1. Report Industry Investment Rating No information provided in the content. 2. Core View of the Report In 2025, affected by the changing external environment, China's economy advanced steadily, social confidence continued to improve, and new achievements were made in high - quality development. However, the contradiction between strong supply and weak demand was prominent, and there were many risks and hidden dangers in key areas. Against this background, regulatory authorities took multiple measures to continuously improve the bond market system and mechanism, innovatively launched the "Technology Board" in the bond market, promoted the expansion of bonds in green and private sectors, solidly carried out the "Five Major Articles" in finance, continuously promoted the opening - up of the bond market, strengthened credit risk management and control in the bond market, and improved the default disposal mechanism, further enhancing the marketization, legalization, and internationalization levels of China's bond market [2]. 3. Summary by Directory 3.1完善债券市场体制机制 - **规范债券发行业务**: In 2025, the Dealer Association issued a series of notices to regulate bond underwriting behavior, including prohibiting underwriters from distorting market prices and competing with below - cost quotes, and establishing self - disciplinary mechanisms. The exchange launched the pilot of corporate bond continuation issuance, which helps meet the investment and financing needs of market entities and enhance market liquidity. The Dealer Association optimized the bond financing mechanism for mature - layer enterprises, adjusting relevant indicators and requirements to improve enterprise financing convenience and efficiency [4]. - **完善信息披露制度**: In 2025, the Shanghai, Shenzhen, and Beijing Stock Exchanges revised relevant rules and issued guidelines to expand the scope of specific situations to be concerned, strengthen information disclosure and verification requirements for issuers' solvency, and clarify the requirements for information disclosure and verification of honest practice, as well as the management requirements, responsibilities, and self - regulatory arrangements for information disclosure responsible persons, which helps standardize corporate bond information disclosure behavior [5]. - **发展债券指数化产品**: In 2025, the China Securities Regulatory Commission issued an action plan to promote the high - quality development of capital market index investment, including expanding bond ETFs, optimizing registration and issuance arrangements, and improving operation mechanisms. The Shanghai and Shenzhen Stock Exchanges allowed bond ETFs to conduct general pledge - style repurchase transactions, which helps enrich the bond index product system and meet investors' diverse investment needs [7]. - **规范债券估值业务发展**: In 2025, the Dealer Association issued a self - regulatory guidance on bond valuation business, including requirements for the entire valuation production process, measures to improve transparency, a multi - level verification mechanism, and clear prohibitive behaviors, which helps standardize bond valuation management and improve valuation quality and transparency [8]. 3.2创新推出债市"科技板" In 2025, multiple departments issued a series of policies to support the high - quality development of science and technology innovation corporate bonds, including optimizing the issuance and registration process, providing credit enhancement support, exploring new bond products, and establishing a "Technology Board" in the bond market, which helps guide bond funds to be more efficiently, conveniently, and cost - effectively invested in the field of scientific and technological innovation and improve the service level of the bond market for scientific and technological innovation [9][10]. 3.3支持绿色等领域债券扩容 - **做好"绿色金融大文章"**: Multiple departments issued policies to support green bond investment and financing, including optimizing green bond standards, encouraging rating agencies to incorporate environmental information indicators, and supporting green enterprises' bond issuance. The Dealer Association optimized the issuance mechanism of green panda bonds, which helps promote the issuance and investment of green bonds and expand the green bond market [11][12]. - **支持民营企业债券融资**: The Dealer Association and relevant laws provided a series of measures to support private enterprise bond financing, including product innovation, improving the financing environment, and enhancing the service of bond financing support tools, which helps protect the legitimate rights and interests of private enterprises and expand their bond financing scale [13]. - **支持乡村振兴领域债券发行**: The People's Bank of China issued policies to encourage financial institutions to issue special financial bonds for "agriculture, rural areas, and farmers" and support enterprises to issue rural revitalization bonds, which helps guide financial resources to the "agriculture, rural areas, and farmers" field and expand the rural revitalization bond market [14]. - **支持体育领域债券发行**: The People's Bank of China and the State Council issued policies to support the issuance of financial bonds and corporate credit - type bonds in the sports field, which helps promote the development of the sports industry and expand the relevant bond market [15]. - **支持消费领域债券融资**: Multiple departments issued policies to support the issuance of bonds by enterprises in the service consumption field, encourage science and technology innovation enterprises to raise funds through the bond market, and support the issuance of financial bonds by relevant financial institutions, which helps promote the issuance of consumer - related bonds and expand the bond market [15]. - **支持林业领域债券发行**: The People's Bank of China issued a notice to encourage forest - related enterprises to issue bonds and support financial institutions to issue relevant financial bonds, which helps broaden the financing channels for forestry development and expand the relevant bond market [16]. - **支持制造业企业融资**: The People's Bank of China issued a policy to promote the growth of the number of manufacturing enterprises issuing bonds and their scale by 2027, support bond variety innovation, and apply green financial tools in the manufacturing industry's green and low - carbon transformation, which helps broaden the financing channels for manufacturing enterprises and expand the manufacturing - related bond market [16]. - **优化并购票据工作机制**: The Dealer Association issued a notice to optimize the working mechanism of merger and acquisition notes, including clarifying the definition and scope of application, strengthening fund use supervision, and innovating the information disclosure mechanism, which helps improve the issuance efficiency of merger and acquisition notes and expand their scale [17]. 3.4推进债券市场对外开放 - **优化债券通机制安排**: In 2025, the People's Bank of China and the Hong Kong Monetary Authority announced three optimization measures for opening up, including expanding the scope of participants in the South - bound Connect, optimizing the offshore RMB bond repurchase business, and optimizing the Swap Connect operation mechanism, which helps promote the opening - up of China's bond market [18]. - **支持境外投资者参与债券回购业务**: The People's Bank of China and relevant exchanges issued policies to expand the scope of overseas institutional investors participating in bond repurchase business, which helps improve the liquidity value and collateral function of RMB bonds and enhance their attractiveness to global institutions [19]. - **推进上海自贸区离岸债券发展**: The Shanghai Head Office of the People's Bank of China issued measures to optimize the issuance process, expand the issuer types, and encourage product innovation of Shanghai Free Trade Zone offshore bonds, which helps expand the offshore bond market and provide financing channels for Chinese enterprises and countries and regions along the "Belt and Road" [20]. 3.5推动评级行业高质量发展 - **支持评级行业创新发展**: The General Offices of the Communist Party of China Central Committee and the State Council issued an opinion to support the innovation and development of the credit rating industry, including innovating business models, regulating the behavior of credit service institutions, and promoting the internationalization of domestic credit rating agencies [21]. - **支持评级机构服务债市"科技板"**: The People's Bank of China and the China Securities Regulatory Commission, as well as the Dealer Association, issued policies to encourage rating agencies to design special rating methods and models for science and technology innovation enterprises, which helps provide more accurate rating results for the "Technology Board" in the bond market and reduce information asymmetry [22]. 3.6加强债券市场风险管控 - **优化信用风险缓释工具管理机制**: The Dealer Association revised relevant rules and issued notices to optimize the management mechanism of credit risk mitigation tools, including simplifying the filing process, expanding the scope of underlying assets, and strengthening the rights and responsibilities of participants, which helps improve the operation mechanism of credit risk mitigation tools and the credit risk sharing system [23]. - **加强存续期管理**: The Dealer Association and the Shanghai Stock Exchange issued policies to strengthen the supervision of raised funds, standardize the handling of ongoing business, and strengthen the rules for entrusted management, which helps prevent the risk of misappropriation of raised funds, improve the efficiency of information disclosure and risk management, and promote the due performance of entrusted managers [25]. - **完善违约处置机制**: Exchanges and relevant departments issued policies to standardize debt - restructuring bond swaps, optimize bond buy - back business mechanisms, and improve the diversified dispute resolution mechanism, which helps standardize bond default disposal, enrich debt management tools, and improve the efficiency of default bond disposal [26][27].

Core Viewpoint - The "Yulan Bond" market is experiencing significant growth, driven by China's financial market opening policies, strong demand for quality RMB assets, and improved issuance mechanisms [1][2]. Group 1: Market Growth and Performance - In 2025, 11 "Yulan Bonds" were issued, totaling approximately 8 billion RMB, marking a historical high with a year-on-year growth rate exceeding 40% [1]. - As of early 2026, two "Yulan Bonds" have already been issued, with a total scale of 3.3 billion RMB [1]. - The cumulative issuance of "Yulan Bonds" has surpassed 25 billion RMB, covering both financial and non-financial institutions [2]. Group 2: Strategic Importance and Features - "Yulan Bonds," named after Shanghai's city flower, are a cross-border bond issuance model that supports multiple currencies, including RMB, USD, and EUR [2]. - The bonds enhance cooperation between domestic and international financial infrastructures, providing a new financing option for domestic entities [2]. - The issuance process benefits from the cross-border connectivity between the Shanghai Clearing House and European Clearing Banks, improving efficiency and offering a comprehensive suite of services [2]. Group 3: Future Outlook and Innovations - The first "Yulan Bond" from a free trade zone issuer was launched in January 2026, raising 3 billion RMB with a coupon rate of 1.95%, attracting significant interest from various investors [4]. - The market is expected to continue its steady growth in 2026, with potential for product innovation and diversification of participants, including international institutions and large tech companies [5]. - Future developments may include the introduction of market-making systems to enhance liquidity and the exploration of green bonds and sustainable-linked bonds to meet diverse investment needs [5].

Core Viewpoint - The announcement aims to promote the opening of the bond market to foreign investment by temporarily exempting foreign institutions from corporate income tax and value-added tax on bond interest income from January 1, 2026, to December 31, 2027 [1] Tax Policy Summary - From January 1, 2026, to December 31, 2027, foreign institutions investing in the domestic bond market will be temporarily exempt from corporate income tax and value-added tax on bond interest income [1] - The exemption does not apply to bond interest income earned by foreign institutions that have established entities or places in China, which are related to the income [1]

Core Viewpoint - The announcement by the Ministry of Finance and the State Taxation Administration outlines a tax policy aimed at promoting the opening of the bond market to foreign institutions, providing a temporary exemption from corporate income tax and value-added tax on interest income from domestic bonds acquired by foreign institutions from January 1, 2026, to December 31, 2027 [3]. Group 1 - The tax exemption applies to interest income from bonds in the domestic market for foreign institutions [3]. - The exemption period is set from January 1, 2026, to December 31, 2027 [3]. - The exemption does not cover interest income from bonds related to institutions or places established by foreign entities within the domestic market [3].

Group 1 - The Ministry of Finance and the State Taxation Administration announced a temporary exemption from corporate income tax and value-added tax on interest income from bonds obtained by foreign institutions investing in the domestic bond market from January 1, 2026, to December 31, 2027 [1] - The exemption does not apply to interest income from bonds that are related to institutions or places established by foreign entities within China [1] - Additionally, a policy extending the exemption of value-added tax on interest income from foreign investments in Chinese government bonds and local government bonds issued abroad will be in effect from August 8, 2025, to December 31, 2027 [1]

Group 1 - The core viewpoint of the article is that the Ministry of Finance of China announced a tax exemption policy for foreign institutions investing in the domestic bond market, effective from January 1, 2026, to December 31, 2027 [1] - The exemption applies to bond interest income earned by foreign institutions in the domestic bond market, specifically excluding income from bonds related to institutions or places established within China [1] - This policy aims to further promote the opening up of the bond market to foreign investments [1]

Key Points - The article announces the extension of tax policies for foreign institutions investing in the domestic bond market, specifically exempting corporate income tax and value-added tax on bond interest income from January 1, 2026, to December 31, 2027 [2] - The exemption does not apply to bond interest income related to institutions or places established by foreign entities within China [2]

Core Viewpoint - The Chinese Ministry of Finance and the State Taxation Administration announced the extension of tax policies for foreign institutions investing in the domestic bond market to further promote the opening of the bond market [1] Group 1: Tax Policy for Foreign Investment - From January 1, 2026, to December 31, 2027, interest income from bonds obtained by foreign institutions investing in the domestic bond market will be temporarily exempt from corporate income tax and value-added tax [1] - The exemption from corporate income tax does not include interest income related to bonds obtained by foreign institutions that have established entities or places in China [1] Group 2: Tax Policy for Government Bonds - From August 8, 2025, to December 31, 2027, interest income from foreign institutions investing in Chinese government bonds and local government bonds issued abroad will be exempt from value-added tax [1]

Core Viewpoint - The Ministry of Finance and the State Taxation Administration of China announced an extension of tax exemptions for foreign institutions investing in the domestic bond market, effective from January 1, 2026, to December 31, 2027 [1] Group 1: Tax Policy Changes - From January 1, 2026, to December 31, 2027, foreign institutions will be exempt from corporate income tax and value-added tax on interest income from bonds in the domestic market [1] - This policy extension follows a previous announcement made in 2021, which initially set the exemption period from November 7, 2021, to December 31, 2025 [1] Group 2: Additional Tax Exemptions - Starting from August 8, 2025, until December 31, 2027, foreign institutions will also be exempt from value-added tax on interest income from Chinese government bonds and local government bonds issued abroad [1]

Group 1 - The Ministry of Finance and the State Taxation Administration announced the extension of tax exemption policies for foreign institutions investing in the domestic bond market, effective from January 1, 2026, to December 31, 2027, exempting corporate income tax and value-added tax on bond interest income [1] - From August 8, 2025, to December 31, 2027, foreign institutions will be exempt from value-added tax on interest income from government bonds and local government bonds issued abroad [1] - The previous announcement indicated that from August 8, 2025, value-added tax will be reinstated on interest income from newly issued government bonds, local government bonds, and financial bonds, but the new policy provides an exemption for foreign institutions [1] Group 2 - The recent tax exemption policies are part of China's efforts to accelerate the opening of its financial markets, with foreign investors increasingly participating and contributing to the internationalization of the Renminbi [2] - The exemption will lower the holding costs for foreign institutional investors and enhance their returns, thereby attracting more investment into China's bond market and further promoting its openness [2]