1. Report Industry Investment Rating - No specific industry investment rating is provided in the report. 2. Core Viewpoints of the Report - The credit bond market has recovered after last week's adjustment caused by the "anti - involution" trend. On August 1st, under the influence of the tax new policy, the cost - performance of credit bonds has been passively improved. It is recommended to continue to pay attention to long - duration sinking urban investment bonds, capital bonds, and insurance sub - debt. Specifically, long - duration capital bonds of Minsheng Bank, Bohai Bank, and Hengfeng Bank are strongly recommended. There is an optimistic view on urban investment dim sum bonds and US dollar bonds, and opportunities in capital bonds of Tianjin Bank, Beibu Gulf Bank, and China Property Insurance are worth attention [3][45]. 3. Summary by Directory 3.1 Weekly Market Overview - **Primary Market**: This week, the issuance volume, repayment volume, and net financing of traditional credit bonds decreased significantly compared with last week. The net financing of asset - backed securities decreased by 46.5 billion yuan compared with last week. The weighted average issuance interest rates of industrial bonds and urban investment bonds increased, while the issuance cost of financial bonds decreased to varying degrees [1][8][20]. - **Secondary Market**: The trading volume of credit bonds decreased by 73.8 billion yuan compared with last week. In terms of turnover rate, the turnover rate of credit bonds showed mixed trends compared with last week, and the turnover rate of asset - backed securities rebounded. The yields of most credit bonds with different maturities and ratings decreased, except that the yield of AAA + credit bonds over 10 years increased slightly. Overall, the credit spreads of different industries and ratings fluctuated, with a maximum amplitude of no more than 5BP [2][25][31]. - **Negative Public Opinions**: A total of 58 bond implicit ratings were downgraded this week. Among them, 38 bond implicit ratings of Financial Street Holding Co., Ltd. were downgraded. The "21 Meibi 01" bond issued by Xi'an Qujiang Meibi Lake Investment and Construction Co., Ltd. was placed on the watch list. The entity rating of Guizhou Huaxi Rural Commercial Bank Co., Ltd. was downgraded, and the rating of its "21 Huaxi Rural Commercial Secondary 01" bond was also downgraded. The entity rating of Guiyang Baiyun Industrial Development Investment Co., Ltd. was downgraded, and the rating of its "19 Baiyun Industrial Investment Bond 01" bond was downgraded. The "19 Contemporary 01" bond issued by Contemporary Energy - Saving Real Estate Co., Ltd. was extended [2][42]. 3.2 Primary Market - **Net Financing Scale**: The net financing of credit bonds (excluding asset - backed securities) was 100.6 billion yuan this week, a decrease of 286.1 billion yuan compared with last week. The net financing of asset - backed securities was - 12.4 billion yuan, a decrease of 46.5 billion yuan compared with last week. By product type, the net financing of urban investment bonds, industrial bonds, and financial bonds decreased compared with last week [8]. - **Issuance Cost**: The weighted average issuance interest rates of industrial bonds and urban investment bonds increased. Specifically, the issuance interest rates of AA, AA +, and AAA urban investment bonds increased by 10BP, 13BP, and 10BP respectively compared with last week, and those of AA, AA +, and AAA industrial bonds increased by 12BP, 14BP, and 14BP respectively. The issuance interest rate of AA + financial bonds decreased by 25BP, and that of AAA financial bonds decreased slightly by 4BP [20]. 3.3 Secondary Market - **Trading Volume**: The trading volume of credit bonds (excluding asset - backed securities) decreased by 73.8 billion yuan compared with last week. Among them, the trading volume of urban investment bonds increased by 13.8 billion yuan, the trading volume of industrial bonds decreased by 28.2 billion yuan, and the trading volume of financial bonds decreased by 59.4 billion yuan. The trading volume of asset - backed securities increased by 2.1 billion yuan [21]. - **Turnover Rate**: The turnover rate of credit bonds showed mixed trends compared with last week. The turnover rate of urban investment bonds increased by 0.08 pct, the turnover rate of industrial bonds decreased by 0.17 pct, and the turnover rate of financial bonds decreased by 0.41 pct. The turnover rate of asset - backed securities increased by 0.07 pct [22]. - **Yields**: The yields of most credit bonds with different maturities and ratings decreased, except that the yield of AAA + credit bonds over 10 years increased slightly. For example, the yields of AA, AAA -, and AAA + credit bonds within 1 year decreased by 3BP, 3BP, and 2BP respectively compared with last week [25]. - **Credit Spreads**: Overall, the credit spreads of different industries and ratings fluctuated, with a maximum amplitude of no more than 5BP. The credit spreads of AA banks, AA + mining and non - banking finance, and AAA electrical equipment industries compressed relatively significantly, within the range of 3 - 4BP. The credit spreads of AA + comprehensive and food and beverage industries widened relatively significantly, within the range of 4 - 5BP [31]. - **Urban Investment Bonds**: The credit spreads of urban investment bonds within 1 year compressed slightly, while those of other maturities widened slightly. In terms of regions, most urban investment credit spreads widened [34][35]. - **Industrial Bonds**: The credit spreads of industrial bonds fluctuated slightly within 5BP as a whole, and the spreads of 3 - 5Y industrial bonds were under pressure and adjusted slightly [38]. - **Bank Capital Bonds**: The credit spreads of bank Tier 2 and perpetual bonds performed well, with different maturities and ratings compressing by 2 - 5BP [39]. 3.4 Investment Recommendations - The central bank achieved a net injection of 6.9 billion yuan this week. The DR001 decreased from 1.40% at the close on Monday to 1.25%. The Shanghai Composite Index closed at 3560 points, and the equity market cooled down and corrected. Commodity futures may have corrected synchronously due to the cooling of the "anti - involution" sentiment. It is necessary to continue to pay attention to the development direction of the "anti - involution" market in the future [44]. - The credit spreads of different industries and ratings fluctuated slightly. It is recommended to continue to focus on long - duration sinking urban investment bonds, capital bonds, and insurance sub - debt, and pay attention to relevant investment opportunities [45].

1. Industry Investment Rating No industry investment rating is provided in the report. 2. Core Viewpoints - The bond market has stopped falling, and credit has followed the decline in interest rates. Short - duration and low - grade varieties have shown strong performance. Credit spreads have mostly increased, with some short - duration and low - grade varieties declining [2][5]. - Urban investment bond spreads have generally remained stable, with differentiation among different regions [2][9]. - Industrial bond spreads have slightly declined, and the spreads of mixed - ownership real estate bonds have also decreased [2][17]. - The yields of Tier 2 and perpetual bonds have all declined, and the spreads have generally compressed by 2 - 4BP, outperforming ordinary credit bonds [2][24]. - The excess spreads of perpetual bonds have generally increased, with a relatively large increase in the spreads of 3Y industrial perpetual bonds [2][27]. 3. Summary by Directory 3.1 Bond Market Stabilization and Credit Spread Changes - Interest - rate bond yields first rose and then fell, with the yields of 1Y, 3Y, 5Y, 7Y, and 10Y China Development Bank bonds declining by 3BP, 4BP, 3BP, 3BP, and 5BP respectively. Credit bond yields generally followed the decline in interest rates but underperformed interest - rate bonds. The yield changes of 7Y varieties with a small previous adjustment were limited [2][5]. - Credit spreads mostly increased, with some short - duration and low - grade varieties declining. Rating spreads and term spreads showed significant differentiation [5]. 3.2 Urban Investment Bond Spreads - Overall, urban investment bond spreads remained stable, with differentiation among different regions. The credit spreads of external - rated AAA and AA platforms remained flat, while those of AA + platforms increased by 1BP [2][9]. - By administrative level, the credit spreads of provincial, municipal, and county - level platforms generally remained flat [16]. 3.3 Industrial Bond Spreads - Industrial bond spreads slightly declined, and the spreads of mixed - ownership real estate bonds also decreased. The spreads of central and local state - owned enterprise real estate bonds remained flat, those of mixed - ownership real estate bonds declined by 4BP, and those of private - enterprise real estate bonds increased by 8BP [2][17]. - The spreads of coal bonds of each grade declined by 1BP; the spreads of AAA - rated steel bonds remained flat, while those of AA + - rated steel bonds declined by 3BP; the spreads of AAA - rated chemical bonds remained flat, while those of AA + - rated chemical bonds declined by 1BP [17]. 3.4 Tier 2 and Perpetual Bonds - The yields of Tier 2 and perpetual bonds all declined, and the spreads generally compressed by 2 - 4BP, outperforming ordinary credit bonds, with high - grade varieties performing slightly better [2][24]. 3.5 Perpetual Bond Excess Spreads - The excess spreads of perpetual bonds generally increased, with a relatively large increase in the spreads of 3Y industrial perpetual bonds. The excess spreads of 3Y industrial AAA perpetual bonds increased by 3.34BP to 7.16BP, and those of 5Y industrial AAA perpetual bonds remained flat at 7.65BP [2][27]. 3.6 Credit Spread Database Compilation - The overall market credit spreads, commercial bank Tier 2 and perpetual bond spreads, and urban investment/industrial perpetual bond credit spreads are calculated based on ChinaBond medium - and short - term note and ChinaBond perpetual bond data. The historical quantiles are since the beginning of 2015 [31]. - The credit spreads of urban investment and industrial bonds are compiled and statistically analyzed by the R & D center of Cinda Securities, and the historical quantiles are also since the beginning of 2015 [31].

Group 1 - Goldman Sachs credit strategists are urging clients to hedge risks as the yield premium on global corporate notes has narrowed to its lowest level since 2007 [2][3] - The narrowing yield premium on global investment-grade notes has reached 79 basis points, the lowest since July 2007, just before the global financial crisis [3] - Despite the significant narrowing of credit spreads and the S&P 500 reaching a record high, Federal Reserve officials have avoided signaling imminent rate cuts, indicating a need for more data to assess inflation risks [3] Group 2 - Goldman Sachs economists still expect the Federal Reserve to cut rates by 25 basis points in September, October, and December, with two additional cuts anticipated in 2026 [3] - The report highlights that trade policy has become more predictable compared to March and April, allowing the market to significantly lower the pricing of recession risks [3] - As investors begin to digest the differentiated impacts across the supply chain, the effects will become increasingly important through industry-specific variations [3]

金十数据8月1日讯，高盛信贷策略师近日向客户发出警告，建议对冲风险。策略团队指出："近期美国 与其贸易伙伴达成的一系列贸易协议，使关税前景更加明朗，投资者愿意忽略短期内经济增长的疲软， 只要衰退风险仍处于可控范围。"但他们同时警告，切勿因此掉以轻心。周四全球投资级企业债的信用 利差已收窄至79个基点，为2007年7月以来最低水平，彼时正值全球金融危机爆发前夕。尽管信用利差 持续收窄，且标普500指数本周再创历史新高，但美联储并未释放即将降息的明确信号，表明其仍需更 多数据来确认通胀风险不会持续。高盛策略师强调："当前仍存在足够多的下行风险，值得投资者在投 资组合中保留部分对冲措施。经济增长可能进一步低于预期，反通胀压力可能减弱，或对美联储独立性 的担忧重燃，均可能引发长债收益率大跌。" 高盛：全球信用利差收窄至2007年以来最低水平 建议做好对冲 ...

Group 1 - The report indicates a significant adjustment in the bond market, with credit bonds experiencing a larger decline compared to interest rate bonds, particularly in the period from July 18 to July 25, where 3Y and above interest rate bonds rose by 7-9 basis points, while credit bonds fell by 8-12 basis points [1][8][11] - The primary reasons for the market decline include a rebound in equity and commodity prices, a tightening of the funding environment, and increased redemption pressure [1][11][21] - Following the market adjustment, the report suggests that the credit market may enter a slow recovery phase, with the "stock-bond seesaw" effect being a short-term disturbance rather than a long-term trend [2][21][25] Group 2 - The report highlights a seasonal characteristic in credit bond net financing, with supply expected to rise from June to August, followed by a decline in September as corporate financing needs weaken [3][25][26] - It notes that the recent adjustments in the credit bond ETF market have led to a slowdown in growth, with some ETFs experiencing a slight contraction in scale [2][15][19] - The report emphasizes that the current credit market is relatively weak, with significant volatility and limited space for narrowing credit spreads, particularly in the short to medium term [3][27]

1. Report Industry Investment Rating - Not provided in the given content 2. Core View of the Report - As of July 28, 2025, the valuation yields and spreads of private enterprise industrial bonds and real estate bonds in the outstanding credit bonds are generally higher than other varieties. Compared with last week, the yields of non - financial and non - real estate industrial bonds have been adjusted, and the yields of state - owned enterprise private non - perpetual real estate bonds have increased across the board. In the financial bonds, the yields of various financial varieties have basically increased [3][4][13]. 3. Summary by Relevant Catalogs 3.1 Overall Credit Bond Situation - The weighted average valuation yields and spreads of different types of credit bonds (including urban investment bonds, industrial bonds, and financial bonds) are presented, along with their changes compared to last week [13][15][16]. 3.2 Urban Investment Bonds 3.2.1 Public Urban Investment Bonds - The weighted average valuation yields in Jiangsu and Zhejiang provinces are below 2.4%. Yields exceeding 4.5% are found in prefecture - level and district - county - level areas of Guizhou. Higher spreads are also observed in regions such as Guangxi, Yunnan, and Gansu. Compared with last week, the yields of public urban investment bonds have generally increased, with the 2 - 3 - year varieties having a larger adjustment range [3][26]. - Specific varieties with a large increase in yields include 2 - 3 - year Anhui provincial perpetual bonds, 1 - year - within Gansu prefecture - level non - perpetual bonds, 1 - 2 - year Liaoning prefecture - level non - perpetual bonds, and 2 - 3 - year Hainan provincial perpetual urban investment bonds [26]. 3.2.2 Private Urban Investment Bonds - The weighted average valuation yields in coastal provinces such as Shanghai, Zhejiang, Guangdong, and Fujian are below 2.9%. Yields higher than 4% are found in prefecture - level areas of Guizhou. Higher spreads are also present in Shaanxi, Yunnan, Gansu, etc. Compared with last week, the yields of private urban investment bonds have mainly increased. The varieties with a large increase in yields are 3 - 5 - year Guangxi district - county - level non - perpetual bonds, 1 - 2 - year Ningxia prefecture - level non - perpetual bonds, 2 - 3 - year Guizhou district - county - level non - perpetual bonds, and 1 - 2 - year Guangxi provincial non - perpetual urban investment bonds, with increases of 18.8BP, 15.6BP, 14.1BP, and 12.7BP respectively [3][40]. 3.3 Industrial Bonds - The valuation yields and spreads of private enterprise industrial bonds and real estate bonds are generally higher than other varieties. - For non - financial and non - real estate industrial bonds, the yields have been adjusted. The 2 - 3 - year private enterprise public perpetual varieties have a relatively larger increase, with an average increase of 147.5BP. In real estate bonds, the yields of state - owned enterprise private non - perpetual varieties have increased across the board, and the yields of 1 - 2 - year private enterprise public non - perpetual varieties have increased by 11.1BP [4][13]. 3.4 Financial Bonds - Varieties with high valuation yields and spreads include leasing company bonds, urban and rural commercial bank capital supplementary tools, and securities sub - bonds. - Compared with last week, the yields of various financial varieties have basically increased. In leasing bonds, the 1 - 2 - year varieties have a larger increase, with an average of about 10BP. In general commercial financial bonds, the interest rates of each variety have increased, with an amplitude of 4 to 7BP. In secondary perpetual bonds, the increase in the yields of rural commercial bank secondary capital bonds mostly exceeds that of other bank varieties, and the increase in the yields of rural commercial bank secondary bonds within 1 year and 2 - 3 years is greater than 20BP. In addition, in securities company bonds and sub - bonds, the increase in the yields of 3 - 5 - year securities company private non - perpetual sub - bonds exceeds 10BP [5][13].

Report Industry Investment Rating No relevant content provided. Core Views - During the period from July 21st to July 27th, most of the issuance guidance rates announced by the National Association of Financial Market Institutional Investors (NAFMII) declined, with an overall change range of -5 BP to 2 BP. The issuance scale of credit bonds increased month - on - month, and the issuance amount of each variety increased. The net financing of credit bonds increased month - on - month. The yield of credit bonds all increased, and the credit spreads of medium - and short - term notes, enterprise bonds, and urban investment bonds mostly widened, but the 7 - year varieties still mainly narrowed. [1][58] - From an absolute return perspective, after adjustment, the yields of most varieties have retraced to the level of 2 months ago, but the conditions for a trend reversal of credit bonds are still insufficient. Supply shortage and relatively strong allocation demand will still support credit bonds, and the marginal loosening of the capital side will also help promote the repair market. The possibility of a decline in yields in the future is still high, and the idea of increasing allocation on adjustments is still feasible. [1][58] - From a relative return perspective, given that rating spreads are generally at historical lows, credit sinking is not effective at present. In the short term, high - grade varieties have greater potential for a catch - up rise. In the real estate bond market, as the market stabilizes, risk - preference funds can consider early layout. Urban investment bonds can still be a key allocation variety for credit bonds. [1][60][58] Summary by Directory 1. Primary Market Situation 1.1 Issuance and Maturity Scale - From July 21st to July 27th, a total of 371 credit bonds were issued, with an issuance amount of 352.639 billion yuan, a month - on - month increase of 25.49%. The net financing of credit bonds was 57.525 billion yuan, a month - on - month increase of 12.623 billion yuan. [12] - By variety, the issuance amount of enterprise bonds, corporate bonds, medium - term notes, short - term financing bills, and private placement notes all increased month - on - month. The net financing of medium - term notes and short - term financing bills increased, while that of enterprise bonds, corporate bonds, and private placement notes decreased. [12] 1.2 Issuance Interest Rates - Most of the issuance guidance rates announced by NAFMII declined, with an overall change range of -5 BP to 2 BP. By term, the 1 - year variety had an interest rate change range of -5 BP to 0 BP, the 3 - year variety -3 BP to 1 BP, the 5 - year variety -3 BP to 2 BP, and the 7 - year variety -1 BP to 1 BP. By grade, the interest rate change range of key AAA - grade and AAA - grade varieties was -5 BP to 0 BP, AA + - grade -1 BP to 2 BP, AA - grade 0 BP to 2 BP, and AA - - grade -3 BP to -1 BP. [14] 2. Secondary Market Situation 2.1 Market Trading Volume - From July 21st to July 27th, the total trading volume of credit bonds was 897.286 billion yuan, a month - on - month increase of 3.78%. The trading volume of each variety increased. [17] 2.2 Credit Spreads - For medium - and short - term notes, the credit spreads of each variety were differentiated. The 1 - year credit spread widened, the 3 - year AA - grade and above varieties' credit spreads widened, the 5 - year AAA - grade and AA + - grade credit spreads widened, and the rest of the 5 - year varieties' spreads narrowed, while the 7 - year credit spread narrowed. [20] - For enterprise bonds, most varieties' credit spreads widened. The 1 - year, 3 - year, and 5 - year credit spreads widened, and the 7 - year credit spread narrowed. [27] - For urban investment bonds, most varieties' credit spreads widened. The 1 - year and 3 - year credit spreads widened; among the 5 - year varieties, the AAA - grade and AA + - grade credit spreads widened, and the rest narrowed; among the 7 - year varieties, the AA - - grade spread widened, and the rest narrowed. [34] 2.3 Term Spreads and Rating Spreads - In terms of term spreads, the 3Y - 1Y spread of AA + medium - and short - term notes widened by 1.79 BP, the 5Y - 3Y spread narrowed by 0.83 BP, and the 7Y - 3Y spread narrowed by 6.64 BP. In terms of rating spreads, the 3 - year medium - and short - term notes' (AA - )-(AAA) spread narrowed by 3.00 BP, (AA)-(AAA) spread widened by 1.00 BP, and (AA + )-(AAA) spread widened by 1.00 BP. [43] - Similar analyses were also conducted for enterprise bonds and urban investment bonds in terms of term spreads and rating spreads, with different changes in spreads and their positions in historical quantiles. [48][52] 3. Credit Rating Adjustment and Default Bond Statistics 3.1 Credit Rating Adjustment Statistics - From July 21st to July 27th, a total of 3 companies' ratings (including outlooks) were adjusted, with 1 downgraded and 2 upgraded. [55] 3.2 Default and Extension Bond Statistics - There were no credit bond defaults during the period from July 21st to July 27th. The corporate bonds of Shenzhen Longfor Holdings Co., Ltd. and Aoyuan Group Co., Ltd. were extended, with a total bond balance of 10.892 billion yuan at the time of extension. [57] 4. Investment Views - The issuance guidance rates mostly declined, the issuance scale of credit bonds increased, and the net financing increased. The yield of credit bonds rose, and the credit spreads mostly widened. [1][58] - For real estate bonds, as the market stabilizes, risk - preference funds can consider early layout, focusing on central and state - owned enterprises with stable historical valuations and excellent performance, as well as high - quality private enterprise bonds with strong guarantees. [60] - Urban investment bonds can still be a key allocation variety for credit bonds, with low short - term credit risk, and the current strategy can be positive. [60]

1. Report Industry Investment Rating No information provided in the content. 2. Core Viewpoints of the Report - From July 21 - 25, the stock and commodity markets strengthened, and the bond market adjusted significantly. Credit bonds showed vulnerability, with reasons including low yields and credit spreads weakening the cushioning effect of coupons on valuation fluctuations, and bond market adjustments and tightened liquidity leading to preventive redemptions of funds by wealth management products, resulting in selling pressure on credit bonds. However, with the central bank's support and seasonal liquidity easing at the beginning of the month, the liquidity may recover, driving the recovery of credit bonds [1][2][11]. - After the adjustment, credit spreads generally remained at low levels. Institutions may prefer credit bond varieties with better liquidity. Among them, short - term urban investment bonds, certain grades of urban investment and industrial bonds with specific maturities had relatively high trading activity during the adjustment period, and their valuation recovery opportunities are worthy of attention. Long - term bonds with maturities over 5 years may face greater valuation fluctuation risks [2][3][17]. - In the bank capital bond market, yields rose across the board from July 21 - 25, and credit spreads widened. After the over - adjustment, there are opportunities. The yields of 4 - 5 - year large - bank capital bonds have become more attractive, and insurance institutions have increased their allocation. Short - term and lower - rated bank capital bonds such as 3 - year AA and 2 - year AA - bank capital bonds may be relatively advantageous choices [5][6][23]. 3. Summary According to Relevant Catalogs 3.1 Urban Investment Bonds: Yields Up Across the Board, Sci - tech Innovation Bonds Underperformed - In the primary market, from July 1 - 27, 2025, the net financing of urban investment bonds was slightly positive. The issuance sentiment weakened, with the proportion of full - subscription multiples over 3 times decreasing, and the proportion of 2 - 3 times increasing. The issuance term changed little, and the issuance rate remained low, with rates for different terms decreasing compared to June [29][31]. - In the secondary market, yields of urban investment bonds rose across the board. The adjustment of previously "over - bought" sci - tech innovation bond components was greater, restricting the growth of the sci - tech innovation bond ETF scale. The trading activity of urban investment bonds decreased, and the buying sentiment declined sharply [11][12][34]. 3.2 Industrial Bonds: Both Issuance and Trading Reduced Maturities, and the Proportion of High - rated Trading Recovered - From July 1 - 27, the issuance and net financing scale of industrial bonds increased year - on - year. The issuance sentiment weakened, with the proportion of full - subscription multiples over 3 times decreasing and that of 2 - 3 times increasing. The proportion of long - term issuance over 5 years decreased significantly, and the issuance rate changed little overall [39][41]. - In terms of trading, the buying sentiment of industrial bonds weakened significantly, with the TKN proportion decreasing and the low - valuation proportion dropping. The trading slightly reduced maturities, and the proportion of high - rated trading recovered [42]. 3.3 Bank Capital Bonds: Long - term Large - bank Bonds Performed Weaker, and Trading "Increased Volume with Falling Prices" - From July 21 - 25, 2025, several banks issued secondary capital bonds and perpetual bonds. In the secondary market, due to increased market risk appetite and tightened liquidity, the yields of bank capital bonds rose across the board, with long - term large - bank secondary capital bonds performing weaker. Credit spreads also widened across the board, and the trading volume increased while the trading sentiment weakened significantly. The trading was mainly concentrated in medium - and long - term varieties with better liquidity, and the trading of city commercial bank capital bonds shifted towards high - grade bonds [45][48][51]. - Regarding TLAC bonds, the spreads between 3Y, 5Y, and 10Y secondary capital bonds and TLAC bonds were analyzed, indicating that 10 - year TLAC bonds were more cost - effective at present. For commercial financial bonds, the credit spread of 3Y AAA commercial financial bonds reached the lower limit of the central position [51][55].

Credit Bond Yield Performance - In June, overall credit bond yields declined, with short-term credit bond spreads widening while medium to long-term spreads narrowed [1][4] - The AA- rated credit bond spreads mostly narrowed, while other ratings saw mixed results in 1-year and 3-year spreads, indicating a market trend towards longer durations and lower credit quality for yield enhancement [4][10] Industry-Specific Credit Bond Spreads Industrial Bonds - In June, the credit spreads for AAA-rated industrial bonds varied across industries, with the financial holding sector experiencing the largest narrowing of 12.31 basis points, while the textile and apparel sector saw the largest widening of 3.26 basis points [12][13] - The pharmaceutical and biological sector in private placements had the largest narrowing of spreads at 8.83 basis points, while the public utility sector experienced the largest widening of 9.65 basis points [12][13] Local Government Financing Bonds - The credit spreads for local government financing bonds showed a mixed trend, with lower-rated spreads continuing to narrow while mid to high-rated spreads fluctuated upwards [1][4] - In May, most provinces and entities saw a narrowing of credit spreads, with private placements showing a more significant reduction [1][4] Financial Bonds - In June, the credit spreads for bank perpetual bonds exhibited mixed results, with the lowest-rated spreads compressing the most, while the spreads for securities company subordinated bonds and insurance company capital replenishment bonds all declined [1][4]

Group 1: Primary Market - In the week from July 21 to July 25, 2025, a total of 414 credit bonds were issued, with a total issuance scale of 592.83 billion, representing a week-on-week increase of 47.80% [3] - Among the issued bonds, industrial bonds accounted for 202 issues with a scale of 219.28 billion, a week-on-week increase of 24.66%, making up 36.99% of the total issuance [3] - City investment bonds totaled 166 issues with a scale of 109.63 billion, a week-on-week increase of 2.90%, representing 18.49% of the total [3] - Financial bonds had 46 issues with a scale of 263.92 billion, a week-on-week increase of 122.44%, accounting for 44.52% of the total [3] - The average issuance term for credit bonds was 3.35 years, with industrial bonds at 3.38 years, city investment bonds at 3.75 years, and financial bonds at 1.66 years [3] - The overall average coupon rate for credit bonds was 2.08%, with industrial bonds at 2.01%, city investment bonds at 2.25%, and financial bonds at 1.83% [3] - A total of 23 credit bonds were canceled during the week [3] Group 2: Secondary Market - Credit spreads increased across industries, with the largest increase in AAA-rated industries being in pharmaceuticals, which rose by 7.6 basis points, while electronics saw a decrease of 1.5 basis points [4] - For AA+ rated industries, real estate experienced the largest increase in credit spreads by 8.9 basis points, while building materials decreased by 15.3 basis points [4] - In the AA-rated category, electronics had the largest increase in credit spreads by 7.5 basis points, while building materials decreased by 0.5 basis points [4] - In terms of city investment bonds, the largest increase in AAA-rated credit spreads was in Shaanxi, which rose by 5.3 basis points, while Yunnan saw a decrease of 1.2 basis points [4] - For AA+ rated credit spreads, Fujian had the largest increase of 6.4 basis points, while Qinghai decreased by 1.2 basis points [4] - The largest increase in AA-rated credit spreads was in Hubei, which rose by 6.5 basis points, while Sichuan decreased by 2 basis points [4] Group 3: Trading Volume - The top three credit bonds by trading volume were commercial bank bonds, corporate bonds, and medium-term notes [5] - Commercial bank bonds had a trading volume of 573.26 billion, a week-on-week increase of 35.93%, accounting for 37.04% of the total trading volume [5] - Corporate bonds had a trading volume of 368.42 billion, a week-on-week increase of 1.83%, representing 23.81% of the total [5] - Medium-term notes had a trading volume of 327.90 billion, a week-on-week decrease of 4.54%, making up 21.19% of the total [5]