1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - The issuing guidance rates announced by the National Association of Financial Market Institutional Investors (NAFMII) during the period from March 16th to March 22nd showed a divergence, with most rates for medium - and short - term maturities decreasing and most for long - term maturities increasing, with an overall change range of -2 BP to 1 BP [1][51]. - The issuance scale of credit bonds continued to increase on a week - on - week basis and was at a historically high level. Corporate bonds remained at zero issuance, the issuance amount of private placement notes decreased, and the issuance amounts of other varieties increased. The net financing of credit bonds increased on a week - on - week basis [1][51]. - In the secondary market, the trading volume of credit bonds increased on a week - on - week basis, with the trading volume of corporate bonds decreasing and that of other varieties increasing [1][51]. - The yields of credit bonds declined overall, with a larger decline in the medium - and short - term [1][51]. - In terms of credit spreads, the medium - and short - term credit spreads of medium - and short - term notes and corporate bonds generally narrowed, while the long - term spreads widened; the 5 - year credit spread of urban investment bonds widened, and most spreads of other maturities narrowed [1][51]. - From an absolute return perspective, the relatively strong allocation demand will drive the credit bond market to continue its recovery. Although fluctuations and adjustments are inevitable under the influence of multiple factors, the conditions for a full - scale bear market in credit bonds are still insufficient. In the long run, future yields are still in a downward channel, and the idea of increasing allocation during adjustments is still feasible [1][51]. - From a relative return perspective, the compression space of credit spreads at all maturities is insufficient at present, and the cost - effectiveness of most varieties for allocation is not high. The coupon strategy in the current allocation should be cautious, while the trading strategy can be moderately optimistic. The key to bond selection is to focus on the trend of interest - rate bonds and the coupon value of individual bonds [1][51]. - The end - of - quarter factor may cause some disturbances. Considering the possible volatile market in the near future, it is necessary to coordinate and transform the allocation and trading strategies in line with the trend. Attention should also be paid to the effectiveness of growth - stabilizing policies, the impact of the equity market on the bond market, and the influence of changes in the capital market and supply - demand pattern on market sentiment [1][51]. - The central and local governments are continuously and actively optimizing real - estate policies, which have played a positive role in promoting the stabilization of the real - estate market. For real - estate bonds, investors with higher risk tolerance can consider early layout, focusing on enterprises with outstanding new financing and sales recovery, and balancing risks and returns. The focus of allocation should be on central and local state - owned enterprises with stable historical valuations and excellent performance, as well as high - quality private enterprise bonds with strong guarantees. Longer durations can be used to increase returns, and trading opportunities from the valuation repair of oversold real - estate enterprise bonds can also be appropriately explored [2][52][53]. - For urban investment bonds, the possibility of default is low, and they can still be a key allocation variety for credit bonds. The debt resolution has achieved remarkable results, and the reform and transformation of financing platforms are in the final stage. Attention can be paid to the reform and transformation opportunities of "entity - type" financing platforms [3][53]. 3. Summary by Directory 3.1 Primary Market Situation 3.1.1 Issuance and Maturity Scale - From March 16th to March 22nd, a total of 482 credit bonds were issued, with an issuance amount of 396.635 billion yuan, a week - on - week increase of 17.70%. The net financing of credit bonds was 92.633 billion yuan, an increase of 11.306 billion yuan on a week - on - week basis [12]. - By variety, corporate bonds had zero issuance with a net financing of -9.783 billion yuan, an increase of 0.999 billion yuan on a week - on - week basis; 182 corporate bonds were issued, with an issuance amount of 138.026 billion yuan, a week - on - week increase of 19.10%, and a net financing of 45.560 billion yuan, an increase of 28.919 billion yuan on a week - on - week basis; 148 medium - term notes were issued, with an issuance amount of 124.231 billion yuan, a week - on - week increase of 3.52%, and a net financing of 53.343 billion yuan, a decrease of 6.639 billion yuan on a week - on - week basis; 122 short - term financing bills were issued, with an issuance amount of 119.022 billion yuan, a week - on - week increase of 46.39%, and a net financing of 9.016 billion yuan, a decrease of 1.171 billion yuan on a week - on - week basis; 30 private placement notes were issued, with an issuance amount of 15.356 billion yuan, a week - on - week decrease of 22.38%, and a net financing of -5.503 billion yuan, a decrease of 10.802 billion yuan on a week - on - week basis [12]. 3.1.2 Issuance Interest Rates - The issuing guidance rates announced by the NAFMII showed a divergence, with most rates for medium - and short - term maturities decreasing and most for long - term maturities increasing, with an overall change range of -2 BP to 1 BP. By maturity, the rate change range for 1 - year varieties was -1 BP to 1 BP, for 3 - year varieties was -2 BP to 0 BP, for 5 - year varieties was -1 BP to 1 BP, and for 7 - year varieties was -2 BP to 1 BP. By rating, the rate change range for key AAA - rated and AAA - rated varieties was -1 BP to 1 BP, for AA + - rated varieties was 0 BP to 1 BP, for AA - rated varieties was -2 BP to -1 BP, and for AA - - rated varieties was -1 BP to 1 BP [13]. 3.2 Secondary Market Situation 3.2.1 Market Trading Volume - From March 16th to March 22nd, the total trading volume of credit bonds was 980.127 billion yuan, a week - on - week increase of 10.10%. The trading volumes of corporate bonds, corporate bonds, medium - term notes, short - term financing bills, and private placement notes were 17.686 billion yuan, 382.526 billion yuan, 358.574 billion yuan, 162.769 billion yuan, and 58.572 billion yuan respectively. The trading volume of credit bonds increased on a week - on - week basis, with the trading volume of corporate bonds decreasing and that of other varieties increasing [16]. 3.2.2 Credit Spreads - For medium - and short - term notes, most varieties' credit spreads widened. Specifically, the 1 - year AAA - rated variety's credit spread widened, while those of other varieties narrowed; for the 3 - year period, the credit spreads of AAA - rated and AA + - rated varieties widened, while those of other varieties narrowed; the 5 - year and 7 - year credit spreads widened [19]. - For corporate bonds, most varieties' credit spreads widened. Specifically, for the 1 - year and 3 - year periods, the credit spread of the AAA - rated variety widened, while those of other varieties narrowed; the 5 - year and 7 - year credit spreads widened [26]. - For urban investment bonds, the credit spreads of each variety showed mixed trends. Specifically, for the 1 - year and 7 - year periods, the credit spread of the AAA - rated variety widened, while those of other varieties narrowed; for the 3 - year period, the credit spreads of AAA - rated and AA + - rated varieties widened, while those of other varieties narrowed; the 5 - year credit spread widened [29]. 3.2.3 Term Spreads and Rating Spreads - For AA + medium - and short - term notes, the 3Y - 1Y term spread widened by 0.79 BP, the 5Y - 3Y term spread widened by 1.52 BP, and the 7Y - 3Y term spread narrowed by 1.65 BP. The 3Y - 1Y term spread was at a historically low - to - medium percentile, at the 25.8% percentile; the 5Y - 3Y term spread was at the 28.3% percentile; the 7Y - 3Y term spread was at the 35.0% percentile. In terms of rating spreads, the (AA - )-(AAA) spread of 3 - year medium - and short - term notes narrowed by 2.00 BP, the (AA)-(AAA) spread narrowed by 2.00 BP, and the (AA + )-(AAA) spread remained the same as the previous period. The (AA - )-(AAA) spread was at a historically low level, at the 0.6% percentile; the (AA)-(AAA) spread was at the 5.0% percentile; the (AA + )-(AAA) spread was at the 1.6% percentile [36]. - For AA + corporate bonds, the 3Y - 1Y term spread widened by 0.41 BP, the 5Y - 3Y term spread widened by 2.31 BP, and the 7Y - 3Y term spread widened by 2.39 BP. The 3Y - 1Y term spread was at a historically low - to - medium percentile, at the 27.1% percentile; the 5Y - 3Y term spread was at the 25.8% percentile; the 7Y - 3Y term spread was at the 33.8% percentile. In terms of rating spreads, the (AA - )-(AAA) spread of 3 - year corporate bonds narrowed by 2.00 BP, the (AA)-(AAA) spread narrowed by 2.00 BP, and the (AA + )-(AAA) spread narrowed by 2.00 BP. The (AA - )-(AAA) spread was at a historically low level, at the 0.1% percentile; the (AA)-(AAA) spread was at the 5.2% percentile; the (AA + )-(AAA) spread was at the 3.0% percentile [41]. - For AA + urban investment bonds, the 3Y - 1Y term spread widened by 0.40 BP, the 5Y - 3Y term spread widened by 1.07 BP, and the 7Y - 3Y term spread widened by 0.07 BP. The 3Y - 1Y term spread was at a historically low - to - medium percentile, at the 23.0% percentile; the 5Y - 3Y term spread was at the 20.4% percentile; the 7Y - 3Y term spread was at the 37.7% percentile. In terms of rating spreads, the (AA - )-(AAA) spread of 3 - year urban investment bonds narrowed by 2.00 BP, the (AA)-(AAA) spread narrowed by 2.00 BP, and the (AA + )-(AAA) spread narrowed by 1.00 BP. The (AA - )-(AAA) spread was at a historically low level, at the 2.1% percentile; the (AA)-(AAA) spread was at the 0.5% percentile; the (AA + )-(AAA) spread was at the 0.5% percentile [44]. 3.3 Credit Rating Adjustment and Default Bond Statistics 3.3.1 Credit Rating Adjustment Statistics - According to iFinD statistics, during the period from March 16th to March 22nd, the ratings (including outlooks) of 2 companies were adjusted, with 1 downgraded and 1 upgraded [48]. 3.3.2 Default and Extended - Maturity Bond Statistics - There were no defaults of credit bonds under any issuer during the period from March 16th to March 22nd. There were also no extended - maturity credit bonds under any issuer during this period [50]. 3.4 Investment Views - The same as the core views of the report, including the analysis of primary and secondary markets, yield, credit spreads, and investment strategies from absolute and relative return perspectives, as well as investment suggestions for real - estate bonds and urban investment bonds [1][51][52][53].

1. Report's Industry Investment Rating No information about the industry investment rating is provided in the report. 2. Core Viewpoints of the Report - During the period from March 2nd to March 8th, most of the issuance guidance rates announced by the National Association of Financial Market Institutional Investors (NAFMII) increased, with an overall change range of -1 BP to 6 BP. Due to the low - base effect, the issuance scale of credit bonds increased significantly on a month - on - month basis. Corporate bonds remained at zero issuance, while the issuance amounts of other varieties increased. The net financing of credit bonds increased, with corporate bond net financing decreasing and that of other varieties increasing. Corporate bond net financing was negative, while that of other varieties was positive. [1][11][55] - In the secondary market, the trading volume of credit bonds increased on a month - on - month basis, with the trading volume of each variety increasing. The yields of credit bonds all declined. The credit spreads of each variety were differentiated, showing a general widening trend at the short - to - medium end and a narrowing trend at the long end. In terms of quantiles, the spreads of most varieties were at historical lows, with the quantiles of 7 - year varieties being relatively high. [1][15][55] - From the perspective of absolute return, the relatively strong allocation demand will drive the credit bond market to continue its recovery. Although fluctuations and adjustments are inevitable under the influence of both positive and negative factors, the conditions for a full - scale bear market in the credit bond market are still insufficient. In the long run, future yields are still on a downward path, and the idea of increasing allocations during adjustments is still feasible. [1][55] - From the perspective of relative return, the compression space of credit spreads at each maturity is currently insufficient, and the cost - effectiveness of allocating most varieties is not high. The coupon strategy in the current allocation thinking should remain cautious, while the trading thinking can be moderately optimistic. When selecting bonds, the focus should still be on the changing trend of interest - rate bonds while paying attention to the coupon value of individual bonds. [1][55] - The central and local governments continue to actively optimize real - estate policies, and the supporting policies are continuously strengthening, actively releasing rigid and improved housing demand, which has played a positive role in promoting the stabilization of the real - estate market. Although the real - estate market is currently in the transition period between old and new models, with the effectiveness of various policies to stabilize the real - estate market, the market is moving towards stabilization. [2][58] - For real - estate bonds, the sales recovery process will have a significant impact on bond valuations. As the market shows signs of stabilization, funds with higher risk appetite can consider early layout, especially focusing on enterprises with outstanding performance in new financing and sales recovery. The allocation focus should still be on central and state - owned enterprises with stable historical valuations and excellent performance, as well as high - quality private - enterprise bonds with strong guarantees. [2][58] - For urban investment bonds, under the principle of coordinating development and security, the probability of default of urban investment bonds is very low, and they can still be a key allocation variety in the credit bond market. Under the strict supervision of promoting the clearance of local financing platforms in an effective and orderly manner, the reform and transformation of financing platforms are accelerating, and attention should be paid to the opportunities for the reform and transformation of "entity - type" financing platforms. [2][58] 3. Summary According to the Directory 3.1 Primary Market Situation 3.1.1 Issuance and Maturity Scale - From March 2nd to March 8th, a total of 334 credit bonds, including corporate bonds, corporate - issued bonds, medium - term notes, commercial paper, and private placement notes, were issued, with a total issuance amount of 263.087 billion yuan, a month - on - month increase of 177.64%. The net financing of credit bonds was 79.394 billion yuan, a month - on - month increase of 145.668 billion yuan. [11] - Specifically, corporate bonds had zero issuance, with a net financing of - 12.849 billion yuan, a month - on - month decrease of 10.344 billion yuan. Corporate - issued bonds had 127 issuances, with an issuance amount of 101.718 billion yuan, a month - on - month increase of 255.45%, and a net financing of 46.670 billion yuan, a month - on - month increase of 82.174 billion yuan. Medium - term notes had 102 issuances, with an issuance amount of 74.731 billion yuan, a month - on - month increase of 305.05%, and a net financing of 11.835 billion yuan, a month - on - month increase of 49.080 billion yuan. Commercial paper had 77 issuances, with an issuance amount of 68.448 billion yuan, a month - on - month increase of 51.53%, and a net financing of 29.020 billion yuan, a month - on - month increase of 15.901 billion yuan. Private placement notes had 28 issuances, with an issuance amount of 18.190 billion yuan, a month - on - month increase of 621.54%, and a net financing of 4.718 billion yuan, a month - on - month increase of 8.859 billion yuan. [11] 3.1.2 Issuance Interest Rates - Most of the issuance guidance rates announced by the NAFMII increased, with an overall change range of -1 BP to 6 BP. By maturity, the interest rate of 1 - year varieties changed from 0 BP to 2 BP, that of 3 - year varieties from 0 BP to 6 BP, that of 5 - year varieties from -1 BP to 3 BP, and that of 7 - year varieties from -1 BP to 2 BP. By rating, the interest rate of key AAA - rated and AAA - rated varieties changed from 0 BP to 2 BP, that of AA + - rated varieties from -1 BP to 4 BP, that of AA - rated varieties from 2 BP to 6 BP, and that of AA - - rated varieties from -1 BP to 4 BP. [13] 3.2 Secondary Market Situation 3.2.1 Market Trading Volume - From March 2nd to March 8th, the total trading volume of credit bonds was 915.999 billion yuan, a month - on - month increase of 76.45%. The trading volumes of corporate bonds, corporate - issued bonds, medium - term notes, commercial paper, and private placement notes were 17.907 billion yuan, 363.026 billion yuan, 328.115 billion yuan, 151.917 billion yuan, and 55.034 billion yuan respectively, with the trading volumes of all varieties increasing. [15] 3.2.2 Credit Spreads - For medium - and short - term notes, the credit spreads of each variety were differentiated. Specifically, the credit spreads of 1 - year and 3 - year varieties widened, while those of 5 - year and 7 - year varieties narrowed. [18] - For corporate bonds, the credit spreads of each variety were also differentiated. Specifically, the 1 - year credit spreads widened; for 3 - year varieties, the credit spreads of AA + - rated and above widened, while those of other varieties narrowed; the 5 - year and 7 - year credit spreads narrowed. [28] - For urban investment bonds, the credit spreads of each variety were differentiated. Specifically, the credit spreads of 1 - year and 3 - year varieties widened, while those of 5 - year and 7 - year varieties narrowed. [32] 3.2.3 Term Spreads and Rating Spreads - **For medium - and short - term notes**: In terms of term spreads, the 3Y - 1Y spread of AA + medium - and short - term notes widened by 0.28 BP, the 5Y - 3Y spread narrowed by 1.55 BP, and the 7Y - 3Y spread widened by 0.52 BP. Currently, the 3Y - 1Y spread is at a historical low, at the 19.8% quantile, the 5Y - 3Y spread is at a historical low, at the 18.4% quantile, and the 7Y - 3Y spread is at a low - to - medium historical level, at the 33.4% quantile. In terms of rating spreads, the spreads of (AA - )-(AAA), (AA)-(AAA), and (AA + )-(AAA) for 3 - year medium - and short - term notes remained the same as the previous period. Currently, (AA - )-(AAA) is at a historical low, at the 1.6% quantile, (AA)-(AAA) is at a historical low, at the 11.3% quantile, and (AA + )-(AAA) is at a low level, at the 4.0% quantile. [39] - **For corporate bonds**: In terms of term spreads, the 3Y - 1Y spread of AA + corporate bonds widened by 0.17 BP, the 5Y - 3Y spread narrowed by 0.04 BP, and the 7Y - 3Y spread narrowed by 0.69 BP. Currently, the 3Y - 1Y spread is at a low - to - medium historical level, at the 21.8% quantile, the 5Y - 3Y spread is at a historical low, at the 9.5% quantile, and the 7Y - 3Y spread is at a low - to - medium historical level, at the 24.8% quantile. In terms of rating spreads, the (AA - )-(AAA) spread of 3 - year corporate bonds narrowed by 2.00 BP, the (AA)-(AAA) spread narrowed by 2.00 BP, and the (AA + )-(AAA) spread narrowed by 1.00 BP. Currently, the (AA - )-(AAA) spread is at a historical low, at the 0.1% quantile, the (AA)-(AAA) spread is at a historical low, at the 7.4% quantile, and the (AA + )-(AAA) spread is at a historical low, at the 5.4% quantile. [45] - **For urban investment bonds**: In terms of term spreads, the 3Y - 1Y spread of AA + urban investment bonds widened by 1.32 BP, the 5Y - 3Y spread narrowed by 2.11 BP, and the 7Y - 3Y spread narrowed by 2.90 BP. Currently, the 3Y - 1Y spread is at a low - to - medium historical level, at the 20.2% quantile, the 5Y - 3Y spread is at a historical low, at the 8.3% quantile, and the 7Y - 3Y spread is at a low - to - medium historical level, at the 34.8% quantile. In terms of rating spreads, the (AA - )-(AAA) spread of 3 - year urban investment bonds narrowed by 0.01 BP, the (AA)-(AAA) spread widened by 0.99 BP, and the (AA + )-(AAA) spread widened by 0.99 BP. Currently, the (AA - )-(AAA) spread is at a historical low, at the 3.5% quantile, the (AA)-(AAA) spread is at a historical low, at the 1.4% quantile, and the (AA + )-(AAA) spread is at a historical low, at the 2.2% quantile. [48] 3.3 Credit Rating Adjustments and Default Bond Statistics 3.3.1 Credit Rating Adjustment Statistics - According to iFinD statistics, there were no company rating (including outlook) adjustments from March 2nd to March 8th. [52] 3.3.2 Default and Extended - Maturity Bond Statistics - In terms of bond defaults, according to iFinD statistics, there were no defaults of credit bonds issued by any issuer from March 2nd to March 8th. [53] - In terms of bond extensions, according to iFinD statistics, there were no extensions of credit bonds issued by any issuer from March 2nd to March 8th. [53] 3.4 Investment Views - The investment views are consistent with the core viewpoints, emphasizing the trends of the primary and secondary markets of credit bonds, the analysis from the perspectives of absolute and relative returns, and the investment suggestions for real - estate bonds and urban investment bonds. [1][55][58]

1. Report Industry Investment Rating No relevant information provided. 2. Core Viewpoints of the Report - During the period from February 9th to February 15th, most of the issuance guidance rates announced by the National Association of Financial Market Institutional Investors declined, with an overall change range of -4 BP to 0 BP. The issuance scale of credit bonds decreased month - on - month, corporate bonds remained at zero issuance, and the issuance amounts of other varieties decreased. The net financing of credit bonds decreased month - on - month, with an increase in corporate bond net financing and a decrease in the net financing of other varieties. Corporate bonds and short - term financing bills had negative net financing, while other varieties had positive net financing [1][11][59]. - In the secondary market, the trading volume of credit bonds increased slightly month - on - month. The trading amounts of corporate bonds and medium - term notes increased, while those of corporate bonds, short - term financing bills, and private placement bonds decreased. Most of the credit bond yields declined, and most of the credit spreads narrowed. In terms of quantiles, most spreads were at historical lows, with 7 - year varieties having relatively higher quantiles [1][16][59]. - From an absolute return perspective, the relatively strong allocation demand will drive the credit bond market to continue its recovery. Although fluctuations and adjustments are inevitable under the influence of multiple factors, the conditions for a full - scale bear market in credit bonds are still insufficient. In the long run, future yields are still in a downward channel, and the idea of increasing allocations during adjustments is still feasible. From a relative return perspective, the compression space of credit spreads at all tenors is insufficient at present, and the cost - effectiveness of most varieties for allocation is not high. The coupon strategy in the current allocation thinking should be cautious, while the trading thinking can be moderately optimistic. The key to bond selection is to focus on the trend of interest - rate bonds and the coupon value of individual bonds. Considering the possible volatile market in the near future, it is necessary to coordinate and transform allocation and trading strategies according to the trend. Attention should also be paid to the effectiveness of growth - stabilizing policies, the impact of the equity market on the bond market, and the influence of changes in the capital market and supply - demand pattern on market sentiment [1][59]. - The central and local governments have been continuously optimizing real estate policies, which has played a positive role in promoting the real estate market to stop falling and stabilize. As the real estate market is in the transition period between old and new models, with the effectiveness of real - estate - stabilizing policies, the market is moving towards stabilization. The next - stage goal is to build a new real - estate development model and promote high - quality development of the real - estate market. In the real - estate bond market, the sales recovery process will have a significant impact on bond valuations. Funds with higher risk appetite can consider early layout, focusing on enterprises with outstanding new financing and sales recovery. The focus of allocation is on central and state - owned enterprises with stable historical valuations and excellent performance, as well as high - quality private - enterprise bonds with strong guarantees. Longer durations can be used to increase returns, and trading opportunities from the valuation repair of oversold real - estate enterprise bonds can also be appropriately explored. For urban investment bonds, under the principle of coordinating development and security, the probability of default is low, and they can still be a key allocation variety for credit bonds. Under strict supervision, the reform and transformation of local financing platforms are accelerating, and opportunities for the reform and transformation of "entity - type" financing platforms should be noted [2][60][61]. 3. Summary by Directory 3.1 Primary Market Situation 3.1.1 Issuance and Maturity Scale - From February 9th to February 15th, a total of 167 credit bonds were issued, with an issuance amount of 139.043 billion yuan, a month - on - month decrease of 61.04%. The net financing of credit bonds was 33.904 billion yuan, a month - on - month decrease of 221.159 billion yuan. Corporate bonds had zero issuance and a net financing of - 1.266 billion yuan, an increase of 0.552 billion yuan month - on - month. Corporate bonds, medium - term notes, short - term financing bills, and private placement bonds all had a decrease in issuance amount and net financing, with corporate bonds and short - term financing bills having negative net financing [11]. 3.1.2 Issuance Interest Rates - Most of the issuance guidance rates announced by the National Association of Financial Market Institutional Investors declined, with an overall change range of -4 BP to 0 BP. By tenor, the 1 - year variety had an interest - rate change range of -3 BP to 0 BP, the 3 - year variety had a range of -3 BP to -1 BP, the 5 - year variety had a range of -2 BP to 0 BP, and the 7 - year variety had a range of -4 BP to -1 BP. By rating, the key AAA - rated and AAA - rated varieties had an interest - rate change range of -2 BP to 0 BP, the AA + - rated variety had a range of -4 BP to 0 BP, the AA - rated variety had a range of -3 BP to -1 BP, and the AA - - rated variety had a range of -3 BP to -2 BP [13]. 3.2 Secondary Market Situation 3.2.1 Market Trading Volume - From February 9th to February 15th, the total trading volume of credit bonds was 875.712 billion yuan, a month - on - month increase of 0.45%. The trading amounts of corporate bonds, corporate bonds, medium - term notes, short - term financing bills, and private placement bonds were 21.184 billion yuan, 341.892 billion yuan, 332.454 billion yuan, 130.102 billion yuan, and 50.080 billion yuan respectively. The trading volume of credit bonds increased slightly month - on - month, with the trading amounts of corporate bonds and medium - term notes increasing and those of corporate bonds, short - term financing bills, and private placement bonds decreasing [16]. 3.2.2 Credit Spreads - For medium - and short - term notes, most credit spreads narrowed. Specifically, the spreads of AAA - rated and AA + - rated varieties narrowed; for AA - rated varieties, the 1 - year spread narrowed, while the spreads of other tenors widened; the spreads of AA - - rated varieties widened. For corporate bonds, all varieties' credit spreads narrowed. For urban investment bonds, most credit spreads narrowed, with the 3 - year AA - - rated variety's spread widening and the spreads of other varieties narrowing [19][25][32]. 3.2.3 Term Spreads and Rating Spreads - For medium - and short - term notes with AA + rating, the 3Y - 1Y term spread widened by 1.00 BP, the 5Y - 3Y spread narrowed by 2.56 BP, and the 7Y - 3Y spread narrowed by 1.74 BP. The 3Y - 1Y spread was at a historical low (15.3% quantile), the 5Y - 3Y spread was at a low - to - medium historical level (23.8% quantile), and the 7Y - 3Y spread was at a low - to - medium historical level (35.1% quantile). In terms of rating spreads, the (AA - )-(AAA) spread of 3 - year medium - and short - term notes widened by 4.00 BP, the (AA)-(AAA) spread widened by 2.00 BP, and the (AA + )-(AAA) spread widened by 1.00 BP. The (AA - )-(AAA) spread was at a historical low (0.9% quantile), the (AA)-(AAA) spread was at a historical low (11.1% quantile), and the (AA + )-(AAA) spread was at a low level (1.3% quantile) [42]. - For AA + corporate bonds, the 3Y - 1Y term spread narrowed by 2.29 BP, the 5Y - 3Y spread narrowed by 1.65 BP, and the 7Y - 3Y spread narrowed by 0.84 BP. The 3Y - 1Y spread was at a historical low (9.7% quantile), the 5Y - 3Y spread was at a historical low (11.9% quantile), and the 7Y - 3Y spread was at a low - to - medium historical level (30.2% quantile). In terms of rating spreads, the (AA - )-(AAA) spread of 3 - year corporate bonds narrowed by 3.00 BP, the (AA)-(AAA) spread narrowed by 2.00 BP, and the (AA + )-(AAA) spread remained unchanged. The (AA - )-(AAA) spread was at a historical low (0.8% quantile), the (AA)-(AAA) spread was at a historical low (7.5% quantile), and the (AA + )-(AAA) spread was at a historical low (4.7% quantile) [49]. - For AA + urban investment bonds, the 3Y - 1Y term spread narrowed by 1.20 BP, the 5Y - 3Y spread narrowed by 0.75 BP, and the 7Y - 3Y spread narrowed by 2.60 BP. The 3Y - 1Y spread was at a historical low (14.1% quantile), the 5Y - 3Y spread was at a low - to - medium historical level (22.1% quantile), and the 7Y - 3Y spread was at a low - to - medium historical level (36.5% quantile). In terms of rating spreads, the (AA - )-(AAA) spread of 3 - year urban investment bonds widened by 2.00 BP, the (AA)-(AAA) spread remained unchanged, and the (AA + )-(AAA) spread remained unchanged. The (AA - )-(AAA) spread was at a historical low (3.6% quantile), the (AA)-(AAA) spread was at a historical low (0.3% quantile), and the (AA + )-(AAA) spread was at a historical low (0.3% quantile) [52]. 3.3 Credit Rating Adjustment and Default Bond Statistics 3.3.1 Credit Rating Adjustment Statistics - From February 9th to February 15th, a total of 4 companies had their ratings (including outlooks) adjusted, with 3 downgraded and 1 upgraded [56]. 3.3.2 Default and Bond Extension Statistics - No credit bonds of any issuer defaulted during the period from February 9th to February 15th. One issuer, Xiamen Yuzhou Hongtu Real Estate Development Co., Ltd., extended the maturity of its credit bond "H19 Yuzhou 1", with a bond balance of 1.075 billion yuan at the time of extension [58]. 3.4 Investment Views - The views are consistent with the core viewpoints of the report, emphasizing the trends in the primary and secondary markets of credit bonds, and providing investment suggestions from both absolute and relative return perspectives, as well as views on the real - estate bond and urban investment bond markets [1][59][60].

1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - During the period from February 2nd to February 8th, most of the issuance guidance rates announced by the National Association of Financial Market Institutional Investors increased, with an overall change range of -1 BP to 4 BP. The issuance scale of credit bonds increased month - on - month, corporate bonds remained at zero issuance, the issuance amounts of corporate bonds, medium - term notes, and private placement notes increased, while the issuance amount of commercial paper decreased. The net financing amount of credit bonds increased month - on - month, the net financing amount of commercial paper decreased, the net financing amounts of other varieties increased, and the net financing amount of corporate bonds was negative [1][60]. - In the secondary market, the trading volume of credit bonds continued to decline month - on - month. The trading volume of private placement notes increased, while the trading volumes of other varieties decreased. Most of the yields of credit bonds declined, and most of the credit spreads widened. In terms of quantiles, most of the spreads were at historical lows, and the quantiles of 7 - year varieties were relatively high [1][60]. - From an absolute return perspective, the relatively strong allocation demand will drive the credit bond market to continue its recovery. Although fluctuations and adjustments are inevitable under the influence of both positive and negative factors, the conditions for a comprehensive bear market in credit bonds are still insufficient. In the long run, the yields are still on a downward path, and the idea of increasing allocation during adjustments is still feasible. From a relative return perspective, the compression space of credit spreads at all tenors is insufficient at present, and the cost - effectiveness of most varieties for allocation is not high. The coupon strategy should be cautious in the current allocation thinking, and the trading thinking should be moderately optimistic. The key to bond selection is to keep an eye on the changing trend of interest - rate bonds and pay attention to the coupon value of individual bonds [1][60]. - The central and local governments continue to actively optimize real - estate policies, which have played a positive role in promoting the stabilization of the real - estate market. Although the real - estate market is still in the transition period between old and new models, it is moving towards stabilization. The subsequent policy rhythm and intensity are worth looking forward to. For real - estate bonds, investors with high risk appetite can consider early layout, focusing on enterprises with outstanding new financing and sales recovery, and balancing risks and returns. The focus of allocation is still on central and state - owned enterprises with stable historical valuations and excellent performance, as well as high - quality private enterprise bonds with strong guarantees. They can also appropriately bet on the trading opportunities brought by the valuation repair of bonds of over - sold real - estate enterprises [2][63]. - For urban investment bonds, under the principle of coordinating development and security, the probability of default is very low, and they can still be a key allocation variety for credit bonds. Under the strict supervision of the clearance of local financing platforms, the reform and transformation of financing platforms are accelerating. Opportunities for the reform and transformation of "entity - type" financing platforms can be concerned. With a coupon - oriented approach, appropriate positive actions can be taken. The allocation strategy can give priority to short - to medium - term credit sinking, and the trading strategy can still choose to extend the duration of medium - to high - grade bonds [3][63]. 3. Summary According to Relevant Catalogs 3.1 Primary Market Situation 3.1.1 Issuance and Maturity Scale - From February 2nd to February 8th, a total of 440 credit bonds were issued, with an issuance amount of 356.856 billion yuan, a month - on - month increase of 15.70%. The net financing amount of credit bonds was 255.063 billion yuan, an increase of 95.222 billion yuan month - on - month [12]. - By variety, corporate bonds had zero issuance with a net financing amount of - 1.818 billion yuan; corporate bonds issued 190 with an issuance amount of 144.4 billion yuan, a month - on - month increase of 57.73%, and a net financing amount of 122.621 billion yuan; medium - term notes issued 126 with an issuance amount of 110.337 billion yuan, a month - on - month increase of 32.30%, and a net financing amount of 87.862 billion yuan; commercial paper issued 90 with an issuance amount of 81.706 billion yuan, a month - on - month decrease of 31.91%, and a net financing amount of 35.325 billion yuan; private placement notes issued 34 with an issuance amount of 20.413 billion yuan, a month - on - month increase of 51.26%, and a net financing amount of 11.073 billion yuan [13]. 3.1.2 Issuance Interest Rates - Most of the issuance guidance rates announced by the National Association of Financial Market Institutional Investors increased, with an overall change range of -1 BP to 4 BP. By tenor, the interest rate change range of 1 - year varieties was 0 BP to 3 BP, 3 - year varieties was -1 BP to 3 BP, 5 - year varieties was -1 BP to 4 BP, and 7 - year varieties was -1 BP to 4 BP. By rating, the interest rate change range of key AAA - rated and AAA - rated varieties was -1 BP to 1 BP, AA + - rated varieties was -1 BP to 2 BP, AA - rated varieties was 3 BP to 4 BP, and AA - - rated varieties was 3 BP to 4 BP [14]. 3.2 Secondary Market Situation 3.2.1 Market Trading Volume - From February 2nd to February 8th, the total trading volume of credit bonds was 871.756 billion yuan, a month - on - month decrease of 6.58%. The trading volumes of corporate bonds, corporate bonds, medium - term notes, commercial paper, and private placement notes were 15.904 billion yuan, 354.344 billion yuan, 312.069 billion yuan, 131.161 billion yuan, and 58.278 billion yuan respectively. The trading volume of credit bonds continued to decline month - on - month, the trading volume of private placement notes increased, while the trading volumes of other varieties decreased [17]. 3.2.2 Credit Spreads - For medium - and short - term notes, all varieties' credit spreads widened. For enterprise bonds, most varieties' credit spreads widened, with the spreads of 1 - year AA - rated and AA - - rated, and 3 - year AA - - rated varieties narrowing. For urban investment bonds, most varieties' credit spreads widened, with the spreads of 3 - year AA - - rated, 5 - year AA - rated and AA - - rated varieties narrowing [20][29][37]. 3.2.3 Term Spreads and Rating Spreads - For AA + medium - and short - term notes, the 3Y - 1Y term spread narrowed by 2.69 BP, the 5Y - 3Y spread widened by 1.32 BP, and the 7Y - 3Y spread widened by 1.60 BP. In terms of rating spreads, the 3 - year (AA - )-(AAA) spread remained unchanged, the (AA)-(AAA) spread narrowed by 1.00 BP, and the (AA + )-(AAA) spread narrowed by 1.00 BP [45]. - For AA + enterprise bonds, the 3Y - 1Y term spread widened by 0.84 BP, the 5Y - 3Y spread narrowed by 1.00 BP, and the 7Y - 3Y spread narrowed by 0.73 BP. In terms of rating spreads, the 3 - year (AA - )-(AAA) spread narrowed by 4.00 BP, the (AA)-(AAA) spread narrowed by 1.00 BP, and the (AA + )-(AAA) spread remained unchanged [49]. - For AA + urban investment bonds, the 3Y - 1Y term spread narrowed by 0.83 BP, the 5Y - 3Y spread widened by 0.70 BP, and the 7Y - 3Y spread narrowed by 1.34 BP. In terms of rating spreads, the 3 - year (AA - )-(AAA) spread narrowed by 3.21 BP, the (AA)-(AAA) spread narrowed by 2.01 BP, and the (AA + )-(AAA) spread narrowed by 1.01 BP [52]. 3.3 Credit Rating Adjustment and Default Bond Statistics 3.3.1 Credit Rating Adjustment Statistics - According to iFinD statistics, there were no company rating (including outlook) adjustments during the period from February 2nd to February 8th [57]. 3.3.2 Default and Extended - Maturity Bond Statistics - According to iFinD statistics, there were no defaults or extended - maturity of credit bonds issued by any issuer during the period from February 2nd to February 8th [58]. 3.4 Investment Views - The same as the core views mentioned above, including the analysis of credit bonds, real - estate bonds, and urban investment bonds [1][2][3].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The trading atmosphere weakened this week, and the credit spreads widened slightly from a low level. The AA commercial and trade industry's credit spreads widened significantly, while the AA+ steel industry's credit spreads compressed significantly. The credit spreads of other industries and ratings fluctuated within 10BP. [2][4][6][27][45] - The net financing of traditional credit bonds increased this week, and the net financing of asset - backed securities increased by 58 billion yuan compared with last week. The issuance and repayment volumes of different types of bonds showed different trends. [4][12] - The credit bond trading volume decreased this week, and the turnover rate declined overall. The yields of credit bonds with different ratings and maturities fluctuated within 3BP compared with last week. [4][20][21] - There were 36 bond implicit ratings downgraded involving 8 entities this week, and the "Xiangyi You" bond issued by Shanghai Xiangyuan Investment Holding Co., Ltd. defaulted. [5][43] - The central bank conducted large - scale net cash withdrawals this week. In the future, the credit spreads of bank secondary and perpetual bonds may continue to compress. [6][45] 3. Summary by Relevant Catalogs 3.1 This Week's Credit Hot Events - On February 2, 2026, Anhui Small - loan Re - lending Co., Ltd. successfully issued two small public - offering corporate bonds, with a total issuance scale of 600 million yuan. This is the first public - offering corporate bond of a small - loan company in China, indicating increased regulatory recognition of the standardized financing of small - loan companies. [10] - On February 3, 2026, the "Opinions of the Central Committee of the Communist Party of China and the State Council on Anchoring Agricultural and Rural Modernization and Solidly Promoting Comprehensive Rural Revitalization" was released, proposing to innovate the investment and financing mechanism for rural revitalization and strictly control the new village - level debt. [11] 3.2 Primary Market 3.2.1 Net Financing Scale - This week, the net financing of credit bonds (excluding asset - backed securities) was 298.2 billion yuan, an increase of 55.5 billion yuan compared with last week. The net financing of asset - backed securities was 1.84 billion yuan, an increase of 58 billion yuan compared with last week. [12] - By product type, the net financing of urban investment bonds was 98.6 billion yuan, an increase of 49.2 billion yuan; the net financing of industrial bonds was 136.1 billion yuan, an increase of 18 billion yuan; the net financing of financial bonds was 63.5 billion yuan, a decrease of 11.6 billion yuan. [12] 3.2.2 Issuance Cost - This week, the weighted average issuance interest rates of AA urban investment bonds and industrial bonds remained in the range of 2.5% - 2.6%. The average issuance interest rate of AA+ industrial bonds rose above 2.3%, and the issuance interest rates of other credit bonds with different ratings and varieties were less than 2.2%. [17] 3.3 Secondary Market 3.3.1 Transaction Situation - In terms of trading volume, the trading volume of credit bonds (excluding asset - backed securities) decreased by 92.7 billion yuan compared with last week. The trading volume of urban investment bonds, industrial bonds, financial bonds, and asset - backed securities all decreased. [20] - In terms of turnover rate, the turnover rate of credit bonds decreased overall this week. The turnover rates of urban investment bonds, industrial bonds, financial bonds, and asset - backed securities all declined. [20] 3.3.2 Yield - This week, the yields of credit bonds with different ratings and maturities fluctuated within 3BP compared with last week. The yields of different - rated and different - term credit bonds showed different trends. [21] 3.3.3 Credit Spreads - Overall, the credit spreads of the AA commercial and trade industry widened significantly, and the credit spreads of the AA+ steel industry compressed significantly. The credit spreads of other industries and ratings fluctuated within 10BP. [27] - For urban investment bonds, the credit spreads of different maturities widened slightly this week. [33] - For industrial bonds, the credit spreads of different maturities fluctuated within 5BP this week. [38] - For bank capital bonds, the credit spreads of bank secondary and perpetual bonds with different maturities fluctuated within 5BP, and the short - term (1Y) and long - term (10Y) spreads compressed. [40] 3.4 This Week's Bond Market Public Opinion - This week, the implicit ratings of 36 bond items of 8 entities were downgraded, and the "Xiangyi You" bond issued by Shanghai Xiangyuan Investment Holding Co., Ltd. defaulted. [5][43] 3.5 Investment Suggestions - The central bank conducted large - scale net cash withdrawals this week. Overall, the credit spreads of the AA commercial and trade industry widened significantly, and the credit spreads of the AA+ steel industry compressed significantly. The credit spreads of other industries and ratings fluctuated within 10BP. [45] - The credit spreads of urban investment bonds widened slightly, the credit spreads of industrial bonds fluctuated within 5BP, and the credit spreads of bank secondary and perpetual bonds fluctuated within 5BP, with the short - term and long - term spreads compressing. [45] - In January 2026, the yields of bank secondary and perpetual bonds decreased significantly, and the excess spreads were still at a high level since the beginning of 2025. The credit spreads of bank secondary and perpetual bonds may continue to compress in the future. [45][46]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - Since the second half of 2025, the "anti-involution" policy has catalyzed the stabilization and recovery of commodity prices, and the fundamentals of some industries have shown signs of repair. For example, the non-ferrous metals industry has seen an upward shift in the price center of major metals under the multiple positive factors of continuous increase in policy support for stable growth, rapid expansion of downstream emerging industry demand, and steady improvement in domestic resource security capabilities. The profitability, operational capacity, and solvency of issuing entities have been enhanced. In 2026, the excess returns in the credit bond market may come from the value discovery of industries with fundamental repair. For the non-ferrous metals industry with fundamental repair, it is recommended to focus on allocating AA+/AAA-level central enterprises and regional leading state-owned enterprises and appropriately extend the duration, while also paying attention to avoiding the credit risks of bonds issued by small and medium-sized smelting and processing enterprises with low resource self-sufficiency rates and single industrial chain layouts [5][7][48] - Overall, this week, the credit spreads of most industries and ratings were compressed by less than 10BP, while the AA+ credit spread of the non-bank financial sector widened significantly by 20BP. In terms of urban investment bonds, the credit spreads of urban investment bonds with different maturities were compressed by 1-4BP compared with last week. In terms of industrial bonds, the short-term (1Y) credit spreads of industrial bonds widened significantly, while those above 1Y were mostly compressed to varying degrees. In terms of bank capital bonds, the short-term (within 1Y) spreads of bank perpetual and secondary capital bonds widened slightly, the 3Y spreads were significantly compressed, and the medium- and long-term (5-10Y) spreads were slightly compressed [6][47][48] 3. Summary According to the Directory 3.1 This Week's Credit Hot Events - On January 9th, the National Association of Financial Market Institutional Investors (NAFMII) issued a business reminder on further standardizing the issuance of debt financing instruments, emphasizing five aspects: distribution information entry, withdrawal reporting, subscription record-keeping, lead underwriting syndicate mechanism, and information disclosure quality. It is expected that in the short term (Q1 2026), the issuance efficiency of inter-bank bonds may decline, and the issuance difficulty of some weakly qualified issuers may increase. In the long term, the inter-bank bond issuance market will become more standardized and transparent, which is conducive to improving market liquidity and pricing efficiency [11][12][13] - On January 9th, the Guizhou Provincial People's Government issued policies to support the integrated development of industry, county prosperity, and people's well-being. In the short term, the policies will directly support county-level "Three Guarantees" and debt risk mitigation. In the long term, they will support the continuous improvement of local debts through industrial upgrading and fiscal revenue growth. For the existing platform debts in Guizhou, the policies strengthen the financing support for high-quality projects and force county-level platforms to transform into operating entities, which may further intensify regional credit differentiation [14][15] 3.2 Primary Market 3.2.1 Net Financing Scale - This week, the net financing of credit bonds (excluding asset-backed securities) was 115.3 billion yuan, an increase of 191.6 billion yuan compared with last week. The total issuance was 285.5 billion yuan, an increase of 209.2 billion yuan, and the total repayment was 170.3 billion yuan, an increase of 17.6 billion yuan. The net financing of asset-backed securities was 14.7 billion yuan, an increase of 15 billion yuan [16] - By product type, the net financing of urban investment bonds was 30.9 billion yuan, an increase of 37.5 billion yuan; the net financing of industrial bonds was 89.7 billion yuan, an increase of 144.5 billion yuan; and the net financing of financial bonds was -5.4 billion yuan, an increase of 9.6 billion yuan [16] 3.2.2 Issuance Cost - This week, the issuance volume of urban investment bonds and industrial bonds increased significantly, and the issuance rates of AA and AA+ decreased significantly compared with last week. Specifically, the average issuance rates of AA urban investment bonds and industrial bonds were in the range of 2.6-2.8%, the average issuance rates of AA+ urban investment bonds and industrial bonds were in the range of 2.2-2.3%, and the issuance rates of AAA-level bonds of different varieties were all below 2.3% [23] 3.3 Secondary Market 3.3.1 Transaction Volume - In terms of trading volume, the trading volume of credit bonds (excluding asset-backed securities) increased by 554.6 billion yuan compared with last week. Among them, the trading volume of urban investment bonds was 246 billion yuan, an increase of 139.5 billion yuan; the trading volume of industrial bonds was 329.6 billion yuan, an increase of 172.8 billion yuan; the trading volume of financial bonds was 498.8 billion yuan, an increase of 242.3 billion yuan. The trading volume of asset-backed securities was 16.2 billion yuan, an increase of 4.8 billion yuan [24] - In terms of turnover rate, the overall turnover rate of credit bonds increased compared with last week. Specifically, the turnover rate of urban investment bonds was 1.58%, an increase of 0.89 percentage points; the turnover rate of industrial bonds was 1.7%, an increase of 0.89 percentage points; the turnover rate of financial bonds was 3.21%, an increase of 1.56 percentage points. The turnover rate of asset-backed securities was 0.44%, an increase of 0.13 percentage points [25] 3.3.2 Yield - This week, the yields of 5Y credit bonds of different ratings widened slightly, while the yields of credit bonds of other ratings and maturities fluctuated by no more than 3BP compared with last week. Taking AA+ 5Y bonds of each variety as an example, the yields of different varieties all increased to varying degrees [27][28] 3.3.3 Credit Spread - Overall, the credit spreads of most industries and ratings were compressed by less than 10BP this week, while the AA+ credit spread of the non-bank financial sector widened significantly by 20BP. Specifically, the credit spreads of AA media, mining, commercial trade, and transportation industries were compressed by 7BP, 6BP, 7BP, and 6BP respectively; the credit spreads of AA+ building materials and machinery industries were compressed by 8BP and 10BP respectively; the credit spread of the AAA computer industry was compressed by 7BP. The credit spreads of other industries and ratings fluctuated by no more than 5BP [31] - **Urban Investment Bonds**: In terms of maturity, the credit spreads of urban investment bonds of different maturities were compressed by 1-4BP compared with last week. In terms of regions, the credit spreads of urban investment bonds in different regions were compressed to varying degrees [36][37] - **Industrial Bonds**: This week, the short-term (1Y) credit spreads of industrial bonds widened significantly, while those above 1Y were mostly compressed to varying degrees [40] - **Bank Capital Bonds**: This week, the short-term (within 1Y) spreads of bank perpetual and secondary capital bonds widened slightly, the 3Y spreads were significantly compressed, and the medium- and long-term (5-10Y) spreads were slightly compressed [43] 3.4 This Week's Bond Market Sentiment - This week, the implied ratings of 41 bond issues of 8 entities were downgraded, including 16 issues of AVIC Industry Finance Holdings Co., Ltd. and 10 issues of New Hope Wuxin Industrial Group Co., Ltd. The "21 Wantong 02" issued by Guangxi Wantong Real Estate Co., Ltd. was extended; the "H20 Zhengrong 2" issued by Zhengrong Real Estate Holdings Co., Ltd. defaulted substantially; Shandong Zhangqiu Blower Co., Ltd. was placed on the watch list, and its "Zhanggu Convertible Bond" was also placed on the watch list [4][45] 3.5 Investment Recommendations - This week, a total of 1,323.6 billion yuan of reverse repurchases matured in the open market, and the central bank conducted a total of 102.2 billion yuan of reverse repurchase operations, resulting in a net withdrawal of 1,221.4 billion yuan for the whole week. As of the close on Friday, DR001 closed at 1.28% [6] - For the non-ferrous metals industry with fundamental repair, it is recommended to focus on allocating AA+/AAA-level central enterprises and regional leading state-owned enterprises and appropriately extend the duration, while also paying attention to avoiding the credit risks of bonds issued by small and medium-sized smelting and processing enterprises with low resource self-sufficiency rates and single industrial chain layouts [7][48]

Summary of Key Points Core Viewpoint - The report highlights the current state of credit bond issuance and maturity in China, indicating a decrease in issuance and a mixed performance in net financing across different types of bonds [4][5]. Group 1: Credit Bond Issuance and Maturity - As of December 31, 2025, the total outstanding credit bond balance in China is 31.29 trillion yuan. In December 2025, a total of 1,089.23 billion yuan in credit bonds was issued, representing a month-on-month decrease of 17.19%. The total repayment amount was 912.56 billion yuan, resulting in a net financing of 176.67 billion yuan [4]. - The outstanding balance of local government financing bonds (城投债) is 15.37 trillion yuan. In December 2025, the issuance of local government bonds reached 371.72 billion yuan, which is a month-on-month decrease of 9.19% and a year-on-year decrease of 22.55%. The net financing amount for local government entities was 44.42 billion yuan [4]. - The outstanding balance of industrial bonds (产业债) is 15.92 trillion yuan. In December 2025, the issuance of industrial bonds was 717.52 billion yuan, showing a month-on-month decrease of 20.8% but a year-on-year increase of 22.17%. The net financing for industrial entities was 132.25 billion yuan [4]. Group 2: Credit Bond Transactions and Spreads - In December 2025, the transaction volume of local government bonds was 1,101.40 billion yuan, showing a month-on-month increase but a year-on-year decrease. The turnover rate for local government bonds was 7.17% [5]. - The transaction volume of industrial bonds in December 2025 was 1,473.46 billion yuan, with both month-on-month and year-on-year increases. The turnover rate for industrial bonds was 9.23% [5]. - The credit spreads for local government bonds across various ratings widened compared to the previous month, indicating increased risk perception. Similarly, the credit spreads for industrial bonds also widened across all ratings [5].

Report Industry Investment Rating No information provided in the given content. Core Viewpoints - The issuance guidance rates announced by the National Association of Financial Market Institutional Investors during the period from December 22 to December 28, 2025, showed a differentiated trend, with most high - grade rates declining and most medium - and low - grade rates rising, with an overall change range of - 3 BP to 2 BP [1][15][63]. - The issuance scale of credit bonds decreased compared with the previous period. Corporate bonds remained at zero issuance, the issuance amounts of corporate bonds and private placement notes decreased, while the issuance amounts of medium - term notes and commercial paper increased. The net financing of credit bonds decreased compared with the previous period [1][13][63]. - In the secondary market, the trading volume of credit bonds increased compared with the previous period. The trading volumes of corporate bonds, corporate bonds, medium - term notes, and private placement notes increased, while the trading volume of commercial paper decreased [1][19][63]. - The yields of most credit bonds declined during this period. The credit spreads of medium - and short - term notes, corporate bonds, and urban investment bonds were differentiated, with most 1 - year and 7 - year spreads widening and most 3 - year and 5 - year spreads narrowing [1][22][63]. - From the perspective of absolute return, the shortage of supply and relatively strong allocation demand will promote the continued recovery of credit bonds. In the long run, the yields are still in a downward channel, and the idea of increasing allocation during adjustments is still feasible. From the perspective of relative return, although the compression space of credit spreads at all tenors is insufficient, the probability of unilateral callback in the short term is also small. Therefore, it is still possible to achieve the coupon strategy through credit downgrade and extending the duration [1][63]. Summary by Directory 1. Primary Market Situation 1.1 Issuance and Maturity Scale - From December 22 to December 28, 2025, a total of 211 credit bonds were issued, with an issuance amount of 254.432 billion yuan, a 2.51% decrease compared with the previous period. The net financing of credit bonds was 42.433 billion yuan, a decrease of 18.343 billion yuan compared with the previous period [13]. - Corporate bonds had zero issuance, with a net financing of - 6.252 billion yuan, an increase of 0.498 billion yuan compared with the previous period. Corporate bonds issued 74 bonds, with an issuance amount of 49.363 billion yuan, a 46.55% decrease compared with the previous period, and a net financing of 15.757 billion yuan, a decrease of 29.511 billion yuan compared with the previous period. Medium - term notes issued 66 bonds, with an issuance amount of 109.469 billion yuan, a 30.15% increase compared with the previous period, and a net financing of 78.532 billion yuan, an increase of 37.169 billion yuan compared with the previous period. Commercial paper issued 60 bonds, with an issuance amount of 90.117 billion yuan, a 23.36% increase compared with the previous period, and a net financing of - 44.152 billion yuan, a decrease of 25.187 billion yuan compared with the previous period. Private placement notes issued 11 bonds, with an issuance amount of 5.483 billion yuan, a 52.24% decrease compared with the previous period, and a net financing of - 1.452 billion yuan, a decrease of 1.312 billion yuan compared with the previous period [13]. 1.2 Issuance Interest Rates - The issuance guidance rates announced by the National Association of Financial Market Institutional Investors were differentiated, with most high - grade rates declining and most medium - and low - grade rates rising, with an overall change range of - 3 BP to 2 BP. By tenor, the 1 - year variety had an interest rate change range of - 2 BP to 0 BP, the 3 - year variety had an interest rate change range of - 3 BP to 2 BP, the 5 - year variety had an interest rate change range of - 3 BP to 2 BP, and the 7 - year variety had an interest rate change range of - 2 BP to 1 BP. By grade, the key AAA - grade and AAA - grade varieties had an interest rate change range of - 3 BP to - 1 BP, the AA + - grade variety had an interest rate change range of - 1 BP to 2 BP, the AA - grade variety had an interest rate change range of 0 BP to 2 BP, and the AA - - grade variety had an interest rate change range of 0 BP to 1 BP [15]. 2. Secondary Market Situation 2.1 Market Trading Volume - From December 22 to December 28, 2025, the total trading volume of credit bonds was 1.030617 trillion yuan, a 7.72% increase compared with the previous period. Corporate bonds, corporate bonds, medium - term notes, commercial paper, and private placement notes traded 28.754 billion yuan, 446.075 billion yuan, 347.636 billion yuan, 145.597 billion yuan, and 62.555 billion yuan respectively [19]. 2.2 Credit Spreads - In medium - and short - term notes, the credit spreads of each variety were differentiated. The 1 - year credit spreads widened; among the 3 - year notes, the credit spreads of AA - grade and AA - - grade widened, while the spreads of AAA - grade and AA + - grade narrowed; the 5 - year credit spreads narrowed; among the 7 - year notes, the credit spread of AAA - grade narrowed, while the spread of AA + - grade widened [22]. - In corporate bonds, the credit spreads of each variety were differentiated. The 1 - year AAA - grade credit spread narrowed, while the spreads of other varieties widened; among the 3 - year notes, the credit spreads of AAA - grade and AA + - grade narrowed, while the spreads of AA - grade and AA - - grade widened; the 5 - year credit spreads narrowed; among the 7 - year notes, the credit spread of AAA - grade narrowed, while the spreads of other varieties widened [27]. - In urban investment bonds, the credit spreads of each variety were differentiated. The 1 - year credit spreads widened; the 3 - year credit spreads narrowed; among the 5 - year notes, the credit spreads of AAA - grade and AA + - grade narrowed, while the spreads of AA - grade and AA - - grade widened; among the 7 - year notes, the credit spread of AAA - grade narrowed, while the spreads of other varieties widened [37]. 2.3 Term Spreads and Rating Spreads - For AA + medium - and short - term notes, the 3Y - 1Y term spread narrowed by 1.20 BP, the 5Y - 3Y term spread narrowed by 3.20 BP, and the 7Y - 3Y term spread widened by 3.22 BP. The 3Y - 1Y term spread was at a low - to - middle historical percentile (21.6%), the 5Y - 3Y term spread was at a low - to - middle historical percentile (34.5%), and the 7Y - 3Y term spread was at a historical median (41.9%). In terms of rating spreads, the (AA - )-(AAA) spread of 3 - year medium - and short - term notes widened by 3.00 BP, the (AA)-(AAA) spread widened by 3.00 BP, and the (AA + )-(AAA) spread widened by 2.00 BP [47]. - For AA + corporate bonds, the 3Y - 1Y term spread narrowed by 3.69 BP, the 5Y - 3Y term spread widened by 3.12 BP, and the 7Y - 3Y term spread widened by 8.55 BP. The 3Y - 1Y term spread was at a historical low (12.2%), the 5Y - 3Y term spread was at a low - to - middle historical percentile (36.3%), and the 7Y - 3Y term spread was at a historical median (42.9%). In terms of rating spreads, the (AA - )-(AAA) spread of 3 - year corporate bonds widened by 6.00 BP, the (AA)-(AAA) spread widened by 6.00 BP, and the (AA + )-(AAA) spread remained unchanged from the previous period [52]. - For AA + urban investment bonds, the 3Y - 1Y term spread narrowed by 0.72 BP, the 5Y - 3Y term spread narrowed by 1.67 BP, and the 7Y - 3Y term spread widened by 2.25 BP. The 3Y - 1Y term spread was at a low - to - middle historical percentile (20.3%), the 5Y - 3Y term spread was at a low - to - middle historical percentile (31.2%), and the 7Y - 3Y term spread was at a historical median (46.8%). In terms of rating spreads, the (AA - )-(AAA) spread of 3 - year urban investment bonds narrowed by 1.00 BP, the (AA)-(AAA) spread widened by 1.00 BP, and the (AA + )-(AAA) spread remained unchanged from the previous period [54]. 3. Credit Rating Adjustment and Default Bond Statistics 3.1 Credit Rating Adjustment Statistics - From December 22 to December 28, 2025, a total of 2 companies had their ratings (including outlooks) adjusted, both of which were upgrades. They were Wenzhou Transportation Development Group Co., Ltd. and Guangxi Energy Group Co., Ltd. [60]. 3.2 Default and Extension Bond Statistics - There were no credit bond defaults during the period from December 22 to December 28, 2025. One issuer, Bohai Leasing Co., Ltd., had its credit bonds extended, namely "18 Bojin 03" and "18 Bozu 05", with a total bond balance of 823 million yuan at the time of extension [62]. 4. Investment Viewpoints - The overall idea is to continue to be optimistic about the credit bond market in the long term, but pay attention to short - term fluctuations. In terms of configuration, the coupon strategy can be moderately optimistic, and the trading strategy can be kept optimistic. When selecting bonds, focus on the trend of interest - rate bonds and the coupon value of individual bonds. At the same time, it is possible to achieve the coupon strategy through credit downgrade and extending the duration according to one's own capital characteristics, but pay attention to the rhythm [1][63].

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].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - This week, the credit spreads of the AAA electrical equipment industry compressed significantly compared to last week, while the credit spreads of other industries and ratings widened to varying degrees. For urban investment bonds, the credit spreads of those with a maturity over 10 years compressed slightly by 1BP, while the spreads of other maturities widened by 3BP. For industrial bonds, most of the industrial credit spreads continued to widen, with the short - end widening more significantly than the long - end. For bank capital bonds, the short - end spreads of bank Tier 2 and perpetual bonds within 1 year widened slightly, while the long - end spreads over 10 years compressed slightly [3][4][30]. - In 2026, for urban investment bonds, short - duration (within 2Y) sinking urban investment bonds can be used as a base position, and high - quality urban investment entities with a moderately extended duration (3 - 5Y) can be selected. For industrial bonds, high - quality central and state - owned enterprise industrial bonds can be used as a base position with an extended duration, and attention should be paid to industries with marginal improvements. For Tier 2 and perpetual bonds, trading opportunities of those with good liquidity (preferably 3 - 5Y AAA -) should be grasped, and attention should be paid to high - quality city commercial banks and rural commercial banks in economically developed areas and areas with advanced debt resolution progress [5][7][44]. 3. Summary by Related Catalogs 3.1 This Week's Credit Hot Events - On December 19th, the Shanghai Stock Exchange issued a notice allowing eligible overseas institutional investors to conduct bond repurchase business on the Shanghai Stock Exchange, providing them with standardized liquidity management tools [11]. - On December 15th, the National Association of Financial Market Institutional Investors launched a self - regulatory investigation into Postal Savings Bank of China for suspected violations in the underwriting and issuance of debt financing instruments [12]. - On December 15th, Guizhou Rural Commercial United Bank Co., Ltd. was approved to open. It acquired the shares of 16 rural commercial banks and 5 rural credit cooperatives, with an increased registered capital of 10.458 billion yuan and new shareholders including the Guizhou Provincial Department of Finance and China Kweichow Moutai Group Co., Ltd. [13]. 3.2 Primary Market 3.2.1 Net Financing Scale - This week, the net financing of credit bonds (excluding asset - backed securities) was 116.1 billion yuan, a decrease of 128.1 billion yuan compared to last week. The total issuance was 365.5 billion yuan, a decrease of 99.1 billion yuan, and the total repayment was 249.3 billion yuan, an increase of 29 billion yuan. The net financing of asset - backed securities was 20.9 billion yuan, a decrease of 27 billion yuan compared to last week [14]. - By product type, the net financing of urban investment bonds was 21.3 billion yuan, an increase of 500 million yuan; the net financing of industrial bonds was 70.9 billion yuan, a decrease of 44.7 billion yuan; and the net financing of financial bonds was 24 billion yuan, a decrease of 83.9 billion yuan [15]. 3.2.2 Issuance Cost - This week, the issuance rates of AA industrial bonds and urban investment bonds were adjusted to over 2.8%, while the average issuance rates of other bonds with different ratings and types were below 2.8%. Specifically, the issuance rates of AA industrial bonds and urban investment bonds increased by 45BP and 27BP respectively compared to last week, and the issuance rate of AA + financial bonds increased by 58BP [17]. 3.3 Secondary Market 3.3.1 Transaction Situation - In terms of trading volume, the trading volume of credit bonds (excluding asset - backed securities) decreased by 44.3 billion yuan compared to last week. By product type, the trading volume of urban investment bonds was 259.4 billion yuan, a decrease of 13.7 billion yuan; the trading volume of industrial bonds was 367.4 billion yuan, an increase of 13.2 billion yuan; the trading volume of financial bonds was 627.5 billion yuan, a decrease of 43.8 billion yuan. The trading volume of asset - backed securities was 25.5 billion yuan, an increase of 1 billion yuan [24]. - In terms of turnover rate, the turnover rate of credit bonds showed a mixed trend compared to last week. Specifically, the turnover rate of urban investment bonds was 1.66%, a decrease of 0.1 pct; the turnover rate of industrial bonds was 1.89%, an increase of 0.06 pct; the turnover rate of financial bonds was 4.05%, a decrease of 0.29 pct; the turnover rate of asset - backed securities was 0.67%, an increase of 0.03 pct [24]. 3.3.2 Yield - This week, the yields of credit bonds with different ratings and maturities fluctuated within 3BP compared to last week. For example, the yields of AA, AAA -, and AAA + credit bonds within 1 year decreased by 2BP, 2BP, and 1BP respectively; the yields of AA and AAA + credit bonds with a 5 - year maturity increased by 2BP and 1BP respectively, while the yield of AAA - credit bonds decreased by 1BP; the yields of AA, AAA -, and AAA + credit bonds with a maturity over 10 years decreased by 1BP, 1BP, and less than 1BP respectively [25]. 3.3.3 Credit Spreads - Overall, the credit spreads of the AAA electrical equipment industry compressed significantly by 14BP compared to last week, while the spreads of other industries and ratings widened to varying degrees. For example, the credit spreads of the AA + leisure service industry widened by 20BP, and the spreads of the AA + media and light manufacturing industries widened by 9BP [30]. - **Urban Investment Bonds**: By maturity, the credit spreads of urban investment bonds with a maturity over 10 years compressed slightly by 1BP, while the spreads of other maturities widened by 3BP. By region, the top five regions with the highest credit spreads of AA - rated urban investment bonds were Guizhou, Yunnan, Jilin, Shandong, and Sichuan; for AA + urban investment bonds, they were Guizhou, Inner Mongolia, Gansu, Shaanxi, and Yunnan; for AAA urban investment bonds, they were Liaoning, Yunnan, Shaanxi, Jilin, and Tianjin [32][34]. - **Industrial Bonds**: Most of the industrial credit spreads continued to widen, with the short - end widening more significantly than the long - end. For example, the credit spreads of 1 - year AAA -, AA +, and AA private industrial bonds widened by 4BP, 4BP, and 7BP respectively compared to last week; the spreads of 10 - year AAA -, AA +, and AA private industrial bonds widened by 2BP, 2BP, and 2BP respectively [36]. - **Bank Capital Bonds**: The short - end spreads of bank Tier 2 and perpetual bonds within 1 year widened slightly, while the long - end spreads over 10 years compressed slightly. For example, the credit spreads of 1 - year AAA -, AA +, and AA Tier 2 capital bonds widened by 4BP, 3BP, and 3BP respectively compared to last week, and the spreads of 10 - year AAA -, AA +, and AA Tier 2 capital bonds compressed by 3BP, 2BP, and 2BP respectively [39]. 3.4 This Week's Bond Market Negative News - This week, the implied ratings of bonds issued by five issuers, including Nanjing Zijin Financial Leasing Co., Ltd. and Beijing Tianheng Yuanxin Capital Investment Management Co., Ltd., were downgraded. The "H20 Tianying 3" issued by Wuhan Tianying Investment Group Co., Ltd. and the "Hongda Debenture" issued by Hongda Xingye Co., Ltd. defaulted in essence [4][40]. 3.5 Investment Recommendations - In 2026, for urban investment bonds, short - duration (within 2Y) sinking urban investment bonds can be used as a base position to obtain stable coupon income, and high - quality urban investment entities with a moderately extended duration (3 - 5Y) can be selected to increase portfolio returns. For industrial bonds, high - quality central and state - owned enterprise industrial bonds can be used as a base position with an extended duration to obtain stable coupon income, and attention should be paid to industries with marginal improvements. For Tier 2 and perpetual bonds, trading opportunities of those with good liquidity (preferably 3 - 5Y AAA -) should be grasped, and attention should be paid to high - quality city commercial banks and rural commercial banks in economically developed areas and areas with advanced debt resolution progress [44].