Core Viewpoint - The recent trend in the A-share market shows a significant shift of funds from bond funds to equity investments, driven by the strong performance of the stock market and the "stock-bond seesaw" effect [1][4]. Fund Redemption - Since July, over 25 bond funds have announced an increase in net asset value precision due to large-scale redemptions [2][3]. - On July 18, several fund companies, including Manulife and Yuanxin Yongfeng, reported large redemptions in their bond funds, leading to adjustments in net asset value precision [2][3]. Market Dynamics - The stock market has been on the rise, with the Shanghai Composite Index surpassing 3500 points, attracting investors seeking higher returns [1][4]. - The bond market has not maintained the strong performance seen in the previous year, leading to increased volatility and dissatisfaction among bond fund investors [4]. Investor Behavior - Fund managers are adjusting their strategies in response to the changing market conditions, focusing on liquidity management and investor sentiment [4]. - The increase in net asset value precision is a protective measure for remaining investors, ensuring that they are less affected by the precision of net asset values during large redemptions [4]. Outlook for the Second Half - There is optimism regarding the equity market in the second half of the year, with a focus on technology stocks and high-dividend sectors [5][6]. - Fund managers expect a rotation in industry focus, with an emphasis on sectors like consumer electronics, AI computing, and high-dividend stocks, which are seen as having stable cash flows and defensive attributes [6].