Investment Rating - The report does not explicitly state an investment rating for the credit bond industry Core Insights - The report discusses the challenges of achieving excess returns in credit bond investments due to a low interest rate and low credit spread environment, emphasizing the need for effective investment strategies [5] - It outlines a framework for analyzing credit bonds, including market segmentation, historical performance during "asset scarcity" phases, and a five-factor model for credit spreads [5][7] - The report highlights the rapid expansion of the Chinese credit bond market, with total outstanding credit bonds reaching CNY 46.99 trillion by July 2025, of which non-financial credit bonds account for CNY 31.96 trillion [13][14] Summary by Sections 1. Overview of the Chinese Credit Bond Market - The credit bond market in China has expanded significantly since 2009, with a notable increase in the variety of products available [11][13] - As of July 2025, the total balance of credit bonds is CNY 46.99 trillion, with non-financial credit bonds making up 68% of this total [13][14] 2. Analysis Framework for Credit Bond "Asset Scarcity" - The report analyzes four phases of "asset scarcity" since 2015, identifying key characteristics and predictive indicators for investors [5][7] 3. Historical Review of Credit Spreads - A historical review of credit spreads since 2008 reveals significant fluctuations, with a focus on the factors influencing these changes [5][7] 4. Research Framework for Credit Spreads - The report presents a five-factor model for analyzing credit spreads, noting that while the factors remain the same, the focus has shifted in the current market context [5][7] 5. Common Investment Strategies in the Credit Bond Market - The report discusses various investment strategies, including duration management, credit selection, leverage operations, and tactical trading, which are crucial for navigating the current low spread environment [5][7]

Group 1 - In August, the overall trading activity in the secondary bond market decreased, with a significant contraction in credit bond trading and a narrow fluctuation in credit spreads [1][3] - The total transaction amount in the bond secondary market for August was 372,335.79 billion, representing a year-on-year increase of 17.28% but a month-on-month decrease of 10.06% [1] - The trading volume of credit bonds in August was 74,448.61 billion, showing a year-on-year increase of 10.09% but a month-on-month decline of 14.27% [3] Group 2 - The trading characteristics of credit bonds indicate a trend of credit quality downgrading and duration shortening, with an increase in the popularity of convertible bonds [3] - The transaction amount of urban investment bonds decreased by 12.58%, showing a similar trend of credit quality downgrading, albeit to a lesser extent [3] - The overall credit spread exhibited a trend of first narrowing and then expanding, remaining at a low level for the year [3][4] Group 3 - As of August 29, the median credit spreads for various industries showed significant variation, with home appliances and real estate having the highest spreads at 163.96 bp and 101.10 bp respectively [4] - The home appliance industry experienced a substantial widening of credit spreads by 99.97 bp, attributed to intensified competition [4] - The outlook for the credit bond market suggests a potential recovery in trading activity after a brief consolidation, although the economic recovery remains to be validated by more data [5]

1. Report Industry Investment Rating No information provided in the content. 2. Core Views of the Report - Overall, as of the end of August 2025, the balance of outstanding credit bonds in China was 30.35 trillion yuan. In August 2025, the issuance of credit bonds decreased month - on - month, with a net financing of 519.25 billion yuan [1][9]. - In August 2025, the trading volume and turnover rate of both urban investment bonds and industrial bonds decreased both month - on - month and year - on - year, and the credit spreads of all levels of urban investment and industrial bonds widened compared with the previous month [2][36][40]. 3. Summary According to the Directory 3.1 Credit Bond Issuance and Maturity 3.1.1 Credit Bond Issuance - As of the end of August 2025, the balance of outstanding credit bonds was 30.35 trillion yuan. From August 1 to August 31, 2025, the issuance of credit bonds was 1120.493 billion yuan, a month - on - month decrease of 7.94%, with a total repayment of 1068.568 billion yuan and a net financing of 519.25 billion yuan [1][9]. - **Urban Investment Bonds**: As of the end of August 2025, the balance of outstanding urban investment bonds was 15.32 trillion yuan. In August 2025, the issuance was 499.695 billion yuan, a month - on - month increase of 19.14% and a year - on - year decrease of 2.48%, with a net financing of 11.21 billion yuan. Regionally, Jiangsu had the highest issuance, followed by Shandong, Zhejiang, and Chongqing. Ratings - wise, AA + and AAA - rated urban investment bonds accounted for a relatively high proportion [10][13][20]. - **Industrial Bonds**: As of the end of August 2025, the balance of outstanding industrial bonds was 15.03 trillion yuan. In August 2025, the issuance was 620.798 billion yuan, a month - on - month decrease of 22.19% and a year - on - year decrease of 14.51%, with a net financing of 508.05 billion yuan. By industry, the utility sector had the highest issuance, and in terms of net financing, the utility and oil and petrochemical sectors had large negative net financing amounts [21][24][26]. 3.1.2 Credit Bond Maturity - **Urban Investment Bonds**: From September to December 2025, Jiangsu, Shandong, Zhejiang, and Sichuan had relatively large maturity scales of urban investment bonds [27]. - **Industrial Bonds**: From September to December 2025, the utility, non - banking finance, building decoration, transportation, and real estate sectors had relatively large maturity scales of credit bonds [32]. 3.2 Credit Bond Trading and Spreads 3.2.1 Credit Bond Trading - **Urban Investment Bonds**: In August 2025, the trading volume of urban investment bonds was 914.612 billion yuan, with a turnover rate of 5.97%, showing both month - on - month and year - on - year decreases [36]. - **Industrial Bonds**: In August 2025, the trading volume of industrial bonds was 1268.887 billion yuan, with a turnover rate of 8.44%, showing both month - on - month and year - on - year decreases [40]. 3.2.2 Credit Bond Spreads - **Urban Investment Bonds**: In August 2025, the credit spreads of all levels of urban investment bonds widened compared with the previous month. Regionally and by rating, different regions and ratings had different spread levels and changes [42][46]. - **Industrial Bonds**: In August 2025, the credit spreads of all levels of industrial bonds widened compared with the previous month. By industry and rating, different industries and ratings had different spread levels and changes [48][52].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In August, the "stock - bond seesaw" effect was significant. Interest rates first declined and then rose. Credit bond yields generally followed the upward trend of interest - rate bonds. Short - duration varieties were more resistant to decline, while medium - and long - duration ones were weaker. Looking ahead to September, credit bonds still need defensive strategies [1][11][12]. - After the adjustment in August, some bank capital bonds have fallen to show relative value. For example, 3 - year AA and above second - tier capital bonds are oversold, and 4 - 5 - year large - bank capital bonds also have certain value for accounts with different liability characteristics [29][33][37]. 3. Summary According to the Directory 3.1 High - Coupon Short - Term Bonds as Shields, Oversold Perpetual and Second - Tier Capital Bonds as Spears 3.1.1 Credit Bond Defense with Short - and Medium - Duration - In August, the "stock - bond seesaw" effect was prominent. Short - end bonds outperformed long - end ones. Credit bond yields generally rose with interest - rate bonds. Short - duration credit bonds were more resistant to decline, and institutions further shortened the duration to within 3 years. The net buying scale of credit bonds decreased, and the trading activity also declined [1][11][12]. - In September, credit bonds need defense. Bank wealth - management scale usually declines at the end of the quarter, reducing the demand for credit bonds. Credit spreads are at a relatively low level, and institutions will pay more attention to controlling drawdowns when investing in credit bonds [16]. - There are two defensive ideas for credit bonds. One is to select high - coupon individual bonds within 3 years. The other is to appropriately allocate defensive varieties such as 1Y inter - bank certificates of deposit and 2Y commercial financial bonds, which have certain cost - effectiveness compared with medium - and short - term notes of the same term [3][19][22]. 3.1.2 Bank Capital Bonds: Opportunities Arising from Declines - In August, the yields of bank capital bonds generally rose, and spreads widened. After the adjustment, some varieties showed relative value. For example, 3 - year AA and above second - tier capital bonds were oversold, and the yields of 3 - year AA second - tier capital bonds were equivalent to those of 3 - year AA perpetual bonds [28][29][30]. - The yields of 4 - 5 - year large - bank capital bonds rose significantly in August. As the decline deepened, insurance, wealth - management, and other asset - management products increased their allocation. For accounts with stable liability ends, they are still cost - effective coupon assets. For accounts with unstable liability ends, it is recommended to follow the interest - rate bond market for right - side layout [33][36][37]. 3.2 Urban Investment Bonds: Supply Recovery, Short - End and Low - Rating Bonds Resistant to Declines - In August, the net financing of urban investment bonds was positive and increased year - on - year but decreased month - on - month. The issuance of long - duration bonds decreased, and the weighted average issuance interest rate increased. The net financing performance varied by province [39]. - The yields of urban investment bonds generally rose in August. Short - end and low - rating bonds were more resistant to decline, while 10 - year ultra - long - term bonds were the weakest. Credit spreads showed differentiation [45]. - The trading activity of urban investment bonds was not high in August. The proportion of TKN and low - valuation transactions decreased compared with July. Short - duration bonds had an increase in trading volume, while 3 - 5 - year bonds had weaker trading [51]. 3.3 Industrial Bonds: Supply Contraction, Yields Generally Rising - In August, the issuance and net financing of industrial bonds decreased year - on - year. The issuance sentiment weakened, and the issuance proportion of short - duration bonds within 1 year decreased, while the proportion of 1 - 3 - year bonds increased. The issuance interest rates rose across the board, with medium - and long - duration bonds having a larger increase [54]. 3.4 Bank Capital Bonds: Net Financing Turns Negative, Trading Sentiment is Weak No detailed content provided in the given text for this part other than the title. It can be inferred from the previous content that in August, the net financing of bank capital bonds may have turned negative, and the trading sentiment was weak as the yields generally rose and spreads widened, and the relative performance was inferior to that of general credit bonds [28].

Core Viewpoint - The recent actions of the Trump administration regarding capital participation by certain U.S. companies have introduced more "policy factors" into the market, leading investors to consider whether the U.S. is entering an era of industrial policy [1] Group 1: Policy Implications - If the Trump administration expands its capital participation plans, "policy factors" will have a greater impact on asset pricing in the U.S. market [1] - The relationship between companies involved in capital participation and the U.S. government is expected to reduce tail risks, resulting in a downward shift in the credit spread for related firms [1] Group 2: Equity Market Effects - Initially, related equity assets may reflect positive impacts from policy announcements; however, governance constraints, limitations on dividends and buybacks, and increasing uncertainty regarding U.S. government regulations may cap the upper limit of stock price valuations for these companies [1]

Core Viewpoint - The bond pricing mechanism is becoming distorted due to a combination of optimistic economic sentiment and an environment of "excess funds and scarce assets," leading to historically low compensation required by bond investors for taking on default risk [1][3]. Group 1: Bond Market Dynamics - The credit spread between high-risk assets and safe assets like U.S. Treasuries is narrowing globally, with the risk premium for investment-grade corporate bonds dropping to 81 basis points, close to the lowest level since 2007 [3]. - The absolute yield of bonds is attracting institutional investors such as pension funds and insurance companies, who are seeking to lock in relatively attractive returns [1][3]. - The phenomenon of "yield chasing" is evident as investors pursue higher coupon yield assets, extending their focus from corporate bonds to emerging market currencies [1][3]. Group 2: Investor Sentiment and Behavior - The "Fear of Missing Out" (FOMO) is driving investor sentiment across all asset classes, with global indices, gold, and Bitcoin reaching historical highs [5]. - Despite concerns about high valuations in the credit market, many investors are still looking for ways to enhance yields, viewing the public and liquid credit market as a relatively high-quality option [5][6]. - The issuance of bonds, such as Allianz's $12.5 billion perpetual bond, demonstrates the intense demand, with the offering receiving $12.5 billion in oversubscriptions [5]. Group 3: Emerging Market Trends - Emerging market dollar bonds have seen their risk premium drop below 260 basis points for the first time since 2013, indicating a significant shift in market dynamics [6]. - Asian investment-grade dollar bond spreads have narrowed to 60 basis points, marking a historical low and less than half of the average over the past decade [6]. - Concerns are raised about the indiscriminate buying behavior in the market, which may overlook the distinction between creditworthy issuers and those with potential risks [6][7]. Group 4: Economic Outlook and Risks - There are warnings about the fragility of the current market conditions, with predictions that the risk premium for investment-grade corporate bonds could widen to 130-140 basis points within the next 12 months [7][9]. - Recent U.S. employment data indicating economic slowdown and weakening service sector sentiment could act as triggers for a market shift [7][9].

Report Industry Investment Rating - The report does not explicitly mention the industry investment rating [1][2][3] Core Viewpoints - The report continues to expect the 10Y Treasury yield to range between 1.6% - 1.8% in the second half of 2025. Currently, the 10Y Treasury yield is close to 1.8%, presenting high cost - effectiveness. It anticipates the 10Y Treasury yield to return to around 1.65% in the next six months and the 5Y national and joint - stock second - tier capital bonds to fall below 1.9%. The growth of wealth management scale is favorable for medium - and short - term credit bonds [3][40] - In 2025, the bond market lacks a trend - based market. In the bond market oscillation during the low - interest - rate era, investment is challenging, and it is necessary to seize band opportunities on the left side. When the stock market adjusts, bond yields may decline rapidly, and right - side investment also has high difficulty [3][40] Summary by Directory 1. Primary Market 1.1 Net Financing Scale - This week, the net financing of traditional credit bonds (excluding asset - backed securities) was 1435 billion yuan, a week - on - week increase of 1298 billion yuan. The total issuance was 3967 billion yuan, up 764 billion yuan week - on - week, and the total repayment was 2531 billion yuan, down 535 billion yuan week - on - week. The net financing of asset - backed securities was 132 billion yuan, a week - on - week decrease of 167 billion yuan [8] - By product type, the net financing of urban investment bonds was 402 billion yuan, up 72 billion yuan week - on - week; the net financing of industrial bonds was - 256 billion yuan, down 428 billion yuan week - on - week; the net financing of financial bonds was 1289 billion yuan, up 1654 billion yuan week - on - week [8] - In terms of issuance and redemption quantity, the issuance of urban investment bonds increased by 15 and the redemption decreased by 6 this week; the issuance of industrial bonds decreased by 4 and the redemption increased by 7; the issuance of financial bonds increased by 17 and the redemption decreased by 9 [9] 1.2 Issuance Cost - The weighted average issuance rates of AA industrial bonds and AA+ financial bonds decreased this week, while the issuance costs of other bonds with different ratings and types increased. Specifically, the issuance rate of AA - rated industrial bonds decreased by 46BP compared with last week, mainly due to the low - rate issuance of "25 Ningbo Construction SCP001" and "25 Beijing Electronic City SCP002". The issuance costs of AA and AA+ urban investment bonds and industrial bonds increased by more than 10BP compared with last week, and the issuance rates of other bonds with different ratings and types increased by no more than 10BP [15] 2. Secondary Market 2.1 Trading Volume - The trading volume of credit bonds (excluding asset - backed securities) increased by 811 billion yuan week - on - week. Among them, the trading volume of urban investment bonds was 2439 billion yuan, up 269 billion yuan week - on - week; the trading volume of industrial bonds was 2926 billion yuan, down 489 billion yuan week - on - week; the trading volume of financial bonds was 4876 billion yuan, up 1031 billion yuan week - on - week. The trading volume of asset - backed securities was 257 billion yuan, up 74 billion yuan week - on - week [16] 2.2 Turnover Rate - The turnover rate of credit bonds fluctuated this week. The turnover rate of urban investment bonds was 1.56%, up 0.17 pct week - on - week; the turnover rate of industrial bonds was 1.61%, down 0.27 pct week - on - week; the turnover rate of financial bonds was 3.25%, up 0.66 pct week - on - week; the turnover rate of asset - backed securities was 0.71%, up 0.21 pct week - on - week [17] 2.3 Yield - The yields of credit bonds with different maturities increased to varying degrees this week, and the adjustment range of some credit bond yields exceeded 10BP. For example, the yields of AA, AAA - and AAA+ credit bonds with maturities within 1Y increased by 4BP each; those with maturities of 3 - 5Y increased by 9BP, 7BP and 7BP respectively; those with maturities over 10Y increased by 5BP, 7BP and 9BP respectively [22] - Taking AA+ - rated 5Y bonds of each type as an example, the yields of different types of bonds increased to varying degrees. The yields of private - placement industrial bonds and perpetual industrial bonds increased by 6BP each; the yield of AA+ - rated 5Y urban investment bonds increased by 9BP; the yields of commercial bank ordinary bonds and second - tier capital bonds increased by 6BP and 8BP respectively; the yield of AA+ - rated 5Y asset - backed securities increased by 6BP [23] 2.4 Credit Spreads - Generally, the credit spreads of bonds with different industries and ratings mostly adjusted by no more than 5BP this week, and the credit spreads of a few industries compressed. Specifically, the credit spreads of AA - rated media and AAA - rated household appliances widened by 5BP each compared with last week; the credit spreads of AA+ - rated leisure services and machinery decreased by 5BP and 6BP respectively [23] 2.4.1 Urban Investment Bonds - In terms of maturity, the credit spreads of urban investment bonds with different maturities all adjusted this week. The credit spreads of 0.5 - 1Y, 1 - 3Y, 3 - 5Y, 5 - 10Y and over - 10Y urban investment bonds widened by less than 1BP, 3BP, 6BP, 7BP and 3BP respectively compared with last week [28] - By region, the credit spreads of urban investment bonds in most regions widened to varying degrees this week. For example, the credit spreads of AA - rated urban investment bonds in Shanxi and Anhui widened by 6BP each; the credit spread of AA+ - rated urban investment bonds in Inner Mongolia widened by 12BP; the credit spreads of AAA - rated urban investment bonds in Liaoning and Shaanxi widened by 7BP and 6BP respectively [29] 2.4.2 Industrial Bonds - This week, the industrial bonds with different maturities and ratings mostly adjusted, and the credit spreads of 3Y private - placement industrial bonds performed well and compressed. Specifically, the credit spreads of 3Y AAA -, AA+ and AA private - placement industrial bonds compressed by 4BP, 5BP and 2BP respectively compared with last week; the credit spreads of 10Y AAA -, AA+ and AA private - placement industrial bonds widened by 2BP, 4BP and 1BP respectively; the credit spreads of 3Y AAA - and AA+ perpetual industrial bonds widened by 3BP and 4BP respectively, and the credit spread of AA perpetual industrial bonds compressed by 2BP [32] 2.4.3 Bank Capital Bonds - This week, the credit spreads of 3Y bank Tier 2 and perpetual bonds compressed significantly, while the spreads of other maturities mostly widened slightly. Specifically, the credit spreads of 1Y AAA -, AA+ and AA second - tier capital bonds widened by 4BP, 4BP and 5BP respectively; the credit spreads of 3Y AAA -, AA+ and AA second - tier capital bonds compressed by 3BP, 2BP and 1BP respectively; the credit spreads of 1Y AAA -, AA+ and AA bank perpetual bonds compressed by 3BP each; the credit spreads of 3Y AAA -, AA+ and AA bank perpetual bonds compressed by 4BP each [34] 3. Bond Market News - This week, the implied ratings of 97 bond issues of 11 entities were downgraded. Among them, Zhuhai Gree Group Co., Ltd. involved 29 issues, CCCC Real Estate Group Co., Ltd. involved 17 issues, Shanghai Zhangjiang Hi - Tech Park Development Co., Ltd. involved 14 issues, Shenye Group Co., Ltd. involved 13 issues, and Shanghai Lujiazui (Group) Co., Ltd. involved 12 issues [2][37] 4. Investment Recommendations - This week, a total of 711.8 billion yuan of reverse repurchases and 220 billion yuan of treasury cash fixed - term deposits matured in the open market. The central bank carried out 2.077 trillion yuan of reverse repurchase operations, achieving a net injection of 1.2652 trillion yuan for the whole week. The DR001 closed at 1.45% on Friday, the same as the closing price on Monday. The yield of the 10 - year Treasury bond active bond continued to adjust under pressure from 1.7465% at the close last Friday to 1.78% at the close on 8/22, and the yield of credit bonds also adjusted under pressure [5][39] - Generally, the credit spreads of bonds with different industries and ratings mostly adjusted by no more than 5BP this week, and the credit spreads of a few industries compressed. The credit spreads of urban investment bonds with different maturities all adjusted; the industrial bonds with different maturities and ratings mostly adjusted, and the credit spreads of 3Y private - placement industrial bonds compressed; the credit spreads of 3Y bank Tier 2 and perpetual bonds compressed significantly, while the spreads of other maturities mostly widened slightly [5][39]

Group 1 - The report indicates that credit bond yields have adjusted significantly, with the adjustment magnitude exceeding that of interest rate bonds, leading to a widening of credit spreads. Notably, long-term credit bonds experienced a marked decline, with some mid-to-high grade 7-10 year bonds dropping over 10 basis points, while 3-5 year credit bonds also saw substantial declines [1][9]. - Recent buying behavior shows that funds, representing trading positions, have been net sellers, particularly of certain interest rate products, while wealth management and insurance sectors continue to buy on dips, focusing mainly on short-term bonds with maturities of three years or less [2][15]. - The static "downside protection" for various credit products has been calculated, showing that short-term bonds within one year have robust protection, generally exceeding 50 basis points. The downside protection for 2-3 year credit products has improved by 2-5 basis points since July 18, now ranging from 20-40 basis points [3][31]. Group 2 - As of August 22, 2025, certain AA and AA(2) credit bonds with maturities of two years or less have seen yields drop to over 1.9%, indicating a value in short-term coupons that also possess defensive attributes amid market volatility. The report suggests that the bond market may still be influenced by equity market fluctuations, necessitating careful liquidity management [4][34]. - The report highlights that the yield curve for 3-4 year perpetual bonds has become more attractive, with current valuations exceeding those of similarly rated short-term and urban investment bonds. It anticipates that the 1.8% resistance level in the bond market may be difficult to breach, suggesting higher trading value once interest rates stabilize [4][34].

Report Industry Investment Rating The provided documents do not mention the industry investment rating. Core Viewpoints - Liquidity tightening and emotional shocks have led to a comprehensive increase in credit spreads. This week, the adjustment trend of interest - rate bonds continued, and credit bond yields also significantly increased, with overall performance weaker than interest - rate bonds. Credit spreads across all tenors and ratings have risen [2][5]. - The spreads of urban investment bonds at all levels have increased by 3BP on the whole, with most spreads rising [2][9]. - Most industrial bond spreads have increased, while the spreads of mixed - ownership real - estate bonds have continued to decline [2][17]. - The yields of secondary and perpetual bonds have all increased, and the spreads of 3 - 5Y bonds have significantly widened again [2][23]. - The excess spreads of perpetual bonds have significantly increased [2][25]. Summary by Directory I. Liquidity tightening and emotional shocks lead to a comprehensive increase in credit spreads - This week, the yields of 1Y, 3Y, 5Y, 7Y, and 10Y Guokai bonds increased by 4BP, 3BP, 4BP, 4BP, and 2BP respectively. Credit bond yields also rose significantly, with 1Y - term credit bonds of all ratings rising by 5BP, 3Y - term by 6 - 8BP, 5Y - term by 5 - 6BP, 7Y - term by 10 - 11BP, and 10Y - term by 6 - 7BP. Credit spreads across all tenors increased, with 3Y and some long - term credit bonds having larger adjustment amplitudes [2][5]. - Rating spreads changed slightly, and term spreads showed different trends among different ratings and tenors [5]. II. The spreads of urban investment bonds at all levels have increased by 3BP on the whole - The credit spreads of external - rated AAA, AA +, and AA - level urban investment platforms increased by 3BP compared with last week, with different changes in different regions [2][9]. - The spreads of platforms at all administrative levels also increased by 3BP compared with last week, with most spreads of provincial, municipal, and district - county - level platforms rising [2][15]. III. Most industrial bond spreads have increased, while the spreads of mixed - ownership real - estate bonds have continued to decline - The spreads of central and state - owned real - estate bonds increased by 2 - 3BP, those of mixed - ownership real - estate bonds decreased by 4BP, and those of private real - estate bonds increased by 8BP. The spreads of some real - estate enterprises such as Longhu and Midea Real Estate decreased, while that of CIFI increased [2][17]. - The spreads of coal bonds at all levels increased by 2BP, those of steel bonds at all levels increased by 3BP, the spreads of AAA - level chemical bonds increased by 3BP, and those of AA + chemical bonds increased by 1BP [17]. IV. The yields of secondary and perpetual bonds have all increased, and the spreads of 3 - 5Y bonds have significantly widened again - The yields of 1Y - term secondary capital bonds of all ratings increased by 4 - 6BP, and the spreads increased by 0 - 1BP; the yields of 1Y - term perpetual bonds of all ratings increased by 4BP, and the spreads were basically flat [2][23]. - The yields of 3Y - term secondary capital bonds of all ratings increased by 6 - 9BP, and the spreads increased by 4 - 6BP; the yields of 3Y - term perpetual bonds of all ratings increased by 6BP, and the spreads increased by 4BP [23]. - The yields of 5Y - term secondary capital bonds of all ratings increased by 7 - 8BP, and the spreads increased by 3 - 4BP; the yields of 5Y - term perpetual bonds of all ratings increased by 6BP, and the spreads increased by 2BP [23]. V. The excess spreads of perpetual bonds have significantly increased - The excess spreads of industrial AAA 3Y perpetual bonds increased by 5.82BP to 15.99BP, at the 42.33% quantile since 2015; the excess spreads of industrial AAA 5Y perpetual bonds increased by 1.72BP to 13.55BP, at the 29.49% quantile since 2015 [2][25]. - The excess spreads of urban investment AAA 3Y perpetual bonds increased by 1.79BP to 5.13BP, at the 3.15% quantile; the excess spreads of urban investment AAA 5Y perpetual bonds increased by 4.84BP to 12.35BP, at the 17.90% quantile [25]. VI. Credit spread database compilation instructions - The overall market credit spreads, commercial bank secondary and perpetual spreads, and urban investment/industrial perpetual credit spreads are calculated based on ChinaBond medium - and short - term notes and ChinaBond perpetual bond data, with historical quantiles since the beginning of 2015; the credit spreads related to urban investment and industrial bonds are sorted and statistically analyzed by the R & D center of Cinda Securities, with historical quantiles since the beginning of 2015 [28]. - The calculation methods and sample screening criteria for various types of credit spreads are provided [31].

Report Industry Investment Rating - No industry investment rating is provided in the report. Core Viewpoints - In the primary market, credit bond issuance increased by 12.45% week-on-week, with different trends for industrial, urban investment, and financial bonds. In the secondary market, industry credit spreads showed mixed movements, and the total trading volume of credit bonds increased by 16.04% week-on-week [1][3][4]. Summary by Directory 1. Primary Market 1.1 Issue Statistics - From August 18 to August 22, 2025, a total of 375 credit bonds were issued, with a total issuance scale of 376.74 billion yuan, a week-on-week increase of 12.45%. Industrial bonds, urban investment bonds, and financial bonds accounted for 31.64%, 30.74%, and 37.61% of the total issuance scale respectively. The average issuance term of credit bonds was 2.72 years, and the average issuance coupon rate was 2.23% [1][11][18]. 1.2 Cancellation of Issue Statistics - A total of 10 credit bonds cancelled their issuance this week [23]. 2. Secondary Market 2.1 Credit Spread Tracking - This week, industry credit spreads showed mixed movements. In the Shenwan primary industries, the largest increase in AAA - rated industry credit spreads was in the pharmaceutical and biological sector (4.7BP), and the largest decrease was in the household appliances sector (1.4BP). Coal credit spreads showed mixed movements, and steel credit spreads generally increased. Urban investment and non - urban investment credit spreads, as well as state - owned enterprise credit spreads, generally increased, while private enterprise credit spreads showed mixed movements. Regional urban investment credit spreads also showed mixed movements [25][26][27]. 2.2 Trading Volume Statistics - This week, the total trading volume of credit bonds was 1286.402 billion yuan, a week - on - week increase of 16.04%. The top three in terms of trading volume were commercial bank bonds, corporate bonds, and medium - term notes [4][28]. 2.3 Actively Traded Bonds This Week - The report provides the top 20 urban investment bonds, industrial bonds, and financial bonds in terms of trading volume this week for investors' reference [31][32][34].