Stock market continues to strengthen, bond funds faced large redemptions, with liquidity leading the see-saw market.

Recently, the A-share market has continued to rise, with the Shanghai Composite Index closing above 3600 points on July 24th, rebounding over 16% from the year's low in early April. At the same time, the bond market has experienced a rare correction, with government bond futures consistently falling, and a large number of medium to long-term pure bond funds experiencing withdrawals. Meanwhile, several bond funds have announced large redemptions, causing market concerns about the deepening of the "stock-bond seesaw" effect. Institutions generally believe that the current trend of strong stocks and weak bonds may be driven by changes in liquidity, as the market is experiencing a special stock-bond "seesaw" effect different from the traditional growth-driven expectations.