Liu Xin, Chief Fixed Income Investment Officer of BlackRock Fund: Constructing multiple levels of income sources with a "multi-strategy" approach.

Facing uncertainty in the external environment and adjustments in the pace of domestic policies, institutions maintain a cautious and optimistic attitude towards the recovery pace of the Chinese economy and bond market, and their strategies are becoming more structured and diversified. Recently, Liu Xin, Chief Investment Officer of Fixed Income at BlackRock Fund, pointed out two major trends in the Chinese bond market in the first half of the year: a significant differentiation between interest rate bonds and credit bonds, and the continuation of a low interest rate environment. Looking ahead to the second half of the year, Liu Xin believes that the temporary adjustment pressure in the bond market cannot be ignored, as interest rate cuts have already been factored in, and credit bond spreads have compressed significantly. He predicts that while the overall direction is still towards lower interest rates, the pace may not be as fast. Trend opportunities require patience, and investors need to grasp structural opportunities and flexibly allocate. Liu Xin further points out that in the current market environment, relying on a single strategy for excess returns is increasingly limited. Therefore, they emphasize a "multi-strategy" combination approach. For example, traditional duration strategies may not generate excess returns when interest rate environments do not change significantly. Therefore, BlackRock will combine trading strategies, structural strategies, arbitrage in primary and secondary markets, and even use derivatives for carry trade and basis strategies to build multiple sources of income.