Report Industry Investment Rating No relevant content provided. Core View of the Report - Last week (2025.12.08 - 2025.12.12), the bond market showed a slight recovery. Looking ahead, the pressure on the bond market is expected to gradually ease, mainly due to the improvement in the supply - demand pattern and the potential for further interest rate cuts. The supply pressure in the bond market in 2026 is expected to be lower than in the same period of 2025, and the central bank will maintain relatively abundant market liquidity, leaving room for reserve requirement ratio cuts and interest rate cuts. As a result, bond yields are more likely to decline slowly in fluctuations [4][10]. Summary by Related Catalogs 1. Weekly Market Observation 1.1. Pan - Fixed - Income Market Review and Observation - **Domestic Bond Market**: Last week, the domestic bond market recovered slightly. The 1 - year, 10 - year, and 30 - year Treasury yields all declined. In the future, the supply pressure in 2026 is expected to be lower than in 2025, and the central bank will maintain market liquidity, which may help stabilize bond market sentiment and lead to a slow decline in bond yields [10]. - **US Bond Yields**: Different - term US bond yields showed a differentiated trend last week. The 1 - year and 2 - year yields declined, while the 10 - year yield increased. The market has different views on the scope and rhythm of further interest rate cuts next year, and the focus has shifted to the non - farm payroll data. The Bank of Japan's interest rate hike also affected long - term US bonds [11]. - **REITs**: The CSI REITs Total Return Index fell 0.29% last week. The data center, environmental protection, and affordable housing sectors led the gains, while the warehousing and logistics and expressway sectors led the losses. In the primary market, 19 REITs have been successfully issued in 2025 as of December 12, 2025, and 2 new REITs made progress last week [11]. 1.2. Public Fund Market Dynamics - Multiple fund companies have started the statistics work on performance benchmarks. With the upcoming implementation of the new regulations on the performance comparison benchmarks of publicly - offered securities investment funds, fund companies have received notices to submit plans for revising the performance benchmarks of existing products [12]. 2. Pan - Fixed - Income Fund Index Performance Tracking 2.1. Money Enhancement Index Tracking - **Money Enhancement Strategy Index**: Aims at liquidity management, pursues a curve that surpasses money market funds and rises smoothly. It mainly allocates money market funds and inter - bank certificate of deposit index funds. The performance benchmark is the CSI Money Fund Index [14]. 2.2. Pure Bond Index Tracking - **Short - Term Bond Fund Preferred Index**: Focuses on liquidity management, pursues a smooth - rising curve while controlling drawdowns. It mainly allocates 5 funds with stable long - term returns, strict drawdown control, and significant absolute return capabilities. The performance benchmark is 50% * Short - Term Pure Bond Fund Index + 50% * General Money Market Fund Index [18]. - **Medium - and Long - Term Bond Fund Preferred Index**: Invests in medium - and long - term pure bond funds, pursues stable returns while controlling drawdowns. It selects funds with both returns and drawdown control, and adjusts the duration and the proportion of credit bond funds and interest - rate bond funds according to market conditions [20]. 2.3. Fixed - Income + Index Tracking - **Low - Volatility Fixed - Income + Preferred Index**: The equity center is set at 10%, with 10 funds selected each period. It selects fixed - income + products with an equity center within 15% in the past three years and recently. The performance benchmark is 10% CSI 800 Index + 90% ChinaBond New Composite Full - Price Index [22]. - **Medium - Volatility Fixed - Income + Preferred Index**: The equity center is 20%, with 5 funds selected each period. It selects fixed - income + products with an equity center between 15% and 25% in the past three years and recently [26]. - **High - Volatility Fixed - Income + Preferred Index**: The equity center is 30%, with 5 funds selected each period. It selects fixed - income + products with an equity center between 25% and 35% in the past three years and recently, and focuses on funds with strong stock - picking ability in the equity segment [27]. 2.4. Convertible Bond Fund Preferred Index - Selects bond - type funds with an average convertible bond investment proportion of at least 60% in the latest period and at least 80% in the past four quarters as the sample space. It constructs an evaluation system from multiple dimensions to select 5 funds to form the index [31]. 2.5. QDII Bond Fund Preferred Index Tracking - The underlying assets of QDII bond funds are overseas bonds. It selects 6 funds with stable returns and good risk control based on credit and duration conditions to form the index [34]. 2.6. REITs Fund Preferred Index Tracking - The underlying assets of REITs are mainly high - quality and stable infrastructure projects. It selects 10 funds with stable operations, reasonable valuations, and certain elasticity based on the underlying asset types to form the index [35].

Market Overview - The bond market experienced fluctuations and an upward trend during the week of June 30 to July 4, 2025, with the China Bond Composite Wealth Index (CBA00201) rising by 0.17% and the China Bond Composite Full Price Index (CBA00203) increasing by 0.14% [2][12] - Short-term interest rates showed strong performance, with key yield spreads widening, while credit bond yields generally declined, leading to a narrowing of credit spreads [2][12] - The liquidity in the market improved post-quarter, supporting the bond market's strength, and the demand for coupon assets returned to stability [2][12][13] US Market Dynamics - Strong US non-farm payroll data reduced expectations for interest rate cuts, leading to an upward trend in US Treasury yields [14] - The Federal Reserve's cautious stance and the unexpected strength in employment data contributed to a shift in market sentiment regarding future monetary policy [14] REITs Market Activity - The REITs secondary market saw fluctuations but ultimately rose, with the CSI REITs Total Return Index increasing by 0.66% [15] - Despite some adjustments in the market, the overall trading activity remained robust, indicating a healthy development trend [15] Public Fund Market Developments - The first batch of 10 Sci-Tech Innovation Bond ETFs received approval from the China Securities Regulatory Commission on July 2, 2025, which is expected to provide new credit base options for investors amid a low-interest-rate environment [16][17] Fund Performance Tracking - Short-term bond funds rose by 0.08% last week, with a cumulative return of 4.02% since inception [3] - Medium to long-term bond funds increased by 0.19%, achieving a cumulative return of 6.69% since inception [4] - Low-volatility fixed income plus funds rose by 0.31%, with a cumulative return of 2.79% since inception [5] - Medium-volatility fixed income plus funds increased by 0.54%, with a cumulative return of 2.33% since inception [6] - High-volatility fixed income plus funds rose by 0.40%, achieving a cumulative return of 3.40% since inception [7] - Convertible bond funds increased by 0.74%, with a cumulative return of 10.79% since inception [8] - QDII bond funds decreased by 0.08%, with a cumulative return of 7.87% since inception [9] - REITs funds rose by 1.00%, achieving a cumulative return of 40.41% since inception [10]

Market Overview - The bond market experienced a slight increase last week (June 9-13, 2025), with the China Bond Composite Wealth Index (CBA00201) rising by 0.18% and the China Bond Composite Full Price Index (CBA00203) increasing by 0.15% [2][11] - The yield on government bonds remained stable, while credit bond yields showed a downward trend, leading to a narrowing of credit spreads [2][11] - The second round of China-US negotiations concluded without significant new information, and macroeconomic data appeared weak, contributing to the decline in bond yields [11][12] Public Fund Market Dynamics - There has been a significant expansion of credit bond ETFs in 2025, with the total scale exceeding 110 billion yuan. Numerous fund companies are actively applying for technology innovation bond index funds, with the first batch potentially including 10 companies [14][15] - The first public rental housing REIT expansion was completed, raising approximately 946 million yuan through the issuance of about 224 million fund shares, which has positively impacted the REITs market [13][14] Fund Index Performance Tracking - Short-term bond fund index rose by 0.05% last week, with a cumulative return of 3.87% since inception [3][17] - Medium to long-term bond fund index increased by 0.11%, achieving a cumulative return of 6.36% since inception [4][17] - REITs fund index surged by 1.98%, with a remarkable cumulative return of 39.45% since inception [10][17] Specific Fund Index Insights - The low volatility fixed income + fund index rose by 0.13%, with a cumulative return of 2.23% since inception [5][17] - The medium volatility fixed income + fund index increased by 0.12%, with a cumulative return of 1.51% since inception [6][17] - The high volatility fixed income + fund index saw a rise of 0.28%, with a cumulative return of 2.96% since inception [7][17] REITs Market Development - The REITs market maintained high activity levels, with the China REITs Total Return Index rising by 0.69% last week, driven by the performance of public rental housing projects [13][14]