Core Viewpoint - The policy-driven growth of the Sci-Tech Innovation Bonds (科创债) is expected to significantly expand the credit bond market, with the newly approved Sci-Tech Innovation Bond ETFs likely to lead innovation in the bond market [1] Group 1: Market Dynamics - The year has seen a concentrated rollout of policies supporting Sci-Tech Innovation Bonds, positioning them as a key driver for market expansion [1] - The approval of the second batch of Sci-Tech Innovation Bond ETF products is anticipated to enhance the liquidity of the index component bonds [1] Group 2: Investment Characteristics - Sci-Tech Innovation Bonds are characterized by high credit quality and excess yield spread, making them attractive for certain investors [1] - Sci-Tech Innovation Bond ETFs are classified as trading assets with high elasticity and volatility, suitable for active participation during bond market uptrends [1] - However, these ETFs may also face significant drawdown risks during market downturns, indicating they are more appropriate for investors with higher risk tolerance [1] Group 3: Hedging and Diversification - Sci-Tech Innovation Bond ETFs can serve as tools with a negative correlation to equity assets, providing hedging, protection, and reduced volatility [1] - This emerging tool combines policy beta and growth alpha, offering investors a new option for a balanced and growth-oriented asset allocation [1]