Against the background of the recent volatility in the equity market and the increasing demand for low-risk financial management from investors, Bosera China Development ETF has been favored by investors for its advantages of low risk, convenient transactions, low costs, and high

Against the background of the recent volatility in the equity market and the increasing demand for low-risk financial management from investors, Bosera China Development ETF has been favored by investors for its advantages of low risk, convenient transactions, low costs, and high transparency. As of December 29, the scale of Boshi ChinaBond 0-3 Years China Development Bank ETF (on-site abbreviation as "CDB ETF", on-site code: 159650.SZ) exceeded 10 billion. According to industry insiders, as an innovative type of bond ETF, Bosera China Development ETF has shown certain income enhancement advantages compared with currency funds, further enriching the selection of low-risk products on the market, and providing an ideal underlying allocation tool for stable investors or investors with asset allocation needs.

As a member of the bond family, CDB bonds are policy financial bonds issued by China Development Bank . They have the characteristics of good liquidity, low risk, and complete varieties. Bond ETF refers to an ETF product that tracks the bond index . It has low cost and transparent holdings. It can easily invest in a basket of bonds and effectively lower the investment threshold. As one of the first policy financial bond ETFs issued in China, Bosera CDB ETF adopts a complete replication method to track the ChinaBond 0-3 Years China Development Bank Bond Index. The latter component bonds include policy bank bonds that are publicly issued in China and listed for circulation within 3 years (including 3 years), including special poverty alleviation bonds, excluding secondary capital bonds and subordinated bonds. This also means that the investment portfolio of Bosera CDB ETF is fully loaded with interest rate bonds, which has the advantages of low credit risk and good liquidity.

Compared with ordinary bond funds, Boshi Guobin ETF product portfolio positioning has both yield and liquidity advantages, with more emphasis on tool attributes and transaction value. In terms of operation mode, the fund adopts a duration fluctuation of 0.8 to 1.2 years, the duration center is expected to be around 1 year, the target control drawdown is within 20bp, the net value fluctuation is small, and Sharpe ratio is high.

This product adopts cash redemption method and adopts T+0 reversal transaction. The funds can be available as soon as possible on the day of sale, making investment more flexible and convenient. It is particularly worth mentioning that Boshi China Development ETF also has certain advantages in terms of income characteristics. According to statistics from wind, from 2018 to September 30, 2022, the annualized return rate of 0-3 is as high as 3.84%, which not only significantly outperforms ordinary currency funds, but also significantly outperforms high-yield currency funds, and can significantly achieve the effect of "currency thickening".

It is reported that Boshi Guopeng ETF was launched on the Shenzhen Stock Exchange on October 28, 2022, and has shown good liquidity since its listing. According to wind data, as of December 23, 2022, the average daily trading volume of this fund since its listing has reached 1.907 billion yuan. It is currently one of the most liquid interest rate bond ETFs on the market. At the same time, Boshi Guopeng ETF has now obtained the qualification for on-site pledge repurchase. It can increase its income through on-site pledge financing and obtain arbitrage income. If it is bought at a fair price the day before a holiday, it can also enjoy holiday coupons.

Industry insiders believe that the national strategic decision of "Bond Connect" will help attract more overseas funds to invest in policy financial bonds , reduce the cost of issuance of CDB bonds, and support the development of the real economy. As one of the first cross-market innovative products on the market, Bosera China Development ETF connects the exchange and the inter-bank bond market and has a high investment value . At the same time, against the backdrop of volatile stock markets, the demand for stable financial management has increased. As a liquidity management tool with excellent returns, the advantages of Boshi China Development ETF will also be further highlighted.

Risk warning: Funds are different from financial instruments with fixed income expectations such as bank savings and bonds. Different types of funds have different risk and return situations. Investors may share the income generated by fund investment or bear the losses caused by fund investment. The fund manager promises to manage and use the fund assets in accordance with the principles of good faith, diligence and responsibility, but does not guarantee that the fund will be profitable or return. There is a risk of fluctuation in the net value of the fund. The performance of other funds managed by the fund manager does not constitute a guarantee for the performance of the fund. The past performance of the fund does not predict its future performance.Investors should carefully read the "Fund Contract", "Prospectus", "Product Summary" and other legal documents, and promptly pay attention to the suitability opinions issued by the company. The opinions on suitability of each sales agency are not necessarily consistent, and the company's suitability matching opinions do not indicate a substantive judgment or guarantee on the risks and returns of the fund. There are differences in the fund risk-return characteristics and fund risk levels in the fund contract due to different considerations. Investors should understand the risk and return situation of the fund, make prudent decisions based on their own investment purposes, duration, investment experience and risk tolerance, and bear their own risks. They should not accept sales practices that do not comply with laws and regulations and illegal promotional materials. The details of the funds and purchase channels mentioned in this material can be found on the official website of the manager - Bosera Fund - Fund Products. The URL for introducing the relevant business qualifications of Bosera Fund is: http://www.bosera.com/column/index.do?classid=00020002000200010007.