Mei Ri Jing Ji Xin Wen·2025-07-11 15:53Core 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].