Huatai Securities: Behind the strategy of investing in stocks and buying bonds is a shift in the direction of major asset allocation.

Huatai Securities pointed out that the bond market in 2025 is a typical "non-bull non-bear volatile market", with interest rates ending a four-year unilateral downward trend, and the ten-year national bond repeatedly fluctuating in a narrow range of 1.6-1.9%. There have been new changes in market operation characteristics, such as insensitivity to macroeconomic factors, increased volatility, and a seesaw effect between stocks and bonds. For investors, this year is also the year where the impact of the "low interest rate" environment is most deeply felt: interest rate returns have greatly decreased, capital gains are difficult to obtain, and the few market fluctuations have been rapid, posing great challenges to frameworks and operations. There are several important themes in this year's bond market: first, to respect trends while also believing in common sense; second, short-term trading may sound easy but is difficult to execute; third, there are structural opportunities in volatile markets; fourth, the bond market ecology is undergoing profound changes; and fifth, the shift in asset allocation direction from stock to bond markets.