Market Overview - Bond yields exhibited volatility during the week of July 28 to August 1, 2025, with the China Bond Composite Wealth Index (CBA00201) rising by 0.15% and the China Bond Composite Full Price Index (CBA00203) increasing by 0.11% [13] - Interest rate bonds across various maturities saw a downward trend, with long-term bonds performing slightly weaker than short-term ones [13] - Credit bonds also experienced a decline in yields across most maturities and ratings, with credit spreads showing narrow fluctuations [13] Policy Impact - The Ministry of Finance and the State Administration of Taxation announced a new VAT policy on bond interest income, effective August 8, 2025, which will impose VAT on newly issued government bonds, local government bonds, and financial bonds [17] - The policy adopts a "new and old distinction" approach, maintaining VAT exemption for bonds issued before August 8, 2025, until maturity [17] - This shift aims to enhance tax fairness and optimize market mechanisms, as the previous exemption policy has fulfilled its purpose of boosting investor interest [17][19] Fund Market Dynamics - The REITs market rebounded, with the CSI REITs Total Return Index rising by 1.25% during the week, indicating a recovery in market sentiment [16] - New REITs listings included the first central enterprise natural gas power public REIT, which saw a first-day increase of 19.9%, and a logistics REIT that rose by 27.5% [16] - The public fund market is adjusting to the new VAT policy, which may increase the tax burden on financial institutions while providing a relative advantage to public fund products [18] Fund Performance Tracking - The Money Market Enhanced Index rose by 0.03%, with a cumulative return of 3.88% since inception [3] - Short-term bond funds increased by 0.06%, with a cumulative return of 4.06% since inception [4] - Medium to long-term bond funds rose by 0.13%, achieving a cumulative return of 6.45% since inception [5] - REITs funds saw a significant increase of 1.99%, with a cumulative return of 38.17% since inception [10]