Group 1: Overall Industry Outlook - The issuance of asset - backed securitization products has significantly increased, and the primary and secondary markets of ABS have clearly recovered [2][4] - CMBS issuance has seen a rise in popularity, with multiple first - of - its - kind products launched recently, and it is expected to become an important financing and debt - resolution tool for urban investment companies [2][3] Group 2: Market - wide Issuance Situation - In March 2025, 114 issues of asset - backed securitization products were issued, with a total scale of 172.728 billion yuan, doubling compared to the previous period. There is a differentiation in the issuance costs of different types of products [4] - Supply chain accounts receivable and commercial real estate mortgage loan products have relatively low sub - layer ratios, while non - performing loan products have high sub - layer ratios [4] Group 3: Bank - to - Bank and Exchange Market Issuance Bank - to - Bank Market ABS - 27 issues were issued, with a scale of 18.6 billion yuan, a significant increase from the previous month. The product priority is all AAAsf - rated, with a coupon rate between 1.83% and 2.55% [7] - Non - performing loan products have the largest issuance scale, accounting for about 60%. Consumer loan and micro - enterprise loan products have relatively small issuance scales [9] Transaction Association ABN - 32 issues were issued, with a total scale of 44.267 billion yuan, a 56% increase from the previous month. The coupon rate of the priority products with disclosed credit ratings is between 2.02% and 4.63% [12] - Commercial real estate mortgage loan products have the highest average issuance cost, while specific non - financial claim products have the lowest [14] Exchange ABS - 55 issues were issued, with a total scale of 109.86 billion yuan, an 88% increase from the previous month. The highest coupon rate of the priority products with disclosed credit ratings is 4.50% [19] - Small - loan products have the highest issuance scale, accounting for over 40%. Policy - loan - against - policy products have the highest average issuance cost [19] Group 4: Secondary Market - The trading volume in the secondary market has significantly increased, and products such as quasi - REITs have relatively high trading popularity [23] - The bank - to - bank market ABS had a trading volume of 7.5 billion yuan. Products based on non - performing loans had the largest trading scale [24] - The Transaction Association ABN had a trading volume of 60.731 billion yuan. Among products with disclosed underlying assets, quasi - REITs and bank/internet consumer loan products had relatively large trading scales [24] - The exchange ABS had a trading volume of 117.233 billion yuan, doubling from the previous month. Quasi - REITs, CMBS/CMBN, small - loans, and accounts receivable products had relatively high trading popularity [29][31]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In Q1 2025, the issuance and net financing scale of urban investment bonds hit a three - year low. The policy tightening forces urban investment companies to make "real transformations". The debt pressure of urban investment companies may be further relieved, and there is still room for compression of credit spreads [4][14]. - With the implementation of the "6 + 4+2" debt - resolution package, the credit risk of urban investment has slightly converged. It is recommended to invest in high - quality enterprises in strong regions and selectively sink the credit quality to seek the spread compression space [6][13]. - In the future, the borrowing - new - to - repay - old ratio of urban investment bonds will remain high, and the level of financing entities may continue to move up. Attention should be paid to issues such as local investment and financing needs, debt repayment pressure, asset idleness, and transformation authenticity [7][9]. 3. Summary According to Relevant Catalogs 3.1 Q1 2025 Review of Urban Investment Bond Market Operation 3.1.1 Five Characteristics of Urban Investment Bond Market Operation - **Issuance and net financing scale at a three - year low**: The issuance scale was 1.48 trillion yuan, a year - on - year decrease of 15.13%. The net financing was 75.105 billion yuan, a year - on - year decrease of 46.76%. The net financing of low - level and weak - quality entities declined significantly. Some urban investment companies turned to overseas bond issuance, with the new issuance increasing by 9.49% year - on - year [4]. - **Overall decline in issuance interest rates but monthly increase within the quarter**: The weighted average issuance interest rate was 2.45%, a year - on - year decrease of 0.54 percentage points. The decline of weak - quality entities was less than that of stronger ones [4]. - **Long - term issuance and increased reliance on borrowing new to repay old**: The weighted average term increased by 0.29 years to 3.77 years. The proportion of medium - term notes continued to rise. The broad and narrow borrowing - new - to - repay - old ratios reached 97.65% and 94.66% respectively [5]. - **Trading contraction and spread compression**: The trading scale decreased by nearly 20% year - on - year, and the trading spread was further compressed compared with the end of 2024 [5]. - **Improvement in net financing in key areas**: The net financing in key areas turned positive year - on - year and quarter - on - quarter. 17 provinces had a 100% borrowing - new - to - repay - old ratio, and Jilin and Chongqing issued project - construction urban investment bonds [5][39]. 3.1.2 Credit Situation - **Convergence of credit risk**: No non - standard defaults occurred in Q1. The number of commercial paper overdue times decreased year - on - year. Two companies in Jiangsu and Guangdong had their credit ratings upgraded. The number and scale of abnormal transactions decreased significantly year - on - year, with frequent abnormal transactions in Shandong and Guizhou [6]. 3.1.3 Issuance Forecast - It is expected that the issuance scale from April to December will be about 4.4 trillion yuan. The borrowing - new - to - repay - old ratio will remain high, and the level of financing entities may continue to move up. There may be months with negative net financing, and the total net financing scale is about 0.025 trillion yuan [7]. 3.2 Follow - up Concerns - **Local investment and financing needs**: Although there are marginal improvements in local investment and financing, the pressure on new financing is still high. It is necessary to optimize financing policies and support the opening of new investment spaces [9]. - **Debt repayment pressure**: A large amount of debt still needs to be resolved independently. Hidden - debt - related interest and government arrears should be reasonably included in the replacement scope [10]. - **Asset idleness**: Urban investment companies have a large amount of idle land assets. They should seize the opportunity of special bonds for land acquisition and adopt various ways to revitalize the assets [11]. - **Transformation authenticity**: The next two years are the critical period for transformation. Attention should be paid to the authenticity of transformation and the risk of the withdrawal of debt - resolution policies after exiting the platform [12]. 3.3 Urban Investment Bond Strategy - It is recommended to invest in high - quality enterprises in strong regions based on fundamentals to obtain coupon income. Selectively sink the credit quality, such as weak urban investment in strong regions and strong urban investment in weak regions, to seek the spread compression space brought by debt - resolution results [13].

Group 1: Report's Investment Rating for the Industry - No information provided Group 2: Core Viewpoints of the Report - In the context of effectively preventing risks in key areas, the bond default risk in the future market will remain under control. However, due to the complex international situation and domestic economic challenges, five types of risks need attention: changes in the fundamentals and risk evolution of export - oriented enterprises under tariff games, uncertainties in debt repayment during the mergers and reorganizations of real - estate enterprises, uncertainties faced by traditional industries during transformation and upgrading, risks of delisting or market fluctuations of convertible bond issuers due to weakened fundamentals, and potential impacts on the solvency of some small and medium - sized financial institutions from multiple risk factors [4][20]. - In Q1 2025, the credit risk in the bond market was generally controllable, with a decrease in the number of new defaulting entities and low - level fluctuations in the rolling default rate. The risk differentiation continued, with private enterprises' risks being continuously cleared. The default exposure of real - estate enterprises slowed down, but they remained the main entities for bond extensions. Negative rating actions decreased, and the progress of default disposal was slow [4]. Group 3: Summary by Relevant Catalogs Review: Five Characteristics of Bond Market Credit Risk in Q1 1. Decrease in the Number of New Defaulting Entities and Low - Level Fluctuations in the Rolling Default Rate - In Q1, the bond market default risk was generally controllable. There were 3 new defaulting issuers, 1 less than the same period last year. The new default scale was 41.28 billion yuan. The monthly rolling default rate in the public offering market first rose and then fell, reaching 0.25% at the end of March, the same as at the end of 2024 [4]. 2. Continued Risk Differentiation and Continuous Clearance of Private Enterprises' Risks - Support policies for private enterprises have been upgraded this year, but the transmission has a time - lag. In Q1, the credit bond financing scale of private enterprises was limited, with issuance less than 140 billion yuan, accounting for about 3% of credit bonds, and a net outflow of nearly 1.6 billion yuan. The 3 new defaulting entities in Q1 were all private enterprises, and the scale of bond extensions by private enterprises was 5.687 billion yuan, accounting for 92% of the total [9]. 3. Slowdown in the Exposure of Real - Estate Enterprises' Defaults, but They Remained the Main Entities for Extensions, and Tail Risks Were Still Being Cleared - In Q1, the default release of real - estate bonds slowed down significantly, with no new defaulting entities. The scale of bond extensions by real - estate enterprises was 5.659 billion yuan, accounting for over 90%. As of now, the cumulative scale of real - estate bond extensions is nearly 200 billion yuan, about 65% of the bonds have been extended again or multiple times, and 27% of the extended bonds defaulted [12]. 4. Decrease in Negative Rating Actions, and All Entities with Downgraded Levels Were Convertible Bond Issuers - From January to March, there were 17 rating actions in the bond market, including 10 downgrades of issuer levels, 1 less than the same period last year. The 7 entities with downgraded levels were all convertible bond issuers, mainly due to weakened profitability, losses, and legal issues [16]. 5. Ordered Progress of Default Disposal, but Slow Progress in Substantive Repayment - In Q1, the disposal of defaulted bonds progressed in an orderly manner. The reorganization application of Shanshan Group was accepted by the court, and the reorganization plan (draft) of Contemporary Technology passed the vote of the creditor's meeting. As of the end of March 2025, the scale of bonds with disclosed completed disposal accounted for 19.2% of the total defaulted bonds, and the proportion of bonds that completed repayment or were delisted was only 16.9% [19]. Outlook: Default Risks Are Stable and Controllable under the Risk - Prevention Tone, and Five Types of Risks Need Local Attention 1. Pay Attention to the Possibility of Fundamental Changes and Risk Evolution of Export - Oriented Enterprises under Tariff Games - Under the current intensified tariff game, domestic export - oriented enterprises face multiple pressures such as rising costs and shrinking market shares. Exchange - rate fluctuations also affect their earnings. Small and medium - sized export enterprises are at higher risk, and industries such as machinery, textiles, and chemicals need attention [20]. 2. Pay Attention to the Uncertainty of Debt Repayment Caused by Derivative Risks during the Mergers and Reorganizations of Real - Estate Enterprises - As of the end of March 2025, the real - estate bond stock was about 1.57 trillion yuan, nearly 20% less than at the end of 2020. However, with the increase in industry concentration, some real - estate enterprises may face mergers, reorganizations, or liquidation, and the risks during the debt - resolution process need attention [21]. 3. Pay Attention to the Uncertainties Faced by Traditional Industries during Transformation and Upgrading - In the trend of industrial upgrading, traditional industries may face challenges such as shrinking demand and technological innovation. For example, traditional automobile dealers are affected by the direct - sales model of new - energy vehicles. The risk of traditional industries being squeezed out of the market needs to be highly concerned [22]. 4. Pay Attention to the Risks of Delisting or Market Fluctuations of Convertible Bond Issuers due to Weakened Fundamentals - Since 2025, the financial delisting rules have become stricter. About 46% of convertible bond issuers that disclosed annual performance forecasts expect losses in 2024. There is a risk of delisting and market fluctuations, and the uncertainty of repayment due to delisting or price drops needs to be vigilant [23]. 5. Pay Attention to the Potential Impacts on the Solvency of Some Small and Medium - Sized Financial Institutions from Multiple Risk Factors - Small and medium - sized financial institutions have experienced risk events in recent years. Multiple risk factors such as regional economic pressure, industry fluctuations, and their own operational weaknesses may affect their bond repayment ability. Attention should also be paid to the risks during mergers, reorganizations, and market exits [24].

Investment Rating - The outlook for the property insurance industry is stable, with no significant changes expected in overall credit quality over the next 12-18 months [3][51]. Core Insights - In 2024, the property insurance sector is expected to see steady growth in auto insurance premiums, while non-auto insurance segments such as health, agricultural, and liability insurance will increasingly contribute to overall revenue. However, the growth rate of the property insurance industry is slowing down, and significant differentiation within the industry remains evident [3][4]. - The regulatory environment is tightening, with new policies encouraging property insurance companies to support green, inclusive, and technology-driven insurance initiatives. This is aimed at enhancing the industry's service to the real economy and technological innovation [4][5][7]. - Investment returns are projected to improve due to a rebound in capital markets and declining interest rates, which will positively impact net profits year-on-year. However, underwriting profitability remains under pressure due to frequent natural disasters [3][4][33]. Summary by Sections Regulatory Environment - The new "National Ten Articles" emphasizes strict regulation and risk prevention, aiming for high-quality development in the insurance industry. This includes comprehensive management of insurance companies across various operational aspects [5][6]. - Specific measures have been introduced to ensure the property insurance industry maintains stable growth and enhances risk prevention capabilities over the next five years [6]. Business Operations - The property insurance industry is experiencing a slowdown in premium growth, with total premium income reaching CNY 1.69 trillion, a year-on-year increase of 5.6% [15][19]. - The market remains competitive, with the top three property insurance companies holding a combined market share of 62.76% [15][19]. - Non-auto insurance segments are becoming the main growth drivers, with health insurance premiums increasing by 16.6% year-on-year [22][24]. Financial Performance - The overall profitability of the property insurance sector is improving, with net profits rising by 20.71% year-on-year to CNY 57.19 billion [36][37]. - The average comprehensive expense ratio for sample property insurance companies decreased to 26.98%, indicating improved cost management [34][36]. - Investment income remains a significant source of profit, with the overall investment yield increasing to 5.51% [36][37]. Investment Strategy - The asset allocation strategy remains diversified, with a focus on fixed-income assets, particularly bonds, which have seen a significant increase in proportion [29][32]. - The total investment scale of the property insurance industry reached CNY 33.26 trillion, reflecting a year-on-year growth of 15.08% [28][29]. - The investment environment is influenced by market volatility and international economic conditions, which pose challenges for investment management [32][36].

Investment Rating - The report maintains a stable outlook for the life insurance industry, indicating that the overall credit quality will not undergo significant changes in the next 12-18 months [5][48]. Core Insights - The life insurance industry is expected to see premium growth in 2024, driven by renewal business despite challenges in new policy sales due to regulatory changes and declining interest rates [4][5]. - The regulatory environment is evolving towards stricter oversight and risk prevention, with new policies aimed at enhancing product pricing mechanisms and improving the quality of liabilities [6][7]. - The investment strategies of life insurance companies are diversifying, with a continued focus on fixed-income assets while increasing allocations to equities as market conditions improve [11][30]. - Financial performance is projected to improve significantly in 2024, with rising investment returns offsetting increased claims and reserve requirements due to lower interest rates [31][35]. Summary by Sections Regulatory Environment - The new "National Ten Articles" emphasizes strict regulation and risk prevention, aiming for high-quality development in the insurance sector [6][7]. - The introduction of a comprehensive insurance company regulatory rating system will enhance risk assessment and management across the industry [7]. Business Operations - The life insurance sector is experiencing pressure on new policy sales due to regulatory impacts, but renewal business is supporting overall premium growth [13][14]. - The shift in product design towards lower guaranteed rates is becoming a trend to mitigate risks associated with interest rate declines [17][19]. Financial Condition - The life insurance industry reported a premium income of CNY 4.01 trillion in 2024, reflecting a growth rate of 5.7% compared to the previous year, although the growth rate has slowed [31][32]. - The overall profitability of the industry is expected to improve, driven by favorable market conditions in both the bond and equity markets, leading to a significant increase in investment returns [35][36]. - The solvency levels of life insurance companies remain robust, with a comprehensive solvency adequacy ratio of 190.5% as of the end of 2024, indicating a stable capital position [42][43].

Investment Rating - The outlook for the property insurance industry is stable, with no significant changes expected in overall credit quality over the next 12-18 months [3][51]. Core Insights - In 2024, the property insurance sector is expected to see steady growth in auto insurance premiums, while non-auto insurance segments such as health, agricultural, and liability insurance will increasingly contribute to overall revenue. However, the growth rate of the property insurance industry is slowing down, and significant differentiation within the industry remains evident [3][4]. - The regulatory environment is tightening, with new policies encouraging property insurance companies to support green, inclusive, and technology-driven insurance initiatives, while also promoting stable capital market participation [4][5][7]. - The financial performance of the property insurance industry is under pressure due to frequent natural disasters impacting underwriting profitability, although investment income is expected to rise due to lower interest rates and a rebound in capital markets [3][4][33]. Summary by Sections Regulatory Environment - The new "National Ten Articles" emphasizes strict regulation and risk prevention, aiming for high-quality development in the insurance industry [5][6]. - Specific measures have been introduced to ensure the property insurance sector maintains stable growth and enhances risk prevention capabilities over the next five years [6][7]. Business Operations - The property insurance industry is experiencing a slowdown in premium growth, with total premium income reaching CNY 1.69 trillion, a year-on-year increase of 5.6% [15][19]. - The market remains competitive, with the top three property insurance companies holding a combined market share of 62.76% [19][20]. Financial Condition - The overall profitability of the property insurance sector is improving, with net profits increasing by 20.71% year-on-year to CNY 57.19 billion [36][37]. - The average comprehensive solvency ratio for property insurance companies is 238.5%, indicating a generally sufficient level of solvency [40][41]. Investment Strategy - Property insurance companies are diversifying their investment strategies, with a focus on fixed-income assets, while also increasing allocations to equities as the market recovers [29][32]. - The total investment assets of the property insurance industry reached CNY 33.26 trillion, reflecting a year-on-year growth of 15.08% [27][28].

Investment Rating - The report maintains a stable outlook for the life insurance industry, indicating that the overall credit quality will not undergo significant changes in the next 12-18 months [5][48]. Core Insights - The life insurance industry is expected to see premium growth in 2024, driven by renewal business despite challenges in new policy sales due to regulatory changes and declining interest rates [4][5]. - The regulatory environment is evolving with a focus on risk prevention and high-quality development, emphasizing the need for improved product pricing mechanisms and enhanced solvency supervision [6][7]. - The investment strategies of life insurance companies are diversifying, with a continued emphasis on fixed-income assets while increasing allocations to equities as market conditions improve [11][30]. - Financial performance is expected to improve significantly in 2024, with rising investment returns due to a recovering capital market, although sustainability of profits remains a concern [31][35]. Summary by Sections Regulatory Environment - The new "National Ten Articles" emphasizes strict regulation and risk prevention, aiming for high-quality development in the insurance sector [6][7]. - The introduction of a comprehensive insurance company regulatory rating system will enhance risk assessment and management [7]. Business Operations - The life insurance sector is experiencing pressure on new policy sales due to regulatory impacts, but renewal business is supporting overall premium growth [13][14]. - The shift in product design towards lower guaranteed rates and the transformation of distribution channels are key trends [17][22]. Financial Condition - The life insurance industry achieved a premium income of CNY 4.01 trillion in 2024, reflecting a growth rate of 5.7% compared to the previous year, although the growth rate has slowed [31][32]. - The overall profitability of the industry is improving, with a significant increase in investment income driven by favorable market conditions [35][36]. - The solvency levels of life insurance companies remain robust, with a solvency adequacy ratio of 190.5% as of the end of 2024, indicating a stable capital position [42][43].

Core Insights - The high-yield bond market is experiencing a significant contraction, with a notable scarcity of high-interest assets, emphasizing the need for a refined balance between risk and return in bond selection [2][4][9] - The overall performance of high-yield bonds has been mixed, with net price indices generally declining, yet the wealth index shows a return that outperforms government and credit bonds [6][7][11] Market Performance - In the first quarter, the issuance of high-yield bonds was limited, with only 3 bonds issued totaling 1.41 billion, marking a year-on-year decrease of 86.36% [28][29] - The trading volume of high-yield bonds decreased by 39.55% to 58.72 billion, indicating a cooling market sentiment [33][39] - The net price index for high-yield bonds fell by 0.92%, reflecting the impact of market volatility and tightening monetary policy [12][21] Sector Analysis - The real estate sector is still in a recovery phase, with demand remaining weak and market confidence low, leading to significant valuation fluctuations in high-yield real estate bonds [21][26] - The coal industry is currently stable, with high-yield bonds primarily from state-owned enterprises showing relatively stable credit conditions, suggesting a cautious investment approach [5][21] - The chemical industry presents short-term opportunities with a safety margin, while the construction and real estate sectors lag in risk-adjusted returns [21][26] Regional Insights - Key regions such as Chongqing, Shandong, and Guangxi have shown relatively better risk-adjusted returns in high-yield bonds, while regions like Zhejiang and Jiangsu have underperformed [16][19] - The net price index for high-yield city investment bonds has generally declined, with significant drops in regions like Tianjin and Hunan [16][19] Investment Strategy - Investors are advised to focus on high-yield city investment bonds with a good safety margin, particularly in areas where debt resolution progress is swift [5][11] - The strategy should include careful selection of bonds based on fundamental support, while maintaining a cautious stance towards longer-duration bonds in the real estate sector [5][21]

Investment Rating - The report indicates a positive outlook for the real estate industry, highlighting the emergence of a "good housing" era and the expected stabilization of the market [1][7]. Core Insights - The real estate market has shifted towards improvement-driven housing demand, with "good housing" becoming a key focus for both central and local governments, aiming to stimulate market recovery [1][5][7]. - The introduction of new housing standards is expected to enhance sales velocity and pricing for new projects, while older projects may face increased challenges in sales [1][7]. - The demand for larger and more comfortable living spaces is evident, with a notable increase in the sales of four-bedroom units, indicating a shift in consumer preferences [2][7]. Summary by Sections Market Overview - The real estate market is currently experiencing a "small spring" with signs of recovery, driven by government policies promoting "good housing" [1][8]. - The first quarter of 2025 saw a shift in purchasing behavior from two- and three-bedroom units to four-bedroom units, with the latter's market share exceeding 30% for the first time [2][7]. Government Policies - Central and local governments are emphasizing the construction of "good housing," which is characterized by safety, comfort, sustainability, and intelligence [6][7]. - Various cities have implemented policies to enhance housing quality, such as increasing usable space and improving living conditions [6][7]. Sales Performance - New housing projects adhering to the new standards have shown significantly better sales performance compared to older projects, with a strong market presence for "fourth-generation housing" [6][7]. - In March, the sales area and sales amount of commercial housing saw a reduction in year-on-year declines, indicating a gradual market recovery [9][11]. Market Dynamics - The land market is experiencing a reduction in transaction volume but an increase in quality, with several new "land kings" emerging in major cities [10]. - The second-hand housing market is also stabilizing, with a notable increase in transaction volumes in key cities, particularly in first-tier cities [12][11].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In 2025, the infrastructure investment and financing (hereinafter referred to as "base investment") industry policies continue the overall idea of "controlling new debts and resolving existing debts" of the "package debt - resolution" policy in 2024, and pay more attention to the balance between debt resolution and development [3][5]. - The "package debt - resolution" policy has achieved phased results, with many regions achieving zero implicit debts. The industry adheres to resolving debts while developing and vice versa, strengthens special - bond support, and guides the standardized development of government investment funds to assist the transformation of base - investment enterprises [5][7][8]. - Under the influence of policies, the short - term debt - repayment pressure of base - investment enterprises has been relieved, the financing channels are continuously adjusted, the marginal liquidity is improved, and the bond financing cost is reduced. However, the non - standard debt situation in some provinces still needs attention [14]. - In 2025, the base - investment industry policies are expected to continue the main tone of "controlling new debts and resolving existing debts", and the industry's debt risk is generally controllable. New investment space may be opened, but issues such as the tightening of financing channels, non - standard debt replacement progress, and changes in the government - enterprise relationship after enterprise transformation need to be concerned [23][25]. 3. Summary by Relevant Catalogs 3.1 Policy Review - **Policy Continuity and New Requirements**: In 2025, the base - investment industry policies continue the "controlling new debts and resolving existing debts" idea of 2024, and the 2025 national government work report puts forward new requirements such as dynamically adjusting the list of high - risk debt regions and opening up new investment space [3][5]. - **Phased Results of Debt Resolution**: In the first quarter of 2025, many regions announced that they had achieved zero implicit debts in 2024, involving 10 provinces and 23 cities. For example, Xuzhou in Jiangsu Province used 11.881 billion yuan of special bonds to replace implicit debts and completed the task of zero implicit debts [5]. - **Debt Resolution in Development**: The 2025 national government work report proposes to dynamically adjust the list of high - risk debt regions. Some regions may be planning to withdraw from the list of key provinces. The central bank also guides the resolution of financial debt risks of financing platforms and supports their market - oriented transformation [7]. - **Support for Enterprise Transformation**: Special bonds are strengthened to support infrastructure construction, rural revitalization, and consumption - related fields. The State Council General Office issues a guiding opinion on promoting the high - quality development of government investment funds, and the Shanghai Stock Exchange revises relevant rules to guide the transformation of base - investment enterprises [8][9][11]. 3.2 Policy Main Impacts - **Relieved Short - term Debt - Repayment Pressure**: Since November 2024, the government has increased the local government debt limit to replace existing implicit debts. In the first quarter of 2025, 1.34 trillion yuan of special bonds were issued for this purpose, exceeding half of the annual quota, and the short - term debt - repayment pressure of base - investment enterprises has been relieved [14][15]. - **Adjusted Financing Channels**: In the first quarter of 2025, the issuance scale and net financing of base - investment bonds decreased compared with the same period last year. The non - standard debt scale decreased, and the proportion of bank loans in the debt of base - investment enterprises may increase [16]. - **Improved Liquidity and Reduced Financing Cost**: The liquidity of base - investment enterprises has been continuously improved, and the weighted average issuance interest rate of base - investment bonds in the first quarter of 2025 decreased by 11BP compared with the fourth quarter of 2024. The financing cost of base - investment enterprises in key provinces has decreased significantly [17]. - **Converged Non - standard and Bill Public Opinions**: The negative public opinions of base - investment non - standard risks have converged. In the first quarter of 2025, the total number of non - standard risk events decreased by about 41% compared with the fourth quarter of 2024 and about 51% compared with the first quarter of 2024. However, the non - standard risk situation in some regions still needs attention [18]. - **Released Liquidity by Special Bonds**: Special bonds support project investment and land asset recovery. In the first quarter of 2025, the new quota of government special bonds for infrastructure construction increased significantly, and some special bonds were used for land reserve projects, which helped base - investment enterprises dispose of idle and inefficient land assets and release liquidity [19][20]. - **Enterprise Transformation and High - quality Development**: Policy guidance promotes the transformation and high - quality development of base - investment enterprises. The proportion of market - oriented entities among bond - issuing enterprises has increased, and the transformation is expected to accelerate [21][22]. 3.3 Industry Development Expectations - **Controllable Debt Risk**: In 2025, the base - investment industry policies will continue the main tone of "controlling new debts and resolving existing debts". The debt risk of the industry is generally controllable, but the implementation of financial debt - resolution policies and the adjustment of financing channels need to be concerned [23][25]. - **New Investment Space and Enterprise Transformation**: The current debt - resolution work emphasizes the balance between debt resolution and development. New investment space may be opened, and base - investment enterprises are expected to focus on key investment fields and industrial investment. The process of enterprises withdrawing from the platform and industrial transformation is expected to accelerate [25]. - **Challenges and Concerns**: The fundamental improvement of base - investment enterprises is still under pressure, and the progress of non - standard debt replacement is uncertain, which may affect the public opinion trend. The changes in the government - enterprise relationship after enterprise transformation also need continuous attention [25][33][34].