Overall Issuance Situation - In May 2025, the issuance volume of local government bonds reached 779.4 billion yuan, an increase of 86.2 billion yuan month-on-month but a decrease of 124.2 billion yuan year-on-year [5][6] - The net financing amount for May was 554.6 billion yuan, up by 26.5 billion yuan from the previous month but down by 80.3 billion yuan compared to the same month last year [5][6] - The issuance of new special bonds was significant, totaling 443.2 billion yuan, which is a month-on-month increase of 213 billion yuan and a year-on-year increase of 4.8 billion yuan [5][6] Issuance Rates - The weighted average issuance rate for local government bonds in May decreased to 1.87%, down by 5.08 basis points from the previous month [15][17] - The issuance rates for various maturities showed a downward trend, with the 1-year, 2-year, and 3-year rates decreasing by 0.53, 13.00, and 4.02 basis points respectively [15][17] Issuance Spread - The issuance spread of local government bonds narrowed compared to national treasury yields, with most maturities experiencing a decrease in spread [17][19] - The highest spreads were observed in Guangxi and Inner Mongolia, at 21.24 and 19.94 basis points respectively [17][19] Issuance Maturity - The average issuance maturity for local government bonds in May was 14.16 years, which is a reduction of 1.39 years from the previous month [20][23] - The average maturities for new general bonds, new special bonds, and refinancing bonds were shortened by 1.27 years, 1.49 years, and 3.77 years respectively [20][23] Fund Utilization - The primary focus for the utilization of newly issued special bonds remains in infrastructure, with 52.39% of the funds directed towards municipal and industrial park infrastructure, transportation infrastructure, and public services [23][26] - In May, the funds allocated to municipal and industrial park infrastructure decreased by 4.7 percentage points compared to the previous month [23][26] Regional Issuance - A total of 27 provinces and municipalities issued local government bonds in May, with Jiangsu, Sichuan, and Zhejiang leading in issuance scale [2][28] - Cumulatively, from January to May, Jiangsu, Shandong, Sichuan, and Guangdong had the highest issuance volumes, collectively accounting for 32.0% of the total issuance [2][28]

Core Viewpoint - Hubei Province issued a 7-year general local government bond with a scale of 5.9239 billion yuan and an issuance interest rate of 1.6300% [1] Summary by Categories Bond Issuance Details - The scale of the bond issuance is 5.9239 billion yuan [1] - The interest rate for the bond is set at 1.6300% [1] - The marginal multiple achieved during the issuance was 1.81 times, while the expected multiple was 2.34 times [1]

Core Viewpoint - Chongqing issued a 7-year general local government bond with a scale of 5.21406 billion yuan and an issuance interest rate of 1.6300% [1] Summary by Categories Bond Issuance Details - The bond issuance scale is 5.21406 billion yuan [1] - The issuance interest rate is set at 1.6300% [1] - The marginal multiple achieved during the issuance was 1.82 times, with an expected multiple of 2.05 [1]

Group 1 - Chongqing issued a 10-year special local bond with a scale of 63 billion yuan [1] - The issuance interest rate is set at 1.69% [1] - The marginal multiple of the bond issuance is 1.13 times, with an expected multiple of 2.00 [1]

黑龙江发行10年期一般债地方债，规模137.2604亿元，发行利率1.6900%，边际倍数1.73倍，倍数预期 1.72。 ...

Group 1 - Beijing issued 3-year general local bonds with a scale of 7.2 billion yuan and an issuance rate of 1.48%, with a marginal multiple of 3.49 times, exceeding the expected multiple of 1.49 [1] - Beijing issued 5-year general local bonds with a scale of 33.155 billion yuan and an issuance rate of 1.59%, with a marginal multiple of 3.83 times, exceeding the expected multiple of 1.60 [1] - Beijing issued 7-year general local bonds with a scale of 114.9181 billion yuan and an issuance rate of 1.64%, with a marginal multiple of 1.79 times, slightly above the expected multiple of 1.65 [1] - Beijing issued 1-year ordinary special local bonds with a scale of 7.7201 billion yuan and an issuance rate of 1.46%, achieving a high marginal multiple of 6.94 times, significantly above the expected multiple of 1.47 [1]

Group 1 - Qingdao issued 10-year general local bonds with a scale of 8 billion, an issuance rate of 1.75%, and a marginal multiple of 1.11, with an expected multiple of 1.74 [1] - Qingdao issued 15-year other special local bonds with a scale of 1.7 billion, an issuance rate of 2.00%, and a marginal multiple of 1.25, with an expected multiple of 1.93 [1] - Qingdao issued 20-year other special local bonds with a scale of 4 billion, an issuance rate of 2.06%, and a marginal multiple of 16.14, with an expected multiple of 2.03 [1] - Qingdao issued 30-year other special local bonds with a scale of 600 million, an issuance rate of 2.06%, and a marginal multiple of 2.00, with an expected multiple of 2.01 [1] Group 2 - Qingdao issued 7-year general local bonds with a scale of 36.18 billion, an issuance rate of 1.68%, and a marginal multiple of 1.10, with an expected multiple of 1.65 [2]

Group 1 - Guangxi issued 7-year general local bonds with a scale of 27.3 billion yuan and an issuance rate of 1.64%, with a marginal multiple of 1.12 times, while the expected multiple was 1.65 [1] - Guangxi issued 20-year other special local bonds with a scale of 95.27 billion yuan and an issuance rate of 2.07%, with a marginal multiple of 9.03 times, while the expected multiple was 2.05 [1] - Guangxi issued another 7-year general local bonds with a scale of 11.34 billion yuan and an issuance rate of 1.65%, with a marginal multiple of 1.14 times, while the expected multiple was 1.65 [1]

Core Insights - Local government bond issuance is accelerating, with a total of approximately 45,322 billion yuan issued as of June 15, representing a 55% increase compared to 29,171 billion yuan in the same period of 2024 [1] - The increase in bond issuance indicates a more proactive fiscal policy aimed at optimizing debt structure and enhancing effective investment [1] Group 1: Local Government Bonds - The issuance of new special bonds reached 16,479 billion yuan, accounting for about 36% of total local bond issuance, which is a 39% increase from 11,871 billion yuan in the same period last year [1] - The issuance of replacement bonds has also progressed rapidly, with approximately 16,835 billion yuan issued, achieving about 84% of the 20,000 billion yuan quota for the year [2] - The issuance of land reserve special bonds has surpassed 1,000 billion yuan, contributing to stabilizing the real estate market [2][3] Group 2: Economic Impact - The funds from new special bonds and infrastructure investments are expected to attract significant social capital, driving effective investment and promoting related industry development [2] - The acceleration of replacement bond issuance is expected to alleviate local government debt risks and repayment pressures, leading to a more stable fiscal and economic environment [2] - The government plans to issue 4.4 trillion yuan in special bonds, an increase of 500 billion yuan from the previous year, focusing on investment construction, land acquisition, and settling local government debts [2] Group 3: Future Outlook - The second quarter is expected to see a high volume of local bond issuance, with June alone projected to reach around 10,000 billion yuan, including 5,364 billion yuan in new bonds [3] - The overall pace of local bond issuance is anticipated to accelerate, with a focus on infrastructure projects to stabilize economic growth and support related industries [3] - Local bonds are becoming a crucial tool for ensuring moderate investment growth and stabilizing local economic growth rates, with continued high issuance expected in the second half of the year [3]

Core Viewpoint - The issuance of local government bonds, particularly special bonds, has significantly accelerated in 2023, with over 4 trillion yuan issued by June 12, accounting for nearly 40% of new special bonds, which is expected to support economic resilience and infrastructure investment growth throughout the year [1][2]. Group 1: Local Government Bond Issuance - As of June 12, 2023, a total of 44,834 billion yuan in local government bonds has been issued, with 16,457 billion yuan being new local bonds and 3,596 billion yuan in new general bonds [1]. - The issuance of land reserve special bonds has reached 1,083.48 billion yuan, involving 442 projects, with land reserve accounting for 7.75% of the new special bond funds [1][2]. Group 2: Characteristics of Land Reserve Bonds - Land reserve activities are concentrated in economically stable regions, with third and fourth-tier cities showing high participation, accounting for nearly 75% of acquisition amounts [2]. - The main entities acquiring land are city investment platforms, which helps them recover funds and alleviate debt pressure [2]. Group 3: Future Outlook - The issuance of new local bonds is expected to accelerate, with June's issuance projected at around 5,364 billion yuan, alongside a repayment plan of 4,725 billion yuan, leading to an estimated total of 10 trillion yuan in local bonds for the month [3]. - Infrastructure and real estate sectors are anticipated to be the primary focus for the allocation of funds from new special bonds [3].