Bond ETFs continue to experience significant expansion, attracting over 40 billion yuan in a single month.

Since the beginning of this year, the bond market has been volatile, with bond funds failing to meet expectations in terms of returns. However, this has not hindered the thriving development of bond ETF market. As we close out May, the size of bond ETFs has reached a new high, with a net inflow of over 40 billion RMB in a single month. At the same time, enthusiasm for trading bond ETFs among onshore funds has been on the rise. For example, on May 30th, 10 out of the top 12 ETFs ranked by daily trading volume were bond ETFs. Additionally, with the recent launch of general collateral repurchase transactions for credit bond ETFs, 9 bond ETF products have been approved as eligible collateral for general collateral repurchase agreements, being included in the repo collateral pool. The expansion of bond ETFs is expected to accelerate, with the overall size likely to reach a new level.