Macro - The likelihood of achieving a 5% economic growth target for the year is high, with a decreasing necessity and intensity for incremental policies in the second half of the year [1] - Continuous price pressure has negatively impacted the normal circulation of the national economy, leading to a focus on addressing price issues through unconventional macroeconomic policies [1][2] - The phenomenon of "involution" in both supply and demand sides has intensified downward price pressures, with low capacity utilization and excessive capital expenditure on the supply side, and long working hours suppressing consumer demand on the demand side [2][3] Strategy - The IPO process in Hong Kong involves both public offerings and international placements, with the former primarily targeting retail investors, leading to a liquidity "drain" effect due to the need for investors to freeze funds for subscriptions [6][8] - The introduction of the FINI system in 2023 has significantly reduced the liquidity pressure associated with IPOs by allowing for a pre-set funding compression mechanism, which can save approximately 71% of the funds that would have been frozen historically [8] - The launch of the first batch of Sci-Tech Bond ETFs on July 7, 2025, raised 29 billion yuan, marking a significant expansion in the Sci-Tech bond market, which has seen rapid growth due to supportive policies [9][10] - The current Sci-Tech bonds are predominantly issued by state-owned enterprises, with a significant portion allocated to the banking sector, indicating a strong focus on financing technology innovation [10][11] Non-Bank Financials - The securities industry is expected to benefit from a stable equity market and a recovering bond market, with significant growth in financing activities driven by state-owned banks [22][23] - The competitive landscape is shifting towards a focus on functionality and profitability, with a notable increase in the concentration of leading firms in the industry [24][25] - The capital market is stabilizing, with various funding sources supporting a potential upward breakout in equity markets, positioning brokerages as key players in this trend [26][27] Real Estate - The valuation of major real estate companies is believed to have entered an investment range, with a focus on the "demand bottom" and the dynamics of supply and demand relationships [28] - A potential decline in new housing prices is anticipated, with second-hand housing listings expected to decrease in the coming years, indicating a stabilization in the market [28] Fund Evaluation - The report highlights the regulatory framework surrounding performance benchmarks for mutual funds in the U.S., emphasizing the importance of appropriate benchmark selection for fund performance evaluation [29][30] - U.S. actively managed funds predominantly use single benchmarks, with a high correlation between fund performance and benchmark indices, contrasting with the more complex benchmark structures often seen in China [30][31]

1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - In 2025, the continuous policy support has driven the expansion of the science - innovation bond market, and the science - innovation bond ETF has been quickly launched. The first batch of 10 science - innovation bond ETFs are scheduled to be issued on July 7, 2025 [1][2][11][13]. - The first - batch science - innovation bond ETFs track three major indices: the AAA Science - Innovation Bond Index, the Shanghai AAA Science - Innovation Bond Index, and the Shenzhen AAA Science - Innovation Bond Index. These indices have different characteristics in terms of return - risk, remaining maturity, weighted duration, bond rating, issuer industry, remaining face value, and collateral ratio [3]. - The expansion of science - innovation bond ETFs brings investment opportunities. Institutions have started to increase their allocation of science - innovation bond index constituent bonds. Three types of potentially beneficial targets can be pre - arranged: targets that are both science - innovation bond index constituent bonds and exchange benchmark market - making varieties, science - innovation bond targets with remaining excess spread protection, and targets with a remaining maturity of 3 - 4 years [5]. 3. Summary According to the Directory 3.1 Science - Innovation Bond ETF Launch Background - In 2025, policies on science - innovation bonds were continuously strengthened. In March, the central bank governor proposed to build a "science and technology board" in the bond market. In May, relevant policies were introduced to support the issuance of science - innovation bonds, including expanding the issuer scope, encouraging the creation of science - innovation bond ETFs, and improving the risk - sharing mechanism [12][13]. - Since the new policy was issued, the issuance scale of science - innovation bonds has exceeded 620 billion yuan, and the outstanding scale has reached 2.5 trillion yuan, providing sufficient underlying assets for science - innovation bond ETFs [2]. - The issuers of new science - innovation bonds are mainly central and local state - owned enterprises, with a relatively high proportion of financial enterprises. In terms of industry, they are mainly concentrated in the banking and building decoration industries [17]. 3.2 Science - Innovation Bond ETF Issuance Overview and Index Comparison 3.2.1 First - Batch Science - Innovation Bond ETFs and Index Products - As of July 6, 2025, 10 fund companies plan to issue science - innovation bond ETFs on July 7, 2025. Six companies' ETFs track the AAA Science - Innovation Bond Index, three track the Shanghai AAA Science - Innovation Bond Index, and only Invesco Great Wall's ETF tracks the Shenzhen AAA Science - Innovation Bond Index [22]. - Thirteen fund companies have reported science - innovation bond index funds (non - ETFs), all of which are benchmarked against the Shanghai AAA Science - Innovation Bond Index [24]. 3.2.2 Science - Innovation Bond Index System - Currently, the China Securities Index Company and the Shenzhen Stock Exchange have issued science - innovation bond indices. The China Securities Index Company has issued two series: the CSI Science - Innovation Bond Index series and the Shanghai Science - Innovation Bond Index series. The Shenzhen Stock Exchange has issued the Shenzhen Science - Innovation Bond Index [26]. 3.2.3 Main Index Comparison - In terms of index compilation methods, there are differences in the base period, sample space, sampling method, and weighting method among the three indices [30]. - In terms of cumulative returns from December 30, 2022, to July 3, 2025, the AAA Science - Innovation Bond Index and the Shanghai AAA Science - Innovation Bond Index had relatively high and similar returns, while the Shenzhen AAA Science - Innovation Bond Index had relatively lower returns [31]. - In different stages, the Shanghai AAA Science - Innovation Bond Index had better return performance, and the Shenzhen AAA Science - Innovation Bond Index had the lowest annualized volatility, the lowest maximum drawdown, and the highest return - risk ratio in the whole period [34]. - The remaining maturity distributions of the three indices are concentrated in 1 - 5 years, with a small amount of weight in 0 - 1 year and 7 - 10 years. The Shenzhen AAA Science - Innovation Bond Index has a relatively shorter remaining maturity [35]. - The Shanghai AAA Science - Innovation Bond Index has the highest weighted duration, and the Shenzhen AAA Science - Innovation Bond Index has the lowest, which may be part of the reason for the return differences among the indices [36]. - The AAA Science - Innovation Bond Index and the Shanghai AAA Science - Innovation Bond Index have a higher proportion of high - rated constituent bonds than the Shenzhen AAA Science - Innovation Bond Index [39]. - The constituents of the AAA Science - Innovation Bond Index and the Shanghai AAA Science - Innovation Bond Index are mainly distributed in the construction industry, while those of the Shenzhen AAA Science - Innovation Bond Index are mainly in the comprehensive and manufacturing industries [43]. - The issuers of the three indices' constituent bonds are mainly central and local state - owned enterprises. The Shenzhen AAA Science - Innovation Bond Index allocates nearly 5% of public enterprise bonds [46]. - The remaining face values of the three indices' constituent bonds are concentrated between 500 million yuan and 2 billion yuan, and the distribution of the Shenzhen AAA Science - Innovation Bond Index is more dispersed [48]. - The collateral ratios of the three indices' constituent bonds are generally distributed between 80% and 100%, and the Shenzhen AAA Science - Innovation Bond Index has a more concentrated weight in the 70% - 90% range [48]. 3.3 Investment Opportunities in Bonds Brought by Science - Innovation Bond ETFs - Since mid - June, the excess spread of science - innovation bond index constituent bonds has significantly compressed, and there has been a valuation deviation between constituent bonds and non - constituent bonds of the same issuer. The turnover rate of science - innovation bond index constituent bonds has significantly increased, indicating that institutions have started to increase their allocation [5][51][56][57]. - Considering the future expansion of science - innovation bond ETFs, three types of potentially beneficial targets can be pre - arranged: targets that are both science - innovation bond index constituent bonds and exchange benchmark market - making varieties, science - innovation bond targets with remaining positive excess spread, and targets with a remaining maturity of 3 - 4 years [5][61][62].

Group 1 - The approval of four innovative bond ETFs by Southern, Fortune, Jiashi, and Invesco marks a significant development in the technology innovation bond market, providing efficient investment channels for investors [1] - The total scale of domestic ETFs surpassed 4.3 trillion yuan as of June 25, setting a historical record, indicating a rapid growth in index-based investment [1] - The Shenzhen series indices have shown strong performance, with the number of products reaching 159 and a total scale of 283.8 billion yuan by the end of June, reflecting a 15% and 12% increase respectively since the beginning of the year [1] Group 2 - The scale of bond ETFs has been continuously increasing, with the Shenzhen benchmark market credit bond ETF providing a convenient and transparent trading channel for mid-to-high-grade bonds, achieving explosive growth in scale [2] - As of the end of June, the Shenzhen benchmark market credit bond index has issued four ETFs with a scale exceeding 47 billion yuan, with over 20 billion yuan growth in June alone, showcasing its strong capital attraction [2] - The demand for multi-asset allocation is rising, with the launch of the first batch of four multi-asset indices and the deep AAA technology innovation bond index, providing diverse performance benchmarks and investment targets [2] Group 3 - The ChiNext Index, as a core index of the Shenzhen market, has become a popular benchmark with a strategic emerging industry weight of 92%, highlighting strengths in new-generation information technology, new energy vehicles, and biotechnology [3] - The average R&D investment growth for sample companies in the ChiNext Index is projected to be 10% in 2024, indicating strong innovation vitality [3] - By the end of June, there were 49 index products established under the ChiNext Index system, with a total scale exceeding 150 billion yuan, effectively guiding funds towards high-growth and innovative sectors [3] Group 4 - The recent revisions to the ChiNext Index are expected to attract more ESG-preference funds, enhancing its appeal and investment potential [4] - The deep Shenzhen 100 index, which aggregates new quality blue-chip companies, has seen a rise in interest and demand for allocation, with seven new index products established this year [4] - The ChiNext 50 index, known for its role as a market leader during bullish phases, has also seen 13 new index products established this year, reflecting its growth resilience [4] Group 5 - The Shenzhen Stock Exchange has been actively promoting the development of key industry chain indices and related products, directing funds towards high-quality technology enterprises [5] - The "Chuang Series" indices cover various types, including broad-based, thematic, strategy, and ESG, with a total tracking product scale exceeding 200 billion yuan, providing rich vehicles for investors to capture industry transformation dividends [5] - There has been a significant increase in thematic index product layouts in artificial intelligence, new energy, and biomedicine sectors, with the ChiNext AI index seeing a more than twofold growth in tracking product scale since the beginning of the year [5]

Core Insights - The launch of the first batch of Sci-Tech Bond ETFs by leading fund companies marks a significant step in enhancing the financial product system in Shenzhen's market, supporting the development of technology innovation enterprises [1] - The introduction of these ETFs aligns with national technology innovation strategies, broadening financing channels for tech companies and enriching investment tools in the bond market [1][2] Group 1: Product Overview - The first batch of Sci-Tech Bond ETFs includes three products tracking the China Securities AAA Sci-Tech Innovation Company Bond Index and one tracking the Shenzhen AAA Sci-Tech Bond Index [2] - The China Securities AAA Sci-Tech Innovation Company Bond Index covers 91.9% of the total issuance of tech innovation bonds, with a scale of CNY 1.02 trillion and 767 constituent bonds [2] - The Shenzhen AAA Sci-Tech Bond Index focuses on high-quality bonds issued by state-owned enterprises and leading tech private enterprises, integrating policy support with corporate innovation [2] Group 2: Market Impact - The introduction of Sci-Tech Bond ETFs is expected to enhance market liquidity, optimize pricing efficiency, and promote a "debt-equity linkage" mechanism, facilitating the flow of financial resources into tech innovation [1][5] - The ETFs will provide a more diversified asset allocation option for institutional and individual investors, particularly benefiting long-term capital such as pension funds and insurance [3][8] Group 3: Industry Evolution - The bond ETF market has seen rapid growth, with the total scale surpassing CNY 3 trillion in 2025, driven by comprehensive reforms and policy support from regulatory bodies [4] - The introduction of Sci-Tech Bond ETFs is anticipated to trigger a new round of upgrades in the bond ETF market ecosystem, enhancing liquidity and reducing financing costs for enterprises [5][6] Group 4: Strategic Alignment - The launch of Sci-Tech Bond ETFs is a milestone in financial product innovation, serving as a crucial link in capital markets to support technology innovation and the construction of a strong technology nation [7][8] - These ETFs are expected to create a closed loop from financing to investment, better serving the real economy by facilitating low-cost financing for the tech sector and supporting listed companies in the secondary market [7][8]