Interpretation of the Politburo Meeting [20260730], for your reference:

English summary

1. Overall monetary policy is marginally neutral-to-easing, emphasizing 'adjusting monetary policy tools in a timely manner'; fiscal policy emphasizes 'accelerating the pace of fiscal expenditures and bond fund use', emphasizing stock rather than increment; industrial policy emphasizes the implementation of the 'AI+' action, but the wording is slightly weaker, not as strong as statements like 'scientific and technological self-reliance'. 2. For the bond market, the positives are directional, and the negatives are structural. # Positives are directional: The core positive is that monetary policy expressed 'timely adjustment', and the current direction of adjustment can only be easing, not tightening. This is actually consistent with the logic before the overnight OMO was introduced, when the market believed that once introduced, the direction would inevitably be easing (i.e., the 1D rate would definitely be lower than the 7D rate); observation of funds remains the focus. Based on the above logic, we believe the tone is neutral-to-easing, not very easing. # Negatives are structural: The core negative is that 'accelerating fiscal expenditures and issuance' may advance the pace of fiscal supply;…