, with a cumulative return of 5.17% since inception [8][21] - The Convertible Bond Fund Index increased by 1.29%, with a cumulative return of 17.35% since inception [9][21] - The QDII Bond Fund Index rose by 0.14%, with a cumulative return of 9.06% since inception [10][21] - The REITs Fund Index fell by 0.76%, with a cumulative return of 36.05% since inception [12][21]

Market Overview - The market experienced a strong upward trend, with the Shanghai Composite Index surpassing the high point from October 8 of the previous year, reaching a nearly four-year high [1] - AI hardware stocks showed significant growth, while brokerage stocks also saw a temporary surge, and non-ferrous metal concept stocks strengthened [1] ETF Market Activity - On August 13, the non-monetary ETF market saw notable inflows, with the following funds reporting significant changes: - The Jiashi CSI AAA Technology Innovation Corporate Bond ETF increased by 0.41 million shares, with a net inflow of 4.077 billion yuan - The Bosera CSI Convertible Bonds and Exchangeable Bonds ETF saw an increase of 1.00 million shares, with a net inflow of 1.312 billion yuan - The Haifutong CSI Short-term Bond ETF increased by 0.08 million shares, with a net inflow of 919 million yuan [1][2] ETF Performance Summary - The top-performing ETFs in terms of net inflow for August 13 included: - Jiashi CSI AAA Technology Innovation Corporate Bond ETF with a net inflow of 5.213 billion yuan - Fuguo CSI Hong Kong Stock Connect Internet ETF with a net inflow of 4.644 billion yuan - Haifutong CSI Short-term Bond ETF with a net inflow of 4.257 billion yuan [4] Overall ETF Market Data - As of August 13, the total ETF shares in the market reached 27,793.85 million shares, with a total scale of 47,392.52 billion yuan - The medical sector saw the largest increase in shares, with nine funds tracking it, while the largest increase in index tracking was for the CSI Wine Index (+4.21%) and the highest return was for the Communication Equipment Index (+6.73%) [4]

Group 1 - The article highlights the top ETFs by net inflow, indicating strong investor interest in specific funds [1] - The leading ETF by net inflow is the Hai Fu Tong Zhong Zheng Short Bond ETF, with a net inflow of 40.23 billion [1] - The second highest is the Fu Guo Zhong Zheng Hong Kong Stock Connect Internet ETF, with a net inflow of 28.16 billion [1] Group 2 - The article lists the total assets under management for each ETF, with the Hai Fu Tong Zhong Zheng Short Bond ETF having a total size of 554 billion [1] - Other notable ETFs include the Hua Bao Hu Shen 300 Free Cash Flow ETF with a net inflow of 19.31 billion and total assets of 25.49 billion [1] - The article also mentions the performance of various ETFs, such as the Yin Hua Ri Li A ETF with a net inflow of 18.71 billion and total assets of 683.83 billion [1]

1. Report Industry Investment Rating There is no information provided regarding the industry investment rating in the report. 2. Core Viewpoints - Convertible bond ETFs are a type of hybrid ETF product that combines the stability of fixed - income products with the growth potential of equity assets. They are highly flexible and efficient in terms of capital utilization, attracting continuous inflows of large - scale institutional funds [2]. - The convertible bond ETF market has witnessed rapid growth in scale and high trading enthusiasm, with both soaring returns and significant drawdowns. It has a high allocation value as it can balance risks and returns in investment portfolios [3][4]. - Given the current supply - demand imbalance, institutional recognition, and policy support, convertible bond ETFs have the potential for further expansion and product iteration [6]. 3. Summary by Directory 3.1 Convertible Bond ETFs: Hybrid Asset Tools with Bond - like Defense and Stock - like Growth - **1.1 T + 0 and Dual - Market Mechanisms: High Flexibility and Liquidity** - Convertible bond ETFs adopt a trading - open structure, allowing investors to trade on the secondary market like stocks and conduct large - scale subscriptions and redemptions on the primary market. They have no fixed term, enabling long - term holding. The T + 0 trading mechanism enhances capital efficiency, and the "physical + cash" redemption mechanism reduces costs and provides arbitrage opportunities. Market makers ensure on - exchange liquidity [14][16]. - **1.2 Different Portfolio Construction Styles of Two Convertible Bond ETFs** - Bosera focuses on balanced and diversified portfolios, with the top ten heavy - position bonds having relatively balanced proportions. Haitong concentrates on top - tier bonds, with the top two heavy - position bonds accounting for over 27%. Bosera has better risk - resistance in volatile markets, while Haitong may achieve higher returns in unilateral up - trends [18]. - **1.3 Regulatory Red Lines and Transparent Disclosure** - Regulators have set multiple red lines in investment ratios, concentration limits, leverage control, and information disclosure to prevent risks and enhance transparency. For example, at least 80% of the fund's assets must be invested in component bonds and alternative bonds of the target index. Fund managers are required to disclose net asset values, portfolios, subscription and redemption lists, and temporary events frequently [22]. 3.2 The Convertible Bond ETF Market is Booming, with Scale Reaching a Record High - **2.1 Rapid Growth in Market Scale** - As of July 25, 2025, the convertible bond ETF market scale reached 5.1171 billion yuan, accounting for 7.7% of the convertible bond market. It grew 5.72 times in 2024 and increased by 29.54% from June 20 to July 25, 2025 [3]. - **2.2 Active Trading** - In the past month, the turnover rate of the two convertible bond ETFs exceeded 14%. Bosera's convertible bond ETF had a turnover rate of 22.89% on July 4, and Haitong's reached 20.80% on June 24. The trading volume reached a peak of 9.448 billion yuan on July 4 and has remained at a high level since September 2024. The market participants are becoming more diversified [30][32]. - **2.3 Soaring Returns and Fluctuating Drawdowns** - From 2024 - 2025, convertible bond ETFs showed significant returns, with cumulative returns of products like Bosera's exceeding 30%. However, in 2025, the drawdowns increased, with Bosera's maximum drawdown at about - 10% and Haitong's at about - 8%. Bosera had a relatively strong recovery ability after the drawdown, taking 79 days to recover [35]. 3.3 Low Fees, High Liquidity, Transparent Portfolio, and Balanced Offense - Defense: Advantages of Convertible Bond ETFs - **3.1 Characteristics of Convertible Bond ETFs** - Convertible bond ETFs are flexible in trading, closely track the index, have transparent positions, and low fees. They can be traded on the exchange, and the T + 0 system improves capital efficiency. The ETF managers disclose the full position list and weight information daily, and the annual management fee is about 0.2% [44][46]. - **3.2 Allocation Value of Convertible Bond ETFs** - Convertible bond ETFs can balance risks and returns in investment portfolios, enhancing returns and adapting to changing market environments. They can provide equity - like returns in rising stock markets and bond - like protection in falling markets [5]. 3.4 Possibility of New Convertible Bond ETF Issuance - **4.1 Increasing Demand for Allocation** - Leading products like Bosera's have received large - scale net inflows during market fluctuations, indicating strong institutional demand for bond - stock hybrid tools. The main holders are bank wealth management, insurance funds, and pensions [6]. - **4.2 Significant Incremental Space in the Public Fund Industry** - Only 18 out of 52 fund companies that have launched ETF businesses have issued bond ETFs, leaving a large number of leading companies on the sidelines. There is great potential for new product launches [55]. - **4.3 Regulatory Policies Promote Product Innovation** - Regulatory documents such as the "Action Plan for Promoting the High - Quality Development of Index - based Investment in the Capital Market" encourage the innovation of bond ETF supply and coordinate with policies for long - term capital entry into the market [6].

Market Overview - On August 1, the market experienced fluctuations with the three major indices slightly declining [1] - Sectors such as traditional Chinese medicine, electric equipment, AI intelligence, and paper-making saw notable gains, while sectors like shipbuilding, civil explosives, PCB, and CPO faced significant declines [1] ETF Market Activity - In the non-monetary ETF market on August 1, the following ETFs saw substantial net inflows: - Huaxia SSE 50 ETF with a net inflow of 1.134 billion and an increase of 393 million shares [2] - Dazhong Hang Seng Technology ETF with a net inflow of 726 million and an increase of 999 million shares [2] - Bosera CSI Convertible Bond and Exchangeable Bond ETF with a net inflow of 722 million and an increase of 57 million shares [2] Top ETFs by Net Inflows - As of August 1, the top 20 ETFs by net inflows for the month include: - Huaxia SSE 50 ETF with a net inflow of 1.134 billion and a total scale of 167.51 billion [3] - Dazhong Hang Seng Technology ETF with a net inflow of 726 million and a total scale of 10.305 billion [3] - Bosera CSI Convertible Bond and Exchangeable Bond ETF with a net inflow of 722 million and a total scale of 46.025 billion [3] Overall ETF Market Data - The total ETF shares in the market reached 27,701.95 million, with a total scale of 45,755.49 billion [3] - The financial sector saw the largest increase in shares, with 24 funds tracking it, while the securities company index marked a 31.23% increase [3]

Core Insights - The bond ETF market in China has entered a rapid growth phase, with the total scale exceeding 510 billion yuan, and 21 bond ETFs now exceeding 10 billion yuan in size [1][3][5] - The growth is attributed to continuous policy support, product innovation, and the increasing popularity of passive investment strategies [1][5][9] Market Overview - As of July 25, there are 39 bond ETFs in the market, with a total scale of 510.5 billion yuan, marking significant milestones this year as the scale surpassed 200 billion, 300 billion, 400 billion, and 500 billion yuan [3][5] - Notable products include Hai Fu Tong's Zhong Zheng Short-term Bond ETF and Fu Guo's Zhong Zhai 7-10 Year Policy Financial Bond ETF, both exceeding 50 billion yuan in scale [5] Investor Dynamics - Institutional investors hold 82.98% of bond ETFs, but there is a growing participation from individual investors, particularly in index bond funds [8] - The trend indicates that while institutional investors will remain the primary participants, individual investors' acceptance and participation are expected to increase [8] Future Outlook - The bond ETF market is anticipated to continue expanding, driven by the advantages of low fees, trading flexibility, and the ability to pledge securities [9][10] - Industry experts expect the introduction of more innovative products and improvements in liquidity arrangements to further enhance market vitality [10]

Core Viewpoint - The bond ETF market in China is experiencing rapid growth, with the total scale exceeding 510 billion yuan, driven by policy support, product innovation, and the increasing popularity of passive investment strategies [2][5]. Group 1: Market Growth and Scale - As of July 25, the total scale of bond ETFs reached 510.5 billion yuan, with 39 bond ETFs in the market, marking significant milestones of surpassing 200 billion, 300 billion, 400 billion, and 500 billion yuan this year [5]. - There are currently 21 bond ETFs with a scale exceeding 10 billion yuan, indicating a robust expansion in the market [4][5]. - Notable products include Hai Fu Tong Zhong Zheng Short-term Bond ETF and Fu Guo Zhong Dai 7-10 Year Policy Financial Bond ETF, both exceeding 50 billion yuan in scale [5]. Group 2: Factors Driving Growth - The growth of bond ETFs is attributed to their scarcity, operational convenience, and flexibility compared to traditional bond index funds [5]. - Regulatory support and policies encouraging product innovation have also played a crucial role in the development of the bond ETF market [6]. Group 3: Investor Composition and Trends - Institutional investors hold 82.98% of bond ETFs, but there is a growing participation from individual investors, particularly in index bond funds [8]. - The trend indicates that while institutional investors will remain the primary participants, the proportion of individual investors is expected to increase in the coming years [9]. Group 4: Future Outlook - The bond ETF market is anticipated to continue expanding, with expectations for more innovative products to be launched [10]. - The advantages of bond ETFs, such as lower fees and trading flexibility, are expected to attract more investors, especially in a declining interest rate environment [10].

Group 1 - The core point of the article highlights the changing dynamics in FOF (Fund of Funds) investments, particularly the decline in holdings of gold ETFs, despite their popularity among fund managers [1][2] - As of the end of Q2 2025, the Huazhong Gold ETF has the highest number of FOF holdings, totaling 78, with a market value of 987 million yuan [1] - The top five funds with the most FOF purchases include Huazhong Gold ETF, Hai Futong Zhongzheng Short Bond ETF, Pengyang Zhongzheng 30-Year Treasury ETF, and others, indicating a shift in investment focus [2] Group 2 - The article discusses the performance of FOFs, noting that several funds have achieved over 20% returns year-to-date, with specific funds like Guotai Preferred Navigation and ICBC Smart Progress leading the way [4][5] - Fund managers are adopting a proactive investment strategy, focusing on sectors such as Hong Kong technology, innovative pharmaceuticals, and A-share new productivity themes, which are driving net asset value growth [3][6] - The outlook for the market suggests a focus on industry rotation opportunities, with key investment themes including rare earths, innovative pharmaceuticals, resource commodities, and the financial real estate sector [6][7]

Market Overview - As of July 16, the total ETF margin balance in the two markets reached 99.343 billion, an increase of 0.22 billion from the previous trading day [1] - The financing balance was 93.63 billion, up by 0.277 billion, while the securities lending balance decreased to 5.713 billion, down by 56.881 million [1] - In the Shanghai market, the ETF margin balance was 66.643 billion, increasing by 0.231 billion, with a financing balance of 61.658 billion, up by 0.246 billion, and a securities lending balance of 4.986 billion, down by 15.4018 million [1] - In the Shenzhen market, the ETF margin balance was 32.699 billion, decreasing by 10.1846 million, with a financing balance of 31.972 billion, up by 31.2946 million, and a securities lending balance of 0.727 billion, down by 41.4792 million [1] ETF Margin Balance - The top three ETFs by margin balance on July 16 were: - Huaan Yifu Gold ETF (7.554 billion) - E Fund Gold ETF (6.69 billion) - Huaxia Hang Seng (QDII-ETF) (4.532 billion) [2] ETF Financing Amount - The top three ETFs by financing amount on July 16 were: - E Fund CSI Hong Kong Securities Investment Theme ETF (1.059 billion) - Haifutong CSI Short Bond ETF (0.975 billion) - Huaxia Hang Seng Technology (QDII-ETF) (0.928 billion) [4] ETF Net Financing Amount - The top three ETFs by net financing amount on July 16 were: - Bosera CSI Convertible Bonds and Exchangeable Bonds ETF (0.143 billion) - Huaxia Shanghai Stock Exchange Sci-Tech Innovation Board 50 ETF (80.353 million) - Invesco Great Wall CSI Hong Kong Stock Connect Technology ETF (50.6248 million) [6] ETF Securities Lending Amount - The top three ETFs by securities lending amount on July 16 were: - Southern CSI 1000 ETF (44.9919 million) - Southern CSI 500 ETF (9.4046 million) - Huatai-PB CSI 300 ETF (8.9782 million) [8]