Market Overview - In Q1 2025, the number of newly issued bond funds decreased to 55, the lowest since Q1 2022, with a total of 297 new funds issued[5] - The total scale of bond funds fell by 0.48 trillion to 10.05 trillion, with a decrease in the proportion of bond funds to 31.94%[13][16] - Among bond fund categories, medium- and long-term pure bond funds, short-term pure bond funds, and index bond funds saw reductions of 308.8 billion, 223 billion, and 92.4 billion respectively, while mixed bond funds increased by 123.3 billion[17] Fund Performance - The weighted average net value of bond funds rose by only 0.10%, marking the lowest performance in the past nine quarters, with medium- and long-term pure bond funds experiencing a decline[19] - The average net value of mixed bond funds performed the best, with an increase of 0.62%[20] Asset Allocation - Public funds increased their allocation to stocks and bonds, with a total increase of 824.8 billion in bonds and 1535 billion in stocks in Q1 2025[26][36] - The proportion of cash and other assets decreased, primarily due to the tightening of interbank deposit regulations affecting money market funds[26] Leverage and Duration Management - Short-term pure bond funds and mixed bond funds continued to significantly reduce leverage, with short-term pure bond funds' leverage ratio dropping to 111.81%[40] - All types of bond funds shortened their duration, with short-term pure bond funds showing the most significant reduction of 0.31 years[40] Convertible Bonds - The total holding of convertible bonds by public funds slightly decreased to 272.19 billion, with a 1.05% decline[50] - The holding of low-rated convertible bonds increased due to the expiration of some AAA-rated convertible bonds, leading to a shift towards mid- to low-rated bonds[50]