Report Industry Investment Rating - Not provided in the document Core Viewpoints of the Report - The "376 Document" strengthens the full - process supervision of PPP projects, preventing the risk of local governments adding hidden debts through the PPP model, and improving the quality and standardization of PPP projects [6][11] - Shandong aims to clear all hidden debts by the end of 2028, and Fujian clarifies five situations where special bond funds can be recovered, which helps to prevent local debt risks [6][12][13] - This week, the issuance scale and net financing of local government bonds decreased significantly, while the issuance scale of urban investment bonds decreased and the net financing increased, but the net financing has been negative for six consecutive weeks [16][19] Summary According to Relevant Catalogs 1. News Review - **"376 Document" on PPP New Mechanism**: The "376 Document" further clarifies the review standards and strengthens the full - life - cycle supervision of PPP projects. It has new requirements in project access, franchise plan review, fiscal risk prevention, and performance assessment, aiming to prevent hidden debt risks and improve infrastructure investment efficiency [6][9][10] - **Shandong and Fujian Policies**: Shandong proposes to clear all hidden debts by the end of 2028, and Fujian clarifies five situations where special bond funds can be recovered, which helps to prevent local debt risks and improve the efficiency of special bond use [6][12][13] - **Early Redemption of Urban Investment Bonds**: Sixteen urban investment enterprises redeemed bond principal and interest in advance this week, with a total scale of 2215 million yuan, mainly from the western region and with AA - rated entities [6][15] 2. Issuance of Local Government Bonds and Urban Investment Enterprise Bonds - **Local Government Bonds**: This week, 26 local government bonds were issued, with a scale of 109595 million yuan, a 51.98% decrease from the previous value, and a net financing of 50501 million yuan, a 63.24% decrease. As of June 8, the new special bond issuance progress is less than 40%, but the local debt replacement progress has reached 83%, with more than half of the provinces completing their annual tasks [16] - **Urban Investment Bonds**: This week, 100 urban investment bonds were issued, with a scale of 77253 million yuan, a 23.57% decrease from the previous value, and a net financing of - 35 million yuan, an increase of 4600 million yuan from the previous value. The overall issuance interest rate is 2.27%, a 4.90BP decrease from the previous value, and the issuance spread is 74.61BP, a 3.90BP narrowing [19] 3. Trading of Local Government Bonds and Urban Investment Enterprise Bonds - **Funding Situation**: The central bank conducted 9309 billion yuan of reverse repurchases this week, with 16026 billion yuan of reverse repurchases maturing, resulting in a net withdrawal of 6717 billion yuan. Short - term funding rates mostly declined [23] - **Urban Investment Rating Adjustment**: On June 3, 2025, Zhongzheng Pengyuan upgraded the rating of four bonds issued by Zhejiang Huzhou Changxing Urban Construction Investment Group Co., Ltd. from AA+ to AAA [23][25] - **Credit Events and Regulatory Penalties**: No urban investment credit risk events occurred this week [25] - **Local Bond Trading**: The spot trading volume of local bonds was 377844 million yuan, a 5.83% decrease from the previous value, and most of the maturity yields increased, with an average increase of 1.71BP [25] - **Urban Investment Bond Trading**: The trading volume of urban investment bonds was 224820 million yuan, a 24.03% decrease from the previous value. Most of the maturity yields increased, with an average increase of 0.84BP. The spreads of 1 - year, 3 - year, and 5 - year AA+ urban investment bonds widened [25] - **Abnormal Trading of Urban Investment Bonds**: Under the broad - based statistics, 14 urban investment entities had 15 abnormal bond trades this week [25] 4. Important Announcements of Urban Investment Enterprises - Thirty - six urban investment enterprises announced changes in senior management, legal representatives, directors, supervisors, controlling shareholders, actual controllers, and equity/asset transfers this week [29]