1. Report Industry Investment Rating No information provided in the content. 2. Core View of the Report In September 2025, the leverage ratio in the inter - bank bond market increased slightly month - on - month and was lower than the same period in previous years. The total bond custody scale of ChinaBond and Shanghai Clearing House increased month - on - month. Different institutions had different investment behaviors in different bond types, with commercial banks increasing their allocation of treasury bonds and broad - based funds reducing their allocation of credit bonds [1][2][4]. 3. Summary According to the Directory 3.1 Bank - inter Leverage Ratio - In late September, the inter - bank bond market leverage ratio was 106.90%, up 0.02 pct from 106.88% at the end of last month, and generally lower than the leverage ratio in the same period of previous years [1][10]. 3.2 Custody Data Overview - In September 2025, the total bond custody scale of ChinaBond and Shanghai Clearing House was 175.46 trillion yuan, a month - on - month increase of 921.2 billion yuan. Among them, ChinaBond increased by 888.7 billion yuan and Shanghai Clearing House by 32.4 billion yuan [2][13]. - Treasury bonds, local government bonds, policy - bank bonds, and medium - term notes contributed to the increase, with month - on - month increases of 761.3 billion yuan, 454.2 billion yuan, 46.3 billion yuan, and 102.2 billion yuan respectively. Corporate bonds, short - term and ultra - short - term financing bonds, directional instruments, and inter - bank certificates of deposit contributed to the decrease, with month - on - month decreases of 26.7 billion yuan, 20.9 billion yuan, 18 billion yuan, and 407.5 billion yuan respectively [13]. 3.3 By Bond Type 3.3.1 Interest - rate Bonds - Treasury bond custody scale was 39.21 trillion yuan, up 761.3 billion yuan month - on - month. Commercial banks were the main buyers, and insurance institutions, broad - based funds, and credit unions made small purchases [15]. - Policy - bank bond custody scale was 25.19 trillion yuan, up 46.3 billion yuan month - on - month. Commercial banks were the main buyers, while securities companies and broad - based funds sold [15]. - Local government bond custody scale was 53.46 trillion yuan, up 454.2 billion yuan month - on - month. Broad - based funds were the main buyers, and commercial banks were the main sellers [15]. 3.3.2 Credit Bonds - Corporate bond custody scale was 1.66 trillion yuan, down 26.7 billion yuan month - on - month. Most institutions sold [29]. - Medium - term note custody scale was 12.39 trillion yuan, up 102.2 billion yuan month - on - month. Commercial banks were the main buyers, and broad - based funds were the main sellers [29]. - Short - term financing bond custody scale was 521.3 billion yuan, up 47.2 billion yuan month - on - month. Commercial banks and broad - based funds were the main buyers [29]. - Ultra - short - term financing bond custody scale was 1.54 trillion yuan, down 68.1 billion yuan month - on - month. Broad - based funds were the main sellers, and commercial banks, overseas institutions, and securities companies also sold [29]. 3.3.3 Inter - bank Certificates of Deposit - The custody scale was 19.98 trillion yuan, down 407.5 billion yuan month - on - month. Most institutions sold, with commercial banks and broad - based funds being the main sellers and insurance institutions making small purchases [48]. 3.4 By Institution - Commercial banks' main bond custody scale was 85.82 trillion yuan, up 532.2 billion yuan month - on - month. They increased their holdings of interest - rate and credit bonds by 565.4 billion yuan and 108.6 billion yuan respectively and reduced their holdings of inter - bank certificates of deposit by 141.8 billion yuan [4][53]. - Broad - based funds' main bond custody scale was 37.23 trillion yuan, down 150.3 billion yuan month - on - month. They increased their holdings of interest - rate bonds by 50.4 billion yuan and reduced their holdings of credit bonds and inter - bank certificates of deposit by 107.2 billion yuan and 93.4 billion yuan respectively [4][53]. - Overseas institutions' main bond custody scale was 3.65 trillion yuan, down 43.3 billion yuan month - on - month. They increased their holdings of interest - rate bonds by 15.8 billion yuan and reduced their holdings of credit bonds and inter - bank certificates of deposit by 1 billion yuan and 58.1 billion yuan respectively [4][56]. - Insurance institutions' main bond custody scale was 4.33 trillion yuan, up 63 billion yuan month - on - month. They increased their holdings of interest - rate, credit bonds, and inter - bank certificates of deposit by 55.4 billion yuan, 2.6 billion yuan, and 5.1 billion yuan respectively [4][56]. - Securities companies' main bond custody scale was 2.58 trillion yuan, down 59 billion yuan month - on - month. They increased their holdings of credit bonds by 800 million yuan and reduced their holdings of interest - rate bonds and inter - bank certificates of deposit by 38 billion yuan and 21.8 billion yuan respectively [4][56]. - Credit unions' main bond custody scale was 2.04 trillion yuan, up 39.9 billion yuan month - on - month. They increased their holdings of interest - rate bonds by 56.4 billion yuan and reduced their holdings of credit bonds and inter - bank certificates of deposit by 2.1 billion yuan and 14.4 billion yuan respectively [5][57].

Core Insights - The report indicates that commercial banks are increasing their allocation to interest rate bonds, while broad-based funds are reducing their holdings in government bonds and policy financial bonds [4][5][51]. Group 1: Interbank Leverage Ratio - As of the end of July, the interbank market leverage ratio was 106.81%, down from 107.64% at the end of the previous month, indicating a decrease of 0.83 percentage points and remaining below historical levels for the same period [2][11]. Group 2: Custody Data Overview - In July 2025, the total custody scale of bonds at China Central Depository & Clearing Co., Ltd. (CCDC) and Shanghai Clearing House reached 173.03 trillion yuan, an increase of 174.49 billion yuan from the previous month [3][14]. Group 3: By Bond Type - The total custody scale of major interest rate bonds (government bonds, local government bonds, policy bank bonds) reached 114.81 trillion yuan, with a month-on-month increase of 143.74 billion yuan. Commercial banks were the main buyers, increasing their holdings by 154.99 billion yuan, while broad-based funds, securities companies, and foreign institutions reduced their holdings [4][51]. - The custody scale of major credit bonds (corporate bonds, medium-term notes, short-term financing bonds, and ultra-short-term financing bonds) was 16.04 trillion yuan, with a month-on-month increase of 20.07 billion yuan. Broad-based funds and commercial banks were the main buyers, increasing their holdings by 116.8 billion yuan and 71.7 billion yuan, respectively [4][30][51]. - The custody scale of interbank certificates of deposit was 20.74 trillion yuan, a decrease of 37.43 billion yuan, with commercial banks and foreign institutions being the main sellers [4][47][51]. Group 4: By Institution - The custody scale of commercial banks reached 84.13 trillion yuan, increasing by 137.58 billion yuan. They increased their holdings in interest rate bonds and credit bonds by 154.99 billion yuan and 7.17 billion yuan, respectively, while reducing their holdings in interbank certificates of deposit by 24.58 billion yuan [5][52]. - The custody scale of broad-based funds was 37.55 trillion yuan, decreasing by 83.7 billion yuan. They increased their holdings in credit bonds by 116.8 billion yuan but reduced their holdings in interest rate bonds and interbank certificates of deposit by 117.9 billion yuan and 2.26 billion yuan, respectively [5][52]. - Foreign institutions had a custody scale of 3.79 trillion yuan, decreasing by 301.6 billion yuan, with reductions in interest rate bonds, interbank certificates of deposit, and credit bonds by 129 billion yuan, 167.3 billion yuan, and 5.4 billion yuan, respectively [5][57].

Core Insights - The bond custody scale maintained rapid growth in April 2025, with a year-on-year growth rate of 15.5%, an increase of 0.6 percentage points from March. The newly added custody scale was 1.7 trillion yuan, showing a marginal decline month-on-month but remaining at a historically high level [2][5]. Group 1: Bond Market Overview - Government bonds and interbank certificates of deposit saw a seasonal increase, while treasury bonds experienced a seasonal decrease. The total supply of government bonds (including treasury and local government bonds) approached 1 trillion yuan in April, which is consistent with seasonal patterns, and remains higher than the same period last year [5]. - Major institutional investors included banks and asset management accounts. Commercial banks increased their holdings by 797.5 billion yuan, while insurance companies added 167.3 billion yuan, primarily increasing local government bonds. Asset management accounts increased by 1.1 trillion yuan, mainly in interbank certificates of deposit [5][6]. Group 2: Future Outlook - It is expected that bond supply in May will increase compared to April. The ability of banks to absorb this supply will depend on the liquidity provided by the central bank. Insurance companies are anticipated to adjust their bond allocation rhythm in line with local government bond supply [6]. - Asset management accounts are expected to see a recovery in funding increments, with a potential for continued stable growth in wealth management scale if liquidity remains loose [6]. Group 3: New Stock Issuance - Upcoming new stock issuances include companies like Xin Heng Hui and Hua Zhi Jie, with issuance dates in June 2025. The issuance prices range from 0.80 yuan to 11.50 yuan, with various underwriting firms involved [7]. Group 4: Industry News - In April 2025, the import value of automotive parts reached 1.7 billion USD, reflecting a month-on-month increase of 10% but a year-on-year decrease of 28.1% [11]. - According to Counterpoint, the global new energy vehicle battery installation volume is expected to grow by 22% year-on-year in 2024, with Chinese manufacturers capturing over 70% of the market share [12]. Group 5: Company Announcements - Jiuan Medical plans to register and issue medium-term notes and short-term financing bonds, with a total registration amount not exceeding 3.5 billion yuan [13]. - Zhongke Electric intends to invest up to 8 billion yuan in an integrated lithium-ion battery anode material project in Oman, with a planned annual production capacity of 200,000 tons [15]. - Aeston is planning to issue H-shares and list on the Hong Kong Stock Exchange [16]. - Li New Energy is set to invest approximately 1.25 billion yuan in three independent energy storage projects [18].