Loose monetary policy is beneficial to the income of bond funds. Bonds are generally issued in fixed coupon rate, and the face value of bonds is also fixed, that is, the future cash flow of bond investment can be expected without default, and the bond valuation of bond investment adopts discounted cash flow method model. If the monetary policy is loose, it will lead to a decline in market interest rate, which will lead to a decline in bond holdings to yield to maturity through market transmission. It also means that the increase in bond prices in bond market transactions will be reflected in a decline in bond holdings to yield to maturity.

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Reply time: 2022-0 1- 13. Please refer to the latest business changes announced by Ping An Bank in official website.