Group 1 - The real estate development sector experienced a decline of 1.13% on December 30, with Suzhou Gaoxin leading the drop [1] - The Shanghai Composite Index closed at 3965.12, showing a slight decrease of 0.0%, while the Shenzhen Component Index rose by 0.49% to 13604.07 [1] - Notable gainers in the real estate sector included Shouke Co., which saw a significant increase of 10.06% in its closing price [1] Group 2 - Suzhou Gaoxin reported a substantial decline of 7.15% in its closing price, with a trading volume of 1.64 million shares and a turnover of 1.126 billion yuan [2] - The overall net capital outflow from the real estate development sector amounted to 549 million yuan, while retail investors saw a net inflow of 473 million yuan [2] - The data indicates that major funds had a net inflow in several companies, such as Shouke Co. with a net inflow of 337 million yuan, while retail investors showed varying trends across different stocks [3]

Core Viewpoint - The Chinese stock market is on track for its best performance since 2017, driven by a broad rally across various sectors, particularly technology, materials, and healthcare [3][4][7]. Group 1: Market Performance - The MSCI China Index has risen approximately 28% this year, indicating a potential consecutive annual increase [4][7]. - The materials sector, led by gold mining companies, has seen the most significant gains, with the MSCI China Materials Index up about 108%, marking its best annual performance since 2003 [7][8]. - The healthcare sector has rebounded, with the MSCI China Healthcare Sub-Index rising around 50%, expected to achieve its best performance since 2020 [11]. Group 2: Sector Analysis - The technology sector has been a primary driver of the market rally, with significant contributions from artificial intelligence and popular commodities [4][7]. - The entertainment sector has also thrived, with the MSCI China Communication Services Index increasing over 40%, benefiting from a shift in consumer spending towards home entertainment [14]. - In contrast, the utilities and real estate sectors have lagged, with the MSCI China Utilities Sub-Index showing little change and the real estate sector only increasing by 1.4% [17][18]. Group 3: Key Drivers and Challenges - The rally is supported by global themes such as artificial intelligence and rising commodity prices, while a potential stimulus measure addressing housing issues could further enhance market performance [4][7]. - The ongoing housing crisis and deflationary pressures in China remain significant challenges, as evidenced by the poor performance of major real estate developers like Vanke Group, which has seen a 36% decline in stock price this year [17][18].

Core Viewpoint - Vanke's attempts to extend its domestic bonds have faced significant setbacks, highlighting a deep trust gap with creditors and exacerbating the company's short-term liquidity pressures [1][4]. Group 1: Bond Extension Attempts - On December 22, Vanke's proposal for the 20 billion yuan bond "22 Vanke MTN004" was rejected by creditors, only managing to secure a 30 trading day grace period [1][2]. - The subsequent meeting on December 26 for the 37 billion yuan bond "22 Vanke MTN005" resulted in a similar outcome, with all extension proposals failing and only the grace period being approved [2][3]. - The proposals for both bonds included multiple adjustments, but ultimately failed to meet the required 90% approval threshold from creditors [2][3]. Group 2: Proposal Details - The first proposal for "22 Vanke MTN004" demanded a 12-month extension of principal payments without any credit enhancement measures, receiving only 1.76% support [3]. - The second proposal attempted to address creditor concerns by offering normal interest payments and vague credit enhancement commitments, but still garnered only 3.19% support [3]. - The approved grace period extends the original 5 working days to 30 trading days, with the new maturity date set for January 28, 2026, but this is seen as a temporary measure [2][3]. Group 3: Market Reactions and Future Outlook - Industry experts indicate that the grace period is merely a stopgap and does not fundamentally resolve Vanke's issues, emphasizing the need for clear and executable credit enhancement measures to regain creditor trust [4][5]. - The lack of a solid repayment plan and ambiguous credit enhancement descriptions have led to repeated rejections of Vanke's proposals, indicating a cycle of failed negotiations [4][5]. - Comparisons with other bonds, such as "18 Ocean 01," show that Vanke's proposals lack the structured repayment plans that could potentially alleviate creditor concerns [5].

1. Report Industry Investment Rating The document does not provide the industry investment rating. 2. Core View of the Report The report analyzes the credit market from December 22 - December 26, 2025. It shows that the primary - market credit bond issuance and net financing increased, while the repayment decreased, and the asset - backed securities' net financing decreased. In the secondary market, the trading volume of credit bonds increased, and the yield and credit spread of different bonds fluctuated. There were also negative credit events. Investment suggestions are provided for different types of bonds in 2026 [3][5][6]. 3. Summary by Relevant Catalogs 3.1 This Week's Credit Hot Events - "22 Vanke MTN005" multiple extension proposals were not approved, and only the extension of the principal and interest payment grace period to 30 trading days was agreed. The grace period for the bond with a scale of 3.7 billion yuan expires on February 10, 2026. Vanke's debt disposal for public and non - standard debts may be different, and a lack of clear credit enhancement for public debts may lead to increased risks [9][10][12]. - The Shanghai Stock Exchange issued the "Shanghai Stock Exchange Bond Continuation Business Guide No. 5 - Corporate Bond Trustee Management", aiming to clarify trustee responsibilities, encourage active credit management, and improve business quality and efficiency [13]. 3.2 Primary Market 3.2.1 Net Financing Scale - Credit bond (excluding asset - backed securities) net financing was 213.8 billion yuan, an increase of 98.7 billion yuan. The total issuance was 421.3 billion yuan (up 56.9 billion yuan), and the total repayment was 207.5 billion yuan (down 41.8 billion yuan). Asset - backed securities' net financing was 20.6 billion yuan, a decrease of 2.9 billion yuan [15]. - By product type, the net financing of urban investment bonds was 28.6 billion yuan (up 8.4 billion yuan), industrial bonds was 68.3 billion yuan (down 2.6 billion yuan), and financial bonds was 117 billion yuan (up 92.9 billion yuan) [15]. - In terms of issuance and redemption quantity, urban investment bonds' issuance decreased by 14 and redemption decreased by 22; industrial bonds' issuance decreased by 42 and redemption increased by 7; financial bonds' issuance increased by 4 and redemption decreased by 17 [17]. 3.2.2 Issuance Cost - The issuance rate of AA financial bonds remained above 3%, while the rates of AA + urban investment bonds and AAA financial bonds increased slightly. Other bonds' rates decreased to varying degrees. Specifically, the rates of AA urban investment bonds and AA + financial bonds dropped by 53BP and 50BP respectively [21]. 3.3 Secondary Market 3.3.1 Trading Situation - The trading volume of credit bonds (excluding asset - backed securities) increased by 83.7 billion yuan. Urban investment bonds' trading volume was 285.6 billion yuan (up 26.2 billion yuan), industrial bonds was 364.7 billion yuan (down 2.7 billion yuan), and financial bonds was 687.7 billion yuan (up 60.2 billion yuan). Asset - backed securities' trading volume was 20.4 billion yuan (down 5.1 billion yuan) [22]. - Regarding turnover rate, the overall credit bond turnover rate showed mixed changes. Urban investment bonds' turnover rate was 1.83% (up 0.17pct), industrial bonds was 1.88% (down 0.02pct), financial bonds was 4.43% (up 0.37pct), and asset - backed securities was 0.52% (down 0.15pct) [23]. 3.3.2 Yield - The yield of credit bonds with different ratings and maturities fluctuated within 4BP. For example, the yields of 1 - year AA, AAA -, and AAA + credit bonds fluctuated within 1BP, and the yields of 5 - year AA, AAA -, and AAA + credit bonds compressed by 3BP, 4BP, and 2BP respectively [25]. 3.3.3 Credit Spread - Overall, the credit spread of the AA + textile and apparel industry compressed by 12BP, while the spreads of the AAA real estate and AA + pharmaceutical and biological industries widened by 7BP and 9BP respectively. Other industries' spreads fluctuated within 5BP [30]. - For urban investment bonds, the short - term (within 1Y) spread widened by 4BP, and other maturities' spreads fluctuated within 2BP. Regionally, most urban investment bond spreads in different regions widened slightly [32][34]. - For industrial bonds, the short - term credit spread widened significantly, while the spreads of bonds over 1Y compressed to varying degrees [38]. - For bank capital bonds, the spreads of bank Tier 2 and perpetual bonds within 5Y widened significantly, while the spreads of long - term bonds over 5Y fluctuated within 2BP [40]. 3.4 This Week's Bond Market Negative News Two entities' four bond implicit ratings were downgraded, and Bohai Leasing Co., Ltd.'s two bonds announced extensions [4][41]. 3.5 Investment Suggestions - For urban investment bonds, short - duration (within 2Y) bonds can be used as a base position, and high - quality urban investment entities with a duration of 3 - 5Y can be selected to increase returns [6]. - For industrial bonds, high - quality central and state - owned enterprise bonds can be used as a base position with a longer duration, and industries with marginal improvement should be focused on [6]. - For Tier 2 and perpetual bonds, trading opportunities of bonds with good liquidity (preferably 3 - 5Y AAA -) should be grasped, and bonds of high - quality city commercial banks and rural commercial banks in economically developed and debt - resolution - advanced regions should be considered [6].

Core Insights - Despite facing multiple operational challenges this year, the company is expected to deliver 117,000 units on time and with quality, supported by the government's housing delivery policies [1] - The company has successfully delivered 16,000 units 30 days ahead of schedule and approximately 5,000 units will be delivered ahead of the new year [1] - By 2025, the company has completed about 70% of the delivery volume required over the next two years, indicating that the peak delivery period has passed and subsequent delivery pressure will significantly decrease [1]

Report Industry Investment Rating - The investment rating for the US dollar bond industry is "Underperform the Market" [1][4] Core Viewpoints - US employment data continues to cool, with weak employment growth and a rising unemployment rate. In November, non - farm payrolls increased by about 64,000, and the unemployment rate rose unexpectedly to 4.6%, the highest since September 2021. In October, non - farm data weakened significantly, with a decrease of 105,000 jobs [1] - Inflation data unexpectedly cooled. The US CPI in November rose 2.7% year - on - year, and the core CPI rose only 2.6% year - on - year, the lowest since 2021, providing room for interest rate cut expectations next year [2] - The US GDP in the third quarter grew at an annualized quarterly rate of 4.3%, the fastest in two years, mainly driven by consumer and business spending resilience and more stable trade policies [2] - In the US dollar bond market, it is recommended to prioritize defense. Corely allocate medium - and short - duration investment - grade bonds (5 - 7 - year investment - grade bonds currently have a yield of about 4.3%) and moderately allocate TIPS while keeping low allocations for long - duration varieties over 10 years [3] Summary by Related Catalogs 1. US Macro - economy and Liquidity - Employment: US employment data shows a cooling trend. In November, non - farm payrolls increased slightly, and the unemployment rate reached a new high. In October, non - farm data was significantly weak, affected by the sharp reduction in federal government employment [1] - Inflation: The US CPI and core CPI in November showed significant cooling, providing room for future monetary policy adjustments and interest rate cut expectations next year [2] - GDP: The US GDP in the third quarter grew at an annualized quarterly rate of 4.3%, the fastest in two years, with strong consumer and business spending [2] 2. Exchange Rate - The report presents multiple figures related to non - US currency trends, Sino - US sovereign bond spreads, and the relationship between the US dollar index and other indicators, but no specific analysis content about exchange rates is provided [50][55][57] 3. Chinese - funded US Dollar Bonds - The report shows figures such as the return trends of Chinese - funded US dollar bonds since 2023 (by level and industry), the yield and spread trends of investment - grade and high - yield Chinese - funded US dollar bonds, and the returns in the past two weeks (by level and industry), but no specific analysis content is provided [63][65][67] 4. Rating Actions - In the past two weeks, the three major international rating agencies took 16 rating actions on Chinese - funded US dollar bond issuers, including 2 rating revocations, 6 rating upgrades, 5 rating downgrades, and 3 initial ratings. Specific rating actions for each issuer are listed in the table [71][72]

Policy News - The national housing and urban-rural construction work conference emphasized the promotion of a "current housing sales system" by 2026 to fundamentally prevent delivery risks, while also enhancing the supervision of pre-sale funds to protect buyers' rights [1] - Beijing has relaxed housing purchase restrictions for non-local and multi-child families, reducing the social security or tax payment period for purchasing homes within the Fifth Ring from 3 years to 2 years, and from 2 years to 1 year for areas outside the Fifth Ring [2] - In Henan, multi-child families can increase their housing provident fund loan limit by 20%, and those with one existing home can be recognized as first-time buyers for a new purchase [4] Market News - The one-year and five-year Loan Prime Rates (LPR) remain unchanged at 3.0% and 3.5%, respectively [5] - From January to November 2025, 25,800 old urban residential communities were newly started for renovation, exceeding the annual target by 800 [6] Real Estate Transactions - Haikai won a land parcel in Haidian District, Beijing, for 8.456 billion yuan, with a floor price of approximately 69,600 yuan per square meter [7] - Beijing Construction and Urban Development consortium acquired a land parcel in Fengtai District for a base price of 2.472 billion yuan, with a floor price of about 42,000 yuan per square meter [8] - Wuhan's land market saw a significant surge, with 41 parcels sold over three days, totaling approximately 22.488 billion yuan [9] Company News - Sunac China announced the comprehensive restructuring of approximately 9.6 billion USD in existing debt, effective December 23, 2025 [11] - Oceanwide Group completed a debt restructuring involving 476 million USD in secured notes and 212 million USD in zero-coupon convertible bonds [12] - Seazen Group reported that 85.48% of its creditors supported its debt restructuring plan, with a court hearing scheduled for March 19, 2026 [14]

Group 1 - Vanke's domestic bonds "22 Vanke MTN005" and "22 Vanke MTN004" extension proposals were rejected, with only the extension of the grace period being approved [1][2] - The grace period for the "22 Vanke MTN005" bond has been extended from 5 working days to 30 trading days, with the new deadline set for February 10, 2026 [2][4] - The total outstanding bond balance for Vanke's domestic debt is approximately 21.798 billion yuan, with the combined repayment amount for the "22 Vanke MTN005" and "22 Vanke MTN004" bonds reaching 5.871 billion yuan [4] Group 2 - The "22 Vanke MTN004" bond, issued on December 16, 2022, has a total issuance size of 2 billion yuan and a maturity date of December 15, 2025 [4] - As of October 31, 2025, Vanke and its subsidiaries have a total guarantee balance of 84.476 billion yuan, which accounts for 41.68% of the company's audited net assets attributable to shareholders as of the end of 2024 [5]

Group 1: Company News - Shengyuan Environmental Protection's subsidiary incurred a loss of approximately 46.92 million yuan from a private equity investment, representing a decline of 81.54% in net value, exceeding 10% of the company's audited net profit for the last fiscal year [1] - CATL announced plans to widely apply sodium batteries in various sectors including battery swapping, passenger vehicles, commercial vehicles, and energy storage in 2026, indicating a new trend of "sodium-lithium dual stars" [3] - Yicheng Optoelectronics received a hearing notice regarding a 140 million yuan capital recovery due to failure to fulfill investment agreements for a solar project in Anhui Province [12] - ST Huluwawa is under investigation by the CSRC for suspected information disclosure violations, with the chairman facing scrutiny for failing to timely disclose performance forecasts [14] - Longjiang Pharmaceutical Holdings is facing administrative penalties for financial fraud, with a proposed fine of 10 million yuan for the company and 31 million yuan for 14 responsible individuals [15] - Hainan Huatie was fined 8 million yuan for incomplete disclosure of significant contract terms and failure to timely report contract changes [17] - Vanke A extended the grace period for the repayment of its 2022 mid-term notes to 30 trading days, allowing for potential resolution of the repayment issue [18] - Jiga Development received a debt waiver of 378 million yuan from its controlling shareholder and related parties, which is unconditional and irrevocable [19] - Kweichow Moutai plans to reduce the supply of high-value products in 2026 and will stop using distribution methods, aiming to stabilize prices [20] Group 2: Industry Dynamics - The scale of China's ETFs has surpassed 6 trillion yuan, marking a growth of over 60% from the beginning of the year, with 1,381 ETFs now available [6] - Four major lithium iron phosphate companies announced production cuts of 35%-50% in January 2026, affecting approximately 50% of the market share [7] - Demand for lithium batteries in the new energy vehicle sector showed significant weakness in November, with production growth of only 23% compared to a 13% increase in retail [9]

Group 1 - The core point of the article is that Vanke has successfully extended the grace period for its fifth tranche of medium-term notes, allowing for a longer time frame for interest and principal repayment [1] - The grace period for the repayment of principal and interest has been extended from 5 working days to 30 trading days, with the new deadline set for February 10, 2026 [1] - If the principal and interest are fully paid within the 30 trading days grace period, it will not constitute a default by the issuer, and no penalties or additional interest will be incurred during this period [1]