With the implementation of three interest rate cuts in the second half of 2024, the tone of the current easing cycle has been established. Looking ahead to the second half of 2025, we will enter the mid to later stage of this round of interest rate cuts, which has significant implications for the global financial markets.

Historical data shows that in the later stages of a loose monetary policy cycle, risk assets such as stocks and corporate bonds often receive stronger liquidity support and valuation increases. This is primarily due to two key factors: first, the decline in the risk-free interest rate lowers the discount rate in asset valuations, thereby increasing the present value of assets; second, a low-interest-rate environment stimulates investors' 'no alternatives' mentality, prompting funds to shift from low-yield safe assets to high-risk, high-reward assets.

However, it is worth noting that the positive factors usually take some time to be transmitted from policy to market reaction. In the short term, fluctuations in market sentiment may lead to volatility in the market. But in the long run, the positive effects brought by improved liquidity will ultimately be reflected in the market.

Currently, the market is at a critical juncture where expectations and reality intertwine. There is a certain tension between investors' expectations of future interest rate cuts and current economic data, and this game of chess provides investors with a rare opportunity for positioning. Those who can accurately grasp this time window are likely to achieve considerable returns in the upcoming market rise.

Overall, the interest rate cut cycle in the second half of 2025 is likely to become an important turning point for global risk assets. Although the market may still fluctuate in the short term, this is undoubtedly an important investment opportunity worth paying attention to in the medium to long term. Investors should closely monitor policy trends and market reactions, seeking a balance between risks and opportunities to be fully prepared for the upcoming market changes.