CITIC Securities anticipates a robust dual recovery in both stock and bond markets during the second quarter of 2025. This recovery is expected to be marked by a rebound in the size of actively managed pure bond funds and a rapid expansion of passive index products. Strategically, pure bond funds continue to demonstrate a growing preference for longer durations, with credit allocations primarily focused on high-grade bonds. The investment approach of amortizing bond funds is further evolving, increasingly aligning with interest rate-to-credit strategies. It is anticipated that a significant number of new products will be launched in the latter half of the year, potentially catalyzing an increase in institutional allocation demands for medium and high-grade credit bonds. Collectively, these trends indicate that the annual scale of bond funds is poised to exceed RMB 11 trillion. While passive indexes and fixed income + strategies are seen as pivotal in navigating the low-interest rate environment, vigilance against potential redemption risks stemming from interest rate fluctuations and shifts in risk appetite remains essential.