Market Overview - The market returned to a volatile range from June 9-13, with the Wind All A closing at 5142.43, down 0.27% from June 6, while the China Convertible Bond Index fell 0.02%[8] - Since the beginning of 2025, the Wind All A has increased by 2.40%, and the China Convertible Bond Index has risen by 4.65%[8] External Factors - The second round of China-US trade talks and escalating Middle East tensions were key trading cues, leading to increased market volatility[2] - The US CPI data indicated limited impact from tariffs on prices, supporting expectations for a rate cut by the Federal Reserve, while geopolitical conflicts pushed oil prices higher[2][36] Strategy Insights - Following the second round of trade talks, market adjustment pressures stem from external uncertainties, particularly from the Middle East and potential changes in US tariff policies[3] - Historical data shows that after significant geopolitical conflicts, the Wind All A typically experiences a recovery around 14 trading days later, with technology and dividend sectors showing notable excess returns[3][39] Market Dynamics - The congestion level of the China 2000 index has decreased significantly, currently at the 79.3 percentile since September 2023, indicating improved structural issues in the small-cap market[16] - Investors are favoring industries with lower congestion levels while avoiding those with higher congestion, maintaining a "rotation thinking" approach in trading strategies[19][20] Convertible Bond Valuation - Convertible bond valuations have generally declined, particularly for crowded debt-type products, with the valuation center for 80 yuan parity dropping to 46.85%[23] - The valuation for 100 yuan parity has decreased to 26.37%, reflecting a broader trend of valuation adjustments in the convertible bond market[23][29]