Report Industry Investment Rating No information provided in the report. Core Viewpoints of the Report - Maintain the strategy of credit exploration within 3Y, emphasizing stronger stability and liquidity to counter market volatility. Suggest that public funds focus on medium - to high - grade credit bonds with a maturity of less than 2Y, and institutions with strong liability - side stability can gradually bottom - fish 3Y bonds. For perpetual and secondary bonds, 2 - 3Y bonds have fallen to attractive levels and can be used for rebound gaming [5][9]. - The cost - effectiveness of industrial bond exploration is lower than that of urban investment bonds. The strategy of exploring urban investment bonds along the yield curve is more feasible, and the riding cost - effectiveness of 1 - 2Y bonds has increased [5][13]. Summary by Directory 1 Credit Bond Weekly Viewpoint: Maintain Stability and Liquidity to Counter Market Volatility - Last week, credit bonds experienced a supplementary decline, with longer - term bonds falling more. Credit spreads widened across the board, the largest increase since September. The current market environment is fragile, and the negative impact of the bond market has weakened marginally, but market sentiment will remain fragile in the short term. It is recommended to maintain the idea of credit exploration within 3Y [5][9]. - In September, the credit spread trend of industrial bonds was not strongly correlated with fundamental changes, and its stability was slightly weaker than that of urban investment bonds. After the supplementary decline last week, the historical quantile of industrial bond spreads remained at a low level of around 5%. It is recommended to maintain a balanced allocation of industrial bonds, while the strategy of exploring urban investment bonds along the yield curve is more feasible [5][11][13]. 2 Credit Bond Weekly Review: Obvious Supplementary Decline, Short - Duration Bonds are Preferred 2.1 Negative Information Monitoring - There were no bond defaults or overdue payments, no downgrades of corporate ratings or outlooks, and no downgrades of bond ratings during the week. However, there were two major negative events: Pengbo Telecom Media Group Co., Ltd. was fined for failing to disclose major guarantees and lawsuits, and Guanghui Automobile Service Co., Ltd. was criticized for failing to disclose its 2024 annual report on time [16][17][18]. 2.2 Primary Issuance: Three Consecutive Weeks of Net Inflows, a Significant Increase in the Number of Cancelled Issuances - The primary issuance volume of credit bonds remained high. From September 22 to 28, the primary issuance of credit bonds was 435.5 billion yuan, a 32% increase from the previous week. The total repayment amount also increased to 358.9 billion yuan, resulting in a net inflow of 76.6 billion yuan, marking the third consecutive week of net inflows. - Thirteen credit bonds were cancelled or postponed for issuance last week, with a total scale of 8.2 billion yuan, a significant increase from the previous week and reaching a high for the year. The issuance cost of new medium - and low - grade bonds increased last week [19][22]. 2.3 Secondary Trading: High Pressure of Supplementary Decline, Continuous Improvement in Liquidity - Last week, credit bonds of all grades and maturities experienced a supplementary decline, with an average increase of about 7bp, and the 5Y AAA - grade bond increased by up to 10bp. Credit spreads widened across the board, with a central value of about 5bp. - The term spreads of 3Y - 1Y and 5Y - 1Y for medium - to high - grade bonds widened, while the grade spreads of AA - AAA widened at the short end and narrowed at the long end, with an overall fluctuation range of around ±2bp. - The credit spreads of urban investment bonds in each province widened by about 5bp on average, with relatively small differences among provinces. The credit spreads of industrial bonds in each industry also widened by about 5bp, with no obvious differences among industries. - The liquidity of credit bonds continued to improve, with the turnover rate increasing by 0.27 percentage points to 2.03% compared to the previous week. The top ten bonds in terms of turnover rate were mainly issued by central and local state - owned enterprises. Four credit bonds had a discount of more than 10%. Among individual entities, the top five industrial entities with the largest spread widening were all real - estate enterprises [23][27][30].