Interest Rate Movements: When interest rates rise, bond prices typically fall, and vice versa. This is because newly issued bonds offer higher yields, making older bonds less attractive.

Inflation Expectations: Higher inflation expectations erode the real value of future bond payments, leading to lower bond prices. Conversely, lower inflation expectations can boost bond prices.

Economic Growth: Strong economic growth often leads to higher interest rates and potentially higher inflation, which can negatively affect bond prices. Weaker economic growth may have the opposite effect.

Government Policy: Government fiscal and monetary policies, such as changes in government spending, tax policies, or central bank interest rate decisions, can significantly impact bond prices.

Credit Rating Changes: If the credit rating of China or its sovereign debt improves, bond prices may increase, as investors perceive lower risk. A downgrade could lead to lower bond prices.

Market Sentiment: Investor confidence and risk appetite can influence bond prices. During times of uncertainty or fear, investors may seek the safety of government bonds, increasing demand and prices.

Global Economic Conditions: Global events and economic conditions, such as global recessions or trade wars, can also affect bond prices in China.

Supply and Demand: The supply of newly issued 1-year Chinese government bonds and the overall demand for them will influence their price. Higher supply relative to demand may lower prices.

Currency Fluctuations: Changes in the value of the Chinese Yuan (CNY) can affect bond prices, especially for international investors. A weaker CNY may make the bonds less attractive to foreign buyers.

Geopolitical Risk: Geopolitical tensions or instability can increase uncertainty and drive investors towards safer assets, potentially pushing up bond prices, or in other situations away from Chinese assets, decreasing prices.