Report Industry Investment Rating No investment rating information is provided in the content. Core Viewpoints of the Report China's urban renewal has entered the stage of stock quality improvement and systematic urban renewal since 2020. Although positive results have been achieved in practice, there are still deep - seated problems. It is necessary to promote the transformation from extensive renovation to refined operation through multi - dimensional coordinated efforts [11]. Summary by Relevant Catalogs 1. Historical Evolution and Current Characteristics of China's Urban Renewal - **Three Historical Stages**: China's large - scale urban construction and renovation activities since reform and opening - up can be divided into three stages: the urban function reconstruction and incremental land development stage (1978 - 2007), the shantytown and dilapidated housing renovation stage (2008 - 2019), and the stock quality improvement and systematic urban renewal stage (since 2020). The current stage has the characteristics of more refined renovation models, deeper connotations, more diversified subjects, and more market - oriented financing models [12][13]. - **Four Current Characteristics**: - **From "Large - scale Demolition and Reconstruction" to "Retention, Renovation, and Demolition"**: The current stage controls large - scale demolition, construction increase, and relocation, encourages organic renewal based on retention, and respects historical and cultural heritage [2][15]. - **From "External Renewal" to "Comprehensive Improvement"**: It focuses on the improvement of urban functions and the enhancement of regional values, considering aspects such as industry, culture, and public services [2][16]. - **From "Government - led" to "Multi - governance by Government, Market, and Society"**: The government shifts to top - level design and supervision, market entities play a leading role in project implementation, and residents become active participants [3][17]. - **Diversification and Marketization of Financing Modes**: A multi - level financing system is being constructed, with fiscal funds changing from "direct investment" to "leveraging", and social capital shifting to long - term value investment [3][19]. 2. Main Content and Business Models of China's Current Urban Renewal - **Main Content Classification**: There are four main types: comprehensive residential area renovation and renewal, urban business form upgrading and renewal, urban facility improvement and function upgrading renewal, and ecological and historical and cultural protection and renewal [4][22]. - **Business Model Classification**: From the perspective of the initiator, it can be divided into government - led renewal, market - led renewal, and multi - cooperation renewal. In practice, projects may combine different business models according to various factors [4][22]. - **Details of Each Type**: - **Comprehensive Residential Area Renovation and Renewal**: It is mainly government - led with strong public welfare and increased resident participation. It focuses on the renovation of old urban communities and villages in the city, with financial funds as the main source of funds, and social capital can be involved in attractive projects. Many positive results have been achieved in practice [4][24][25]. - **Urban Business Form Upgrading and Renewal**: Driven by capital, it is mainly market - oriented development, covering the renewal of old blocks and old factories. It promotes consumption and industrial upgrading, and the capital sources are diverse [6][26]. - **Urban Facility Improvement and Function Upgrading Renewal**: It has strong basic and public welfare characteristics, is mainly government - led, and appropriately introduces social capital. It aims to improve the overall carrying capacity and functions of the city [6][29]. - **Ecological and Historical and Cultural Protection and Renewal**: It combines public welfare and business operations, is mainly government - led, and promotes multi - format development and protection. It aims to protect the ecological base and historical context of the city [7][32]. 3. Problems Faced by China's Urban Renewal and Relevant Suggestions - **Problems**: - **Lack of Sustainability and System in Renovation Planning**: There are problems in both vertical and horizontal planning, resulting in inefficiencies and a lack of regional characteristics [8][37][38]. - **Low Investment Return Rate and Complex Game with Property Owners**: Urban renewal projects have high upfront investment, long return periods, and limited returns. The complex property rights situation also reduces the enthusiasm of social capital [9][39]. - **Difficulty in Intrinsic Improvement**: Some projects remain at the surface level, and the effects of industrial upgrading and domestic demand stimulation are not fully realized [8][40]. - **Incomplete Legal and Policy Systems and Insufficient Regulatory Coordination**: There is a lack of systematic laws and regulations at the central and local levels, and multi - departmental supervision lacks coordination [9][41][42]. - **Suggestions**: - **Improve Top - level Design**: Use the compilation of the "15th Five - Year Plan" as an opportunity to build a sustainable urban renewal framework and establish a dynamic adjustment mechanism [10][43]. - **Innovate Investment and Financing Modes**: Increase policy support, innovate financing tools, simplify property rights transactions, and improve risk - sharing mechanisms to attract social capital [10][43]. - **Focus on Connotative Renewal**: Integrate urban renewal into the overall upgrading of the regional economy, society, and culture, and ensure policy, function, and service coordination [10][43]. - **Improve the Legal System and Strengthen Regulatory Coordination**: Promote the introduction of the "Urban Renewal Law", improve supporting regulations at the local level, and establish a cross - departmental joint meeting system [10][43].

Investment Rating - The overall investment outlook for the banking industry is stable, with no significant changes expected in credit quality over the next 12 to 18 months [54]. Core Insights - The banking industry is expected to maintain a steady development trend in 2026, supported by effective policy measures that will enhance the stability of the banking sector [5][7]. - The industry will continue to experience strong regulation, focusing on risk prevention and high-quality development, with banks optimizing their operational strategies [7][8]. - The asset scale of banks is projected to grow steadily, with improvements in deposit costs and a narrowing of loan interest rate declines [25][26]. - The profitability of banks has been slightly pressured since 2025, but overall asset quality remains good, with liquidity indicators showing a high safety margin [28][31]. Industry Fundamentals Analysis - The banking industry is expected to continue under a "strong regulation" framework, guiding banks towards high-quality development and maintaining overall credit risk at controllable levels [8]. - Regulatory policies will focus on supporting the resolution of real estate and local government debt risks, which will positively impact the banking sector's credit [9][13]. - The banking sector's asset growth has rebounded due to a moderately loose monetary policy and increased funding directed towards national strategic areas [15]. Credit Performance of Industry Enterprises - Since 2025, the banking industry's profitability has faced slight pressure, with net interest margins declining but at a reduced rate [31]. - The overall credit situation in the banking sector remains stable, with a few banks experiencing downgrades due to deteriorating asset quality and weak profitability [52]. - The integration of small and medium-sized banks is accelerating, which is expected to reduce the number of banking institutions and alleviate credit risk pressures [29][53]. Conclusion - The banking industry is anticipated to continue its high-quality development trajectory in 2026, supported by favorable fiscal and monetary policies [54]. - The financial performance of banks is expected to remain stable, although net interest margins will likely stay at the lower end of the range, with some regional banks facing asset quality pressures [54].

Group 1: Economic Stimulus Plan Overview - Japan's cabinet approved a fiscal stimulus plan worth 28.1 trillion yen (approximately 273 billion USD) aimed at infrastructure investment and public service improvement[2] - The plan includes 13.5 trillion yen in fiscal stimulus, 7.5 trillion yen in new national and local budget expenditures, and 6 trillion yen in low-interest fiscal investments and loans[2] - The government expects the stimulus measures to boost economic growth by 1.3%[2] Group 2: Challenges and Limitations - The actual impact of the stimulus plan is limited, with only 6.2 trillion yen directly stimulating the economy, and only 4.6 trillion yen allocated for the current fiscal year, equivalent to 0.9% of Japan's GDP[3] - The plan lacks accompanying structural reforms and monetary policy support, which are crucial for long-term economic growth potential[3] - The Bank of Japan's decision to maintain a -0.1% interest rate without further easing measures limits the effectiveness of the stimulus[3] Group 3: Financial Implications - The stimulus plan may exacerbate Japan's fiscal pressure, potentially leading to increased issuance of construction bonds and worsening the fiscal situation and debt burden[3] - The stimulus's lower-than-expected impact led to a rise in the yen against the dollar and a sell-off in the Japanese bond market, pushing the benchmark 10-year government bond yield to -0.009%[3] - The long-term effects of the stimulus on Japan's sovereign credit level remain to be observed, with a focus on future structural reforms, monetary policy changes, and the medium- to long-term effects of fiscal stimulus[4]

1. Report Industry Investment Rating - No information provided in the content 2. Core Viewpoints of the Report - In 2025, the infrastructure investment and financing (hereinafter "infrastructure investment") industry policies focused on "controlling new debts and resolving existing debts" and "promoting development", further implementing and refining the requirements of the "comprehensive debt resolution" plan. The industry has entered a critical stage of systematic reshaping, with risks being temporarily mitigated and the corporate financing environment showing marginal improvement [3][4][28]. - As implicit debts are gradually replaced, operating debts are expected to become the key area of focus. Debt resolution work will shift from debt replacement to building long - term mechanisms, achieving "full - scope and centralized" debt management. Future fiscal and tax system reforms are expected to deepen, better matching local fiscal powers and responsibilities, and assisting local debt resolution [18][19][28]. - With the continuous decline of land finance and the replacement of implicit debts, in - depth market - oriented transformation has become the main way out for infrastructure investment enterprises. These enterprises can seek transformation opportunities in the balance between debt resolution and development but need to be vigilant against market - related risks and changes in government - enterprise relationships [25][26][28]. 3. Summary by Relevant Catalogs 3.1 Policy Review - **More Active Fiscal Policy and Coordinated Use of Multiple Tools**: In 2025, the fiscal policy was unprecedentedly strong, with the deficit rate exceeding 4% for the first time and the broad deficit scale approaching 14 trillion yuan. Special bonds were used to support the infrastructure investment industry in resolving existing debts. By the end of August 2025, 4 trillion yuan of the one - time increase of 6 trillion yuan in special debt quota had been issued, reducing the average interest cost of debts by over 2.5 percentage points and saving over 450 billion yuan in interest payments. The scope of special bonds was further expanded, and in the second half of the year, 500 billion yuan of local debt balance limits were revitalized, and the new local debt quota for 2026 was advanced. Financial institutions also participated in debt resolution [4]. - **Improved Debt Risk Management Mechanisms**: In 2025, the central and local governments tightened the supervision network for implicit debts, strengthening control from multiple aspects such as debt monitoring, review, and accountability. The Debt Management Department of the Ministry of Finance was officially established, and local governments deepened the construction of monitoring mechanisms. The financing review was tightened, and the Ministry of Finance publicly announced typical cases of implicit debt accountability twice during the year [5]. - **Dynamic Optimization of Debt Risk List Management and Accelerated Exit from Platforms**: The government work report in 2025 emphasized the dynamic adjustment of the list of high - risk debt areas. Ningxia, Inner Mongolia, and Jilin completed their debt resolution tasks and met the conditions for exiting high - risk debt provinces. By the end of 2025, over 70% of financing platforms had exited [6][8][17]. - **Deepened Transformation Policies**: Policies guided infrastructure investment enterprises to transform from traditional infrastructure investment carriers to market - oriented industrial entities. Multiple policies were introduced to support their transformation, and financing support such as science and technology innovation bonds and infrastructure REITs was provided [9]. - **Synergistic Support of Fiscal and Financial Policies**: Policies supported the infrastructure investment industry through four pillars: expanding effective investment, innovating financing mechanisms, optimizing the relationship between the central and local governments, and strengthening macro - coordination, aiming to achieve the goal of "resolving debts in development and promoting development in debt resolution" [10]. 3.2 Policy Impact - **Accelerated Implementation of Local Government Replacement Bonds and Mitigated Short - term Debt Risks**: By December 31, 2025, 2 trillion yuan of refinancing bonds for replacing existing implicit debts were issued, and the new local government bonds reached 5,361.69 billion yuan, exceeding the annual limit. The replacement of implicit debts was accelerated, and short - term debt pressure was relieved [13]. - **Tightened Supply of Urban Investment Bonds**: In 2025, 7,880 urban investment bonds were issued, with a total issuance of 5,181.873 billion yuan and a net financing of - 238.187 billion yuan. The total issuance decreased by 13.26% year - on - year. The net financing was negative for most months, and the supply of urban investment bonds continued to tighten [14]. - **Adjusted Financing Channels and Decreased Bond Financing Costs**: Infrastructure investment enterprises adjusted their financing channels, with an increase in the proportion of credit financing and a decrease in the proportion of bond financing. The bond financing costs decreased significantly, and the comprehensive financing costs also dropped to some extent [15]. - **Differentiated Negative Public Opinions**: In 2025, the number of new bond - issuing infrastructure investment enterprises on the continuous overdue list and the number of newly defaulted non - standard products decreased significantly, but the number of enterprises with multiple historical bill overdue cases showed regional differences. The long - term fundamental improvement of infrastructure investment enterprises' refinancing still requires time, and issues such as operating debts, interest payment pressure, and capital occupation need attention [16]. - **New Stage of Debt Resolution and Phased Achievements in "Exiting Platforms" and Transformation**: Policies promoted the transformation of infrastructure investment enterprises, and by the end of 2025, nearly 750 enterprises declared themselves as market - oriented operating entities, accounting for about 19% of bond - issuing infrastructure investment enterprises. Local debt management entered a new stage [17]. 3.3 Industry Development Outlook and Opportunities - **Operating Debts Becoming the Key Focus**: As implicit debts are gradually resolved, operating debts will become the key area of focus. Future resolution methods may be more market - based, and local governments have already introduced policies to promote the resolution of operating debts [18][19][20]. - **Continuous Implementation of the "Comprehensive Debt Resolution" Policy**: Currently, debt resolution mainly relies on financial means, and substantial repayment is insufficient. Future fiscal and tax system reforms are expected to deepen, and debt resolution methods will become more refined and region - specific [21][22][24]. - **Transformation Opportunities for Infrastructure Investment Enterprises**: Infrastructure investment enterprises can participate in areas such as urban renewal, smart cities, and green infrastructure construction. However, they need to be vigilant against risks such as market - related and compliance risks and changes in government - enterprise relationships during the transformation process [25][26][27].

Report Industry Investment Rating No relevant content provided. Core Views - The official release of the new regulations on public - offering fund sales is expected to smooth policy disturbances, ease market sentiment, and guide long - term and value investment, but it may also lead to institutional allocation adjustments and test the demand in the bond market. The bond market may continue to fluctuate in the short term. [3][10][13] - In December 2025, the official manufacturing PMI returned to the expansion range, indicating an improvement in both supply and demand in the manufacturing industry. [4][14] - The central bank maintained a net capital injection last week, leading to a comprehensive decline in capital prices. [5][17] - In the primary market of credit bonds, the issuance scale decreased, and the issuance cost mostly increased. [6][21] - In the secondary market of credit bonds, trading activity cooled down, and the yields of interest - rate bonds and credit bonds showed different trends. [7][32] Summary by Directory Market Hotspots - On December 31, 2025, the new regulations on public - offering fund sales were officially released, with key revisions including relaxed redemption fee requirements for bond funds and an extended transition period from 6 months to 12 months. [10] - Relaxing redemption fee requirements helps stabilize market sentiment and reduce the short - term redemption pressure on bond funds, while the new regulations may also lead to adjustments in institutional allocation and a possible diversion of bond market investment funds. [11][12] Macroeconomic Data - In December 2025, the official manufacturing PMI was 50.1%, up 0.9 percentage points from the previous month, returning to the expansion range after 8 months. The production index and new order index both increased, but only large - scale enterprises' PMI was in the expansion range. [4][14] - China's RatingDog manufacturing PMI in December was 50.1%, up 0.2 percentage points from the previous month, rising above the boom - bust line again. [4][14] Money Market - Last week, the central bank net injected 7374 billion yuan through open - market operations, including 13601 billion yuan of 7 - day reverse repurchases, while 4227 billion yuan of 7 - day and 2000 billion yuan of 14 - day reverse repurchases matured. [5][17] - Due to the central bank's net injection and a decrease in cash demand after the New Year, capital prices declined comprehensively, with the decline of pledged - repo rates ranging from 1bp to 21bp. [5][17] Primary Market of Credit Bonds - Last week, the issuance scale of credit bonds was 634.04 billion yuan, with a daily average of 158.51 billion yuan, showing a decline in all bond types and industries compared to the previous period. [6][21] - In terms of net financing, the infrastructure investment and financing industry had a net outflow of 72.08 billion yuan, and most industries in industrial bonds had net outflows, except for the power production and supply industry with a net inflow of 139 billion yuan. [6][22] - The average issuance cost of credit bonds mostly increased, with the cost of 3 - year bonds changing significantly, while only the average issuance cost of 1 - year AA + and 5 - year AA bonds decreased. [6][30] Secondary Market of Credit Bonds - Last week, the secondary - market trading volume of bonds was 38369.15 billion yuan, a decrease of 46421.76 billion yuan from the previous value, indicating continued cooling in trading activity. [7][32] - Interest - rate bonds: The yields of treasury bonds and policy - bank bonds increased across the board, with the 10 - year treasury bond yield rising slightly by 1bp to 1.84%. [7][32] - Credit bonds: The yields of credit bonds varied by term, with the yields of 1 - year and 5 - year bonds mostly decreasing and those of other - term bonds mostly increasing, with a maximum increase of 6bp. [32][35] - Credit spreads: The credit spreads of AAA - rated bonds of various terms showed mixed trends, with the spreads of 3 - year and 10 - year bonds slightly expanding, and most of the other - term spreads narrowing, with a maximum change of 8bp. [32][39] - Rating spreads: The spreads between different ratings mostly widened, with a maximum increase of 2bp. [32][39] Supplementary Tables - There were several bond credit risk events, including the extension of principal and interest payments for bonds issued by companies such as Guangzhou Fangyuan Real Estate, Fantasia Group, and Rongxin Investment Group. [42] - There were regulatory and market innovation dynamics, such as the launch of the ChinaBond - ICBC Panda Bond Index series and the release of relevant business guidelines by the Shanghai Stock Exchange. [43] - The table shows the monthly net financing amounts of major credit bond types from January 2024 to December 2025. [44]

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Report Industry Investment Rating No relevant information provided. Core Viewpoints - The National Fiscal Work Conference held on December 27 - 28, 2025, proposed to continue implementing a more proactive fiscal policy in 2026, including expanding fiscal expenditure, optimizing the government bond tool mix, improving the efficiency of transfer payment funds, continuously optimizing the expenditure structure, and strengthening fiscal - financial coordination [7][8]. - The "expansion of domestic demand" remains the top priority among the six key fiscal tasks in 2026, with specific measures to boost consumption, expand effective investment, and accelerate the construction of a unified national market [7][10][11]. - Hainan summarized the achievements of state - owned enterprises' reform and development during the "14th Five - Year Plan" and set goals for the "15th Five - Year Plan", aiming to enhance profitability and play a strategic supporting role [7][15]. Summary by Directory 1. News Review (1) Four Highlights of the National Fiscal Work Conference - **More Proactive Fiscal Policy**: In 2026, the fiscal policy will continue to be "more proactive". It is recommended that the deficit rate be maintained above 4%, with a new special bond quota of 5.1 trillion yuan and a special treasury bond of 1.8 trillion yuan, and the general deficit scale may reach about 15 trillion yuan, an increase of over 1 trillion yuan compared to 2025. The structure of local debt should be optimized, and the proportion of general bonds should be moderately increased [7][9]. - **Optimized Expenditure Structure**: "Expanding domestic demand" is the top priority. Specific measures include boosting consumption, expanding investment, and building a unified national market. The task of "promoting urban - rural integration and regional linkage" has been upgraded to the third place. There is significant investment space in the people - centered new urbanization, with about 300 million "new citizens" in China having unmet needs, and the investment space in urban renewal during the "15th Five - Year Plan" may exceed 35 trillion yuan [7][11]. - **Strengthened Fiscal - Financial Coordination**: This is a new proposal. Fiscal and monetary policies need to cooperate. Three dimensions to strengthen coordination are proposed: strengthening the linkage between fiscal subsidies and structural monetary policies, deepening the function of treasury bonds as the core link of macro - control, and improving the assessment and feedback mechanism [12][13]. - **Enhanced Local Financial Resources**: The focus has shifted from "increasing transfer payments" to "improving transfer payment efficiency". Suggestions include optimizing the structure, improving the direct fiscal fund mechanism, and establishing an incentive - restraint mechanism. In the long run, the fiscal and tax system reform should be deepened [14]. (2) Hainan's State - owned Enterprises Reform and Development - **Achievements in the "14th Five - Year Plan"**: Comprehensive strength has been significantly enhanced, the layout of state - owned assets has been optimized, the reform of state - owned enterprises has been advanced in an orderly manner, and the capital operation ability has been improved. Seven new listed companies have been added, and a "1 + N" mother - child fund matrix has been initially established [15]. - **Goals for the "15th Five - Year Plan"**: Solve problems such as weak main businesses, low ROE, high asset - liability ratios of some enterprises, and insufficient financing from the capital market. Continue to promote the reform of state - owned enterprises, deepen cooperation with central enterprises, and focus on improving profitability [15]. (3) Tracking of "Exiting the Platform" of Urban Investment Enterprises - This week, 12 urban investment enterprises declared to be market - oriented operating entities or exited the financing platform list, a decrease compared to last week. Most are from the infrastructure investment and financing industry, with 7 from Jiangsu. The main credit ratings are AA and AA +, and there are 7 at the municipal level and 5 at the district - county level [16]. (4) Early Redemption of Bonds by Urban Investment Enterprises - This week, 29 urban investment enterprises redeemed bond principal and interest in advance, involving 32 bonds with a total scale of 44.10 billion yuan, a decrease of 0.76 billion yuan compared to the previous value. Most of the enterprises have an AA credit rating [19]. 2. Issuance of Local Government Bonds and Urban Investment Enterprise Bonds (1) Local Government Bonds - This week, the issuance and net financing scale of local government bonds decreased. Six local bonds were issued, with a scale of 20.37 billion yuan and a net financing of - 31.74 billion yuan. As of December 28, the cumulative issuance of new bonds (excluding small and medium - bank special bonds) reached 53,336.89 billion yuan, completing 102.57% of the annual new quota. The use progress of the 500 - billion - yuan carry - over quota may exceed 90% [7][20]. - In terms of issuance structure, all 6 bonds issued this week were new special bonds. The issuance term is mainly 20 - year, accounting for 59.45%. The weighted average issuance term is 15.14 years, 1.01 years shorter than the previous value. Three provinces issued local bonds this week, with Guangdong having the largest issuance scale of 15.00 billion yuan [20][21]. (2) Urban Investment Bonds - This week, the issuance scale of urban investment bonds decreased, the net financing scale increased, the issuance interest rate decreased, and the issuance spread widened. A total of 92 urban investment bonds were issued, with a scale of 62.515 billion yuan, a 20.29% decrease compared to the previous value, and a net financing of 6.841 billion yuan, an increase of 2.603 billion yuan compared to the previous value. There were no overseas urban investment bonds issued this week [7][23]. - The issuance cost: the overall issuance interest rate is 2.25%, a decrease of 4.97BP compared to the previous value, and the issuance spread is 80.61BP, a widening of 1.07BP compared to the previous value. The issuance term is mainly 5 - year, accounting for 32.61%, and the issuer's main credit rating is AA + [23][24]. 3. Trading of Local Government Bonds and Urban Investment Enterprise Bonds - This week, the central bank conducted 422.7 billion yuan of reverse repurchase operations, with 457.5 billion yuan of reverse repurchase maturing. After considering other factors, the net withdrawal of funds was 155.2 billion yuan. Short - term capital interest rates fluctuated, with some rising and some falling [29]. - **Local Government Bonds**: The trading volume of local government bonds was 385.482 billion yuan, a 14.35% decrease compared to the previous value. Most of the maturity yields decreased, with an average decrease of 3.13BP [29]. - **Urban Investment Bonds**: The trading volume was 345.019 billion yuan, a 4.17% increase compared to the previous value. The maturity yields mainly decreased, with an average decrease of 1.95BP. The spreads of 1 - year and 3 - year AA + urban investment bonds widened, while that of 5 - year AA + urban investment bonds narrowed. There were 11 abnormal transactions of 6 bonds of 5 urban investment entities [30][31]. 4. Important Announcements of Urban Investment Enterprises - This week, 77 urban investment enterprises issued announcements on changes in senior management, legal representatives, directors, supervisors, etc., changes in controlling shareholders and actual controllers, equity/asset transfers, and changes in business scope [34].

1. Report Industry Investment Rating No information about the report industry investment rating is provided in the content. 2. Core Viewpoints of the Report - Jining City has prominent resource endowments, continuously optimized industrial structure, and its economic development ranks in the upper - middle level in Shandong Province. However, there is an obvious differentiation in economic development among districts and counties. The fiscal self - sufficiency ability is average, with a high degree of dependence on land finance, and the debt risk of urban investment enterprises is worthy of attention. [7][8][11][14] - Since 2024, Jining has taken multiple measures to promote debt resolution, improved the government debt management mechanism, and achieved phased results in debt resolution, such as slowing down the growth rate of urban investment debt, optimizing the debt structure, and reducing the financing cost. [7][27][31] - The issuance of urban investment bonds in Jining tends to have a longer term, and the interest rates and spreads in the primary and secondary markets have decreased. However, the urban investment bond financing was a net outflow in 2024, and the pressure of existing bond repayment is relatively concentrated. [7][34][35] - The commercial paper overdue events in Jining were concentrated from 2022 to 2024 and have converged since 2025. The scale of urban investment lease financing has been continuously decreasing since 2023, and the existing lease financing is still concentrated in economically strong districts. [7][37][40] - The bonds of Jining's industrial investment companies are closely related to national strategies, with short approval time and fast issuance rhythm. However, all are private placements, most bond items are guaranteed, and the issuance costs of some district - level industrial investment companies are relatively high. [7][44][45] - There are many industrial investment enterprises in Jining's urban investment transformation, mainly at the district - county level, with diversified businesses and AA - AA+ as the main credit ratings. [7][49][54] 3. Summary According to Relevant Catalogs Regional Overview - **Geographical and Population Information**: Jining is a central city in the Huaihai Economic Zone, covering an area of 11,187 square kilometers, with a permanent population of 8.1873 million by the end of 2024. However, the population has shown a net outflow trend. [8] - **Resource and Industry**: It has four major resource advantages: minerals, water transportation, agriculture, and culture. The industrial pattern is "coal - power - chemical industry as the foundation, manufacturing as the support, and the service industry accelerating development". It is transforming from "resource - dependent" to "innovation - driven". [9] - **Economic Development**: In 2024, Jining's GDP ranked sixth in Shandong Province, with a growth rate slightly higher than the provincial average. The district - county economic development is uneven, showing a pattern of "strong core areas and weak peripheral areas". [11][13][14] - **Fiscal Situation**: The general public budget revenue in 2024 was 4.9626 billion yuan, ranking fifth in Shandong. The fiscal balance rate was 62.02%, and the comprehensive financial resources were 12.8422 billion yuan, with a high degree of dependence on government fund income. The fiscal development among districts and counties is unbalanced. [16][17][19] - **Debt Risk**: The legal debt risk of the Jining government is relatively controllable, but the interest - bearing debt of urban investment enterprises is prominent. The debt ratio after the superposition of the two exceeds 300%, and the debt is highly concentrated in economically strong districts. [21][22] Debt Resolution Progress - **Measures**: Jining promotes debt resolution through five measures: using bond tools precisely, implementing fiscal revenue expansion and expenditure reduction, promoting urban investment transformation, deepening government - finance - enterprise cooperation, and strengthening supervision. [27][28][29] - **Results**: Since 2024, the growth rate of urban investment debt has slowed down, the debt structure has been optimized, and the financing cost has decreased. However, the financing cost is still high, and the short - term debt repayment pressure remains. The issuance of urban investment bonds has become more long - term, and the interest rates and spreads in the primary and secondary markets have decreased. But the urban investment bond financing was a net outflow in 2024, with concentrated existing bond repayment pressure. The commercial paper overdue events have converged since 2025, and the scale of urban investment lease financing has been continuously decreasing. [7][31][34] Urban Investment Transformation - **Bond Issuance of Industrial Investment Companies**: As of November 2025, 8 bonds of industrial investment companies in Jining have been issued for the first time, with a total issuance scale of 3.22 billion yuan. The bond labels are closely related to national strategies, with short approval time and fast issuance rhythm. But all are private placements, most bond items are guaranteed, and some district - level companies have relatively high issuance costs. [44][45][48] - **Industrial Investment Enterprises in Transformation**: There are 8 industrial investment enterprises in Jining's urban investment transformation, mainly at the district - county level. The transformation models include setting up new platforms, newly established platforms, and new platforms under urban investment companies. The business is diversified, and the main credit ratings are AA - AA+. [49][53][54]

Report Summary 1. Investment Rating No investment rating for the industry is provided in the report. 2. Core Viewpoint In November 2025, the issuance scale of enterprise asset - backed securities increased significantly month - on - month, the financing cost slightly rebounded, and the secondary market activity improved. A total of 136 enterprise asset - backed securities were issued, with a total issuance scale of 141.683 billion yuan. Compared with the previous month, the number of issuances increased by 31, and the issuance scale increased by 49.00%. Compared with the same period of the previous year, the number of issuances remained the same, and the issuance scale increased slightly by 1.62%. The interest rate median of one - year - around AAAsf - rated securities rose by about 2BP month - on - month and decreased by about 42BP year - on - year [4][22]. 3. Summary by Directory 3.1 Issuance Situation - **Overall Issuance**: In November 2025, 136 enterprise asset - backed securities were issued, with a total scale of 141.683 billion yuan. The number of issuances increased by 31 month - on - month, and the scale increased by 49.00%. Year - on - year, the number remained the same, and the scale increased by 1.62%. The Shanghai Stock Exchange issued 102 products worth 115.213 billion yuan (81.32% of the total), and the Shenzhen Stock Exchange issued 34 products worth 26.47 billion yuan (18.68% of the total) [4][5]. - **Original Equity Holders**: The top five original equity holders in terms of issuance scale were China National Foreign Trade Trust Co., Ltd. (8.2 billion yuan, 5.79%), Huaxin International Trust Co., Ltd. (6.5 billion yuan, 4.59%), China Kangfu International Leasing Co., Ltd. (6.333 billion yuan, 4.47%), China Railway Capital Co., Ltd. (5.866 billion yuan, 4.14%), and Taicang Port GCL Power Generation Co., Ltd. (5.46 billion yuan, 3.85%). The total issuance scale of the top five was 32.359 billion yuan (22.84%), and that of the top ten was 55.093 billion yuan (38.88%) [6]. - **Managers**: The top five managers in terms of new management scale were CITIC Construction Investment Securities Co., Ltd. (15.46%), CITIC Securities Co., Ltd. (11.45%), Shanghai Guotai Haitong Securities Asset Management Co., Ltd. (9.72%), Huatai Securities (Shanghai) Asset Management Co., Ltd. (7.96%), and Ping An Securities Co., Ltd. (7.11%). The total new management scale of the top five was 73.244 billion yuan (51.70%), and that of the top ten was 104.39 billion yuan (73.68%) [8][9]. - **Underlying Asset Categories**: The underlying asset types of the issued securities included class REITs, accounts receivable, enterprise financial leasing, micro - loans, and specific non - financial claims. Class REITs had 9 issuances, accounting for 14.66% of the scale; accounts receivable had 19 issuances, accounting for 13.60%; and enterprise financial leasing had 20 issuances, accounting for 11.11% [11]. - **Product Scale Distribution**: The highest single - product issuance scale was 5.46 billion yuan, and the lowest was 0.75 billion yuan. The products with a single - issuance scale in the (5, 10] billion yuan range had the largest number of issuances (52) and the largest scale (28.69% of the total) [13]. - **Term Distribution**: The shortest term was 0.69 years, and the longest was 44.35 years. Products with a term in the (1, 3] - year range had the largest number of issuances (68) and the largest scale (43.17% of the total) [14][15]. - **Level Distribution**: According to the issuance scale of each level of securities, AAAsf - rated securities accounted for 95.38%, AA + sf - rated securities accounted for 4.02%, and other levels accounted for relatively small proportions [15][18]. - **Issuance Interest Rate**: The lowest issuance interest rate of one - year - around AAAsf - rated securities in November 2025 was 1.72%, and the highest was 3.15%. The interest rate center was approximately between 1.80% and 2.00%, with the median rising by about 2BP month - on - month and decreasing by about 42BP year - on - year [19]. 3.2 Filing Situation In November 2025, 140 enterprise asset - backed securities were filed with the Asset Management Association of China, with a total scale of 105.283 billion yuan [4][23]. 3.3 Secondary Market Transaction In November 2025, enterprise asset - backed securities had 4,131 transactions in the exchange market, with a total transaction amount of 91.726 billion yuan. The number of transactions increased by 668 month - on - month and 737 year - on - year, and the transaction amount increased by 19.29% month - on - month and 21.71% year - on - year. The Shanghai Stock Exchange had 3,259 transactions worth 73.582 billion yuan (80.22% of the total), and the Shenzhen Stock Exchange had 872 transactions worth 18.144 billion yuan (19.78% of the total). The more active underlying asset types in the secondary market were class REITs, accounts receivable, personal consumer finance, CMBS, and supply chains [4][24]. 3.4 December 2025 Maturity Analysis As of the end of November 2025, 220 outstanding enterprise asset - backed securities were due for repayment in December 2025, with a total scale of 57.924 billion yuan. The main underlying assets of the due securities were accounts receivable, supply chains, personal consumer finance, and specific non - financial claims. From the perspective of original equity holders, China Railway Capital Co., Ltd. had 13 due securities with a repayment scale of 13.669 billion yuan (23.60%), China Railway Construction Commercial Factoring Co., Ltd. had 6 due securities with a repayment scale of 6.784 billion yuan (11.71%), and Shenghe (Shenzhen) Commercial Factoring Co., Ltd. had 10 due securities with a repayment scale of 3.233 billion yuan (5.58%) [26].

Investment Rating - The report indicates a shift in the central government's approach to the real estate market, emphasizing "stabilizing the market" rather than merely pushing for recovery [2][4][13] Core Insights - The real estate market is experiencing increased downward pressure, with the supply-demand relationship shifting from total shortage to basic balance, highlighting structural supply deficiencies [2][4] - The central economic work conference has outlined a policy framework focusing on supply-demand coordination, inventory reduction, and promoting quality housing [3][5] - The report notes that as of November 2025, the nationwide unsold commercial housing area stands at 753 million square meters, indicating a high inventory level that requires ongoing efforts for reduction [4][5] Summary by Sections Market Overview - The real estate market is under pressure, with new housing transaction volumes continuing to decline, while "good houses" are becoming the mainstay of market support [1] - The central government's focus has shifted to stabilizing the market, with an emphasis on addressing structural supply issues and enhancing the quality of housing [2][4] Policy Developments - The central economic work conference has introduced measures to control land supply, encourage the acquisition of existing housing for affordable housing, and promote the construction of quality housing [3][4] - The report highlights that local governments are expected to implement various policies, including purchase subsidies and tax reductions, to stimulate inventory reduction [4][5] Demand Dynamics - The demand side is seeing improvements, with the central government advocating for the removal of unreasonable restrictions in the housing market, particularly in core cities [5] - Recent policy changes in Beijing have aimed to optimize housing purchase restrictions, supporting families with multiple children and adjusting credit policies [5][8] Market Performance - In November 2025, the average price of new residential properties in 70 large and medium-sized cities showed a slight month-on-month increase, while the overall sales volume and value continued to decline year-on-year [5][8] - The second-hand housing market is experiencing a downward trend in prices, with significant declines noted in major cities, although transaction volumes are showing signs of recovery [8][9]