Core Viewpoint - The article discusses the ongoing reforms in China's financial institutions, emphasizing the need for enhanced risk resilience and support for the real economy through measures such as issuing special government bonds and optimizing the financial layout of state-owned enterprises [1]. Group 1: Financial Institution Reforms - The People's Bank of China is actively promoting reforms to enhance the risk resilience of large state-owned banks by supporting core tier one capital through special government bonds [1]. - There is a focus on improving the bond market's institutional framework to increase market pricing capabilities and resilience, thereby raising the proportion of direct financing [1]. Group 2: Market Conditions - Following the Spring Festival, major banks have seen net lending remain below 2 trillion yuan, reaching historical lows, which has put pressure on liquidity and led to declines in bond prices [2]. - The yield on 10-year government bonds has increased significantly, rising from 1.5925% on February 6 to 1.7650% by February 25, indicating a volatile market environment [2]. Group 3: Market Volatility - The volatility of 10-year government bonds has reached its highest level in nearly five years, with a daily yield fluctuation of up to 5 basis points, complicating trading conditions [4]. - Market participants are increasingly sensitive to news and rumors, leading to rapid reactions to unverified information, which has contributed to heightened market uncertainty [4][5]. Group 4: Investment Strategies - Investment managers emphasize the importance of developing independent judgment and a robust investment framework to navigate the current market volatility, rather than following the crowd [6]. - There is a call for enhancing the capabilities of trading teams in bond research, pricing analysis, and trend forecasting to mitigate the risks associated with market fluctuations [6].