Group 1 - The Ministry of Science and Technology, along with several financial regulatory bodies, has issued a set of policy measures aimed at enhancing the support for high-level technological self-reliance and innovation in China [1] - A new "Technology Board" in the bond market has been established to better support technology innovation, allowing financial and equity investment institutions to issue technology innovation bonds [1] - Key features of the differentiated bond issuance and trading system include flexible installment issuance, simplified information disclosure requirements, and reduced transaction fees [1] Group 2 - Equity investment institutions are identified as the most critical entities needing support in issuing technology innovation bonds, as they play a vital role in fostering innovation capital formation [2] - The Technology Board will create risk-sharing tools for technology innovation bonds, with the People's Bank of China providing low-cost refinancing funds to mitigate risks for bond investors [2] - Nearly 100 institutions have already responded positively, issuing technology innovation bonds totaling over 250 billion [2]

Core Viewpoint - The People's Bank of China and the State Administration of Foreign Exchange are implementing measures to support the bond market's "Technology Board," which aims to facilitate flexible bond issuance and reduce costs for equity investment institutions [1] Group 1: Bond Market Support - The "Technology Board" allows issuers to flexibly issue bonds in installments and simplifies information disclosure requirements [1] - Certain transaction fees related to bond issuance will be waived to encourage participation [1] Group 2: Focus on Equity Investment Institutions - The primary beneficiaries of the "Technology Board" are equity investment institutions, which are crucial for early-stage, small-scale, and hard technology investments [1] - These institutions often face challenges such as light assets and long investment cycles, making traditional bond financing less viable due to short financing terms and high costs [1] Group 3: Risk Sharing Mechanism - A risk-sharing mechanism for technology innovation bonds has been established, with the central bank providing low-cost re-lending funds [1] - The initiative will particularly support leading equity investment institutions with strong investment experience in issuing bonds [1]

1. Report Industry Investment Rating No information provided in the content 2. Core Viewpoints - The policy dividend drives the rapid expansion of the science - innovation bond market. The new policy has three major focuses, which will promote the diversification of bond - issuing entities and the optimization of the bond structure [2]. - The science - innovation bond market has investment value. Most science - innovation bonds have a small premium compared to ordinary credit bonds, and high - rating science - innovation bonds are highly recognized by the market. In the future, the market liquidity of science - innovation bonds is expected to improve, and the variety premium may be compressed [4]. 3. Summary by Directory 3.1 Science - innovation Bond Regulatory Policy History - **From "Double - innovation Bonds" to Science - innovation Bonds**: The prototype of science - innovation bonds can be traced back to the "double - innovation bonds" in 2015. After multiple stages of development, in 2022, a dual - market pattern of "exchange science - innovation bonds + inter - bank science - innovation notes" was formed, and in 2025, the policy support was further strengthened [8][9][10]. - **Three Key Points of the New Science - innovation Bond Policy**: The new policy broadens the issuing entities and the scope of use of raised funds, encourages the creation of science - innovation bond index products to guide investment institutions to increase their allocation, and improves the risk - sharing mechanism. There are also supporting policies such as fee reduction and a "green channel" for review [12][13][14]. 3.2 Science - innovation Bond Issuance Characteristics and Future Outlook - **Market Expansion**: Since 2021, the cumulative issuance of science - innovation corporate bonds and science - innovation notes has reached 2.7 trillion yuan. After the new policy, the issuance of science - innovation bonds has increased significantly. Nearly 500 market institutions plan to issue science - innovation bonds with a cumulative scale of over 300 billion yuan [16]. - **Diversification of Issuing Entities**: The issuing entities of science - innovation bonds are mainly central and local state - owned enterprises, and the new policy may increase the proportion of financial institutions [18]. - **Policy Support for Low - cost and Long - term Bonds**: The weighted average issuance term of science - innovation bonds has increased in recent years. Although currently, most issued science - innovation bonds are still 3 - year bonds, policy guidance may encourage the issuance of long - term and ultra - long - term bonds [26]. - **Improvement of Risk - sharing Mechanisms**: The new policy aims to reduce the default loss risk of science - innovation bonds through diversified credit enhancement measures. Currently, most issued science - innovation bonds are unsecured, but in the future, diversified credit enhancement measures may be continuously implemented [29]. 3.3 Secondary Market Performance and Investment Analysis of Science - innovation Bonds - **Yield Performance**: Most science - innovation bonds have a small premium compared to ordinary credit bonds. High - rating science - innovation bonds are more recognized by the market, with a smaller spread compared to general credit bonds. The yield of science - innovation bonds issued by the National Development Bank is lower than that of the same - term national development bonds [33]. - **Liquidity Performance**: After the new policy, the turnover rate of newly issued science - innovation bonds is higher than that of science - innovation notes and science - innovation corporate bonds. The main buyers in the first week of issuance are joint - stock banks, public funds, and other institutions. In the future, the market liquidity of science - innovation bonds is expected to improve [39][44]. - **Investment Suggestions**: It is recommended to actively pay attention to the investment opportunities of medium - and short - duration science - innovation bonds with an implicit rating of AA + or above. For medium - and low - rating science - innovation bonds with credit enhancement measures, appropriate exploration can also be carried out [44].

Group 1: Monetary Policy and Market Operations - The central bank conducted a 645 billion yuan reverse repurchase operation with a fixed rate of 1.40% on May 15, resulting in a total net withdrawal of 2,191 billion yuan for the day due to maturing reverse repos and MLF [1][2][3] - Overnight and seven-day pledged repo rates for deposit-taking institutions slightly increased, with the latter rising by less than 1 basis point [2] - The latest overnight financing rate in the U.S. stands at 4.3% [5] Group 2: Interbank and Bond Market - The latest transaction for one-year interbank certificates of deposit in the secondary market is around 1.67%, showing little change from the previous day [7] - The yield spreads for AAA-rated local government bonds across various maturities have been detailed, indicating specific rates for government bonds and policy bank bonds [11] - The closing prices for government bond futures showed a mixed performance, with the 30-year contract rising by 0.24% and the 5-year contract falling by 0.03% [12] Group 3: Economic Outlook and Trade - The Asia-Pacific Economic Cooperation (APEC) forecasts a GDP growth rate of 2.6% for the Asia-Pacific region in 2025, down from a previous estimate of 3.3% [15] - The volatility in trade policies during April was reported to be nine times the average from 2015 to 2024 [15] Group 4: Bond Market Developments - The Ministry of Science and Technology and other departments are working to enhance the bond market's support for technological innovation, including the establishment of a "technology board" [17] - The first batch of technology innovation bonds in Tianjin has successfully raised funds to support corporate technological advancements [17] - There has been a significant increase in the scale of land acquisition planned through special bonds by local governments since the second quarter [17]

Report Summary 1. Investment Rating No investment rating for the industry is provided in the report. 2. Core Viewpoints - The monetary policy continues to be "moderately loose" and shifts its focus towards stabilizing growth. Given the increasing external shocks and the need to consolidate the domestic economic recovery, further monetary policy easing can be expected [2][26]. - Multiple quantitative monetary policy tools are continuously used to maintain sufficient liquidity, and the credit resources are mainly directed towards the "Five Major Articles", "consumption", and "stabilizing foreign trade". Price - based tools are still restricted by the net interest margin, and financial institutions may be guided to price rationally [2][26]. - With the increasing downward pressure on the US economy and the weakening of the US dollar's safe - haven property, the pressure on the exchange rate to restrict monetary policy has eased [2][9]. - In the bond market, due to the need for stabilizing growth, the capital market may become looser, and bond yields still have room to decline. The central bank plans to innovate and launch a "technology board" in the bond market to guide bond funds to the innovation field more efficiently [2][26]. - In terms of credit, the short - term credit risk may increase due to the uncertainty of the external environment, and attention should be paid to the progress of trade frictions, the sustainability of economic recovery, and the frequency and intensity of policy repairs [3][27]. 3. Summary by Directory Policy Tone - The monetary policy in Q1 2025 continues the tone of the Central Economic Work Conference and the Politburo Meeting, emphasizing "flexibility" in policy implementation [8]. - Although the domestic economy started well in Q1, affected by the US tariff policy since April, the domestic export has been frustrated. At the same time, the weakening of the US dollar's safe - haven property has eased the exchange - rate pressure on monetary policy. The domestic monetary policy will still be "moderately loose" and strengthen counter - cyclical adjustment [9]. Interest Rates - The Q1 report adds the statement of "reducing the bank's liability - side cost". With the adjustment of the MLF operation mechanism, the policy rate system has changed, and it is expected that the deposit rate will decline following the loan rate [10][12]. - In Q1 2025, the weighted average interest rate of new loans issued by financial institutions decreased. The central bank advocates promoting the decline of the comprehensive financing cost of SMEs by clarifying various financing costs [13]. Liquidity - The Q1 report aims to maintain sufficient liquidity. In the short - term, the capital market has changed from a tight - balance to a loose state. In the medium - and long - term, the central bank has adjusted various tools to supplement the capital gap. The reduction of the deposit - reserve ratio in May will release long - term liquidity and relieve the bank's net interest - margin pressure [15][16]. - The central bank has suspended the treasury - bond trading operation in Q1 and may resume it under specific conditions [17]. Credit - The Q1 report emphasizes increasing credit supply and guiding more credit resources to key areas and weak links. In addition to the previous areas, it also highlights "stabilizing foreign trade" [19][21]. - Structural monetary policies will focus on the "Five Major Articles", consumption, and stabilizing foreign trade [21]. Bond Market Mechanism - The Q1 report proposes to innovate and launch a "technology board" in the bond market, which will help guide bond funds to the innovation field more efficiently and solve existing problems in the science - innovation bond market [22][23]. - The central bank emphasizes strengthening investors' interest - rate risk management and points out that the pricing efficiency and risk - management ability of the bond market need to be improved [24].

Core Viewpoint - The establishment of a "Technology Board" in the bond market aims to support the development of technology enterprises through a series of comprehensive policies and measures [1][4][10]. Group 1: Policy Overview - The People's Bank of China, along with the CSRC and other departments, has introduced a package of policies to support the issuance of technology innovation bonds [1][4]. - The unified naming of technology-related bonds as "technology innovation bonds" marks a significant step towards a clearer policy roadmap for supporting technology enterprises [5][6]. - The issuance entities have expanded to include financial institutions, technology enterprises, private equity investment institutions, and venture capital institutions [6][10]. Group 2: Market Response - Following the announcement of the policies, nearly 100 market institutions plan to issue over 300 billion yuan in technology innovation bonds, with 55 institutions already issuing more than 80 billion yuan [2][11][12]. - Banks are the primary issuers, accounting for over 450 billion yuan, while leading securities firms have issued over 160 billion yuan [12][13]. Group 3: Financial Support Mechanisms - The policies include risk-sharing mechanisms, such as credit protection tools and government financing guarantees, to support the issuance and investment of technology innovation bonds [6][7]. - A series of fees related to the issuance and trading of technology innovation bonds will be waived from 2025 to 2027, providing significant cost savings for institutions [8][10]. Group 4: Investment Trends - The technology innovation bonds are primarily directed towards sectors such as construction, industrial investment, and energy, with a growing focus on high-tech industries like medical devices and renewable energy [14][17]. - The bond market for technology innovation has seen rapid growth, with a year-on-year increase of 186.47% in issuance scale in 2023, and a projected continued high growth rate in 2024 [13][14]. Group 5: Areas for Improvement - There are concerns regarding the actual use of raised funds, as initial issuances have deviated from supporting early-stage technology enterprises [17]. - The standardization of evaluation criteria for "technology innovation attributes" across different bond types needs to be strengthened [17][18]. - The tendency towards short-term bonds may limit support for long-term research and development projects, highlighting the need for a more balanced maturity structure [17][18].

债券研究 证 券 研 究 报 告 【债券分析】 "科创债"新政了解一下 ❖ 2025 年 5 月 6 日，央行、证监会发布《关于支持发行科技创新债券有关事宜 的公告》（简称"公告"），从丰富科技创新债券产品体系和完善科技创新债券 配套支持机制等方面，对支持科技创新债券发行提出若干举措；5 月 7 日，国 新办新闻发布会上，央行推出十项措施以加大宏观调控强度，其中一项为"创 设科技创新债券风险分担工具"，同日，交易所发布《关于进一步支持发行科 技创新债券服务新质生产力的通知》，交易商协会发布《关于推出科技创新债 券 构建债市"科技板"的通知》，完善科技创新债券配套规则。 ❖ 新政要点解读：拓宽科创债发行主体范围，完善发行、信披与增信制度。 一是，拓宽科创债发行主体范围及募集资金投向范围，新增金融机构和股权投 资机构。交易所新增支持商业银行、证券公司、金融资产投资公司等金融机构 以及私募股权投资机构、创业投资机构等股权投资机构作为发行主体；交易商 协会拓宽科技型企业的认定标准，并新增支持私募股权投资、创业投资、产业 股权投资等机构及其母公司作为发行主体。 二是，优化完善科创债发行条款，便于匹配资金使用需求。交易所 ...

Core Viewpoint - The People's Bank of China plans to launch a "Technology Board" in the bond market to support financial institutions, technology companies, and private equity investment institutions, aiming to enhance the product system of technology innovation bonds (referred to as "Sci-Tech Bonds") [2] Group 1: Current Status of Sci-Tech Bonds - Sci-Tech Bonds are credit bonds issued by technology innovation enterprises or used to raise funds for technology innovation, serving as an important tool for financing and supporting the real economy [3] - The market for Sci-Tech Bonds has shown strong growth since its inception in June 2016, evolving into mainstream Sci-Tech corporate bonds and notes, with issuance volumes increasing significantly from 16.6 billion yuan in 2021 to 1.23 trillion yuan in 2024 [3][4] - As of March 11, 2025, the total balance of mainstream Sci-Tech Bonds reached 1.78 trillion yuan, accounting for 6.48% of the market's credit bonds [4] Group 2: Advantages of Sci-Tech Bonds - Issuing Sci-Tech Bonds helps reduce overall financing costs for technology enterprises, with high-credit Sci-Tech Bonds showing a premium of 5-10 basis points over ordinary credit bonds of the same rating and maturity [4] - The funds raised through Sci-Tech Bonds effectively support research and innovation activities, leading to improved profitability and cash flow for the issuers [5] Group 3: Challenges Facing the Sci-Tech Bond Market - The market faces three main bottlenecks: a mismatch of risk and return in debt assets, limited use of raised funds for equity investments, and a mismatch between bond issuance terms and the innovation cycle of technology enterprises [6][7][8] - In 2024, the issuance of Sci-Tech Bonds was dominated by central and local state-owned enterprises, with private enterprises accounting for only 7.82% of issuers [6] - The average issuance term of Sci-Tech Bonds has increased, but private enterprises still face shorter terms, which do not align well with the longer return cycles of innovation projects [8] Group 4: Policy Recommendations - To address the challenges, it is recommended to introduce credit enhancement mechanisms to encourage more small and medium-sized technology enterprises to issue Sci-Tech Bonds [9] - Expanding the range of issuing institutions to include financial institutions and private equity investment institutions, while extending the bond issuance terms to better match the investment cycles of technology projects [10] - Developing bond index products to encourage long-term funds to invest in technology innovation corporate bonds [10] Group 5: Future Outlook - With coordinated policy efforts and improvements in credit enhancement, the expansion of issuing institutions, and the attraction of long-term capital, the Sci-Tech Bond market is expected to play a more significant role in supporting technological innovation and promoting high-quality economic development [11]

Core Viewpoint - The Chinese government is introducing a comprehensive financial policy package aimed at stabilizing the market and expectations, including a new relending tool for service consumption and elderly care [1][3]. Group 1: Service Consumption and Elderly Care Relending - The People's Bank of China has established a relending tool for service consumption and elderly care with a total quota of 500 billion yuan, aimed at encouraging commercial banks to increase credit support for these sectors [1][3]. - This new policy tool expands and upgrades the previous inclusive elderly care relending policy, which had a quota of 40 billion yuan and was initially piloted before being rolled out nationwide [3]. Group 2: Impact of New Policy Tool - Experts believe this initiative will invigorate the service consumption and elderly care markets, enhancing domestic service consumption potential and supporting the development of the elderly care industry [3]. - The policy is expected to stimulate both the supply and demand sides of service consumption, ultimately releasing residents' consumption potential over a longer term [3]. Group 3: Insurance Company Investment Regulation - The Financial Regulatory Administration has announced a 10% reduction in the risk factor for insurance companies' solvency regulations regarding stock investments, encouraging them to increase their market participation [4][6]. - The previous adjustment in September 2023 saw the risk factor for investments in the CSI 300 index drop from 0.35 to 0.3, and for stocks listed on the Sci-Tech Innovation Board from 0.45 to 0.4 [6]. Group 4: Bond Market "Technology Board" - The bond market "Technology Board" will focus on financing support for key technology industries such as artificial intelligence, big data, integrated circuits, and biotechnology, aligning with national technology strategies [9]. - The design of the "Technology Board" includes targeted arrangements for the issuance process to meet the needs of issuers, aiming to enhance market investment enthusiasm [11]. - Financial institutions and asset management companies are encouraged to actively participate in investments related to technology innovation bonds, with plans to create indices linked to these bonds to broaden the investor base [11].

Core Insights - The bond market's "Technology Board" is progressing with policy details emerging, indicating strong market interest and readiness for issuing technology innovation bonds [2][3][4] - Nearly 100 market institutions plan to issue over 300 billion yuan in technology innovation bonds, with expectations for more participants [2][5] - The initiative aims to enhance financial support for technology enterprises, particularly encouraging private technology firms to access financing through bond issuance [2][4][8] Policy Developments - The People's Bank of China (PBOC) and the China Securities Regulatory Commission (CSRC) have released announcements detailing measures to support the issuance of technology innovation bonds [5][6] - The new policies include improved systems for issuance, trading, information disclosure, and credit rating tailored to the characteristics of technology enterprises [4][5] Risk Management and Credit Enhancement - The initiative addresses the diverse risk profiles of technology enterprises, particularly smaller firms, by encouraging financial institutions to develop credit protection tools [6][8] - The PBOC plans to create risk-sharing tools and provide low-cost refinancing to support the issuance of technology innovation bonds, thereby reducing default risk [6][8] Market Dynamics - The "Technology Board" is expected to attract more institutional investors to focus on "hard technology," fostering a positive funding cycle [8][9] - The initiative will prioritize financing for key technology sectors such as artificial intelligence, big data, integrated circuits, and biotechnology [8] Credit Rating Innovations - The bond market's "Technology Board" will introduce a new credit rating system tailored to the characteristics of technology firms and private equity institutions [9] - Rating agencies are encouraged to develop specialized rating methodologies that reflect the unique aspects of technology enterprises, moving away from traditional asset-based metrics [9]