There were tremendous ups and downs in the bond market in 2011. The first three quarters have seen economic growth slowing down and inflation picking up due to the restrictive monetary policies, which resulted in limited liquidity and higher credit risks. In the fourth quarter, the economy growth and inflation were both contained, and the expectation of policy change led to positive credit supplies. Accordingly, the bond market rebounded and ended as the third bull year after 2005 and 2008. Looking ahead into 2012, the overall economy is in the phase of slow recovery. Taking into consideration of macro-economy and monetary policies, we believe that the bond yield will be trending in "V" shape, and accordingly, the bond market will be trending in the reverse "V" shape. <<