Core Insights - The public fund issuance market experienced a significant rebound in July, with a total of 149 new funds established, marking the highest number for the year, and a total issuance of 882.61 billion units, reflecting a 12.83% increase from June [2][3] Fund Issuance Overview - In July, bond funds led the market with 506.20 billion units issued, accounting for 57.35% of total issuance, while stock funds had 81 new funds with an issuance of 250.88 billion units, representing 28.43% of the total [2][3] - The average issuance per fund in July was 9.59 billion units, an increase of 2.54 billion units compared to June [2] Factors Driving Market Recovery - The recovery in the public fund issuance market is attributed to improved market conditions, favorable macroeconomic data, supportive regulatory policies, and ample liquidity [3] - The launch of innovative products like the Sci-Tech Innovation Bond ETFs has significantly contributed to the growth in bond fund issuance, with these ETFs accounting for 75% of the total bond fund issuance in July [3][4] Performance of Sci-Tech Innovation Bond ETFs - The first batch of Sci-Tech Innovation Bond ETFs reached a total scale of 1,082.14 billion yuan by the end of July, representing a growth of over 270% since their launch [4][5] - These ETFs accounted for nearly 21% of the total bond ETF market, which reached a historical high of 5,160.29 billion yuan with 39 ETFs in total [4] Market Dynamics and Ecosystem - The dual fund manager model adopted by some fund managers, such as Penghua Fund, enhances the management of Sci-Tech Innovation Bond ETFs by combining expertise in credit bonds and ETF management [6] - The optimization of market-making models has improved liquidity in the bond market, particularly for bond ETFs, creating a positive feedback loop between ETF liquidity and the underlying bond market [7] Private Fund Participation - Private funds are increasingly participating in the ETF market, with a focus on diversifying their asset allocation strategies through products like the Sci-Tech Innovation Bond ETFs [8] - The rapid growth of these ETFs has redefined the concept of "explosive growth" in the fund market, indicating a shift in how equity and bond markets can complement each other [8]

Summary of Bond ETF Conference Call Industry Overview - The conference call discusses the development of the bond ETF market in China, highlighting significant milestones and challenges faced by the industry [1][2][3][4][5]. Key Points and Arguments 1. **Market Growth and Milestones** - The launch of cross-market cash redemption bond ETFs in 2022 marked a pivotal moment for bond ETFs, leading to a significant increase in market size [1][3]. - By July 25, 2025, the total management scale of bond ETFs exceeded 510.4 billion yuan, with a notable increase in the number of products from 21 at the end of 2024 to 39 by mid-2025 [4][5]. 2. **Increased Market Share** - The share of bond ETFs within passive index funds rose from 15% at the beginning of the year to 25%, primarily due to the issuance of credit bond ETFs [1][6]. 3. **Performance of Sci-Tech Bond ETFs** - The first batch of Sci-Tech bond ETFs launched in July 2025 saw rapid growth, reaching approximately 100 billion yuan in total scale within the first week, indicating high market interest [1][7]. 4. **Differences Between Bond ETFs and Other Funds** - Bond ETFs exhibit a more diversified duration distribution compared to off-exchange passive index funds, which tend to have a concentrated duration [8][10]. 5. **Investor Composition** - Institutional investors show a high holding ratio in convertible bond ETFs and medium-short duration government bonds, while retail investors favor long-term government bond ETFs [12]. 6. **Challenges Facing the Market** - The bond ETF market faces several challenges, including underdeveloped infrastructure, insufficient product supply and innovation, and low investor recognition [2][15][16]. 7. **Comparison with International Markets** - The scale of bond ETFs in China remains significantly lower than that of off-exchange passive index funds, with a notable gap attributed to infrastructure and investor acceptance issues [16]. 8. **Future Development Directions** - Recommendations for future growth include enhancing product lines, improving management efficiency, and increasing investor education to boost recognition and participation [22][26]. Other Important but Overlooked Content - The call emphasizes the importance of liquidity and operational efficiency in the bond ETF market, particularly as the market evolves with new product offerings and regulatory changes [15][18]. - The competitive landscape among management institutions is highlighted, with leading firms focusing on different segments of the market, indicating a lack of a stable top-tier institution structure in the bond ETF space [13][14]. This summary encapsulates the key insights and developments discussed in the conference call regarding the bond ETF market in China, providing a comprehensive overview of its current state and future potential.

Report Industry Investment Rating No relevant content provided. Core Views of the Report - In Q2 2025, the scale and quantity of bond index funds (including ETFs) both increased, with the total scale exceeding 1.5 trillion yuan. Bond ETFs were the main force in the growth of bond index funds, and the expansion of credit bond ETFs, especially benchmark market - making credit bond ETFs, was particularly significant. Meanwhile, the underlying asset categories and duration structures of bond index funds became more balanced and diversified, and the细分 strategies of index funds such as credit bonds and financial bonds also became more abundant [1]. - With the expansion of index bond fund varieties, increased policy support, and the deepening of the entry process of pension funds into the market, domestic bond index funds (including ETFs) are expected to achieve accelerated development through policy guidance and product innovation [6]. Summary According to the Table of Contents Bond Index Funds are Entering the Fast - Lane of Development - In Q2 2025, the scale and quantity of bond index funds (including ETFs) both increased. The total scale reached 1.55 trillion yuan, with a quarter - on - quarter increase of over 300 billion yuan, a quarter - on - quarter growth rate of 25%, contributing 36% of the total bond fund's quarter - on - quarter increase. Year - on - year, it increased by more than 560 billion yuan, with a growth rate of 57%, contributing 180% of the bond fund's year - on - year increase. The number of bond index funds (excluding 10 Sci - tech innovation bond ETFs) reached 343, an increase of 13 from the previous quarter [11]. - Bond ETFs were the main force in the growth of bond index funds. By the end of Q2 2025, the total scale of bond ETFs reached 38.44 billion yuan, with a quarter - on - quarter growth of 76% and a year - on - year growth of 250%, contributing more than half of the bond index fund's increase. As of July 23, 2025, the total scale of bond ETFs exceeded 500 billion yuan. Among them, 10 Sci - tech innovation bond ETFs exceeded 10 billion yuan in just 5 trading days after their listing on July 17 [13]. - In terms of the structure, Southern Fund, GF Fund, and Fullgoal Fund ranked in the top three in terms of the total scale of pure - bond index fund products (excluding convertible bond products) under each institution. After including 2 convertible bond ETF products, Bosera Fund, Southern Fund, and GF Fund ranked in the top three, all with a scale of over 100 billion yuan. In terms of increments, the scale of Haifutong's pure - bond index products increased the most in Q2, mainly due to the rapid expansion of its short - term financing ETF products [16]. The Product Line of Bond Index Funds is Becoming More Abundant Underlying Asset Categories - For bond index funds (excluding ETFs), the main investment directions are policy - financial bonds and inter - bank certificates of deposit. However, since Q2, credit bond index funds have expanded significantly, with their scale exceeding that of inter - bank certificate of deposit - type products for the first time, ranking second. In addition, the proportions of financial bond and comprehensive bond index fund products have also increased slightly [5]. - For bond ETFs, the scale of benchmark market - making credit bond ETFs exceeded that of policy - financial bonds in Q2, becoming the largest sub - category. As of Q2 2025, the scale of benchmark market - making credit bond ETFs exceeded 220 billion yuan, accounting for over 30% [28]. Duration Structure - For bond index funds (excluding ETFs), the 1 - 3 - year and 3 - 5 - year maturity segments had a higher proportion, and the proportion of the scale of the over - 5 - year maturity segment increased significantly since Q2. By the end of Q2 2025, the proportions of the 1 - 3 - year and 3 - 5 - year maturity segments of index bond funds were 30% and 42% respectively, and the proportion of the over - 5 - year maturity segment increased by about 5 percentage points to 16% [32]. - For bond ETFs, previously, the 1 - 3 - year segment was the main one. Since Q2, the proportion of the 3 - 5 - year segment has increased significantly, mainly due to the expansion of benchmark market - making credit bond ETFs. The weighted average duration of benchmark market - making credit bond ETFs is between 3 - 4 years. The expansion of benchmark market - making credit ETFs has led to the proportion of 3 - 5 - year bond ETFs increasing from about 5% in Q1 to 40% [32]. Sub - Strategies - The sub - strategies and types of index funds such as credit bonds and financial bonds have become more diverse, covering multiple sub - themes such as investment - grade, green theme/ESG, and regional. Among the 13 newly - added bond index funds in Q2, 5 belong to credit bond index funds (including financial bonds) and cover multiple sub - themes [42]. Future Development Ideas for Bond Index Funds Future Development Space for Bond Index Funds - Referring to the experience of overseas mature markets such as the United States, the domestic bond index funds (including ETFs) are expected to achieve accelerated development through policy guidance and product innovation. The current scale of domestic bond index funds is at a relatively low level compared with that in the United States, and there is broad development space [47][48]. Development Ideas for Bond Index Funds - Layout comprehensive bond index funds. Currently, there is a gap in on - exchange comprehensive products in China, while in the United States, they were developed earliest and have the largest scale [6]. - Enrich the duration supply, such as increasing the supply of long - duration varieties such as local bonds over 10 years and credit bonds over 5 years [6]. - Refine the sub - strategies and types of credit products, such as focusing on ESG sub - fields, climate change themes, and Sci - tech innovation bonds to enrich the strategy levels [6]. - Link to overseas bond index funds, such as Southbound Connect bond index funds [6]. - Deepen the development of cross - market bond ETFs and active bond ETFs [6].

Group 1 - The core viewpoint is that the market for science and technology innovation bonds (科创债) in China has surpassed 2.2 trillion yuan by 2025, with a continuous increase in the proportion of high-quality innovation enterprises [1][2] - The ETF (Exchange-Traded Fund) market is seen as a crucial tool for asset allocation and economic development, with significant growth potential as capital market reforms progress [2][3] - The focus of the market this year is on obtaining trading profits, with ETFs providing a natural trading advantage due to their high liquidity [3][4] Group 2 - Insurance capital is in the early stages of engaging with bond ETFs, particularly credit bond ETFs, and is expected to increase its allocation as product variety and liquidity improve [4][5] - The introduction of the science and technology innovation bond ETF is viewed as an important innovation in capital market products, promoting technological innovation and optimizing market structure [2][3] - The dual fund manager model adopted by Penghua Fund for its science and technology innovation bond ETF aims to enhance asset allocation and operational management, supporting product scale growth [5]

1. Report Industry Investment Rating The document does not provide the industry investment rating. 2. Core Viewpoints of the Report - The report details the development of domestic bond ETFs, liquidity analysis of bond - making varieties in the Shanghai and Shenzhen stock exchanges, and the investment application of bond ETFs [1]. - The scale of bond ETFs has expanded rapidly in the past year, exceeding 40 billion yuan for the first time. As of July 15, 2025, bond ETFs are mainly divided into interest - rate bond ETFs, credit - bond ETFs, and convertible - bond ETFs [1][11]. - Since July 10, 2025, 10 science - innovation bond ETFs have been established. The share of ETFs linked to the CSI Convertible Bond and Exchangeable Bond Index has increased the most, and the trading volume of CSI short - term financing - related ETFs has been the most active [2][17]. - Bond ETFs have asset - allocation and trading attributes. Their trading is more flexible, efficient, and leveraged, with high information transparency. The main strategies include primary - secondary market price arbitrage, intraday T + 0 trading, and pledge - repurchase leveraging [3]. 3. Summary by Relevant Catalogs 3.1 What are Bond ETFs? - **Domestic Bond ETF Overview**: In the past year, the scale of domestic bond ETFs has developed significantly, exceeding 40 billion yuan, but the variety is still single. As of July 15, 2025, there are 16 interest - rate bond ETFs, and 15 bond ETFs have a scale of over 1 billion yuan. The top five in scale are Fuguo Policy Financial Bond ETF, Haifutong Short - term Financing ETF, Boshi Convertible Bond ETF, E Fund Company Bond ETF, and Southern Shanghai Stock Exchange Company Bond ETF. Since July 10, 2025, 10 science - innovation bond ETFs have been established [11][15][16]. - **Recent Performance Tracking of Bond ETFs**: In terms of share changes, the share of ETFs linked to the CSI Convertible Bond and Exchangeable Bond Index has increased the most. In terms of share change rate, the share of ETFs with the Shanghai 30 - year Treasury Bond Index as the underlying index has increased by about 15 million shares (+21.74%). In terms of trading activity, CSI short - term financing - related ETFs have the most active trading volume [17]. 3.2 Exchange Bond Liquidity Analysis - Overall, the trading volume and liquidity of bonds on the Shanghai Stock Exchange are better than those on the Shenzhen Stock Exchange [19]. - **Shanghai Stock Exchange Interest - Rate Bond Market - Making Varieties**: In the past month, among the interest - rate bond market - making varieties on the Shanghai Stock Exchange, those maturing within 3 years have the most active trading volume, followed by those maturing within 3 - 5 years. The liquidity is negatively correlated with the standard term [20]. - **Shanghai Stock Exchange Credit - Bond Market - Making Varieties**: Among the credit - bond market - making varieties on the Shanghai Stock Exchange in the past month, those maturing over 10 years have the most active liquidity, followed by those maturing within 3 years [22]. - **Shenzhen Stock Exchange Interest - Rate Bond Market - Making Varieties**: Among the interest - rate bond market - making varieties on the Shenzhen Stock Exchange in the past month, the average trading volume of varieties maturing within 3 years is the highest, followed by those maturing over 10 years [23]. - **Shenzhen Stock Exchange Credit - Bond Market - Making Varieties**: Among all the credit - bond market - making varieties on the Shenzhen Stock Exchange in the past month, the varieties maturing within 3 - 5 years have the highest turnover rate, followed by those maturing over 10 years [24]. 3.3 Investment Application of Bond ETFs - Bond ETFs have the functions of asset allocation and trend trading. Compared with ordinary over - the - counter bond index funds, they have additional investment strategies [25]. - **Investment Strategies**: Asset allocation (holding strategy), trend (band operation), arbitrage strategy (discount - premium), arbitrage (spot - futures arbitrage), dividend strategy, event - driven strategy, intraday T + 0 strategy, and leverage strategy [27]. - **Advantages**: Primary - secondary market price arbitrage, intraday T + 0 trading, and the ability to use pledge - repurchase to add leverage [28].

Core Viewpoint - The launch of the first batch of Sci-Tech Bond ETFs reflects strong market demand and policy support, indicating a significant opportunity for investment in this sector [2][14]. Group 1: Launch and Market Response - On July 7, 2025, the first 10 Sci-Tech Bond ETFs were officially launched and sold out on the same day, potentially bringing 30 billion yuan in new funds to the market [2]. - Among the first batch of public funds, 8 have experience in managing bond ETFs, showcasing a robust management background [3]. Group 2: Fund Management and Index Tracking - Six of the ETFs track the CSI AAA Sci-Tech Innovation Company Bond Index, while three track the SSE AAA Sci-Tech Innovation Company Bond Index, and one tracks the SZSE AAA Sci-Tech Innovation Company Bond Index [3][5]. - The CSI AAA Sci-Tech Innovation Company Bond Index includes 810 bonds with a total balance of 1,057 billion yuan, making it the most comprehensive among the tracked indices [16]. Group 3: Market Growth and Investment Appeal - The total market for Sci-Tech credit bonds exceeded 2 trillion yuan by June 2025, with 1.35 trillion yuan issued in the exchange market [14]. - The rapid growth of credit bond ETFs, from 54.1 billion yuan at the end of 2024 to 220.1 billion yuan by mid-2025, highlights their appeal due to low fees and high transparency [7][8]. Group 4: Performance and Yield Analysis - The AAA Sci-Tech Bond Index has shown a three-year increase of 14.3% with a volatility of 14.4%, indicating a higher yield potential compared to other bond funds [19]. - The annualized yield of the AAA Sci-Tech Bond Index exceeds 4%, outperforming most short and medium-term bond funds [21]. Group 5: Future Outlook - The combination of policy support and market demand suggests a promising future for the Sci-Tech bond market, with the ETFs expected to enhance their long-term investment value and market influence [21].

Group 1 - The report indicates a positive outlook for equity assets, supported by a stock-bond rotation model showing a marginal decline in private sector financing growth but still in an upward trend, with inflation factors decreasing and economic recovery signals persisting [4][9] - The sentiment index for the A-share market has turned optimistic for the upcoming month, with indicators such as stock investment ratios and net inflows from large orders maintaining a bullish outlook [4][9] - The report recommends maintaining a high allocation to equity assets, with a focus on small-cap and growth styles for July, while suggesting stable fixed-income products for conservative investors [4][10] Group 2 - The report highlights the implementation of consumption policies aimed at enhancing consumer capacity and expanding financial support for consumption, with 19 key measures proposed [5][12] - A high-quality development plan for inclusive finance has been published, emphasizing the establishment of a comprehensive inclusive financial system over the next five years [5][12] - The second quarter monetary policy meeting indicated a more optimistic view of the domestic economy, while maintaining a stance of "moderate easing" in monetary policy [5][12] Group 3 - The report notes that the ETF market has performed well recently, with significant inflows into broad-based ETFs, particularly in the ChiNext index ETF and financial real estate sector ETFs [6][15] - The report mentions that 16 new ETFs were launched in the past two weeks, with a total issuance of 6.621 billion units, indicating growth in the ETF market [6][15] - The performance of thematic ETFs, such as those tracking AI and robotics, has been highlighted, with notable inflows and returns [6][17] Group 4 - The report discusses the wind power sector, forecasting a doubling of global offshore wind installations by 2025, with a compound annual growth rate of 21% expected over the next decade [19][20] - It also mentions the competitive landscape in the energy storage market, with prices for lithium iron phosphate battery systems continuing to decline, reflecting increased competition [20][21] - Investment recommendations include focusing on companies in the offshore wind sector and those involved in energy storage, highlighting specific firms such as Mingyang Smart Energy and Sunshine Power [21][22] Group 5 - The report emphasizes innovation in the liquor industry, with companies like Luzhou Laojiao focusing on low-alcohol and youth-oriented products to meet changing consumer demands [22][23] - It identifies opportunities in the beverage and snack sectors, driven by evolving consumer preferences and the introduction of functional products [22][23]