Global equity markets broadly corrected, with South Korea, Mexico, Brazil, and the United States leading the declines

Important Information: 01) The E Fund Unit Trust - E Fund (Hong Kong) Multi-Income Bond Fund (the "Sub-Fund") is subject to general market fluctuations and other inherent factors of the Sub-Fund's assets. Therefore, you must bear the risk of not being able to recover the principal invested in the Sub-Fund or potentially losing a significant portion or all of your investment. 02) The investment objective of the Sub-Fund is to generate a steady income stream for the Sub-Fund beyond capital appreciation by investing globally in a portfolio primarily consisting of debt securities denominated in US dollars, euros, Hong Kong dollars, or offshore renminbi ("CNH"), thereby achieving long-term capital growth. There is no guarantee that the Sub-Fund will achieve its investment objectives. 03) The Sub-Fund may be exposed to a) investment risk, b) risks associated with investing in debt securities (including credit/counterparty risk, interest rate risk, credit rating risk and downgrades, risks of high-yield (below investment grade or unrated) debt securities, sovereign debt risk, valuation risk, and credit rating agency risk), c) 'dim sum' bonds, d) concentration risk, e) emerging market risk, f) foreign exchange risk, g) renminbi currency risk, renminbi-denominated class risk and hedging renminbi class risk, h) convertible bond risk, i) risks associated with contingent convertible bonds (including trigger level/conversion risk, coupon cancellation risk, sector concentration risk, and novel and untested risks), j) equity securities risk, k) Eurozone and European country risk, l) hedging/derivative risk, m) currency risk, n) risks related to sales and repurchase agreements, and o) the risk of distributions being paid from capital and/or effectively from capital. 04) Unless the intermediary has explained to you during the sale of the fund that, after considering your financial situation, investment experience, and objectives, this fund is suitable for you, you should not invest in the Sub-Fund. 05) The fund manager currently intends to distribute dividends monthly for the distribution class, but actual distributions will be at the discretion of the fund manager. The fund's distribution rate does not represent the fund’s return rate; a positive distribution rate does not indicate a positive fund return, and past distribution rates do not guarantee future distribution rates. 06) Investors should not make investment decisions based solely on the information provided in this document and should carefully review the details and risk factors contained in the fund's offering documents.

Hello, fellow investor friends. What important changes occurred in the market last week? Let's take a look together:

Last week, the U.S. macro landscape was characterized by notable pockets of economic resilience, renewed inflationary pressures, and a policy outlook tilting toward tightening—highlighting pronounced structural divergence across sectors. On the production side, the ISM Manufacturing PMI rose to 54.0 in May, hitting its highest level since 2022 and marking the fifth consecutive month of expansion,boosted by AI-related investment, improved trade conditions, and precautionary inventory building by firms, which jointly lifted new orders and production sentiment. However, geopolitical tensions in the Middle East pushed up energy and raw material prices,keeping cost pressures on manufacturers elevated, with price indices remaining near multi-year highs. The services sector also continued to expand, with the ISM Services PMI edging slightly higher in May, though the employment index remained in contraction territory as businesses broadly froze hiring and controlled staffing levels. Labor market resilience exceeded expectations: May ADP private-sector job growth hit a more-than-one-year high, driven notably by small businesses and trade/transportation sectors, while wage growth stayed stable—further reinforcing market expectations for additional rate hikes.The latest Fed Beige Book confirmed broad-based inflationary pressures, with multiple districts reporting sharp increases in energy, transportation, and raw material costs, which continue to be passed through to consumers. Household purchasing power is under strain, and consumption patterns are increasingly bifurcating,with lower- and middle-income households cutting back on discretionary spending while higher-income consumers remain relatively resilient—evidence of a clear K-shaped recovery. Overall, the U.S. economy continues to expand moderately, but heightened uncertainty persists due to stubbornly high inflation, waning business investment appetite, downward revisions to Q1 GDP growth, and long-standing structural vulnerabilities from high debt and fiscal deficits.The Federal Reserve’s policy decision at its June FOMC meeting has become the central focus for markets, with the probability of another rate hike continuing to rise.

Last week, China’s macro landscape exhibited a structurally divergent pattern—manufacturing weakened while services warmed—yet the overall economy maintained mild expansion. The official Manufacturing PMI dipped to exactly 50.0 in May, signaling a cooling in sentiment, primarily dragged down by deteriorating conditions among small and medium-sized enterprises.Large enterprises continued to expand, but manufacturing demand softened marginally, employment sentiment slowed, and raw material inventories contracted, placing pressure on both supply and demand sides.Non-manufacturing activity stood out relatively, with the business activity index edging up slightly. The services sector saw improved sentiment, and industries such as railways, telecommunications, and insurance maintained high levels of activity, offsetting the construction sector's weak performance and driving the composite PMI output index higher. Overall, business expectations remained positive.Logistics demand in manufacturing and livelihood-related sectors expanded steadily, but the warehousing index fell into contraction territory, impacted by the off-season for commodities, slower inventory restocking in manufacturing, and weather-related disruptions.Warehousing turnover efficiency declined and inventories accumulated somewhat, while cost pressures from fuel and labor continued to mount across the sector. Overall, the pace of China's economic recovery has slowed, with structural weaknesses becoming more pronounced—domestic demand in manufacturing remains subdued and small and medium-sized enterprises face significant operational pressures, though emerging growth sectors continue to provide solid support.Services and logistics showed marginal improvement, underscoring the underlying resilience of the economy.

In bond market performance, global bond markets overall pulled back over the past week, with the Global Aggregate Index down 0.89%The US Aggregate Index fell 0.54%, US investment-grade corporate bonds declined 0.59%, and US high-yield corporate bonds dropped 0.42%. The Emerging Markets USD-denominated Bond Aggregate Index decreased by 0.25%, while the China USD Credit Bond Index fell 0.26%.On the rates front, U.S. Treasury yields flattened in a bearish move.The 2-year U.S. Treasury yield rose 14 bps to 4.15%, and the 10-year U.S. Treasury yield climbed 9 bps to 4.53%.

In the stock market,Global markets broadly pulled back last week, led by a 3.7% decline in South Korea’s KOSPI Composite Index, followed by Mexico’s MXX dropping 3.6%.Brazil's IBOVESPA declined 2.7%. Emerging markets as a whole dropped 2.0%, the Hang Seng Index fell 0.9%, and the CSI 300 lost 1.5%. The US S&P 500 declined 2.6%. Taiwan's Weighted Index rose 0.8% against the trend, posting the best performance.Overall, some Asian markets showed resilience, while Latin American and South Korean markets faced notable pressure. In the US equity market, the energy sector gained 2.5%, delivering the strongest performance, followed by healthcare, which rose 2.3%.However, the consumer discretionary sector plunged 6.2%, information technology fell 5.4%, and communication services dropped 3.9%.Hong Kong's information technology sector rose 2.1%, posting the best performance, followed by a 1.0% gain in discretionary consumption; the Hang Seng Tech Index edged up 0.1%.The energy sector was flat. However, the healthcare sector tumbled 6.8%, utilities declined 3.9%, real estate and construction dropped 3.3%, and telecommunications fell 2.8%.

The E Fund (Hong Kong) Multi-Income Bond Fund Class A Accumulation USD share net asset value stands at 12.073*. Regarding the recent bond market landscape, we willactively seize trading opportunities in market fluctuations, striving to further enhance portfolio returns; In the stock sector,we remain optimistic about the mid-term performance of the US stock market, and will focus on capturing the rebound window after the pullback in US stocks, positioning for related investment opportunities.

Key economic data releases to watch this week:

China will release May social financing and import/export data on Tuesday;

China will release May CPI and PPI data on Wednesday; the U.S. will also release May CPI data on the same day;

The U.S. will release May PPI data on Thursday.

*Data sourced from E Fund Hong Kong's official website as of June 8, 2026.

Disclaimer: The issuer of this report is E Fund Asset Management (Hong Kong) Co., Ltd. This report does not constitute an invitation or recommendation to invest in fund units. Fund unit subscriptions can only be made using application forms 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 fund prospectus (including the 'Risk Factors' section) to understand the investment risks related to the fund. This report may only be distributed in certain jurisdictions. In any jurisdiction where distributing such information or making any invitation or recommendation is prohibited, or where distributing this report or making an invitation or recommendation to any person would be illegal, this report does not constitute such distribution or invitation or recommendation. This document has been exempted from prior review and approval by the Hong Kong Securities and Futures Commission, and has not been reviewed by the SFC. SFC approval does not imply promotion or endorsement of the plan, nor does it guarantee its commercial merits or performance, nor does it indicate suitability for all investors, or endorsement of suitability for any particular investor or category of investors. All rights reserved © 2026. E Fund Asset Management (Hong Kong) Co., Ltd.

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