Core Viewpoint - The "Wancheng Future Steady Income Bond Fund" experienced a significant decline in net value, dropping over 7% in just six trading days, nearly erasing two years of accumulated returns, reflecting broader concerns in the bond market and the challenges faced by small and medium-sized fund companies [1][2][4]. Fund Performance - From November 25 to December 2, 2025, the fund recorded negative returns of -0.06%, -0.08%, -1.77%, -3.56%, -1.48%, and -0.80%, leading to a cumulative decline exceeding 7% [2]. - The fund's total return from November 26, 2023, to November 26, 2025, was 6.53%, indicating that the recent decline nearly wiped out its two-year gains [2]. Market Reactions - The timing of the fund's net value drop coincided with a sharp decline in the prices of several domestic bonds issued by Vanke, leading to speculation that the fund may have "stepped on a landmine" [2][4]. - The fund's management acknowledged that the net value drop was influenced by significant adjustments in certain bonds within the investment portfolio, which will be detailed in the upcoming quarterly report [2][4]. Redemption Pressure - A notable number of investors were alarmed by the fund's net value fluctuations, resulting in substantial redemptions that exacerbated the volatility of the fund's net value [3][4]. - The fund's small scale, with a size of only 189 million yuan, and a highly retail-oriented holder structure contributed to its vulnerability to redemption pressures [4][6]. Industry Context - The bond market has been experiencing significant outflows, with over 470 billion units of bond funds reduced in the third quarter alone, and more than 60 bond funds announcing adjustments due to large redemptions in the fourth quarter [7][8]. - The shift of funds from the bond market to equity assets, driven by the A-share market's profitability, along with changing economic expectations and interest rate fluctuations, has diminished the appeal of bond funds [8]. Company Stability - The controlling shareholder of Wancheng Future Fund, Huachen Trust, is attempting to sell its 40% stake in the fund company at a significant premium, raising concerns about the company's ongoing viability [6]. - The fund company reported a revenue of 4.01 million yuan and a net loss of 20.01 million yuan in 2024, with continued losses in the first three quarters of the current year [6].