The recent explosion of Zhanggu Convertible Bonds caught many people off guard. The trigger for the investigation was a violation of financial information disclosure, seemingly pointing to financial fraud. Such incidents indeed send a chill down one's spine.

Speaking of this type of product, it used to be a typical "card" style—state-owned background, small market capitalization, and large volatility. In August last year, I almost completely cleared my positions. That day, the convertible bond surged to over 150 yuan, with a premium rate reaching a quite high level. I judged that a pullback was possible, so I simply sold everything off. Later, the price continued to stay high, so I didn't have another chance to get involved.

Looking back now, this avoidance was purely luck. If that day hadn't seen the surge, or if I hadn't sold at the high, and I was stuck at this mediocre price level, I would probably have continued to float in losses, waiting.

This incident exposes a simple yet often overlooked truth—the power of diversification. Zhanggu is a state-owned enterprise bond from Shandong. In theory, such companies should be under government attention and regulated management, yet problems still occurred. Similarly, Dongjie Convertible Bonds in Shandong, although once surged to 300 yuan, have always been rated only BBB+, indicating that the market's recognition of its creditworthiness has always been cautious.

The annual report season is approaching; be sure to watch out for black swan risks before April. Placing eggs in multiple baskets not only diversifies returns but also helps you survive when surprises happen.