Core Viewpoint - The announcement by the China Interbank Market Dealers Association regarding the low underwriting fees for bond issuance has sparked market attention and initiated a self-regulatory investigation into the practices of the involved institutions [1][3]. Group 1: Underwriting Fees and Market Reactions - The underwriting fees for the bond issuance by Guangfa Bank were reported as low as 700 RMB, raising concerns about the sustainability of such pricing in the market [1][2]. - Previous instances of low underwriting fees have been noted, including a case in September 2022 where fees ranged from 0.000046% to 0.0002%, which was also considered unusually low [2]. - The low fees have led to discussions on social media, highlighting the potential implications for the industry and the ability of firms to cover costs [1][2]. Group 2: Regulatory Response - The Dealers Association has expressed ongoing concern about the phenomenon of low-price competition in the bond underwriting sector, prompting them to issue a notification aimed at strengthening the norms for bond issuance and underwriting [3][4]. - Specific requirements were outlined for issuers and underwriters, including the need to conduct business based on market principles and to avoid practices that distort market prices [4]. - The Association emphasized the importance of maintaining investor rights and ensuring that underwriting fees do not fall below cost, as well as the need for transparency in the bidding process [4][5].

Core Viewpoint - The recent self-discipline investigation by the trading association has highlighted the phenomenon of "floor pricing" in bond underwriting, particularly in the case of the underwriting fees for the 2025-2026 secondary capital bond project of Guangfa Bank, which has drawn significant market attention [1][3]. Group 1: Low Pricing Phenomenon - The occurrence of three-digit underwriting fees is rare and reflects a broader trend of low-price competition within the industry [3]. - In the competitive bidding process for Guangfa Bank's bond issuance, the total underwriting fee for the six selected institutions was only 63,448 yuan, with some institutions quoting as low as 700 yuan [3][4]. - Historically, underwriting fees for bond projects typically do not fall below 1 million yuan, but recent trends show that actual fees have significantly decreased due to intensified competition [4][6]. Group 2: Market Dynamics - The underwriting fee rates for large state-owned and joint-stock banks can drop below 0.08%, primarily because these banks issue high-quality assets, making the issuance process simpler and less costly [7][8]. - Smaller banks often face higher costs for underwriting, with fees generally exceeding 1 million yuan, indicating a disparity in pricing strategies based on the size and quality of the issuing bank [8]. - The competitive landscape has led to a situation where institutions prioritize market share over profitability, resulting in a willingness to accept low fees to secure business [8][10]. Group 3: Regulatory Response - The trading association has issued guidelines to strengthen the norms for bond issuance and underwriting, emphasizing the need for market-based principles and fair treatment of all investors [10][11]. - There is a call for regulatory measures to establish minimum fee standards for bond issuance to prevent "involutionary" competition and ensure the quality of bond issuance [11][12]. - The industry is experiencing increased scrutiny from regulators, with a focus on compliance and the need for underwriting institutions to maintain a balance between cost control and regulatory adherence [11][12].

Core Viewpoint - A-share listed banks are actively distributing dividends, reflecting strong operational performance and compliance with regulatory requirements for cash dividends [1][2] Group 1: Dividend Distribution - As of July 13, 35 out of 42 A-share listed banks have completed their 2024 annual dividend distributions, including major state-owned banks and several joint-stock and city commercial banks [1] - The trend of high dividend payouts is driven by the implementation of new policies aimed at enhancing cash dividends and improving predictability in dividend distributions [1][2] Group 2: Dividend Yield - Approximately half of the A-share listed banks have a dividend yield exceeding 4%, with six banks, including China Merchants Bank and Postal Savings Bank, surpassing 7% [2] - The high dividend yield is attributed to the banks' stable long-term operations and a lower risk appetite among investors who prioritize steady returns [2] Group 3: Market Performance - The banking sector has seen a cumulative increase of 19.34% year-to-date, driven by the appeal of high dividend yields and increased cash dividend distributions [2] - Several banks are planning mid-term dividend proposals for 2025, further enhancing their investment attractiveness [2] Group 4: Future Outlook - The current market environment is expected to support a steady upward trend in bank stocks, bolstered by strong operational performance and high dividend levels [3] - The defensive nature of bank stocks, combined with favorable macroeconomic policies, suggests continued investment value despite external challenges [3]

Core Viewpoint - The article discusses the low underwriting fees for bond issuance by Guangfa Bank, raising concerns about "price-cutting" competition among underwriters in the bond market [1][2][25]. Group 1: Bond Issuance and Underwriting Fees - Guangfa Bank has not disclosed plans for the issuance scale of its 2025-2026 secondary capital bonds, but it issued two tranches totaling 26 billion yuan in 2024 [1][15]. - The underwriting fee for the bond issuance was reported to be as low as 700 yuan, which is considered a "floor price" in the industry [1][15]. - The underwriting service fee for the six selected underwriters totaled only 63,448 yuan, with a tax rate of 6% [5]. Group 2: Industry Response and Investigations - The China Securities Association has initiated a self-regulatory investigation into six main underwriters due to concerns over the low fees associated with Guangfa Bank's bond project [3][25]. - The association's investigation may impact the results of the recent bidding process for the bond underwriting [7]. - Previous instances of low pricing in bond underwriting have drawn regulatory scrutiny, indicating a pattern of "price-cutting" competition in the industry [21][22]. Group 3: Market Competition and Trends - The bond underwriting market is highly competitive, with leading firms dominating the rankings based on total underwriting amounts and numbers [20][21]. - The article highlights that the current trend of "price-cutting" among underwriters is a response to the fierce competition for market share [19][21]. - Regulatory bodies have previously issued guidelines to curb unreasonably low underwriting fees, emphasizing the need for fair competition in the market [24].

Core Viewpoint - The bond underwriting service fee has reached an unprecedented low, raising concerns in the industry, prompting the Trading Dealers Association to initiate a self-regulatory investigation into the involved underwriters [2][12]. Group 1: Investigation and Findings - The Trading Dealers Association announced a self-regulatory investigation into six main underwriters after noticing the low service fees in the bond underwriting for Guangfa Bank's 2025-2026 secondary capital bonds [2][12]. - The selected underwriters for Guangfa Bank's bond issuance were China Galaxy Securities, Guangfa Securities, Industrial Bank, Guotai Junan Securities, CITIC Securities, and CITIC Jianan Securities, with total service fees amounting to only RMB 63,448 [2][4]. Group 2: Service Fee Details - The estimated service fees for the selected underwriters were as follows: China Galaxy Securities RMB 700, Guangfa Securities RMB 1,050, Industrial Bank RMB 700, Guotai Junan Securities RMB 4,998, CITIC Jianan Securities RMB 35,000, and CITIC Securities RMB 21,000 [4][5]. - The extremely low service fees, particularly the RMB 700 from China Galaxy Securities and Industrial Bank, have been described as "floor price" [8]. Group 3: Industry Context - The bond underwriting market is highly competitive, with firms often engaging in price wars to secure underwriting deals, leading to a significant drop in service fees [10]. - The industry typically sees underwriting fees ranging from tens of thousands to hundreds of thousands of RMB, indicating that the current fees are significantly below the market norm [8][10]. Group 4: Regulatory Response - The Trading Dealers Association's investigation may impact the results of the current bidding process, as the association has previously expressed concerns over low-price competition in the bond underwriting sector [3][12]. - Regulatory bodies have issued multiple guidelines to curb the practice of underpricing in bond underwriting, emphasizing the need for fair competition and adherence to industry standards [11].

Core Viewpoint - The selection of underwriters for the 2025-2026 secondary capital bond issuance by Guangfa Bank has sparked market discussions, particularly due to the low underwriting fees proposed by some firms, leading to a self-regulatory investigation by the interbank market association [1][4][3]. Group 1: Selection of Underwriters - Guangfa Bank has publicly announced the selection results for the underwriting service providers for its 2025-2026 secondary capital bond issuance, with a maximum of six suppliers chosen [1][2]. - The selected underwriters include China Galaxy Securities, Guangfa Securities, Industrial Bank, Guotai Junan Securities, CITIC Securities, and CITIC Jianan Securities [4][2]. - The total underwriting service fee is set at RMB 63.48 million, with a 6% VAT invoice provided [2]. Group 2: Market Reactions and Investigations - The announcement of the low underwriting fees, particularly the "floor price" of RMB 700 quoted by some firms, has raised concerns in the market [4]. - Following the announcement, the interbank market association initiated a self-regulatory investigation into the six selected underwriters due to the market's reaction to the low fees [4][3]. - The association monitors compliance with self-regulatory rules and will take action if any violations are found during the investigation [4][5]. Group 3: Regulatory Environment - In June, the interbank market association issued a notice to strengthen the regulation of bond issuance and underwriting practices, emphasizing market-based principles and fair treatment of investors [5][6]. - The notice prohibits underwriters from quoting below cost and mandates compliance with payment obligations [6]. - The association has increased scrutiny on non-market-based bond issuance practices and has reported disciplinary actions against multiple institutions for violations [8][7].

Core Viewpoint - The article discusses the self-regulatory investigation initiated by the Trading Association against six main underwriters due to concerns over low underwriting fees in the bond issuance project for Guangfa Bank's 2025-2026 secondary capital bonds [1][6]. Group 1: Underwriting Fee Details - The total underwriting fee for the six selected financial institutions in the Guangfa Bank bond project is RMB 63,448, with the average income for each underwriter being just over RMB 10,000 [2][5]. - The individual underwriting fees for the six institutions are as follows: China Galaxy Securities RMB 700, Guangfa Securities RMB 1,050, Industrial Bank RMB 700, Guotai Junan Securities RMB 4,998, CITIC Jinshi RMB 35,000, and CITIC Securities RMB 21,000 [5]. Group 2: Regulatory Actions - The Trading Association launched a self-regulatory investigation on July 11, following market concerns regarding the low underwriting fees, which may violate self-regulatory rules [6]. - The association's notification on June 16 emphasized the need for fair market practices, prohibiting underwriters from quoting below cost and ensuring compliance with payment obligations [6]. Group 3: Market Context - The bond underwriting market has become increasingly competitive as securities firms shift focus to bond financing due to a downturn in equity financing [7]. - As of July 11, 90 securities firms have underwritten a total of 24,844 bonds, amounting to RMB 80,435.08 billion, compared to 18,730 bonds and RMB 66,518.02 billion in the same period last year [7]. - The top ten firms in the bond underwriting ranking are all large securities firms, with the top six firms holding a combined market share of 55% [7].

Core Viewpoint - The announcement by the China Interbank Market Dealers Association regarding the low underwriting fees for bond issuance has raised significant market concerns, prompting a self-regulatory investigation into the involved institutions [1][2]. Group 1: Low Underwriting Fees - The underwriting fees for the recent bond issuance by Guangfa Bank were alarmingly low, with some institutions, such as China Galaxy and Industrial Bank, quoting fees as low as 700 RMB [1][2]. - This is not an isolated incident; previous bond issuances have also seen similarly low fees, with rates dropping below 0.0002% in past cases, leading to market astonishment [2]. Group 2: Regulatory Response - The Dealers Association has expressed ongoing concern over the phenomenon of low-price competition in the bond underwriting sector, which includes issues like low underwriting fees and potential market price distortion [3][4]. - Specific requirements have been set forth by the Association to ensure fair practices, including the prohibition of pre-agreed bond issuance rates and the necessity for underwriters to avoid quoting below cost [4]. Group 3: Self-Regulatory Measures - The Association will implement self-regulatory management and regularly monitor the bond issuance and underwriting business, with potential disciplinary actions for violations of self-regulatory rules [5]. - Violations that breach legal or administrative regulations will be referred to relevant authorities, and such incidents will be recorded in integrity archives for public disclosure [5].

Core Viewpoint - The bond underwriting market is facing controversy due to extremely low service fees, particularly the 700 yuan fee set by China Galaxy Securities and Industrial Bank for underwriting services [1][2]. Group 1: Selected Underwriters and Fees - The selected underwriters for the 2025-2026 secondary capital bond issuance by Guangfa Bank include six firms, with service fees ranging from 700 yuan to 35,000 yuan [1][3]. - The total estimated service fee for the underwriting services is 63,448 yuan, with a VAT rate of 6% applicable [1]. Group 2: Regulatory Response - The interbank market trading association has initiated a self-regulatory investigation into the six selected underwriters due to concerns over low underwriting fees [3][4]. - The association had previously issued a notice to strengthen self-regulation regarding low-price underwriting and other non-compliant behaviors in the bond issuance market [4][5]. Group 3: Market Dynamics - The practice of low-price underwriting has been attributed to fierce competition among underwriting institutions, with some even willing to incur losses to secure deals [9]. - Guangfa Bank currently has 196 outstanding bonds with a total scale of 542.52 billion yuan, but has not issued any secondary capital bonds this year [9].

智通财经7月11日电，交易商协会前期发布《关于加强银行间债券市场发行承销规范的通知》（中市协 发〔2025〕114号），进一步强化对低价承销费、低价包销等不合规行为的自律管理。协会监测到，在 广发银行2025-2026年度二级资本债券项目中，中国银河证券股份有限公司、广发证券股份有限公司、 兴业银行股份有限公司、国泰海通证券股份有限公司、中信建投证券股份有限公司、中信证券股份有限 公司等6家主承销商中标承销费引发市场关注。依据《银行间债券市场自律处分规则》，交易商协会对 相关机构启动自律调查。若相关方在业务开展过程中存在违反自律规则的情况，将依据有关规定予以自 律处理。 交易商协会对6家主承销商启动自律调查 ...