Core Viewpoint - In 2024, China's bond market steadily developed amidst complex domestic and international environments, achieving significant results in issuance, trading, product innovation, and institutional construction, playing an important role in serving the real economy and preventing financial risks [1][10]. Market Operation Situation - The bond market issued a total of 79.62 trillion yuan, a year-on-year increase of 12.4%. The total custody reached 177 trillion yuan, up 12.3% year-on-year. Government bonds issued amounted to 22.25 trillion yuan, financial bonds 42.42 trillion yuan, and corporate credit bonds 14.77 trillion yuan [2][11]. - The total market transaction volume was 2735.44 trillion yuan, reflecting a year-on-year growth of 5.2%. Overall interest rates declined, with the 10-year government bond yield falling by 88 basis points to 1.68%. Credit bond yields also decreased, with credit spreads showing a pattern of widening in the short term and narrowing in the medium to long term [2][11]. - Deposit-type financial institutions remained the main bondholders, holding 85.79 trillion yuan, accounting for 55.5%. Non-legal person products held 44.24 trillion yuan, with a growth rate of 23.1%. Foreign investors held 4.16 trillion yuan, accounting for 2.7% [2][11]. Market Operation Characteristics - Government bonds and interbank certificates of deposit played a prominent role, with net financing of government bonds reaching 11.30 trillion yuan, becoming a major support for social financing growth. Interbank certificates of deposit issuance reached 31.5 trillion yuan, with net financing of 4.7 trillion yuan, both hitting historical highs [3][12]. - Significant achievements were made in serving key areas, with green bonds issued amounting to 681.43 billion yuan, sci-tech innovation bonds 1.19 trillion yuan, and debt financing tools for the "three major projects" reaching 527.4 billion yuan [4][12]. - The deepening of opening-up was evident, with foreign institutions holding 4.16 trillion yuan in bonds, panda bonds issued at 141.3 billion yuan, and optimization of the "swap connect" mechanism, enhancing cooperation with Hong Kong's financial sector [5][13]. Product Innovation and Institutional Construction - Product innovation included the introduction of "two new" debt financing tools, corporate asset-backed bonds, and supply chain bill asset securitization, with the issuance of ultra-long special government bonds amounting to 1 trillion yuan to support "two重" and "two新" areas [6][14]. - Institutional improvements involved optimizing the bond issuance pricing mechanism, establishing a "green channel" for green and transition products, enhancing information disclosure systems, and strengthening regulation of the credit rating industry [7][14]. Risk Prevention and Regulatory Strengthening - Risk resolution measures included the Ministry of Finance arranging a debt limit of 6 trillion yuan to replace existing hidden debts, and the five major banks issuing TLAC non-capital bonds worth 440 billion yuan, resulting in a decrease in newly defaulting enterprises [8][15]. - Regulatory measures were strengthened, with the People's Bank of China and the China Securities Regulatory Commission increasing penalties for violations, and the trading association imposing self-discipline penalties on 88 entities [9][15]. 2025 Outlook - The bond market is expected to continue serving the real economy, promote the legal construction of corporate bonds, deepen high-level opening-up, strengthen risk prevention in key areas, and enhance market service quality, providing strong support for high-quality economic development [10][24].

Core Insights - The report titled "China Bond Market Development Report (2024)" was recently released by the Association of Dealers [1] - The bond market in 2024 showed steady expansion, with a total issuance of various bonds reaching 79.62 trillion yuan [1] - By the end of the year, the total custody amount of bonds reached 177 trillion yuan [1] - Bond trading remained active throughout the year, with total transactions amounting to 2735.44 trillion yuan [1] - Overall bond market interest rates experienced a downward trend during the year [1]

Core Viewpoint - The article discusses three new measures introduced by China Securities Depository and Clearing Corporation to enhance the development of the bond market, particularly focusing on credit bond ETFs, facilitating financing for small and medium-sized private enterprises, and reducing certain bond registration and settlement fees [1][2]. Group 1: Credit Bond ETF Development - The new measures include optimizing the bond ETF support mechanism, providing convenience for private enterprises to issue bonds, and continuing to offer fee reductions for bond issuers [2][4]. - The introduction of trading exchange repurchase for credit bond ETFs is expected to improve liquidity, attractiveness, and trading activity of these products, thereby supporting the construction of the credit bond market and attracting long-term capital [2][4][5]. - The eligibility criteria for credit bond ETFs to participate in repurchase transactions include a minimum net asset value of 2 billion RMB and at least five market makers or liquidity service providers [4][5]. Group 2: Expansion of Credit Protection Bond Repurchase - The recent revision of the interim measures for credit protection bond repurchase broadens the range of eligible collateral to include bonds rated AA and above, facilitating access for more small and medium-sized private enterprises [7][8]. - Since the introduction of credit protection repurchase in 2021, it has supported over 100 billion RMB in bond financing for more than 60 enterprises, demonstrating its effectiveness in aiding private enterprise financing [7][8]. Group 3: Reduction of Financing Costs for Bond Issuers - Starting from May 1, 2025, to December 31, 2026, certain fees for green corporate bonds and technology innovation corporate bonds will be waived, along with continued waivers for private enterprise bond issuers [10]. - The ongoing fee reduction measures aim to lower the financing costs for bond issuers, particularly benefiting sectors like technology innovation and green finance, while enhancing market activity [10].