--- title: "The Shanghai Composite Index has once again lost the 3,900-point mark, with trading sentiment weak ahead of the holiday, leading to increased attention on short-duration bond ETFs" type: "News" locale: "en" url: "https://longbridge.com/en/news/281596461.md" description: "On the last trading day before the Qingming Festival, the Shanghai Composite Index fell below 3,900 points, with a decrease of 10.989 billion yuan in margin financing, reflecting a low market risk appetite. Bond ETFs have attracted attention, with a net inflow of over 14.5 billion yuan in the past five trading days. Short-term bonds, due to their low sensitivity to interest rate fluctuations, have been favored by funds. The China Merchants Treasury and Policy Bank Bond ETF (511580), as a liquidity management tool, is designed flexibly with low fees, making it suitable for managing idle funds" datetime: "2026-04-03T02:29:08.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/281596461.md) - [en](https://longbridge.com/en/news/281596461.md) - [zh-HK](https://longbridge.com/zh-HK/news/281596461.md) --- # The Shanghai Composite Index has once again lost the 3,900-point mark, with trading sentiment weak ahead of the holiday, leading to increased attention on short-duration bond ETFs On the last trading day before the Qingming Festival, the three major indices collectively fell, with the Shanghai Composite Index losing the 3900-point mark. Data after the previous trading day showed that the financing balance in the two markets decreased by 10.989 billion yuan in a single day, dropping to 25,720.55 billion yuan, indicating that leveraged funds are accelerating their exit, reflecting that the risk appetite in the market remains low. Meanwhile, with the Qingming holiday approaching, the demand for cash to celebrate the festival is rising, leading to increased attention on bond assets. According to statistics, in the past five trading days, the net inflow of bond ETFs exceeded 14.5 billion yuan, ranking first among all major ETF categories. The bond market has shown relatively stable trends. The yield on 2-year government bonds is at 1.27%, only slightly up from the end of February, with the overall yield curve exhibiting mild low volatility. Media reports indicate that against the backdrop of global bond market turbulence, the "stabilizer" value of Chinese government bonds is becoming more prominent, and institutions are increasingly willing to focus on Chinese bonds. From a funding perspective, the central bank conducted a 1 billion yuan 7-day reverse repurchase operation on April 3, maintaining the interest rate at 1.40%. On that day, 146.2 billion yuan of reverse repos matured, resulting in a net withdrawal of 145.2 billion yuan. Analysts point out that April, being a traditional month for tax revenue, also provides some support for the funding environment, and short-term funding rates are expected to remain stable. In this environment, short-duration bond varieties, due to their lower sensitivity to interest rate fluctuations, are favored by funds pursuing liquidity management efficiency. For example, the **Government Bond** **Policy Financial Bond ETF** **China Merchants (511580)** serves as a tool for a basket of government bonds and policy financial bonds, with underlying asset durations typically in the 1 to 2-year range, resulting in relatively controllable overall price fluctuations. From a product design perspective, the **Government Bond** **Policy Financial Bond ETF** **China Merchants (511580)** is listed on the Shanghai Stock Exchange, supports T+0 trading, and has been included in the pledge library (with a conversion rate of about 103%). In terms of yield, the income sources for bond ETFs mainly include coupon income and price difference income. Short-duration portfolios, due to the short maturity of held bonds, have a relatively stable coupon accumulation speed and higher flexibility in portfolio turnover. Therefore, they can be used for idle fund management, liquidity reserves, or in conjunction with equity positions. Regarding fees, the management fee for the **Government Bond Policy Financial Bond ETF** **China Merchants (511580)** is 0.15% per year, with a custody fee of 0.05% per year, totaling 0.20% per year, which is relatively low among similar bond ETFs. According to the latest research reports from institutions, the mainstream view is that the current bond market still has support. Domestic monetary policy remains supportive, with the central bank recently stating multiple times that it will maintain reasonable liquidity; at the same time, the domestic and foreign interest rate differential environment provides certain medium-term support for RMB bonds. However, some institutions also remind that attention should be paid to the issuance pace of government bonds in April and potential disruptive factors such as economic data exceeding expectations The fixed income team at Shenwan Hongyuan pointed out that short-duration varieties have a relatively obvious advantage in liquidity management efficiency due to their lower sensitivity to interest rate changes in the current market environment. CICC's fixed income research believes that the global low-volatility environment, combined with the promotion of RMB internationalization, will continue to support the medium-term allocation demand for RMB bonds from overseas institutions. Overall, in the context of unclear market direction and the holiday effect, the product design of short-duration bond ETFs as on-site cash management tools is worth paying attention to. 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