Global bond markets rose slightly, with US Treasury yields overall declining.
Important Matters: 01) E Fund Unit Trust - E Fund (Hong Kong) Short-Term Bond Fund (the "Sub-Fund") is subject to general market fluctuations and other inherent factors of the Sub-Fund's assets. Therefore, you bear the risk of being unable to recover the principal invested in the Sub-Fund or potentially losing a significant portion or all of your investment. 02) The Sub-Fund primarily invests in a portfolio of debt securities denominated in USD, EUR, HKD, or offshore RMB with maturities not exceeding 3 years, including debt securities issued in emerging markets. It aims to generate a stable income stream for the Sub-Fund beyond capital appreciation, thereby achieving long-term capital growth. There is no guarantee that the Sub-Fund will achieve its investment objective. 03) The Sub-Fund may be subject to a) investment risk, b) risks associated with investing in debt securities (including credit/counterparty risk, interest rate risk, sovereign debt risk, credit rating and credit rating downgrade risk, valuation risk, and risks related to below-investment-grade and/or unrated debt securities), c) "Dim Sum" bond risk, d) emerging market risk, e) risks related to sale and repurchase agreements, f) risks related to reverse repurchase agreements, g) concentration risk, h) RMB currency risk, RMB-denominated class risk, and hedged RMB class risk, i) risks associated with perpetual bonds, j) convertible bond risk, k) risk of investing in other collective investment schemes/funds, l) risks associated with investing in debt instruments with loss-absorbing features, m) risks associated with contingent convertible bonds (including trigger level risk/conversion or full write-down risk, coupon cancellation risk, sector concentration risk, and being novel and untested), n) risks related to equity securities, o) Eurozone and European country risk, p) hedging/derivative instrument risk, q) currency risk, r) risk of distributions being paid out of capital and/or substantially out of capital, and s) risks related to collateral and/or securitized products. 04) Unless the intermediary has explained to you, after considering your financial situation, investment experience, and objectives, that this fund is suitable for you, you should not invest in the Sub-Fund. 05) Dividends will be distributed monthly, subject to the fund manager's discretion. Distributions may be paid out of capital or substantially out of capital, which will immediately reduce the Sub-Fund's net asset value. The fund's distribution rate does not represent the fund's rate of return; a positive distribution rate does not mean the fund's return is positive, and past distribution rates do not indicate future distribution rates. 06) Investors should not make investment decisions based solely on the information provided in this document and should read the details and risk factors contained in the relevant fund's offering documents.
E Fund (Hong Kong) Short-Term Bond Fund Companion Content
Title:
Hello, fellow investors. What significant changes occurred in the market last week? Let's take a look together:
Last week's key US data were January PPI (Producer Price Index) and Durable Goods Orders, both significantly exceeding market expectations, indicating stubborn inflation pressure and further dampening expectations for Fed rate cuts. January PPI rose 0.5% MoM and 2.9% YoY, while core PPI rose 0.8% MoM and 3.6% YoY. The core YoY growth was the fastest since March 2025, primarily driven by soaring service costs, with wholesale and retail trade service margins jumping significantly. Core goods prices also rose noticeably, with only energy and food prices dragging down the overall goods component. Additionally, January Durable Goods Orders increased 3.1% MoM, the largest increase since July 2024, mainly due to a surge in civilian aircraft orders (Boeing orders up 93.9%). Core capital goods orders rose for the third consecutive month, highlighting the potential resilience of the manufacturing sector, but there is a mismatch between orders and deliveries. The stronger-than-expected PPI may push up core PCE, further complicating the Fed's monetary policy choices.
China's focus was on Spring Festival travel consumption and the LPR (Loan Prime Rate) quotation. The consumption market showed a clear recovery trend, while monetary policy remained stable. The total cross-regional population movement before and after the 2026 Chinese New Year and the single-day peak both set new historical records. Travel exhibited characteristics of "early return to work" and "segmented holidays," with outbound travel and service consumption heating up. Consumption data was impressive. The average daily sales of key retail and catering businesses during the first four days of the Spring Festival holiday increased by 8.6% year-on-year. Duty-free sales in Hainan's offshore islands increased by 15.8% year-on-year, with significant growth in areas like service consumption and car rentals. Regarding monetary policy, the LPR quotation on February 24 remained unchanged, with the 1-year rate at 3.0% and the 5-year+ rate at 3.5%, marking the ninth consecutive month of stability since last June. This is mainly due to stable macroeconomic conditions and positive development of new quality productive forces. Monetary policy is currently in an observation period in the short term and will continue to strengthen support for key areas.
In terms of bond market performance, global bond markets overall showed slight gains over the past week. The Global Aggregate Index rose 0.50%, the US Aggregate Index rose 0.54%, US investment-grade corporate bonds rose 0.21%, while US high-yield corporate bonds fell 0.22%. The Emerging Market USD Bond Aggregate Index rose 0.17%, and the China USD Credit Bond Index rose 0.42%. Regarding interest rates, US Treasury yields generally declined, with larger declines in the 5-10 year range. The 2-year US Treasury yield fell 10bp to 3.37% compared to last week, and the 10-year US Treasury yield fell 15bp to 3.94%.
The net asset value of the E Fund (Hong Kong) Short-Term Bond Fund Class B Accumulating HKD Shares is 114.006*. In response to the recent bond market landscape, we will focus on high-quality bonds with relatively high coupons to solidify a stable return foundation. Simultaneously, we will continue to seize opportunities in tactical trading, striving to further enhance overall return levels. Short-term bond funds have lower sensitivity to interest rate fluctuations, making their allocation advantages more pronounced.
Key economic data releases to focus on this week:
Monday: US February ISM Manufacturing Index.
Wednesday: China's February PMI data, US February ISM Non-Manufacturing Index.
Friday: US January Retail Sales data and February Non-Farm Payrolls data.
*Data sourced from E Fund Hong Kong's official website, as of 2026/3/2.
Disclaimer: The issuer of this report is E Fund Management (Hong Kong) Co., Ltd. This report does not constitute an invitation or recommendation to invest in fund units. Subscription forms for fund units must be accompanied by the fund prospectus. Investment involves risks. Fund prices may rise or fall, and past performance is not indicative of future results. Before investing, investors should carefully read the investment risks related to the fund contained in the fund prospectus (including the "Risk Factors" section). This report may only be distributed in certain jurisdictions. In any jurisdiction where it is illegal to distribute such materials or make any invitation or offer, or to any person to whom such distribution or invitation or offer would be unlawful, this report does not constitute such distribution, invitation, or offer. This document is exempt from pre-vetting and authorization by the Hong Kong Securities and Futures Commission and has not been reviewed by the SFC. SFC authorization does not imply a recommendation or endorsement of the scheme, nor does it guarantee the commercial merits or performance of the scheme. It also does not mean the scheme is suitable for all investors, or that it is suitable for any individual investor or any class of investors. Copyright © 2026. E Fund Management (Hong Kong) Co., Ltd.
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