Core Insights - The launch of two batches of Sci-Tech Bond ETFs marks a significant entry into the "hard technology" sector for China's bond ETF market [1] - As of October 20, 2025, the total scale of 24 Sci-Tech Bond ETFs reached 246.875 billion yuan, with 15 products exceeding 10 billion yuan in size [1] - Institutional investors dominate the subscription of Sci-Tech Bond ETFs, with over 90% held by institutions in many funds [1][3] Institutional Investor Insights - Major institutional investors include banks, securities firms, wealth management subsidiaries, insurance companies, and trusts [3] - For instance, the top two holders of the Sci-Tech Bond ETF from Industrial Bank are Pudong Development Bank and Industrial Bank, holding 49.84% and 29.83% respectively [3] - The first major holder of the Huatai-PB Sci-Tech Bond ETF is China Merchants Bank, with a holding ratio of 50.17% [3] Market Dynamics - The China Securities Regulatory Commission (CSRC) has emphasized the need to enhance support for technology innovation through the multi-tiered bond market [4] - The introduction of the "technology board" in the bond market aims to alleviate financing difficulties for tech innovation companies [4] - Sci-Tech Bond ETFs serve as important tools for participating in investments on the technology board, gaining market favor [4] Investment Characteristics - Sci-Tech Bond ETFs consist of a basket of AAA-rated bonds from technology innovation companies, providing a diversified investment option [4][5] - They offer high liquidity and can participate in repurchase agreements, helping to alleviate redemption pressures on wealth management products [4] - The ETFs are suitable for both institutional and individual investors, providing a channel for personal investors to access Sci-Tech bonds [5][6] Risk and Return Profile - Compared to government bonds and money market funds, Sci-Tech bonds offer higher annualized returns, especially in the context of a declining deposit rate [7] - However, the investment in technology enterprises carries higher risks due to uncertainties in development and market changes [7] - The ETFs are designed to balance returns and volatility, making them suitable for medium to low-risk investors [6][8] Index Tracking - The existing 24 Sci-Tech Bond ETFs track three types of indices: the CSI AAA Technology Innovation Company Bond Index, the SSE AAA Technology Innovation Company Bond Index, and the SZSE AAA Technology Innovation Company Bond Index [7] - Each index has different characteristics, catering to various investor preferences regarding risk and return [7][8]

Group 1 - The second batch of 14 Sci-Tech Bond ETFs will be listed on September 24, expanding the total number of listed Sci-Tech Bond ETFs to 24 [1][3] - The total issuance scale of the first two batches of Sci-Tech Bond ETFs has reached nearly 700 billion yuan, with the first batch alone raising 289.88 billion yuan [3][4] - The rapid expansion of the first batch's scale indicates strong market demand for policy-supported and stable-yield technology-themed bond instruments [1][5] Group 2 - As of September 22, 8 out of the 10 first batch Sci-Tech Bond ETFs have exceeded 10 billion yuan in scale, with the largest being 19.76 billion yuan [4] - The majority of the ETFs track the China Securities AAA Technology Innovation Company Bond Index, which has increased by 1.24% year-to-date [5] - The unique investment value of Sci-Tech Bond ETFs is highlighted by their ability to maintain liquidity and attract investment amid a fluctuating bond market [6][7] Group 3 - The issuance of the second batch of Sci-Tech Bond ETFs is expected to bring in continuous inflow of incremental funds, enhancing market activity [6] - The policy support for these ETFs allows them to be included as collateral for general pledged repo, improving capital efficiency for investors [6] - The current market environment suggests that the unique investment value of Sci-Tech Bonds will become more pronounced as the bond market stabilizes [7][8]

Group 1 - The recent regulations from the China Securities Regulatory Commission (CSRC) regarding redemption fees for publicly offered securities investment funds have boosted the demand for bond ETFs, particularly the Sci-Tech bond ETFs, which may attract more investors compared to traditional off-market bond funds [1] - As of September 13, five public fund institutions announced the early closure of fundraising for their Sci-Tech bond ETFs, which only took one day to reach their fundraising limits. The maximum fundraising scale for the second batch of 14 Sci-Tech bond ETFs could reach 42 billion yuan [1] - The first batch of Sci-Tech bond ETFs was launched in July, and as of September 12, they experienced a slight price drop but had a cumulative net inflow of 95.195 billion yuan since their listing [1] Group 2 - The second batch of 14 Sci-Tech bond ETFs, approved on September 8, primarily tracks three types of indices: the Shanghai AAA Technology Innovation Company Bond Index, the CSI AAA Technology Innovation Company Bond Index, and the Shenzhen AAA Technology Innovation Company Bond Index [1] - The three indices have different weighted methods and component counts, with 806, 983, and 178 components respectively. The yield rates for these indices as of September 12 were 1.23%, 1.24%, and 1.39% for the year, outperforming government bond indices and other pure bond fund indices [2] - The increasing liquidity of component bonds in the Sci-Tech bond market allows investors to use them as a stable base for their portfolios, especially as traditional fixed-income products face declining yields [3]

Group 1 - The Wanjia Shenzhen AAA Technology Innovation Company Bond ETF (159110) will be launched for subscription from September 12 to September 16, 2025, with a maximum fundraising scale of 3 billion yuan [1] - The fund will be managed by Wanjia Fund, with Xu Qing and He Fangzhou serving as fund managers [1] - The performance benchmark for the fund is the Shenzhen AAA Technology Innovation Company Bond Index yield [1]

Group 1 - The second batch of 14 science and technology innovation bond ETFs will begin fundraising, with 9 products available for one day and 4 for three trading days, while 1 product will have a five-day fundraising period [1] - The first batch of 10 science and technology innovation bond ETFs has exceeded a total scale of 120 billion yuan, growing over 300% from the initial fundraising amount [2] - The introduction of the new batch of products is expected to further accelerate the expansion of the bond ETF market, with science and technology innovation bond ETFs becoming the highest market capitalization subcategory [2] Group 2 - According to Guotai Junan Securities, the interest rate strategy has been dominant since 2025, with science and technology innovation bond ETFs showing certain resilience during adjustment periods [3] - The bond market has experienced significant volatility since 2025, with the value of duration strategies declining, while credit bond interest rate strategies have shown advantages [3] - The recent regulatory changes regarding fund sales fees are expected to create greater development opportunities for bond ETFs, as higher redemption fee thresholds may redirect investments from other bond funds to bond ETFs [3]

Core Viewpoint - The first batch of Sci-Tech Innovation Bond ETFs has seen significant growth, with a total scale exceeding 110 billion yuan, indicating strong market interest and investment value in this sector [1][5][10]. Group 1: ETF Expansion and Market Dynamics - The second batch of Sci-Tech Innovation Bond ETFs has been officially submitted, with 14 fund companies participating, indicating a growing interest in this investment vehicle [3][4]. - The first batch of 10 ETFs sold out on the first day, with a total fundraising amount of 28.988 billion yuan, and the overall scale has increased to 117.95 billion yuan, representing a growth of approximately 307% [5][10]. - The trading turnover rate of Sci-Tech Innovation Bonds increased from below 10% to 18% in the first month after the first batch was launched, reflecting improved liquidity [1][10]. Group 2: Investment Value and Market Outlook - The market for Sci-Tech Innovation Bonds has rapidly expanded, with a total market size of approximately 2 trillion yuan, driven by policy support and increasing issuance [8][9]. - Analysts predict that the issuance of Sci-Tech Innovation Bonds will play a crucial role in the transformation of economic drivers, shifting focus from traditional industries to technology innovation [9][11]. - The performance of the Sci-Tech Innovation Bond indices has outperformed traditional long-term bond indices, with annualized returns of around 4.6% compared to 3.2% for long-term pure bond fund indices [10]. Group 3: Institutional Participation and Strategic Importance - Major fund companies view the Sci-Tech Innovation Bond ETFs as a strategic tool to enhance their fixed-income product lines and provide investors with access to technology sector growth [6][11]. - The involvement of custodial institutions, such as Industrial Bank and China Merchants Bank, highlights the competitive landscape and institutional interest in these ETFs [5]. - The ETFs are expected to facilitate the flow of financial resources into the technology sector, supporting innovation and economic development [6][11].

Core Insights - The second batch of Sci-Tech Innovation Bond ETFs has been officially submitted, with 14 fund companies participating in this expansion [1][2] - The first batch of Sci-Tech Innovation Bond ETFs has seen significant growth, with total assets surpassing 110 billion yuan, marking a 305.47% increase since their initial launch [4][5] Group 1: ETF Submission Details - On August 20, 14 fund companies collectively submitted the second batch of Sci-Tech Innovation Bond ETFs, with 10 ETFs tracking the China Securities AAA Sci-Tech Innovation Company Bond Index [2] - Six of the submitted products will be listed on the Shanghai Stock Exchange, while four will be listed on the Shenzhen Stock Exchange [2] - Three additional ETFs will track the Shanghai Securities AAA Sci-Tech Innovation Company Bond Index, and one will track the Shenzhen Securities AAA Sci-Tech Innovation Company Bond Index [2] Group 2: Performance of First Batch - The first batch of 10 Sci-Tech Innovation Bond ETFs has exceeded 110 billion yuan in total assets, reaching 117.54 billion yuan as of August 20 [4][5] - Seven of the first batch ETFs have surpassed 10 billion yuan in individual scale, with notable performances from 嘉实 and 华夏 ETFs, which have exceeded 20 billion yuan and 15 billion yuan respectively [4][5] - The overall growth of the first batch indicates a strong demand and interest in this type of investment product within the public fund sector [4]

Core Viewpoint - The second batch of Sci-Tech Bond ETFs has been officially reported, with 14 fund companies participating, marking the first expansion of this popular ETF category in 2023 [2][4]. Group 1: Overview of the Second Batch of Sci-Tech Bond ETFs - On August 20, 14 fund companies collectively reported the second batch of Sci-Tech Bond ETFs, with 8 listed on the Shanghai Stock Exchange and 6 on the Shenzhen Stock Exchange [2][4]. - Out of the 14 ETFs, 10 will track the China Securities AAA Sci-Tech Innovation Company Bond Index, 3 will track the Shanghai Securities AAA Sci-Tech Innovation Company Bond Index, and 1 will track the Shenzhen Securities AAA Sci-Tech Innovation Company Bond Index [4]. Group 2: Performance of the First Batch of Sci-Tech Bond ETFs - The first batch of Sci-Tech Bond ETFs has surpassed a total scale of 110 billion yuan, reaching 117.54 billion yuan as of August 20, which represents a growth of 305.47% from the initial scale of 28.99 billion yuan [7]. - Among the first batch, 7 ETFs have exceeded 10 billion yuan in scale, with notable performances from the Jiashi ETF exceeding 20 billion yuan and the Huaxia ETF surpassing 15 billion yuan [7][8].

Core Viewpoint - The first batch of 10 Sci-Tech Bond ETFs has been launched, achieving a trading volume exceeding 400 billion yuan, indicating strong market interest in this new financial product [1] Group 1: Overview of Sci-Tech Bond ETFs - Sci-Tech Bond ETFs, or AAA Sci-Tech Innovation Company Bond ETFs, are a new type of bond ETF that invests in a basket of AAA-rated bonds from technology innovation companies [1] - The first batch of 10 Sci-Tech Bond ETFs was issued by 10 fund companies, including E Fund, Southern Fund, and Harvest Fund [1] - Compared to traditional bond funds, Sci-Tech Bond ETFs offer higher trading efficiency, lower fees, transparency in holdings, and greater diversification [1] Group 2: Investment Characteristics - The ETFs track three types of Sci-Tech Bond indices: the CSI AAA Sci-Tech Innovation Company Bond Index, the SSE AAA Sci-Tech Innovation Company Bond Index, and the SZSE AAA Sci-Tech Innovation Company Bond Index [1][2] - The CSI AAA index has the most comprehensive sample, suitable for investors seeking broad exposure and diversification [2] - The SSE AAA index has a longer duration and a higher proportion of central state-owned enterprises, appealing to medium to long-term investors seeking stable returns [2] - The SZSE AAA index has fewer samples and focuses on the Shenzhen market, suitable for investors sensitive to interest rate risks [2] Group 3: Investment Access and Risks - Investors can subscribe to newly issued Sci-Tech Bond ETFs through fund companies, securities firms, or platforms like Alipay, with a minimum investment starting at approximately 100 yuan [3] - Despite the high ratings of the underlying bonds, investors should remain vigilant as high ratings do not equate to zero risk, particularly due to the volatility in the tech sector [3] - Factors such as technological changes, policy adjustments, and research and development cycles can significantly impact the long-term repayment capacity of Sci-Tech companies [3]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The issuance of the first batch of Sci - tech Innovation Bond ETFs has landed, empowering the continuous expansion of the Sci - tech Innovation Bond market. As of July 15, 2025, 10 Sci - tech Innovation Bond ETFs have raised a total of 28.988 billion yuan, accounting for about 96.63% of the planned fundraising scale cap [1][13]. - Through the analysis of the underlying component bonds of the tracking indices of Sci - tech Innovation Bond ETFs, it is found that there are differences in the term structure, issuer structure, coupon rate, and yield distribution among the three major indices, and the excess spread of Sci - tech Innovation Bonds varies due to the issuer's qualifications [1]. - The issuance of Sci - tech Innovation Bond ETFs will increase the allocation demand for Sci - tech Innovation Bonds, improve market liquidity, and attract medium - and long - term funds into the Sci - tech Innovation Bond market [1][8]. 3. Summary by Relevant Catalogs 3.1 First Batch of Sci - tech Innovation Bond ETFs Issued, Empowering the Continuous Expansion of the Sci - tech Innovation Bond Market - On June 18, 2025, the first batch of 10 Sci - tech Innovation Bond ETFs were submitted collectively, approved on July 2, and scheduled for issuance on July 7. Among them, 6 products track the CSI AAA Sci - tech Innovation Corporate Bond Index, 3 track the SSE AAA Sci - tech Innovation Corporate Bond Index, and 1 tracks the SZSE AAA Sci - tech Innovation Corporate Bond Index [1][13]. - As of July 15, 2025, these 10 ETFs raised a total of 28.988 billion yuan, accounting for about 96.63% of the planned fundraising scale cap [1][13]. 3.2 Analysis of the Component Bond Structure of the Tracking Indices of Sci - tech Innovation Bond ETFs - **Component Bond Quantity and Scale**: As of July 4, 2025, the number of component bonds of the CSI, SSE, and SZSE AAA Sci - tech Innovation Corporate Bond Indices was 825, 678, and 146 respectively, with outstanding scales of 107.4735 billion yuan, 93.0605 billion yuan, and 14.183 billion yuan respectively [1][16]. - **Remaining Term Structure**: The remaining term structures of the three indices are basically the same, mainly short - and medium - term within 5 years. The Shenzhen index has a relatively lower component bond term center, and the term distribution of the index component bonds is consistent with that of the existing Sci - tech Innovation Corporate Bonds [1][17]. - **Issuer Structure**: The issuers of the component bonds of the three indices are all AAA - rated with high credit quality, mainly central and local state - owned enterprises. The Shenzhen index has a more diverse issuer structure in terms of enterprise nature and industry distribution [1][22]. - **Coupon Rate Distribution**: The coupon rates of the component bonds of the three indices are mainly concentrated in the 2 - 2.5% range. The coupon rate center of the Shenzhen index has shifted upward [1][26]. - **Yield Distribution**: The yield distribution of the CSI and SSE indices is more balanced, while the yield of the Shenzhen index shows significant polarization [1][28]. - **Excess Spread**: The excess spread of perpetual and non - perpetual Sci - tech Innovation Bonds of the top ten issuers by market value in the index component bonds is between - 2.45 and 23.94BP and between - 7.78 and 32.97BP respectively. The compression space of the excess spread of the Shenzhen index is relatively large [1][29]. 3.3 Impact of the Issuance of Sci - tech Innovation Bond ETFs on the Sci - tech Innovation Bond Market - **Increase Allocation Demand for Sci - tech Innovation Bonds**: Sci - tech Innovation Bond ETFs have advantages such as low fees, high position transparency, and efficient trading mechanisms. With the issuance of the first batch of ETFs, the scale is expected to continue growing, bringing about allocation demand for component bonds. The market of Sci - tech Innovation Corporate Bonds may have started [1][34][35]. - **Improve Market Liquidity of Sci - tech Innovation Bonds**: The launch of ETFs will strengthen the market liquidity of Sci - tech Innovation Corporate Bonds, facilitate investors' participation, compress liquidity premiums, and improve pricing efficiency [1][8][38]. - **Attract Medium - and Long - Term Funds into the Sci - tech Innovation Bond Market**: The launch of Sci - tech Innovation Bond ETFs can match the allocation needs of institutional investors such as social security funds, pensions, and insurance funds, attracting medium - and long - term funds into the market [8][43].