The fund manager of the Bosera China Development Bank Bond ETF highlighted key market movements over the past week. On Friday, July 31, overall liquidity remained stable, with the central bank injecting a net 45 billion yuan into the market.

By Monday, interbank liquidity showed marginal easing, leading to a slight decline in major funding rates. The central bank conducted a net withdrawal of 562.5 billion yuan on that day. This liquidity easing continued into Tuesday, with money market rates dropping broadly, and the central bank withdrawing a net 559 billion yuan. Wednesday maintained the trend of ample liquidity, with key funding rates edging down, as the central bank withdrew a net 201.5 billion yuan. Additionally, on Wednesday, the central bank conducted a 500 billion yuan 3-month outright reverse repo operation, offsetting a 300 billion yuan maturity of the same instrument, resulting in a net injection of 200 billion yuan. Thursday saw interbank liquidity stabilizing, with major funding rates showing little change, and the central bank made a net withdrawal of 269.5 billion yuan.

Comparing Thursday, August 6, with the previous Friday, the DR001 rate fell by 7 basis points to 1.35%, while the DR007 rate also dropped 7 basis points to 1.38%.

On the international front, U.S. manufacturing activity expanded in July at its fastest pace in over four years, driven by strong demand, a surge in production, and increased hiring by businesses. The Institute for Supply Management (ISM) manufacturing index rose to 55.6 in July, its highest level since May 2022 and remaining above the 50-point expansion threshold for seven consecutive months. The production index climbed to 58.5, its highest since late 2021. The employment index also indicated that manufacturers added workers for the first time since September 2023. New orders, a key indicator of future demand, also saw a rebound.

On July 31, Japan's Ministry of Finance coordinated with the U.S. to purchase the yen, maintaining close communication with American counterparts to address excessive volatility and disorderly movements in the currency. Japan also plans to utilize the Federal Reserve's FIMA Repo Facility in the future.

Domestically, the Hong Kong Exchanges and Clearing Limited (HKEX) officially launched a 5-year Chinese government bond futures contract on August 3, 2026, restarting offshore government bond futures trading after a nine-year hiatus. This new HKEX 5-year government bond futures contract, currently the only listed Chinese government bond futures product in the offshore market, enriches the toolkit for offshore investors to manage yuan interest rate risk. For offshore investors holding onshore yuan government bonds or other cash bonds, if they cannot directly participate in onshore government bond futures market trading through QFII/RQFII, the HKEX 5-year government bond futures serves as an excellent substitute. It offers a more convenient way to hedge interest rate fluctuation risks and adjust the duration of cash bond portfolios. The expansion of interest rate derivative tools in the Hong Kong offshore market broadens the range of hedging and arbitrage strategies. It can also form an effective closed loop with the Bond Connect and Swap Connect programs, helping to attract more offshore funds to participate in yuan bond investment and trading. This is expected to boost activity in the cash bond market and increase demand for domestic bonds.

The Bosera China Development Bank Bond ETF (159650) invests in interbank market China Development Bank bonds. Policy bank financial bonds, characterized by high credit ratings, large scale, and good liquidity, are considered worthy investment targets. Therefore, the Bosera China Development Bank Bond ETF is noted for its good liquidity, low credit risk, and low volatility, offering a reasonable risk-return profile. With features like cash subscription and redemption and flexible on-exchange trading, it is positioned as a suitable tool for short-duration allocation.

Disclaimer: The information in this report is based on publicly available sources. The company makes no guarantees regarding the accuracy or completeness of such information. The information or opinions expressed in this report do not constitute actual investment results for the company or investment advice for any investor. Data sources, unless otherwise noted, are from Wind, Bloomberg, or Bosera Funds' Macro Strategy Department. The copyright of this report belongs to Bosera Asset Management Co., Ltd. Investment involves risk, please choose carefully. Bosera ChinaBond 0-3 Year CDB Bond ETF 159650 Risk Level: Medium-Low. Subscription Fee: When subscribing for fund shares, the agent broker may charge a commission of up to 0.5%, which includes fees charged by the stock exchange, the registration institution, etc. Redemption Fee: When redeeming fund shares, the agent broker may charge a commission of up to 0.5%, which includes fees charged by the stock exchange, the registration institution, etc. Risk Disclosure: Dear investors, funds involve risk, invest with caution. A publicly offered securities investment fund (hereinafter referred to as the "fund") is a long-term investment tool. Its main function is to diversify investments and reduce the risk of investing in a single security. Funds differ from financial instruments like bank deposits that provide fixed income expectations. When you purchase fund products, you may share in the investment income generated by the fund based on your holdings, or you may bear losses from the fund's investments. Before making any investment decision, please carefully read the fund contract, fund prospectus, fund product summary, and other legal documents, as well as this risk disclosure document. Fully understand the fund's risk-return characteristics and product features, and carefully consider the various risk factors of the fund. Make rational judgments and prudent investment decisions based on your own investment objectives, time horizon, experience, and asset status, considering your own risk tolerance. According to relevant laws and regulations, Bosera Fund makes the following risk disclosures: 1. Based on investment targets, funds are divided into stock funds, hybrid funds, bond funds, money market funds, fund of funds, commodity funds, etc. Different types of funds will yield different return expectations and different levels of risk. Generally, the higher the expected return of a fund, the greater the risk you bear. 2. Funds may face various risks during operation, including market risk, as well as the fund's own management, technical, and compliance risks. The risk of large redemptions is unique to open-ended funds. When net redemption applications on a single open day exceed a certain percentage of total fund shares (10% for open-end funds, 20% for periodic open-end funds, except for special products specified by the China Securities Regulatory Commission), you may not be able to redeem all applied fund shares in a timely manner, or redemption payments may be delayed. 3. You should fully understand the difference between regular fixed-amount fund investment and savings methods like installment savings. Regular fixed-amount investment is a simple way to guide investors into long-term investing and average investment costs, but it does not eliminate the inherent risks of fund investment, guarantee investor returns, or serve as an equivalent savings alternative. 4. The fund manager promises to manage and use fund assets honestly, diligently, and responsibly, but does not guarantee profit or minimum return from this fund. The fund's past performance and net value do not predict future performance. The performance of other funds managed by the fund manager does not constitute a guarantee of this fund's performance. Bosera Fund reminds you of the "buyer beware" principle. After making an investment decision, the investment risk arising from the fund's operation and net value changes shall be borne by you. The fund manager, custodian, sales institution, and related entities do not make any promises or guarantees regarding fund investment returns. 5. [Bosera ChinaBond 0-3 Year CDB Bond ETF] (hereinafter referred to as "this fund") is applied for and raised by Bosera Fund (hereinafter referred to as the "fund manager") in accordance with relevant laws, regulations, and agreements, and is registered by the China Securities Regulatory Commission (CSRC). The fund contract, prospectus, and product summary have been publicly disclosed via the CSRC's fund electronic disclosure website and the fund manager's website. CSRC registration does not imply a substantive judgment or guarantee of the fund's investment value, market prospects, or returns, nor does it indicate that investing in the fund is risk-free. MACD golden cross signal forming, these stocks are performing well!