Report Investment Rating No investment rating information is provided in the report. Core Viewpoints - The bond market in China showed a pattern of rising first and then falling last week, with large yield fluctuations throughout the week. The domestic bond market is likely to maintain a volatile trend in the short - term, and the 10 - year Treasury yield may oscillate around the 1.75% - 1.80% range. [10] - The US Treasury yield curve rose last week. After the Federal Reserve cut interest rates, the yield went up due to various factors. [11] - The REITs market had a dull performance last week, with the CSI REITs Total Return Index rising slightly, and different types of REITs showing mixed performance. Policy support for REITs issuance in certain consumption infrastructure projects was introduced. [11] Summary by Directory 1. Weekly Market Observation 1.1. Pan - Fixed - Income Market Review and Observation - **Domestic Bond Market**: From September 15 - 19, 2025, the 1 - year Treasury yield dropped 1BP to 1.39%, the 10 - year yield rose 1.19BP to 1.88%, and the 30 - year yield rose 1.56BP to 2.20%. The market sentiment was affected by factors such as central bank bond - buying expectations and bond issuance results. [10] - **US Treasury Bonds**: The 1 - year US Treasury yield dropped 6BP to 3.60%, the 2 - year yield rose 1BP to 3.57%, and the 10 - year yield rose 8BP to 4.14%. The yield was influenced by economic data, the Federal Reserve's interest - rate cut, and labor - market data. [11] - **REITs Market**: The CSI REITs Total Return Index rose 0.12% to 1071.34 points. Different types of REITs had mixed performance, with data centers and warehousing logistics performing relatively well. As of September 19, 2025, 16 REITs were successfully issued this year, with a total issuance scale of 33.65 billion yuan. One new public offering REIT was established last week. [11][12] 1.2. Public Fund Market Dynamics - On September 12, Guozheng Index announced the release of the Guozheng Free Cash Flow Market - Making Bond Mixed Index series on September 17, including four indices with different asset - allocation weights. [13] 2. Pan - Fixed - Income Fund Index Performance Tracking | Index Type | Last Week's Return | One - Month Return | YTD Return | Cumulative Return Since Inception | | --- | --- | --- | --- | --- | | Money Enhancement Index | 0.03% | 0.12% | 1.10% | 4.07% | | Short - Term Bond Fund Selection | 0.03% | 0.09% | 0.79% | 4.20% | | Medium - and Long - Term Bond Fund Selection | 0.04% | 0.00% | 0.48% | 6.11% | | Low - Volatility Fixed - Income + Fund Selection | - 0.05% | 0.48% | 2.51% | 3.80% | | Medium - Volatility Fixed - Income + Fund Selection | 0.03% | 1.20% | 4.59% | 5.12% | | High - Volatility Fixed - Income + Fund Selection | - 0.07% | 1.20% | 7.06% | 6.80% | | Convertible Bond Fund Selection | - 1.37% | 0.44% | 15.60% | 19.22% | | QDII Bond Fund Selection | 0.11% | 0.99% | 5.05% | 10.13% | | REITs Fund Selection | - 1.01% | 3.62% | 27.09% | 36.17% | [5][14][15] 2.1. Money Enhancement Index Tracking - The money enhancement strategy index aims for liquidity management and a curve that outperforms money - market funds. It mainly invests in money - market funds and inter - bank certificate of deposit index funds, with a benchmark of the CSI Money Fund Index. [16] 2.2. Pure Bond Index Tracking - **Short - Term Bond Fund Selection Index**: It focuses on liquidity management and risk control, mainly investing in five funds with stable long - term returns and strict risk control, with a benchmark of 50% Short - Term Pure Bond Fund Index + 50% Ordinary Money - Market Fund Index. [19] - **Medium - and Long - Term Bond Fund Selection Index**: It invests in medium - and long - term pure bond funds, aiming for stable returns and controlling drawdowns. It selects funds with both return and risk - control capabilities and adjusts the portfolio according to market conditions. [21] 2.3. Fixed - Income + Index Tracking - **Low - Volatility Fixed - Income + Selection Index**: With an equity central position of 10%, it selects 10 fixed - income + funds with an equity position within 15%, aiming for a balance between risk and return and a good holding experience, with a benchmark of 10% CSI 800 Index + 90% ChinaBond New Composite Full - Price Index. [24] - **Medium - Volatility Fixed - Income + Selection Index**: With an equity central position of 20%, it selects five fixed - income + funds with an equity position between 15% - 25%, emphasizing performance elasticity on the basis of risk - return ratio, with a benchmark of 20% CSI 800 Index + 80% ChinaBond New Composite Full - Price Index. [25] - **High - Volatility Fixed - Income + Selection Index**: With an equity central position of 30%, it selects five fixed - income + funds with an equity position between 25% - 35%, focusing on funds with strong stock - selection ability on the equity side and stable bond - end returns, with a benchmark of 30% CSI 800 Index + 70% ChinaBond New Composite Full - Price Index. [28] 2.4. Convertible Bond Fund Selection Index - It selects bond - type funds with a high proportion of convertible - bond investment as the sample space, and constructs an evaluation system from multiple dimensions to select five funds to form the index. [28][31] 2.5. QDII Bond Fund Selection Index Tracking - It selects six QDII bond funds with stable returns and good risk control based on credit and duration conditions, with underlying assets of overseas bonds. [32] 2.6. REITs Fund Selection Index Tracking - It selects ten REITs funds with stable operation, reasonable valuation, and certain elasticity based on the type of underlying assets, which are mainly infrastructure projects with stable cash - flow expectations. [35]

Market Overview - The bond market experienced significant fluctuations last week (September 15-19, 2025), with the 1-year government bond yield decreasing by 1 basis point to 1.39%, while the 10-year and 30-year yields increased by 1.19 basis points to 1.88% and 1.56 basis points to 2.20%, respectively. The market sentiment improved in the first half of the week due to expectations of central bank bond purchases, but weakened in the latter half due to poor bond issuance results and other factors [3][16][17]. Public Fund Market Dynamics - On September 12, the National Index announced the launch of the National Index Free Cash Flow Market Bond Mixed Index series on September 17, which includes various indices with different asset allocation targets [4][19]. Fund Index Performance Tracking - The Money Enhanced Index rose by 0.03% last week, with a cumulative return of 4.07% since inception. The Short-term Bond Fund Index also increased by 0.03%, with a cumulative return of 4.20% [5][6][21]. - The Mid-to-Long-term Bond Fund Index saw a 0.04% increase, accumulating a return of 6.11%. Conversely, the Low Volatility Fixed Income + Fund Index decreased by 0.05%, with a cumulative return of 3.80% [7][8][9][10][21]. - The Convertible Bond Fund Index fell by 1.37%, but has a cumulative return of 19.22% since inception. The QDII Bond Fund Index increased by 0.11%, with a cumulative return of 10.13% [11][12][21]. REITs Market - The REITs market showed mixed performance, with the China Securities REITs Total Return Index rising by 0.12%. As of September 19, 2025, there have been 16 successful REITs issuances this year, totaling 33.65 billion yuan [13][18][21].