Report Summary 1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints - In May 2025, 94 corporate asset - backed securities were issued, with a total issuance scale of 83.21 billion yuan. Compared with the previous month, the number of issuances decreased by 54, and the issuance scale dropped by 36.11%. Compared with the same period last year, the number of issuances increased by 19, and the issuance scale rose by 24.96%. The underlying asset types mainly included personal consumer finance, CMBS, corporate financial leasing, accounts receivable, and factoring claims. The interest rate center of AAAsf - rated securities with a term of about one year was roughly between 1.80% and 2.00%, and the median decreased by about 17BP month - on - month and about 37BP year - on - year [5][22]. 3. Summary by Directory 3.1 Issuance Situation - **Overall Issuance**: In May 2025, 94 corporate asset - backed securities were issued, with a total scale of 83.21 billion yuan. Compared with the previous month, the number decreased by 54, and the scale dropped by 36.11%. Compared with the same period last year, the number increased by 19, and the scale rose by 24.96% [5][6][22]. - **Issuance Venue**: In May 2025, the Shanghai Stock Exchange issued 68 products with an issuance amount of 64.898 billion yuan, accounting for 77.99%. The Shenzhen Stock Exchange issued 26 products with an issuance amount of 18.313 billion yuan, accounting for 22.01% [6]. - **Original Equity Holders**: The top five original equity holders in terms of issuance scale were Beijing Financial Street Investment (Group) Co., Ltd. (5.021 billion yuan, 6.03%), Shenghe (Shenzhen) Commercial Factoring Co., Ltd. (4.096 billion yuan, 4.92%), Shanghai Banghui Commercial Factoring Co., Ltd. (4 billion yuan, 4.81%), Shanghai Real Estate Housing Development Co., Ltd. (3.299 billion yuan, 3.96%), and China Railway Trust Co., Ltd. (3.277 billion yuan, 3.94%). The total issuance scale of the top five was 19.693 billion yuan, accounting for 23.67%, and that of the top ten was 33.11 billion yuan, accounting for 39.79% [7]. - **Managers**: The top five managers in terms of new management scale in May 2025 were Ping An Securities Co., Ltd. (15.40%), Huatai Securities (Shanghai) Asset Management Co., Ltd. (12.48%), Shanghai Guotai Junan Securities Asset Management Co., Ltd. (9.93%), CITIC Securities Co., Ltd. (9.77%), and China Merchants Securities Asset Management Co., Ltd. (7.67%). The total new management scale of the top five was 45.96 billion yuan, accounting for 55.23%, and that of the top ten was 62.748 billion yuan, accounting for 75.41% [9][14]. - **Underlying Asset Categories**: The underlying asset types of corporate asset - backed securities issued in May 2025 included personal consumer finance, CMBS, corporate financial leasing, accounts receivable, and factoring claims. Personal consumer finance had 22 products issued, accounting for 19.98% of the scale; CMBS had 7 products issued, accounting for 15.88%; corporate financial leasing had 12 products issued, accounting for 14.84% [12]. - **Product Scale Distribution**: Products with a scale of (5, 10] billion yuan had the largest number of issuances (42), accounting for 41.30% of the total scale [15]. - **Term Distribution**: The shortest - term product was 0.46 years, and the longest - term was 20.90 years. Products with a term of (1, 3] years had the largest number of issuances (47), accounting for 38.80% of the scale [15][17]. - **Level Distribution**: AAAsf - rated securities accounted for 88.12% of the issuance scale [17]. - **Issuance Interest Rate**: The interest rate center of one - year - around AAAsf - rated securities was roughly between 1.80% and 2.00%, with the median decreasing by about 17BP month - on - month and about 37BP year - on - year [20][22]. 3.2 Filing Situation In May 2025, 150 corporate asset - backed securities were filed with the Asset Management Association of China, with a total scale of 137.968 billion yuan [5][23] 3.3 Secondary Market Trading Situation - In May 2025, corporate asset - backed securities had 3,376 transactions in the exchange market, with a total transaction amount of 73.596 billion yuan. The number of transactions decreased by 10.40% month - on - month, and the transaction amount decreased by 27.89% month - on - month. Compared with the same period last year, the number of transactions increased by 44.71%, and the transaction amount increased by 40.72%. The Shanghai Stock Exchange had 2,672 transactions with an amount of 59.593 billion yuan (80.97%), and the Shenzhen Stock Exchange had 704 transactions with an amount of 14.003 billion yuan (19.03%) [5][24]. - The more active underlying asset types in the secondary market in May 2025 were class REITs, CMBS, supply chain, personal consumer finance, and corporate financial leasing, with transaction amount ratios of 26.06%, 12.37%, 11.83%, 10.25%, and 9.36% respectively [24]. 3.4 June 2025 Maturity Situation Analysis - As of the end of May 2025, 167 outstanding corporate asset - backed securities were due for repayment in June 2025, with a total scale of 43.924 billion yuan. - The main underlying asset categories of due securities in June 2025 were accounts receivable, supply chain, specific non - financial claims, and personal consumer finance, with due scale ratios of 36.64%, 19.23%, 17.01%, and 15.22% respectively. - Among the original equity holders, China Cinda Asset Management Co., Ltd. had 1 due security with a repayment scale of 4.03 billion yuan (9.18%); China Railway Capital Co., Ltd. had 1 due security with a repayment scale of 3.799 billion yuan (8.65%); China Orient Asset Management Co., Ltd. had 1 due security with a repayment scale of 3.441 billion yuan (7.83%) [26].

Report Industry Investment Rating No relevant content provided. Core Viewpoints - The science and technology innovation bond (Sci - tech Bond) market is at the stage of policy support and market demand superposition. The launch of Sci - tech Bond ETF and the landing of risk - sharing tools will provide more diversified and stable funding sources for science and technology innovation enterprises and enrich investors' asset allocation options [3][12]. - From January to May, the national real estate market continued to adjust, with real estate development investment and sales declining year - on - year, and the market still at the bottoming stage [5][18]. - In the money market, the central bank conducted open - market operations, with net capital withdrawal last week, but carried out large - scale buy - out reverse repurchase operations to ensure a stable end - of - quarter capital situation. Interest rates showed a mixed trend [6][21]. - In the primary market of credit bonds, issuance cooled last week, with a decrease in the issuance scale. The average issuance interest rates of most bonds with different maturities and ratings increased. In the secondary market, trading activity increased, and bond yields generally declined [7][36]. Summary by Directory Market Dynamics - On June 18, 10 public fund companies submitted applications for the first batch of Sci - tech Bond ETF products, marking the product - based implementation stage of the bond market serving science and technology innovation. The Sci - tech Bond market is in a stage of policy support and market demand superposition, and the development of related innovative products will provide more diversified and stable funding sources for science and technology innovation enterprises [3]. - On June 18, the first batch of projects using Sci - tech Bond risk - sharing tools were launched. Five private equity investment institutions successfully issued Sci - tech Bonds with a total scale of 1.35 billion yuan. The mechanism design introduced multiple arrangements such as credit risk mitigation vouchers, guarantee enhancement, and cornerstone investment [4][14]. Macroeconomic Data - From January to May, real estate development investment totaled 3.62 trillion yuan, a year - on - year decrease of 10.7%, with the decline widening by 0.4 percentage points compared to the first four months. New commercial housing sales area was 353 million square meters, a year - on - year decrease of 2.9%, with the decline widening by 0.1 percentage points [5][18]. - Other macroeconomic data include GDP quarterly year - on - year growth rate, official manufacturing PMI, social consumer goods retail year - on - year growth rate, etc. For example, in the first quarter of 2025, the GDP quarterly year - on - year growth rate was 5.40%, and in May 2025, the official manufacturing PMI was 49.50% [19][20]. Money Market - Last week, the central bank conducted open - market operations and net withdrew 7.99 billion yuan. On June 16, the central bank carried out a 40 - billion - yuan 6 - month buy - out reverse repurchase operation. Near the end of the quarter, the central bank carried out two buy - out reverse repurchase operations, totaling 1.4 trillion yuan, to ensure a stable end - of - quarter capital situation [6][21]. - The 14 - day and 21 - day pledged repurchase rates increased by 13bp and 3bp respectively, while the other term pledged repurchase rates decreased. The 3 - month and 1 - year Shibor both decreased compared to the previous week, and the spread between them narrowed to 4bp [6][21]. Primary Market of Credit Bonds - Last week, the issuance of credit bonds cooled, with the issuance scale at 333.68 billion yuan, a decrease of 15.161 billion yuan compared to the previous period. The infrastructure investment and financing industry and industrial bonds both saw a decrease in issuance scale [7][25]. - In terms of net financing, most industries in industrial bonds showed net financing inflows. In terms of issuance costs, the average issuance interest rates of most bonds with different maturities and ratings increased by 2 - 40bp [7][25]. Secondary Market of Credit Bonds - Last week, the secondary - market trading volume of bonds was 1,023.5849 billion yuan, and the average daily trading volume increased by 8.0377 billion yuan compared to the previous period, indicating increased trading activity [36]. - The yields of interest - rate bonds and credit bonds generally declined. The credit spreads of 1 - year and 5 - year AAA - rated bonds widened by 1 - 8bp, while the other term spreads narrowed, with a change of no more than 10bp. The rating spreads fluctuated, with a change of no more than 5bp [36][43].

Report Overview - The report is the 21st issue of the weekly monitoring report on the local government debt and urban investment industry in 2025, covering the period from June 9 to June 15, 2025 [1][3] Industry Investment Rating - Not mentioned in the report Core Viewpoints - The State Council Executive Meeting emphasized greater efforts to stabilize and rebound the real estate market, and incremental support policies are expected to be introduced. The real estate market still faces pressure in stabilizing and rebounding, and it is necessary to introduce incremental policies from both supply and demand sides [5][6][7] - Heilongjiang Province improved the emergency reserve fund system for debt repayment to support "bridge financing" for cities and counties with implicit debt repayment gaps. Henan Province promoted state - owned capital investment promotion and accelerated the transformation of urban investment companies into industrial investment companies [9][10] Summary by Directory 1. News Review (1) Real Estate Policy Support - On June 13, the State Council Executive Meeting proposed to build a new real - estate development model, promote the construction of "good houses" in urban renewal, and conduct a survey of real - estate land and projects. Since April, the real - estate improvement has slowed down. The meeting's emphasis on "greater efforts" signals further policy support. Local governments have also introduced measures, such as Guangzhou considering canceling restrictions and Hunan arranging for the acquisition of commercial housing as affordable housing. It is recommended to introduce incremental policies from both supply and demand sides [6][7][8] (2) Debt Management and Investment Promotion - On June 17, Heilongjiang issued a plan to improve the fiscal budget and debt management system, including establishing an emergency reserve fund system for debt repayment. Henan proposed to promote state - owned capital investment promotion and transform urban investment companies into industrial investment companies [9][10] (3) Early Redemption of Urban Investment Bonds - 23 urban investment enterprises redeemed bond principal and interest in advance this week, involving 24 bonds with a total scale of 45.37 billion yuan, an increase of 23.22 billion yuan compared with the previous value. Most of the enterprises are from the western region, and the main credit rating is AA [13] (4) Cancellation of Urban Investment Bond Issuance - Two urban investment bonds, "25 WanTouJi MTN002" and "25 HuiLinInvestment MTN001A", were cancelled this week, with a planned issuance scale of 950 million yuan. As of June 15, 58 urban investment bonds have been postponed or cancelled this year, with a total scale of 3.5348 billion yuan [14] 2. Issuance of Local Government Bonds and Urban Investment Enterprise Bonds (1) Local Government Bonds - This week, the issuance scale and net financing of local government bonds decreased, the issuance interest rate decreased, and the spread widened. As of June 15, the issuance progress of new special bonds this year is less than 40%, and the local debt replacement progress has reached 84%. A total of 22 local bonds were issued this week, with a scale of 107.786 billion yuan, a decrease of 1.65%. The net financing decreased by 9.3513 billion yuan to - 4.3012 billion yuan. The weighted average issuance interest rate decreased by 1.83BP to 1.82%, and the weighted average spread widened by 2.87BP to 13.55BP [15][16] (2) Urban Investment Bonds - This week, the issuance scale and net financing of urban investment bonds increased, and the net financing turned positive. The issuance interest rate decreased, and the spread narrowed. A total of 176 urban investment bonds were issued, with a scale of 126.607 billion yuan, an increase of 63.89%. The net financing increased by 1.1982 billion yuan to 1.1948 billion yuan. The overall issuance interest rate was 2.23%, a decrease of 4.19BP, and the issuance spread was 72.94BP, a decrease of 1.67BP. Seven overseas urban investment bonds were issued, with a total scale of 2.764 billion yuan [19] 3. Trading of Local Government Bonds and Urban Investment Enterprise Bonds - The central bank conducted 858.2 billion yuan of reverse repurchases this week, with 930.9 billion yuan of reverse repurchases maturing, resulting in a net withdrawal of 72.7 billion yuan. Short - term capital interest rates mostly declined. On June 6, 2025, Shanghai Brilliance upgraded the credit rating of Shanghai Pudong Land Holding (Group) Co., Ltd. from AA+ to AAA. No urban investment credit risk events occurred this week. The trading volume of local government bonds increased by 65.14% to 623.982 billion yuan, and the yield to maturity generally declined by an average of 3BP. The trading volume of urban investment bonds increased by 45.45% to 327.002 billion yuan, and the yield to maturity generally declined by an average of 3.95BP. The spreads of 1 - year, 3 - year, and 5 - year AA+ urban investment bonds narrowed. Under the broad - based criteria, 13 urban investment entities had 15 abnormal bond transactions [22][24][25] 4. Important Announcements of Urban Investment Enterprises - 43 urban investment enterprises issued announcements regarding changes in senior management, legal representatives, directors, supervisors, controlling shareholders, actual controllers, equity/asset transfers, and cumulative new borrowings this week [28]

Report Industry Investment Rating - Not provided in the document Core Viewpoints of the Report - The "376 Document" strengthens the full - process supervision of PPP projects, preventing the risk of local governments adding hidden debts through the PPP model, and improving the quality and standardization of PPP projects [6][11] - Shandong aims to clear all hidden debts by the end of 2028, and Fujian clarifies five situations where special bond funds can be recovered, which helps to prevent local debt risks [6][12][13] - This week, the issuance scale and net financing of local government bonds decreased significantly, while the issuance scale of urban investment bonds decreased and the net financing increased, but the net financing has been negative for six consecutive weeks [16][19] Summary According to Relevant Catalogs 1. News Review - **"376 Document" on PPP New Mechanism**: The "376 Document" further clarifies the review standards and strengthens the full - life - cycle supervision of PPP projects. It has new requirements in project access, franchise plan review, fiscal risk prevention, and performance assessment, aiming to prevent hidden debt risks and improve infrastructure investment efficiency [6][9][10] - **Shandong and Fujian Policies**: Shandong proposes to clear all hidden debts by the end of 2028, and Fujian clarifies five situations where special bond funds can be recovered, which helps to prevent local debt risks and improve the efficiency of special bond use [6][12][13] - **Early Redemption of Urban Investment Bonds**: Sixteen urban investment enterprises redeemed bond principal and interest in advance this week, with a total scale of 2215 million yuan, mainly from the western region and with AA - rated entities [6][15] 2. Issuance of Local Government Bonds and Urban Investment Enterprise Bonds - **Local Government Bonds**: This week, 26 local government bonds were issued, with a scale of 109595 million yuan, a 51.98% decrease from the previous value, and a net financing of 50501 million yuan, a 63.24% decrease. As of June 8, the new special bond issuance progress is less than 40%, but the local debt replacement progress has reached 83%, with more than half of the provinces completing their annual tasks [16] - **Urban Investment Bonds**: This week, 100 urban investment bonds were issued, with a scale of 77253 million yuan, a 23.57% decrease from the previous value, and a net financing of - 35 million yuan, an increase of 4600 million yuan from the previous value. The overall issuance interest rate is 2.27%, a 4.90BP decrease from the previous value, and the issuance spread is 74.61BP, a 3.90BP narrowing [19] 3. Trading of Local Government Bonds and Urban Investment Enterprise Bonds - **Funding Situation**: The central bank conducted 9309 billion yuan of reverse repurchases this week, with 16026 billion yuan of reverse repurchases maturing, resulting in a net withdrawal of 6717 billion yuan. Short - term funding rates mostly declined [23] - **Urban Investment Rating Adjustment**: On June 3, 2025, Zhongzheng Pengyuan upgraded the rating of four bonds issued by Zhejiang Huzhou Changxing Urban Construction Investment Group Co., Ltd. from AA+ to AAA [23][25] - **Credit Events and Regulatory Penalties**: No urban investment credit risk events occurred this week [25] - **Local Bond Trading**: The spot trading volume of local bonds was 377844 million yuan, a 5.83% decrease from the previous value, and most of the maturity yields increased, with an average increase of 1.71BP [25] - **Urban Investment Bond Trading**: The trading volume of urban investment bonds was 224820 million yuan, a 24.03% decrease from the previous value. Most of the maturity yields increased, with an average increase of 0.84BP. The spreads of 1 - year, 3 - year, and 5 - year AA+ urban investment bonds widened [25] - **Abnormal Trading of Urban Investment Bonds**: Under the broad - based statistics, 14 urban investment entities had 15 abnormal bond trades this week [25] 4. Important Announcements of Urban Investment Enterprises - Thirty - six urban investment enterprises announced changes in senior management, legal representatives, directors, supervisors, controlling shareholders, actual controllers, and equity/asset transfers this week [29]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In May, the issuance scale of urban investment bonds was halved, and the net financing continued to be negative. The issuance of innovative varieties such as science - and - technology bonds increased. The reform of economic development zones encourages park urban investment companies to list for financing [6][9][17]. - The yield of urban investment bonds may be more likely to decline. The safety cushion of urban investment bonds is still sufficient, and the credit spread still has room to compress. Investment strategies include allocating high - quality enterprises in strong regions, paying attention to urban investment companies in key provinces with debt resolution benefits, and weak - qualified urban investment companies in strong regions. Also, focus on new bond - issuing entities in the industrial transformation and integration of urban investment [6][7][45]. 3. Summary by Directory 3.1 5 - month Urban Investment Bond Market Operation Characteristics - **Financing and issuance scale**: Affected by tightened financing policies and seasonal factors, the issuance scale of urban investment bonds decreased by 52.44% month - on - month to 26.3616 billion yuan, and the net financing was - 7.127 billion yuan, remaining negative for three consecutive months. The issuance scale from January to May was 2.3 trillion yuan, a year - on - year decrease of 13.22%. 21 provinces had net outflows, and the net outflow scale of key provinces and large economic provinces decreased month - on - month [9][11]. - **Review and approval**: The review and approval pass rate of urban investment bonds on the exchange decreased by 7.45 percentage points to 88.01% month - on - month, with 7 bonds terminated for review, mainly issued by AA - level and below entities. The registration pass rate of the National Association of Financial Market Institutional Investors increased by 5.97 percentage points to 11% month - on - month [10][11]. - **Innovative varieties**: The issuance of science - and - technology bonds accelerated. In May, 14 labeled urban investment bonds were issued, with a total scale of 1.2 billion yuan. Among them, 9 science - and - technology bonds had a scale of 870 million yuan. Labeled urban investment bonds had a certain cost advantage [17]. - **Issuance term and borrowing - to - repay ratio**: The weighted average issuance term was 4.18 years, an increase of 0.18 years month - on - month. The borrowing - to - repay ratio was 93.24%, and 14 provinces reached 100%. Only Chongqing among the 8 key provinces issued new - type urban investment bonds [20]. - **Issuance interest rate and spread**: The weighted average issuance interest rate was 2.30%, a decrease of 0.13 percentage points month - on - month, and the spread was 77.49BP, a narrowing of 14.44BP month - on - month. The issuance cost in key provinces was higher and the decline was smaller [23]. - **Overseas bonds**: The issuance scale of overseas urban investment bonds decreased by 70.33% month - on - month to 1.2218 billion yuan, and the weighted average issuance interest rate increased by 0.31BP to 5.88% [29]. - **Yield and credit spread**: The spot trading scale of urban investment bonds decreased year - on - year and month - on - month. The yield of urban investment bonds decreased overall, and the credit spreads of most key provinces narrowed [32]. 3.2 Credit Analysis - **Rating adjustment**: On May 19, 2025, Shanghai Brilliance Credit Rating & Investors Service Co., Ltd. upgraded the bond ratings of "G23 Nanhu 1" and "23 Nanhu Green Bond 01" of Jiaxing Nanhu Urban Construction Investment Group Co., Ltd. from AA+ to AAA, with a stable outlook [7]. - **Abnormal transactions**: 46 bonds of 39 urban investment entities had 70 abnormal transactions, with a scale of 252 million yuan. The scale and number of abnormal transactions decreased month - on - month [7]. 3.3 Early Redemption and Maturity Putback - In May, 62 urban investment companies early - redeemed the principal and interest of 73 bonds, with a scale of 1.3396 billion yuan, a month - on - month decrease of 46.34%. The maturity and putback scale of urban investment bonds in the second half of the year is 2.8 trillion yuan [7]. 3.4 Investment Strategy - Allocate high - quality enterprises in strong regions based on fundamentals and moderately extend the duration. For medium - and short - term duration allocation, focus on strong urban investment companies in key provinces with debt resolution benefits and weak - qualified urban investment companies in strong regions. Also, pay attention to new bond - issuing entities in the industrial transformation and integration of urban investment, especially those with labeled bonds such as science - and - technology and green bonds [6][45]. 3.5 Recent Policies and Hot Events - **Central policies**: In May, the central government introduced policies beneficial to the transformation and development of urban investment enterprises, including supporting the issuance of science - and - technology bonds, promoting urban renewal, reforming national economic development zones, and improving the modern enterprise system with Chinese characteristics [6][48]. - **Local policies**: Jilin proposed to accelerate the "withdrawal from the province", Xinjiang set a goal to clear financing platforms in 2025, Jiangsu supervised the replacement of implicit debts with special bonds, and Zhejiang issued special bonds for purchasing existing commercial housing [6].

Report Industry Investment Rating - No information provided on the report industry investment rating Core Viewpoints - In May 2025, the issuance rhythm of asset - backed notes slowed down month - on - month, but the secondary market trading was active. The launch of science and technology innovation bonds and the successful issuance of the first science and technology innovation asset - backed securities are conducive to building a financial system suitable for scientific and technological innovation and promoting the development of science and technology - based enterprises [3][21][22] Summary by Directory Issuance Situation - In May 2025, 44 asset - backed note products were issued, with a total issuance scale of 43.337 billion yuan. The number of issuances decreased by 14 and the scale dropped by 26.78% compared with the previous month, while the number increased by 13 and the scale grew by 104.06% compared with the same period of the previous year. Only 4 were publicly issued, and the rest were privately placed [3][4] - The top five initiating institutions in terms of issuance scale were SDIC Taikang Trust Co., Ltd. (6.164 billion yuan, 14.22%), CITIC Trust Co., Ltd. (5 billion yuan, 11.54%), China National Foreign Trade Trust Co., Ltd. and Huaxin International Trust Co., Ltd. (both 4 billion yuan, 9.23%), Beijing Jingdong Century Trading Co., Ltd. (2.89 billion yuan, 6.67%), and State Power Investment Corporation (2.783 billion yuan, 6.42%). The total issuance scale of the top ten initiating institutions was 31.669 billion yuan, accounting for 73.08% [4] - The underlying asset types mainly included personal consumer finance, accounts receivable, supply chain, subsidy payments, and micro - loans. Personal consumer finance products accounted for 52.74% of the scale with 24 issuances [7] - The highest single - product issuance scale was 2.783 billion yuan, and the lowest was 1.79 billion yuan. Products with a single - issuance scale of (0, 10] billion yuan had the largest number and scale, with 38 issuances accounting for 75.41% [9] - The shortest product term was 0.25 years, and the longest was 11.14 years. Products with a term of (0, 1] years had the largest number and scale, with 17 issuances accounting for 32.22% [10] - According to the issuance scale statistics of notes at each level, AAAsf - rated notes accounted for 89.72% [11] - The lowest issuance interest rate of one - year - around AAAsf - rated notes was 1.80%, the highest was 2.09%, and the interest rate center was around 1.86% [13] - In May 2025, 12 ABCP products were issued, with a total scale of 10.883 billion yuan, accounting for 25.11% of the ABN issuance scale, involving five types of underlying assets [17] Secondary Market Trading Situation - In May 2025, there were 391 secondary - market transactions of asset - backed notes, with a transaction amount of 37.496 billion yuan. The transaction amount increased by 9.83% month - on - month and 24.77% year - on - year, and the number of transactions increased by 17.07% month - on - month and 17.77% year - on - year [18] - The more active underlying asset types in the secondary - market trading were personal consumer finance, class REITs, micro - loans, accounts receivable, and supply chain, with transaction - amount proportions of 32.99%, 16.33%, 15.09%, 13.46%, and 8.23% respectively [18] Industry Dynamic Review - On May 7, 2025, the National Association of Financial Market Institutional Investors issued a notice to launch science and technology innovation bonds and build a "science and technology board" in the bond market. On May 26, the first science and technology innovation asset - backed securities was successfully issued, with a scale of 1.79 billion yuan and a coupon rate of 1.84% [21] - The launch of science and technology innovation bonds helps build a financial system suitable for scientific and technological innovation, and science and technology innovation asset - backed securities can further play the functions of revitalizing stock assets and broadening financing channels to empower the development of science and technology - based enterprises [22]

Report Summary 1. Investment Rating - No investment rating information is provided in the report. 2. Core Viewpoints - In May, Zhejiang issued special-purpose bonds worth 1753 million yuan for purchasing existing commercial housing as affordable housing, which will provide useful reference for other regions. The issuance scale of such bonds is expected to increase, but they face difficulties and potential pressure on returns [3]. - In May, the issuance and net financing scale of local government bonds increased month - on - month but decreased year - on - year. The issuance progress of new bonds was faster than last year but still lower than the average of the past three years. 16 provinces have completed the issuance of the second - batch replacement quota [4]. 3. Summary by Directory 3.1 Primary Market - In May, local government bond issuance was 77.9443 billion yuan, a year - on - year decrease of 13.74% and a month - on - month increase of 12.43%. Net financing was 55.4616 billion yuan, a year - on - year decrease of 12.64% and a month - on - month increase of 4.94%. From January to May, the cumulative issuance was 4.31 trillion yuan, a year - on - year increase of 52.93%, and the cumulative net financing was 3.71 trillion yuan, a year - on - year increase of 1.3 times [4]. - From January to May, special new special - purpose bonds issued exceeded 24.2384 billion yuan, with 9.8656 billion yuan issued in May. 29 provinces (excluding Guangdong and Shanghai) issued 162.9112 billion yuan of special refinancing bonds for replacing existing implicit debts, with 3.0168 billion yuan issued in May. 16 provinces completed the second - batch replacement issuance [6]. - In May, local government bond issuance was mainly new special - purpose bonds, with a scale of 44.3174 billion yuan, accounting for 56.86%. 22 provinces issued local government bonds, and Jiangsu had the largest issuance scale at 10.39 billion yuan [6]. - From January to May, the cumulative issuance of new general bonds was 35.1022 billion yuan, completing 43.9% of the annual quota. The cumulative issuance of new special - purpose bonds was 1.63 trillion yuan, completing 37.1% of the quota, faster than last year but still lower than the average of the past three years [6]. - In May, local government bond issuance was mainly 10 - year bonds. The issuance interest rate decreased month - on - month to 1.87%, and the issuance spread narrowed month - on - month to 10.69BP. Guangxi had the highest issuance interest rate, and Inner Mongolia had the largest issuance spread [8]. 3.2 Secondary Market - In May, the spot trading volume of local government bonds was 160.8804 billion yuan, a year - on - year increase of 13.36%. The short - end yield to maturity decreased overall, while the long - end yield to maturity increased overall [9]. 3.3 Repayment Situation - August is the peak of bond maturity this year. The interest payment scale in May is estimated to be around 15 billion yuan, a year - on - year increase of nearly 20%. The annual interest payment scale in 2025 may exceed 1.5 trillion yuan, a year - on - year increase of about 12% [10][12]. - The maturity scale from June to September is relatively large, and Henan, Zhejiang and other places have relatively high local government bond maturity scales this year [11].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The "15th Five - Year Plan" period will be a new turning point for the urban investment industry. Urban investment enterprises need to seize development opportunities, use relevant policies, and address long - standing issues such as low profitability, poor asset quality, high debt pressure, and heavy reliance on local government resources [3][4]. - In 2024, under the "package debt resolution" policy, urban investment enterprises showed some positive changes, but the substantial improvement of the overall fundamentals still needs further observation. Key provinces achieved certain debt - resolution results, but their profitability, investment, and financing capabilities were weaker than other regions, and the debt - repayment pressure was prominent [2][15]. - Urban investment enterprises in the process of transformation need to pay attention to issues such as insufficient profitability in the initial stage, low asset quality, and high debt pressure, and promote the smooth transition between old and new businesses [5][6]. 3. Summary by Relevant Catalogs Asset Side - The expansion speed of urban investment enterprises was lower than the growth rate of social financing, and assets were concentrated towards the top. The asset growth rate of urban investment enterprises in key provinces slowed down significantly. By the end of 2024, the total asset scale of urban investment enterprises reached 162.70 trillion yuan, with a year - on - year growth of 5.31%, lower than the social financing growth rate of 8% in 2024 [8][17]. - The liquidity of urban investment assets weakened. The scale of monetary funds decreased significantly, and the scale and proportion of accounts receivable increased. By the end of 2024, the total scale of monetary funds of urban investment enterprises was 7.59 trillion yuan, a year - on - year decrease of 8.65% [24]. - Due to investment constraints, infrastructure business was restricted, and the growth rate of inventory slowed down. The scale of construction - in - progress projects of urban investment enterprises in key provinces decreased. In 2024, the inventory growth rate of urban investment enterprises was only 3.24%, a significant decrease of 5.46 percentage points [30][33]. Liability Side - The growth rate of debt scale slowed down. The asset - liability ratio and the scale of interest - bearing debt of urban investment enterprises in key provinces decreased for the first time. By the end of 2024, the total liability scale of urban investment enterprises reached 101.13 trillion yuan, with a year - on - year growth of 6.33%, and the growth rate decreased by 5.19 percentage points compared with 2023 [38][40]. - The financing cost of urban investment enterprises increased slightly but was still in a downward channel. The cost in key provinces decreased more significantly but was still relatively high. In 2024, the median financing cost of urban investment enterprises was 5.16%, a slight increase of 9BP compared with 2023 [46]. - The scale and proportion of non - standard financing of urban investment enterprises "double - dropped", and the debt structure of urban investment enterprises in key provinces improved significantly. In 2024, the proportion of non - standard financing of urban investment enterprises dropped to 8.57%, a decrease of 1.19 percentage points [49]. Cash Flow - The net cash flow from operating activities turned positive for the first time in five years, and nearly 80% of urban investment enterprises in key provinces had positive cash flow net. In 2024, the net cash flow from operating activities of urban investment enterprises was 0.81 trillion yuan, turning positive for the first time in five years [12][53]. - The cash outflow from investment activities slowed down. Urban investment in key provinces was more restricted, but long - term equity investment improved. In 2024, the cash outflow from investment activities of urban investment enterprises was 8.72 trillion yuan, a year - on - year decrease of 4.49% [12][56]. - The cash inflow from financing activities was under pressure, and the net amount decreased. Urban investment financing in key provinces was more restricted. In 2024, the cash inflow from financing activities of urban investment enterprises was 29.98 trillion yuan, with a year - on - year growth of 5.27%, and the growth rate decreased significantly by 6.53 percentage points [13][61]. Debt - Repayment Ability - The debt - repayment ability of urban investment enterprises continued to decline, and urban investment enterprises in key provinces faced greater debt - repayment pressure. In 2024, the current ratio, the coverage ratio of monetary funds to short - term debt, and the EBITDA interest coverage ratio of all urban investment enterprises were 2.41, 0.30, and 2.72 respectively [65]. - The debt - repayment ability of entities facing the maturity or put - back of urban investment bonds in 2025 tended to weaken. From May to December 2025, the entities facing the maturity or put - back of urban investment bonds were mainly AAA - rated and municipal - level. The maturity pressure in key provinces such as Heilongjiang and Gansu was relatively large [69].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The inclusion of 9 credit - bond ETFs in the general pledge - style repurchase collateral list is a significant institutional breakthrough in the bond ETF pledge mechanism, which may enhance the market recognition and investment enthusiasm for credit - bond ETFs, improve the liquidity of the credit - bond market, and optimize the bond market ecosystem [3][8]. - The bond market shows a volatile trend. The issuance of credit bonds has warmed up, and the trading activity in the secondary market has increased. Bond yields show a differentiated trend, with credit spreads generally widening and rating spreads generally narrowing [6][7][35]. - The manufacturing PMI in May showed marginal improvement, but there was an imbalance in supply - demand recovery. Industrial enterprise profits continued to recover [12][13]. 3. Summary by Directory Market Hotspots - On May 29, 2025, China Settlement approved 9 credit - bond ETFs to be included in the general pledge - style repurchase collateral list. As of June 3, the scale of these 9 products exceeded 80 billion yuan, nearly 2.5 times the scale at the beginning of the year. Their secondary - market trading is active [3][8]. - The inclusion of credit - bond ETFs in the collateral range can make up for their shortcomings in liquidity management and financing support, transform them from single - function tools to composite products, and is expected to attract more long - term funds and promote the expansion of the credit - bond market [9][10]. - Since the beginning of this year, bond - type ETFs have expanded against the trend. The inclusion of credit - bond ETFs in the collateral system is a positive factor for the market and may be a key variable for the next - round expansion of credit - bond ETFs [10]. Macroeconomic Data - In May, the manufacturing PMI rose 0.5 percentage points to 49.5%, still in the contraction range but with marginal improvement. The production index returned above the boom - bust line, while the new - order index remained below it, indicating an imbalance in supply - demand recovery. The Caixin China Manufacturing PMI in May dropped to 48.3%, the lowest since October 2022 [12][13]. - From January to April, the profits of industrial enterprises above the designated size increased by 1.4% year - on - year, 0.6 percentage points faster than from January to March. In April, the profits increased by 3.0% year - on - year, 0.4 percentage points higher than in March [13]. Money Market - Last week, the central bank net - injected 656.6 billion yuan through open - market operations. The overnight and one - month pledged - style repurchase rates decreased by 8bp and 6bp respectively, while other term rates increased by 5 - 8bp. The 3 - month Shibor remained unchanged, and the 1 - year Shibor increased by 1bp, with the spread widening to 5bp [5][16]. Primary Market of Credit Bonds - Last week, the issuance of credit bonds warmed up, with a scale of 286.088 billion yuan, an increase of 44.777 billion yuan from the previous period. The cancellation of issuance also increased by 772 million yuan [21]. - By industry, the infrastructure investment and financing industry's issuance scale was 67.074 billion yuan, an increase of 28.569 billion yuan. The industrial bond issuance scale was 157.159 billion yuan, a decrease of 5.541 billion yuan. Most industries in industrial bonds showed net financing outflows [6][21]. - In terms of issuance costs, the average issuance rates of most bonds with different terms and ratings increased by 2 - 8bp, except for the 1 - year bonds of all grades, whose average issuance rates decreased by 12 - 15bp [21][32]. Secondary Market of Credit Bonds - Last week, the secondary - market trading volume of bonds was 8.655833 trillion yuan, and the average daily trading volume increased by 49.422 billion yuan to 173.1167 billion yuan, indicating increased trading activity [35][36]. - The yields of treasury bonds and policy - bank bonds showed a differentiated trend. The 10 - year treasury bond yield decreased by 5bp to 1.67%. Credit - bond yields fluctuated, with changes ranging from 1 - 10bp [35]. - Credit spreads generally widened by 1 - 12bp, and rating spreads generally narrowed by 1 - 10bp [35].

Group 1 - The report highlights that the credit bond issuance has increased, with a total issuance scale of 14,804.29 billion yuan in April, up by 2,392.84 billion yuan from the previous month [4][35] - The average issuance interest rates for most credit bonds have decreased, with the decline ranging from 15 to 77 basis points across various industries [4][40] - The technology innovation bonds have seen a significant increase in issuance, with 772.48 billion yuan issued in April, an increase of 453.21 billion yuan from the previous month [4][39] Group 2 - The report indicates that the rolling default rate in the bond market rose to 0.28% in April, an increase of 0.03 percentage points from the previous month, with one new defaulting entity in the real estate sector [6][18] - The manufacturing PMI for April was reported at 49%, down by 1.5 percentage points from the previous month, indicating weakened supply and demand in the manufacturing sector due to tariff impacts [4][26] - The report notes that the issuance scale of infrastructure investment and financing credit bonds was 4,521 billion yuan, a decrease of 600 billion yuan from the previous period [4][40]