Xin Lang Cai Jing·2025-12-03 08:36Core Viewpoint - Recent market turbulence has led to significant losses in both equity and bond markets, challenging the perception of bond funds as stable investments [2][14]. Group 1: Bond Fund Performance - A lesser-known bond fund, Huachen Future Stable Bond, experienced a dramatic decline of 6.81% over three days, erasing two years of gains [3][15]. - The fund's net asset value dropped sharply starting November 27, with daily declines of 1.77%, 3.56%, and 1.48% [3][15]. - The fund's previous stability attracted many retail investors, but the recent downturn has raised concerns about its reliability as a safe investment [3][15]. Group 2: Causes of Decline - The significant drop in the fund's value is likely linked to exposure to Vanke bonds, with estimates suggesting a holding of 7.6% to 15% in these securities [5][17]. - The decline triggered a wave of redemptions, forcing the fund to sell assets, which further exacerbated the drop in net value, creating a vicious cycle [5][17]. - The fund's management attributed the decline to market conditions affecting specific bonds and stated they are optimizing the investment portfolio [5][17]. Group 3: Private Fund Issues - Concurrently, private equity firm Hosheng Asset reported a drop of over 4% in several of its pure bond strategy products, with one fund, Hosheng Tonghui Hengxin X, falling 4.35% in a single week [6][18]. - Hosheng Asset, known for its conservative investment approach, faced challenges due to heavy exposure to Vanke bonds, leading to significant volatility in its products [9][21]. - The founder of Hosheng Asset acknowledged the impact of market price adjustments on their investment returns, indicating a near-zero return since the second quarter [21]. Group 4: Changing Perceptions - The recent events have shattered the stereotype that bond funds are inherently stable and that large private equity firms are reliable [10][22]. - Investors often misjudged bond funds as risk-free, overlooking potential risks, especially in the case of first-tier bond funds that allow greater credit risk-taking [10][22]. - The volatility experienced by both small and large funds highlights the need for investors to reassess their understanding of bond fund risks [10][22]. Group 5: Investor Guidance - Investors are advised to abandon the "buying the dip" mentality when bond funds plummet, as past examples show that such strategies can lead to significant losses [11][23]. - It is crucial to consider institutional ownership when selecting funds, as higher institutional investment often indicates greater reliability [11][23]. - A balanced investment approach is recommended, emphasizing diversification to mitigate risks associated with market fluctuations [11][23].