US high-yield corporate bonds fell 0.47%, while US Treasury yields rose overall.

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 substantial portion or all of your investment. 02) The Sub-Fund primarily invests in portfolios consisting of debt securities denominated in USD, EUR, HKD, or offshore RMB with a maturity not exceeding 3 years, including debt securities issued in emerging markets, aiming 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 bear 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 share class risk, and hedged RMB share class risk, i) risks related to perpetual bonds, j) convertible bond risk, k) risks associated with investing in other collective investment schemes/funds, l) risks related to investing in debt instruments with loss-absorbing features, m) risks related to 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 paying distributions from capital and/or substantially from 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) Monthly dividend distributions will be made, subject to the fund manager's discretion. Distributions may be paid from capital or substantially from 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 indicate a positive fund return, 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.

Hello, fellow investors, what significant changes occurred in the market last week? Let's take a look together:

Last week, the US core focus was on March PMI and consumer confidence data. Slowing economic growth combined with rising inflation heightened market concerns about stagflation risks. The preliminary S&P Global Composite PMI for March fell to 51.4, hitting an 11-month low, with a divergence in manufacturing and services trends: the Manufacturing PMI rose to 52.4 (expanding for the eighth consecutive month), while the Services PMI fell to 51.1 (an 11-month low). Price pressures rebounded significantly, with input cost increases being the largest in ten months, and selling prices reaching a new high since August 2022. Supply chain tensions re-emerged, primarily driven by surging energy prices due to Middle East conflicts. Employment saw its first decline in over a year, with companies adopting a more cautious hiring stance. Additionally, the final University of Michigan Consumer Sentiment Index for March dropped to 53.3. Dragged down by rising oil prices and stock market volatility, consumers' short-term economic outlook expectations worsened, with inflation expectations for the next year climbing to 3.8%, further intensifying stagflation worries and making the Fed's balancing act between cutting rates and controlling inflation more difficult.

In China, industrial enterprise profits for January-February and the real estate market overall showed a positive recovery trend. Regarding industrial enterprises, the total profits of industrial enterprises above designated size from January to February increased by 15.2% year-on-year, with growth accelerating significantly. Profits across all three major categories increased, with significant improvement in growth rates for manufacturing and mining; operating income grew simultaneously, unit costs decreased year-on-year (the first time since 2022), profit margins improved, and most industries saw profit recovery. High-tech manufacturing and equipment manufacturing made outstanding contributions, with new growth drivers providing clear support. However, attention must be paid to cost pressures arising from rising crude oil prices in March. Regarding real estate, it has been one full month since the relaxation of purchase restrictions within Shanghai's outer ring. Secondary home sales continue to climb, with March transactions expected to reach a new high since April 2021; secondary home sales in Beijing and Shenzhen also show signs of warming up, but listing prices for secondary homes across all city tiers continue to bottom out. Nationally, weekly secondary home transaction volumes have increased for four consecutive weeks, and new home sales have significantly improved, driven by second- and third-tier cities, indicating a moderate warming trend in the market.

In bond market performance, global bond markets continued to decline overall over the past week, with the global aggregate index down 0.49%, the US aggregate index down 0.12%, US investment-grade corporate bonds down 0.23%, and US high-yield corporate bonds down 0.47%. The emerging market US dollar bond aggregate index fell 0.32%, and the Chinese US dollar credit bond index fell 0.14%. Regarding interest rates, US Treasury yields generally rose, with the 2-year US Treasury yield up 1bp to 3.91% and the 10-year US Treasury yield up 5bp to 4.43%.

The net asset value per unit for Class B Accumulating HKD Shares of the E Fund (Hong Kong) Short-Term Bond Fund is 112.764*. In response to the recent bond market landscape, we will focus on high-quality bonds with relatively high coupons to solidify the foundation for stable returns. At the same time, we will continue to capture tactical trading opportunities, striving to further enhance overall returns. Short-term bond funds have lower sensitivity to interest rate fluctuations, making their allocation advantages relatively significant.

Key economic data releases to focus on this week:

Tuesday, China will release the official PMI data for March;

Wednesday, the US will release the ISM Manufacturing Index data for March;

Thursday, the US will release Durable Goods Orders data for February;

Friday, the US will release Non-Farm Payrolls and related data for March.

* Data sourced from the E Fund Hong Kong official website, as of 2026/3/30.

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 offering document. Investments involve 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 in the fund offering document (including the "Risk Factors" section). This report may only be distributed in certain jurisdictions. This report does not constitute such distribution or invitation or recommendation in any jurisdiction where the distribution of such materials or making any such invitation or recommendation is not permitted, or where distribution of this report or making any invitation or recommendation to any person would be unlawful. This document is exempt from pre-vetting and authorization by the Hong Kong Securities and Futures Commission and has not been reviewed by the Hong Kong Securities and Futures Commission. Authorization by the Securities and Futures Commission does not imply official recommendation or endorsement of the scheme, nor does it guarantee the commercial merits or performance of the scheme, nor does it indicate that the scheme is suitable for all investors, or that the scheme is suitable for any individual investor or any class of investors. Copyright © 2026. E Fund Management (Hong Kong) Co., Ltd.