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].