Li Zhao from China International Capital Corporation: Remains optimistic about the future performance of the China bond market.

Li Zhao, head of the macro asset allocation research department at China International Capital Corporation, recently stated in an interview that the relatively optimistic view on China bonds relies mainly on the determination of two factors. The first is the policy level; as the USA's tariff impact poses external pressure on China's economy, macro policies to stabilize growth may be introduced as a countermeasure. Monetary easing is a less resistant direction for policy action, with measures such as reserve requirement ratio cuts and interest rate cuts favoring the bond market's performance. The second aspect is from the economic fundamentals; the impact of US tariffs actually reduces the amount of external demand for our country, and when demand is relatively weakened, it may lead to lower inflation, creating a more favorable environment for the bond market. Thus, both policy and fundamentals are relatively favorable for the performance of the bond market. (Xinhua Finance)