Group 1: Federal Reserve's Rate Decision - The Federal Reserve lowered the federal funds rate target range from 4.25%-4.5% to 4.00%-4.25%, a decrease of 25 basis points, marking the first rate cut in nine months[2] - The median dot plot indicates the Fed expects three rate cuts this year, an increase from the previous forecast, with one additional cut expected next year[2] - The decision reflects a shift in focus from inflation to employment, as employment growth has slowed and the unemployment rate has slightly increased[6] Group 2: Economic Indicators and Forecasts - Non-farm payrolls added only 22,000 jobs in August, significantly below expectations, with the unemployment rate rising to 4.3%[7] - The Fed revised down non-farm employment data for April 2024 to March 2025 by 911,000, the largest historical revision[7] - The Fed raised its GDP growth forecast for this year from 1.4% to 1.6% while lowering unemployment rate expectations for the next two years[8] Group 3: Inflation and Tariff Impact - Core PCE inflation is expected to be influenced by tariffs, contributing only 0.3-0.4 percentage points, indicating a slower and smaller impact than anticipated[7] - The Fed's inflation target is now projected to be reached by 2028, reflecting concerns about persistent inflation in the medium term[8] Group 4: Future Policy Uncertainty - The internal policy divergence within the Fed is significant, with 9 members expecting two more cuts this year, while 6 do not foresee any further cuts[9] - The likelihood of continuous rate cuts remains uncertain, as economic data and political factors will heavily influence future decisions[12] - The Fed's gradual approach aims to balance employment stability with inflation control, avoiding rapid rate adjustments[10]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - On September 9th, the liquidity tightened, major repo rates rose, the bond market remained weak, convertible bond market indices declined, and yields of US and major European 10-year government bonds generally increased [1]. - The significant downward revision of US non-farm annual data may lay the foundation for the Fed to cut interest rates, indicating a slowdown in the US labor market [6]. 3. Summary by Relevant Catalogs 3.1 Bond Market News 3.1.1 Domestic News - At the press conference on the "14th Five-Year Plan", the MIIT announced that during the "14th Five-Year Plan", China's manufacturing added - value is expected to increase by 8 trillion yuan, accounting for nearly 30% of the global total, and China has built a large - scale network infrastructure [3]. - The SAMR issued a document to improve the exit mechanism for business entities, and the new regulations will take effect on October 10th [3]. - In August, national enterprise sales revenue grew rapidly, with manufacturing sales growing faster than the overall level, and high - end and digital manufacturing showing good growth [4]. 3.1.2 International News - The US non - farm employment data for the year ending March was revised down by 911,000, the largest downward revision since 2000, which may prompt the Fed to cut interest rates [6]. 3.1.3 Commodities - On September 9th, international crude oil futures prices rose, and natural gas prices slightly increased, while COMEX gold futures prices fell [7]. 3.2 Liquidity 3.2.1 Open Market Operations - On September 9th, the central bank conducted 247 billion yuan of 7 - day reverse repurchase operations, with a net withdrawal of 870 million yuan due to the maturity of 255.7 billion yuan of reverse repurchases [9]. 3.2.2 Funding Rates - On September 9th, the liquidity tightened, and major repo rates increased. For example, DR001 rose 5.93bp to 1.416%, and DR007 rose 2.66bp to 1.479% [10]. 3.3 Bond Market Dynamics 3.3.1 Interest - Bearing Bonds - **Spot Bond Yield Trends**: On September 9th, affected by concerns about redemption fees and tightening liquidity, the bond market was weak. Yields of 10 - year treasury and CDB bonds increased [13]. - **Bond Tendering**: Several bonds were tendered on September 9th, with details such as issuance scale, winning yields, and multiples provided [15]. 3.3.2 Credit Bonds - **Secondary Market Transaction Abnormalities**: On September 9th, 4 industrial bonds had transaction price deviations of over 10%, including significant drops and rises [15]. - **Credit Bond Events**: Companies such as Orient Fashion, Nanyang Transportation Construction Investment Group, Oceanwide Holdings, and Shandong Hengbang Smelting announced relevant events [16]. 3.3.3 Convertible Bonds - **Equity and Convertible Bond Indices**: On September 9th, A - share indices and convertible bond market indices all declined, with most stocks and convertible bonds falling [17]. - **Convertible Bond Tracking**: There were announcements regarding creditor's meetings, litigation disputes, new bond listings, and regulatory approvals for convertible bonds [19][20]. 3.3.4 Overseas Bond Markets - **US Bond Market**: On September 9th, yields of US bonds across all maturities generally increased, and yield spreads narrowed. The inflation - protected treasury bond's break - even inflation rate rose [21][22][23]. - **European Bond Market**: On September 9th, 10 - year government bond yields of major European economies generally increased [24]. - **Price Changes of Chinese - funded US Dollar Bonds**: As of the close on September 9th, there were price changes in Chinese - funded US dollar bonds, with details of daily and monthly changes provided [26].

Report Summary 1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - On September 12, the liquidity situation gradually stabilized, with major repo rates declining; the bond market showed a mild and fluctuating trend; the main indices of the convertible bond market all closed higher, and most convertible bond issues rose; yields on U.S. Treasuries across various maturities generally increased, and yields on 10-year government bonds of major European economies also generally rose [1]. 3. Summary by Relevant Catalogs (1) Bond Market News - **Domestic News** - In August 2025, new RMB loans were 590 billion yuan, a year-on-year decrease of 310 billion yuan; new social financing scale was 2.5693 trillion yuan, a year-on-year decrease of 463 billion yuan; at the end of August, M2 increased by 8.8% year-on-year, the same as at the end of the previous month; M1 increased by 6.0% year-on-year, 0.4 percentage points higher than at the end of the previous month [3]. - As of the end of June 2025, over 60% of financing platforms achieved exit, meaning over 60% of implicit debts of financing platforms were cleared, and the reform and transformation of financing platforms accelerated. The government also issued 500 billion yuan of special treasury bonds this year to inject capital into large commercial banks, expected to drive about 6 trillion yuan in credit [4]. - The National Development and Reform Commission issued a notice to promote the expansion of the REITs market, and the central settlement company and the inter - bank lending center will jointly launch a centralized bond lending business on October 10, 2025. The National Financial Regulatory Administration released a management method for trust companies, effective January 1, 2026 [5][6]. - Eight departments jointly issued a work plan for the stable growth of the automobile industry, aiming for about 32.3 million vehicle sales in 2025, a year - on - year increase of about 3%, including about 15.5 million new energy vehicle sales, a year - on - year increase of about 20% [7]. - **International News** - On September 12, Fitch downgraded France's sovereign credit rating from AA - to A + due to the continuous rise in France's debt - to - GDP ratio, which is expected to increase from 113.2% in 2024 to 121% in 2027, and the lack of a clear debt stabilization path [8]. - **Commodities** - On September 12, international crude oil and natural gas futures prices turned up. WTI October crude oil futures rose 0.51% to $62.69 per barrel, Brent November crude oil futures rose 0.93% to $66.99 per barrel, COMEX gold futures rose 0.19% to $3680.50 per ounce, and NYMEX natural gas prices rose 1.09% to $2.973 per ounce [10]. (2) Liquidity Situation - **Open Market Operations** - On September 12, the central bank conducted 230 billion yuan of 7 - day reverse repurchase operations at a fixed interest rate of 1.40%. With 188.3 billion yuan of reverse repurchases maturing on the same day, the net injection of funds was 41.7 billion yuan [11]. - **Funding Rates** - On September 12, the liquidity situation gradually stabilized, and major repo rates declined. DR001 decreased by 0.60bp to 1.365%, and DR007 decreased by 2.38bp to 1.458% [12]. (3) Bond Market Dynamics - **Interest - rate Bonds** - **Spot Bond Yield Trends** - On September 12, affected by the stock market decline, stable liquidity, and the central bank's over - renewal of repurchase agreements, the bond market showed a mild and fluctuating trend. Yields on 10 - year treasury bonds and 10 - year China Development Bank bonds decreased [14]. - **Bond Tendering** - Information on the tendering of several bonds on September 12, including the 25 Jinchuchingfa 02 (Additional Issue 3), 25 Jinchuchingfa 007 (Additional Issue 8), 25 Coupon Treasury Bond 17, and 25 Coupon Treasury Bond 18, was provided [16]. - **Credit Bonds** - **Secondary Market Transaction Anomalies** - On September 12, the trading prices of 6 industrial bonds deviated by more than 10%. "H1 Bidi 01" fell by more than 86%, "H1 Bidi 04" fell by more than 50%, "H8 Longkong 05" fell by more than 41%; "H9 Longkong 01" rose by more than 77%, "H1 Bidi 03" rose by more than 162%, and "H1 Bidi 02" rose by more than 205% [17]. - **Credit Bond Events** - Multiple credit - related events were reported, such as Evergrande Property's resumption of trading, Guangxi Baise Development being included in the list of被执行人, and Moody's downgrading of Sinochem Hong Kong's issuer rating [19]. - **Convertible Bonds** - **Equity and Convertible Bond Indices** - On September 12, the three major A - share indices all closed lower, while the main indices of the convertible bond market all closed higher. The trading volume of the convertible bond market was 91.591 billion yuan, an increase of 342 million yuan from the previous trading day [19]. - **Convertible Bond Tracking** - On September 12, Qizhong Technology's application for issuing convertible bonds was approved by the exchange. Several convertible bonds announced redemption - related matters, and some were on the verge of triggering early redemption conditions [25]. - **Overseas Bond Markets** - **U.S. Bond Market** - On September 12, yields on U.S. Treasuries across various maturities generally increased. The yield on 2 - year U.S. Treasuries rose by 4bp to 3.56%, and the yield on 10 - year U.S. Treasuries rose by 5bp to 4.06% [23]. - **European Bond Market** - On September 12, yields on 10 - year government bonds of major European economies generally increased. Yields on 10 - year government bonds of Germany, France, Italy, Spain, and the UK rose by 6bp, 5bp, 7bp, 6bp, and 6bp respectively [27]. - **Daily Price Changes of Chinese - funded U.S. Dollar Bonds** - As of the close on September 12, price changes of Chinese - funded U.S. dollar bonds were provided, including details of the top 10 gainers and losers [29].

Report Industry Investment Rating No information provided in the content. Core Viewpoints - Last week, the bond market adjusted, with the yield curve steepening and shifting upward. The long - term bond yields first rose and then fell, showing an overall increase. The short - term interest rates had a smaller increase than the long - term ones. This week, the bond market may stabilize, but a trend - based recovery is unlikely. The 10 - year Treasury yield is expected to fluctuate between 1.75% - 1.80% [3]. Summary by Directory 1. Last Week's Market Review 1.1 Secondary Market - The bond market adjusted last week. The 10 - year Treasury futures main contract fell 0.19% cumulatively. The 10 - year Treasury yield rose 4.10bp, and the 1 - year Treasury yield rose 0.41bp compared to the previous Friday, with the term spread widening [4]. - On September 8th, the bond market was weak due to a strong stock market and concerns about bond fund scale reduction. The 10 - year Treasury yield rose 2.54bp, and the 10 - year futures main contract fell 0.21% [4]. - On September 9th, the bond market remained weak due to concerns about redemption fees and tightened liquidity. The 10 - year Treasury yield rose 1.27bp, and the 10 - year futures main contract fell 0.06% [4]. - On September 10th, although the morning sentiment improved due to lower - than - expected inflation data, the bond market weakened significantly in the afternoon. The 10 - year Treasury yield rose 3.51bp, and the 10 - year futures main contract fell 0.27% [4]. - On September 11th, the bond market recovered due to improved liquidity and rumors of the central bank restarting bond purchases. The 10 - year Treasury yield fell 2.49bp, and the 10 - year futures main contract rose 0.07% [4]. - On September 12th, the bond market was slightly bullish due to loose liquidity, a falling stock market, and the central bank's over - renewal of repurchase agreements. The 10 - year Treasury yield fell 0.73bp, and the 10 - year futures main contract rose 0.06% [4]. 1.2 Primary Market - Last week, 83 interest - rate bonds were issued, with a total issuance of 1034.5 billion yuan, a net financing of 435 billion yuan. The issuance and net financing of Treasury bonds and local bonds increased, while the net financing of policy - financial bonds decreased [10]. - The subscription demand for interest - rate bonds was generally good. The average subscription multiples for Treasury bonds, policy - financial bonds, and local bonds were 3.37, 2.92, and 20.81 times respectively [11]. 2. Last Week's Important Events - In August, the export growth rate declined. The export value increased 4.4% year - on - year, 2.8 percentage points lower than in July. The import value increased 1.3% year - on - year, also 2.8 percentage points lower than in July. The export slowdown was mainly due to a higher base and a significant decline in exports to the US [12]. - In August, the CPI turned negative year - on - year, falling 0.4%. The PPI fell 2.9% year - on - year, with a flat month - on - month rate. The CPI decline was mainly due to a high food price base last year, and the PPI's flat month - on - month rate was affected by policies and international commodity prices [12]. - In August, new RMB loans returned to positive growth, with 590 billion yuan in new loans. New social financing was 2569.3 billion yuan. M2 grew 8.8% year - on - year, and M1 grew 6.0% year - on - year. The growth in new loans was due to improved economic sentiment and increased credit demand [12][13]. 3. Real - Economy Observation - Last week, most high - frequency production data increased, including the semi - steel tire, blast furnace, and asphalt plant operating rates, as well as daily hot - metal production. On the demand side, the BDI index rose, while the CCFI continued to decline. The 30 - city property sales area decreased. Pork and most commodity prices rose, except for the fluctuating decline in rebar prices [14]. 4. Last Week's Liquidity Observation - Last week, the central bank's open - market operations had a net capital injection of 196.1 billion yuan. The R007 and DR007, inter - bank certificate of deposit rates, and national and stock direct - discount rates all rose. The inter - bank market leverage ratio fluctuated downward [24][26][30].

Economic Growth Overview - In August, the industrial added value increased by 5.2% year-on-year, down from 5.7% in July, with a cumulative growth of 6.2% from January to August[1] - Retail sales of consumer goods grew by 3.4% year-on-year in August, a decrease from 3.7% in July, with a cumulative growth of 4.6% from January to August[1] - Fixed asset investment saw a cumulative year-on-year growth of 0.5% from January to August, down from 1.6% in July[1] Industrial Production Insights - The slowdown in industrial production is attributed to weakened external demand and insufficient domestic demand, with August's industrial added value growth down by 0.5 percentage points[3][4] - Manufacturing output growth was 5.7% in August, a decline of 0.5 percentage points from the previous month, primarily impacting overall industrial growth[4] - Export delivery value for industrial enterprises fell by 0.4% year-on-year in August, marking the first negative growth since 2024[4] Consumer Spending Trends - The slowdown in retail sales is influenced by last year's consumption policies and declining food prices, with August's retail sales growth at 3.6%, down 0.4 percentage points from July[6] - Optional consumer goods retail sales showed improvement, likely due to the wealth effect from rising stock markets, with categories like clothing and cosmetics seeing increased sales growth[8] Investment Dynamics - Fixed asset investment growth for the first eight months was 0.5%, reflecting a decline of 1.1 percentage points from previous values, with all major investment sectors experiencing downturns[9][12] - Manufacturing investment growth was 5.1%, down 1.1 percentage points, while high-tech manufacturing sectors like computer and aerospace equipment saw significant growth rates of 12.6% and 28.0% respectively[10][11] Future Economic Outlook - Economic growth momentum is expected to remain weak in September, with industrial and retail growth potentially declining further, while investment growth may stabilize[2][15] - Anticipated macroeconomic policies in Q4 may include increased fiscal measures and interest rate cuts to counteract external demand slowdowns and support the real estate market[15]

Group 1: Credit Growth and Economic Support - In August 2025, new RMB loans increased to 590 billion, a month-on-month increase of 640 billion, but a year-on-year decrease of 310 billion[1] - The total social financing (TSF) in August was 25,693 billion, a year-on-year decrease of 4,630 billion, marking the first year-on-year decline in 8 months[6] - M2 growth remained stable at 8.8% year-on-year, while M1 growth accelerated to 6.0%, up 0.4 percentage points from the previous month[7] Group 2: Factors Influencing Credit and Financing - The recovery in credit growth was supported by improved macroeconomic conditions, strong export resilience, and seasonal consumption peaks during summer[2] - The decline in year-on-year credit growth was primarily influenced by hidden debt replacement and external market fluctuations, alongside adjustments in the real estate market[2] - The structure of loans improved, with corporate short-term loans increasing by 260 billion, while long-term loans decreased by 200 billion year-on-year, indicating a marginal recovery in corporate credit demand[4] Group 3: Future Outlook and Monetary Policy - The current low inflation levels provide ample room for monetary policy to remain accommodative, with expectations for increased credit growth in the coming months[8] - The central bank is likely to continue implementing measures such as MLF and reverse repos to inject liquidity into the market, with potential interest rate cuts anticipated in the fourth quarter[8] - Overall, the banking system's liquidity is robust, with loan growth rates significantly outpacing nominal GDP growth, indicating strong support for the real economy[5]

Group 1: CPI Analysis - In August 2025, the CPI turned negative at -0.4%, down from 0.0% in the previous month, with a cumulative decline of 0.1% from January to August[1][2] - The significant drop in food prices, particularly vegetables, pork, and fruits, contributed to the CPI decline, with vegetable prices showing a year-on-year drop of -15.2%[3][4] - Core CPI, excluding volatile food and energy prices, rose to 0.9% in August, indicating a slight recovery in basic price levels[5][6] Group 2: PPI Analysis - The PPI in August decreased by 2.9% year-on-year, but the decline rate narrowed by 0.7 percentage points compared to the previous month, marking the first reduction in the decline since March[7][8] - The PPI remained flat month-on-month, ending an eight-month streak of declines, primarily due to improved supply-demand dynamics in certain industries[9][10] - Forecasts suggest that the PPI decline will further narrow to approximately -2.3% in September, with expectations of a reduction to below -2.0% in the fourth quarter[11][12]

Report Industry Investment Rating - Not provided in the content Core Views - The significant weakening of the US labor market has strengthened market expectations of interest rate cuts, boosting a substantial increase in gold prices. On September 5, the Shanghai Gold main futures price rose 3.88% to 815.60 yuan/gram compared to the previous Friday, and the COMEX gold main futures price rose 3.52% to 3,639.80 US dollars/ounce. Spot gold prices also had significant increases [3]. - Gold prices are expected to continue rising in the week of September 8. The release of US inflation data for August is expected. As long as inflation data does not rebound significantly, it will not affect the Fed's decision to cut rates. The weak labor market, combined with the deteriorating Middle East situation, will boost gold prices [4]. Summary by Relevant Catalogs 1. Last Week's Market Review 1.1 Gold Spot and Futures Price Trends - On September 5, the Shanghai Gold main futures price closed at 815.60 yuan/gram, up 30.48 yuan/gram from the previous Friday; the COMEX gold main futures price closed at 3,639.80 US dollars/ounce, up 123.70 US dollars/ounce. The gold T+D spot price closed at 811.65 yuan/gram, up 29.95 yuan/gram, and the London gold spot price closed at 3,586.00 US dollars/ounce, up 139.19 US dollars/ounce [6]. 1.2 Gold Basis - On September 5, the international gold basis (spot - futures) was -6.25 US dollars/ounce, up 40.10 US dollars/ounce from the previous Friday; the Shanghai gold basis was -2.75 yuan/gram, down 1.45 yuan/gram [9]. 1.3 Gold Domestic and Foreign Market Price Differences - Affected by the increasing market sentiment for interest rate cuts, the foreign - market gold price continued to rise significantly last week. The gold domestic and foreign market price difference on Friday was -31.08 yuan/gram, down from -22.25 yuan/gram the previous Friday. The gold - to - oil ratio continued to rise, the gold - to - silver ratio rebounded, and the gold - to - copper ratio increased significantly [12]. 1.4 Position Analysis - In terms of spot positions, the gold ETF holdings continued to increase last week. As of September 5, the holdings of the world's largest SPRD gold ETF fund were 981.97 tons, up 4.29 tons from the previous week. The cumulative trading volume of domestic gold T+D rebounded, with a cumulative trading volume of 297,248 kilograms, up 104.90% from the previous week. In terms of futures positions, as of September 2, the long positions of gold CFTC asset management institutions continued to rise, and the net long positions increased. The COMEX gold futures inventory and the Shanghai Futures Exchange gold inventory both increased [16]. 2. Macroeconomic Fundamentals 2.1 Important Economic Data - The ECB President stated that the price target has been achieved, and the euro - zone inflation rate will be maintained at 2.0%. Market expectations for further ECB easing this year are cooling, and it is expected to "stand pat" again at next week's meeting [22][23]. - The US ISM manufacturing PMI in August was 48.7, contracting for six consecutive months. However, the new orders index expanded for the first time since the beginning of the year, while the output index fell back into the contraction range, and the employment index remained weak [24]. - US JOLTS job openings in July were 7.181 million, the lowest in 10 months. The ratio of job openings to the number of unemployed fell to 1.0. Hiring increased, and layoffs rose to the highest level since September last year [25]. - US non - farm payrolls in August increased by 22,000, far lower than expected. The unemployment rate was 4.3%, a four - year high. The average hourly wage in August increased by 3.7% year - on - year and 0.3% month - on - month, in line with market expectations [26]. 2.2 Fed Policy Tracking - Fed officials had significant internal policy differences on the interest rate cut path this week. Some advocated starting interest rate cuts this month and multiple cuts in the next few months, while others were more cautious, believing that there was no reason to cut rates this month [36][37]. 2.3 US Dollar Index Trend - The US dollar index fluctuated slightly downward last week. Multiple US labor market data were far below expectations, increasing the likelihood of a Fed rate cut in September, causing the US dollar index to decline 0.11% to 97.74 as of September 5 [38]. 2.4 US TIPS Yield Trend - The yield of the US 10 - year TIPS first rose and then fell last week, with an overall significant decline. The strong performance of the US ISM services index at the beginning of the week led to an increase in yields, but subsequent labor market data strengthened rate - cut expectations, causing yields to fall 9bp to 1.73% as of September 5 [41]. 2.5 International Important Event Tracking - The Middle East and Russia - Ukraine situations remained unresolved. There was uncertainty about the Gaza cease - fire agreement, and Russia launched the largest - scale air strike on Ukraine since the war [44].

Investment Rating - The report indicates a bullish outlook on gold prices due to weakening labor market conditions in the U.S. and expectations of interest rate cuts by the Federal Reserve [3][4]. Core Viewpoints - The U.S. labor market has shown significant weakness, reinforcing market expectations for interest rate cuts, which has led to a substantial increase in gold prices [3][4]. - Gold prices are expected to continue rising in the upcoming week, driven by the anticipated release of U.S. inflation data and ongoing geopolitical tensions in the Middle East [4]. Market Review - As of September 5, the Shanghai gold futures price rose by 3.88% to 815.60 CNY per gram, while COMEX gold futures increased by 3.52% to 3639.80 USD per ounce [3][6]. - The T+D gold spot price rose by 3.82% to 811.65 CNY per gram, and London gold spot price increased by 4.04% to 3586.00 USD per ounce [6]. - The international gold basis (spot-futures) rose significantly by 40.10 USD per ounce to -6.25 USD per ounce, while the Shanghai gold basis decreased by 1.45 CNY per gram to -2.75 CNY per gram [9]. Holding Analysis - Global SPDR gold ETF holdings increased significantly by 4.29 tons to 981.97 tons, indicating strong investor interest [16]. - The cumulative trading volume of domestic gold T+D rose sharply by 104.90% to 297,248 kg [16]. Macroeconomic Fundamentals - The U.S. labor market data has shown a decline, with August non-farm payrolls increasing by only 22,000, significantly below the expected 75,000 [26]. - The unemployment rate rose to 4.3%, the highest in nearly four years, further supporting the case for potential interest rate cuts by the Federal Reserve [26]. - The JOLTS job openings report indicated a drop to 7.181 million, the lowest in 10 months, reflecting a tightening labor market [25]. Federal Reserve Policy Tracking - There is a notable division among Federal Reserve officials regarding the timing and pace of interest rate cuts, with some advocating for immediate action while others suggest a more cautious approach [36][37].

Report Industry Investment Rating No relevant content provided. Core Viewpoints - In August 2025, the issuance volume and net financing of local government bonds decreased both month-on-month and year-on-year. The issuance of new special bonds and refinancing bonds decreased month-on-month, and the issuance of special refinancing bonds resumed. From January to August, the issuance of new special bonds accounted for 74.2% of the annual quota, with a faster progress than the same period last year. The issuance progress of refinancing special bonds for replacing hidden debts exceeded 95.9%. The weighted average issuance interest rate and spread of local government bonds increased month-on-month, and the issuance term was generally shortened. The funds raised by new special bonds were mainly invested in infrastructure and land reserves [2]. Summary by Relevant Catalogs Overall Issuance Situation 1. Issuance Scale - In August 2025, the issuance volume of local government bonds was 976.6 billion yuan, a month-on-month decrease of 235.9 billion yuan and a year-on-year decrease of 222 billion yuan. The net financing was 480.1 billion yuan, a month-on-month decrease of 332.3 billion yuan and a year-on-year decrease of 339.2 billion yuan. The issuance of new special bonds decreased both month-on-month and year-on-year, while the issuance of refinancing bonds decreased month-on-month and increased year-on-year. Guizhou Province issued a 3.3-billion-yuan special refinancing bond in August, the first issuance this year. From January to August, the issuance of new special bonds was 3.3 trillion yuan, a year-on-year increase of 692.7 billion yuan, accounting for 74.2% of the annual quota; the issuance of new general bonds was 620.8 billion yuan, a year-on-year increase of 108.4 billion yuan; and the issuance of refinancing bonds was 3.8 trillion yuan, a year-on-year increase of 1.5 trillion yuan [5]. - In August, 5 provinces and planned单列 cities issued refinancing special bonds for replacing existing hidden debts, with a total issuance scale of about 51.5 billion yuan, accounting for 5.3% of the total issuance of local government bonds in that month. From January to August, 33 provinces and cities issued over 1.91833 trillion yuan of refinancing special bonds for replacing hidden debts, exceeding 95.9% of the annual quota [6]. 2. Issuance Interest Rate - In August, the weighted average issuance interest rate of local government bonds increased by 19.23 bps month-on-month to 2.04%, and the issuance interest rates of all maturities increased. Specifically, the issuance interest rates of 1-year, 2-year, 3-year, 5-year, 7-year, 10-year, 15-year, 20-year, and 30-year local government bonds increased by 2.45 bps, 13.31 bps, 7.96 bps, 15.72 bps, 14.64 bps, 18.86 bps, 27.63 bps, 27.43 bps, and 18.95 bps respectively [16]. 3. Issuance Spread - In August, the weighted average issuance spread of local government bonds increased by 9.88 bps month-on-month to 20.48 bps, and the issuance spreads of all maturities widened. The issuance spreads of Shandong and Jilin provinces were relatively high, at 28.56 bps and 27.33 bps respectively [19]. 4. Issuance Term - In August, the weighted average issuance term of local government bonds was 14.38 years, 0.17 years shorter than the previous month. The weighted average issuance terms of new special bonds and new general bonds increased by 1.14 years and 1.11 years respectively to 18.53 years and 9.93 years, while the weighted average issuance term of refinancing bonds decreased by 1.75 years to 10.35 years [23]. - In terms of the term structure, in August, the issuance proportions of 7-year and 30-year local government bonds decreased by 6.96 pct and 0.99 pct respectively compared with the previous month; the issuance proportions of 2-year, 3-year, 5-year, and 15-year local government bonds increased by 0.61 pct, 0.91 pct, 3.69 pct, and 2.24 pct respectively [24]. 5. Use of Raised Funds - The raised funds of new special bonds were mainly invested in infrastructure and land reserves. In August, the funds invested in "municipal and industrial park infrastructure", "land reserves", and "transportation infrastructure" accounted for a total of 37.32%, a month-on-month increase of 7.6 pct. The proportions of funds invested in "municipal and industrial park infrastructure" and "land reserves" increased by 5.2 pct and 2.4 pct respectively. From January to August, the top three fields in terms of investment scale were "municipal and industrial park infrastructure", "transportation infrastructure", and "land reserves", with a total issuance of 1.38 trillion yuan, accounting for 42.16% [29]. - In August, 19 provinces and cities issued special new special bonds (without disclosing the "one plan and two books"), with a total issuance scale of 19.9964 billion yuan. The weighted average issuance term of special new special bonds was 19.26 years, 2.57 years longer than other new special bonds. The funds were used for government investment projects, project construction, and existing government investment projects. In addition, 3 special bonds for government investment funds were issued by Shanghai, Ningbo, and Shaanxi, with a scale of 5 billion yuan each [33]. Regional Issuance Situation - In August, 32 provinces and cities (including planned单列 cities and the Xinjiang Production and Construction Corps) issued local government bonds. Anhui, Zhejiang, Hebei, and Hunan had an issuance scale of over 60 billion yuan, accounting for 30.4% of the total issuance in that month. From January to August, 37 provinces and cities issued about 7.68 trillion yuan of local government bonds. Jiangsu, Sichuan, Shandong, and Guangdong had an issuance scale of over 400 billion yuan, accounting for 25.7% of the total issuance during the same period [37].