Core Insights - The Penghua 0-4 Year Local Bond ETF (159816.SZ) has seen significant trading activity, with a trading volume of 19.2 billion CNY on April 23, 2025, and a turnover rate of 104%, making it the top bond ETF in the market [1] - The ETF's trading volume increased to 20.61 billion CNY on April 24, 2025, with a turnover rate of 112.09%, ranking fourth among all bond ETFs [1] - On April 25, 2025, the trading volume was 18.44 billion CNY, with a turnover rate of 100.25%, again placing it first in the market [1] Trading Activity and Market Demand - The turnover rate and trading volume of bond ETFs are key indicators of market liquidity and investor participation, reflecting the health of the product ecosystem [1] - The Penghua 5-Year Local Bond ETF (159972.SZ) also showed strong trading activity, with average daily trading volumes of 14 billion CNY and 19 billion CNY over the past two weeks, and turnover rates of 31% and 42% respectively [1] - The Penghua 0-4 Year Local Bond ETF had average daily trading volumes of 14 billion CNY and 26 billion CNY, with turnover rates of 74% and 143% over the same period [1] Market Environment and Investment Strategy - Increased risk aversion in the current investment environment is favorable for the bond market, highlighting the defensive value of local bond allocations [1] - Expectations for interest rate cuts by the central bank have risen, with several banks lowering deposit rates in April 2025, which may alleviate pressure on banks' net interest margins [1] - The current spread between 30-year local bonds and 30-year national bonds is 24 basis points, indicating a defensive value, with a focus on observing whether short-term interest rates can decline further [1] Product Innovation and Performance - Penghua Fixed Income's "Bond Index Expert" team has filled a market gap in local bond ETFs, launching the first 5-year local bond ETF in 2019 and the only short-duration 0-4 year local bond ETF in 2020, creating a complementary product matrix [2] - As of the end of Q1 2025, the Penghua 0-4 Year Local Bond ETF achieved net value growth rates of 2.83% and 9.13% over the past 1 year and 3 years, respectively, outperforming its benchmarks [2] - Both local bond ETFs have demonstrated strong capital attraction, with the latest sizes reaching 45.84 billion CNY and 18.40 billion CNY, marking new highs in the past year [2]