Bond Index Investment Application Updates

Section One: Market Statistics for Passive Bond Index Funds in Q2 2026

Compared to the previous quarter, both the number and scale of onshore bond index fund products in China experienced growth during the second quarter of 2026. As of the end of Q2 2026, there were 271 bond index fund products in the domestic market, with a total scale of RMB 1,813.513 billion. The ChinaBond Index is widely used as a tracking benchmark by these funds and is also applied in bank wealth management products and securities firm income certificates.

Breakdown of Passive Bond Index Fund Types This Quarter

By the end of the quarter, the market had 177 policy bank financial bond index funds, with a scale of approximately RMB 632.796 billion. These accounted for 65.31% of the total number and 34.89% of the total scale across all bond index fund categories. Credit bond index funds represented 22.14% of the fund count and 48.77% of the total assets.

Overview of Policy Bank Financial Bond Index Funds This Quarter

Within the policy bank financial bond index fund segment, products tracking indices with medium-to-short tenors (not exceeding 5 years) dominate, accounting for over 70% of the total scale. Among these, funds tracking 1-3 year indices make up approximately 26.27% of the total policy bank financial bond index fund scale. Regarding issuer composition, funds tracking comprehensive policy bank bond indices are the most prevalent, with a scale share of roughly 45.62%, followed by funds tracking China Development Bank indices at 39.44%.

New Product Launches in the Domestic Market This Quarter

During Q2, two new bond index fund products were launched in the domestic market, totaling RMB 3.896 billion in scale, with one of these funds tracking a ChinaBond Index.

Acceptance and Approval Status of Passive Bond Index Funds This Quarter

Credit bond index funds have drawn notable attention in recent approvals of new bond index funds. In Q2, the China Securities Regulatory Commission (CSRC) accepted two credit bond index fund applications and approved one credit bond index fund.

Section Two: Fund Performance Benchmark Statistics for Q2 2026

The ChinaBond Index has long served the asset management product performance benchmark sector. As of the end of Q2 2026, there were 3,688 bond funds using bond indices as their performance comparison benchmarks, with a total scale of approximately RMB 11.02 trillion. Among these, 3,181 funds used the ChinaBond Index, representing a scale of about RMB 8.36 trillion. In the broader market of net-value bank wealth management products, 4,477 products use indices as their performance benchmarks, of which 4,166 utilize the ChinaBond Index.

Section Three: New ChinaBond Indices Launched in Q2 2026

During Q2, ChinaBond Pricing Center Co., Ltd. launched five new indices, comprising four bond indices and one multi-asset index. These five new indices include two proprietary indices and three customized indices.

Two new indices fall under the ChinaBond Long-Duration Local Government Bond Series. These include the ChinaBond 5-10 Year Local Government Bond Index and the ChinaBond 10-15 Year Local Government Bond Index. Constituent bonds for these indices are local government bonds publicly issued and listed for trading in the domestic market, with remaining maturities of 5-10 years (including 10 years) and 10-15 years (including 15 years), respectively.

The ChinaBond-Guolian Minsheng High-Grade Wuxi Technology Innovation and Green Bond Index comprises bonds issued in the domestic market by issuers based in Wuxi, Jiangsu Province, that meet the internal investment requirements of Guolian Minsheng Securities. These bonds must be technology innovation bonds or green bonds, with an issuer or issue rating of AA+ or above, and a ChinaBond Market Implied Rating of AA or above.

The ChinaBond-CITIC Securities Zhejiang Technology Innovation Bond Index consists of technology innovation bonds publicly issued and listed in the domestic market by issuers registered in Zhejiang Province. Eligible bonds must have an issuer or issue rating of AA+ or above and a ChinaBond Market Implied Rating of AA or higher.

The ChinaBond-CITIC Securities Zhejiang Technology Innovation Thematic Equity and Bond Index combines the constituents of the ChinaBond-CITIC Securities Zhejiang Technology Innovation Bond Index with a portfolio of Zhejiang technology innovation themed stocks. Through a regular rebalancing mechanism, the index dynamically maintains a constant asset allocation ratio.

Special Feature: Introduction to the ChinaBond-SZSE Guozheng Multi-Asset Equity and Bond Index

ChinaBond Pricing Center Co., Ltd. and Shenzhen Securities Information Co., Ltd. have jointly launched the ChinaBond-SZSE Guozheng Multi-Asset Equity and Bond Index Series. Leveraging their respective core strengths in bond index and stock index compilation, the two parties have collaborated to create this multi-asset index series, providing the market with more compliant and transparent performance benchmarks and asset allocation tools. This initiative aims to help investors optimize returns and manage drawdowns across different market environments. The first batch of indices under this collaboration is suitable for multiple business scenarios, including performance benchmarks, investment tracking targets, and underlying assets for structured products.

The initial release comprises four series with a total of 24 indices within the ChinaBond-SZSE Guozheng Multi-Asset Index family. All indices adopt a constant proportion allocation strategy, with each series offering six tiers of equity-to-bond allocation ratios: 5%:95%, 10%:90%, 15%:85%, 20%:80%, 25%:75%, and 30%:70%. These configurations cater to capital needs with varying risk preferences. Over the past three years, the annualized returns of the initial ChinaBond-SZSE Guozheng multi-asset indices have generally ranged between 4.16% and 12.49%, with Sharpe ratios falling between 0.95 and 2.44. Notably, indices with equity allocations between 5% and 15% have exhibited Sharpe ratios generally above 1.3 and Calmar ratios exceeding 2, positioning them as the optimal allocation zone for "fixed income plus" products.

Disclaimer: This report is for reference only and does not constitute investment advice.