Market Overview - The overall market has shown strength, with the index returning to a rating of 4.2 stars at the close [1] - Both large-cap and small-cap stocks have experienced similar upward movements [2] - In the value style, the free cash flow index has risen significantly and is approaching normal valuation levels [3] - Growth sectors, including the ChiNext and technology stocks, have also seen overall increases [4] - The Hong Kong stock market has risen, with the technology index leading the gains [5] - However, fluctuations in overseas markets caused a slight pullback in the gains of the Hong Kong market in the afternoon [6] Bond Market Dynamics - The stock market has been relatively strong, while the bond market has experienced significant volatility [7] - A three-year bull market for bonds is anticipated from 2022 to 2024, but current valuations are not particularly cheap [8] - The bond market has entered a bear phase over the past year, leading to a relatively subdued environment [9] - Recent regulatory changes regarding fund sales may impact institutional investors' bond fund returns, prompting some to redeem their bond funds and causing market fluctuations [10][12] - Last week, certain bonds and bond funds experienced significant declines, with Vanke bonds showing notable volatility [13][14] - Some bond funds faced "踩雷" incidents, with declines of around 5% within a week [15][16] Types of Bonds and Risks - Bonds are categorized into interest rate bonds and credit bonds [18] - Interest rate bonds, such as government bonds, are highly secure and typically do not face default risks, mainly experiencing short-term volatility [19][21] - Credit bonds, issued by corporations or local government financing vehicles, carry default risks, especially if the issuing entity is not performing well [25][28] - If a bond fund invests in such credit bonds, it may face significant price drops, leading to "踩雷" events [29][30] Identifying and Mitigating Risks - Identifying whether a bond fund has faced "踩雷" is relatively straightforward; a drop of 5% or more within a few days is abnormal for pure bonds [33] - Last week, some bond funds experienced declines exceeding 5% [34] - To mitigate risks, individual investors should focus on stability rather than high returns from bond funds [37] - It is advisable to prioritize interest rate bonds and maintain a diversified fund portfolio to reduce the impact of individual bond performance [41][42]