Primary Market - A total of 37 offshore bonds were issued by Chinese entities this week, including 3 RMB bonds, 29 USD bonds, 3 HKD bonds, 1 JPY bond, and 1 GBP bond, with issuance scales of 2.675 billion RMB, 12.738 billion USD, 1.4 billion HKD, 8 billion JPY, and 250 million GBP [1] - The largest single issuance in the offshore RMB bond market was 1.5 billion RMB by the London branch of the Bank of China, while the highest coupon rate for RMB bonds was 6.9% issued by Weifang Ocean Investment Group [1] - In the USD bond market, the largest single issuance was 5 billion USD by the International Bank for Reconstruction and Development, with the highest coupon rate of 7.75% issued by Prologis China Holdings [1] Secondary Market - The yield on Chinese USD bonds collectively increased this week, with the Markit iBoxx Chinese USD bond composite index rising by 0.06% to 251.53 [2] - The investment-grade USD bond index increased by 0.15% to 244, while the high-yield USD bond index rose by 0.24% to 246.04 [2] - The real estate USD bond index increased by 0.23% to 187.58, and the city investment bond index rose by 0.2% to 152.88 [2] - The financial USD bond index saw a 0.14% increase, reaching 290.87 [2] Benchmark Spread - The spread between the 10-year benchmark yields of China and the U.S. narrowed to 214.99 basis points, a decrease of 10.37 basis points from the previous week [3] Rating Changes - Several credit rating adjustments occurred this week, including the withdrawal of ratings for various companies such as Lankai City State-owned Capital Operation Co., Ltd. and Shandong Heze Construction Group Co., Ltd. [4] - Moody's downgraded China Tourism Group's issuer rating to "Baa1" with a stable outlook, and Vanke Enterprises Co., Ltd.'s family rating was downgraded to "Caa2" with a negative outlook [4] Default and Extension - Taihe Group announced an extension of 1.688 billion RMB debt for its subsidiary, Zhuhai Free Trade Zone Qihang Logistics Co., Ltd., with the maturity date adjusted to October 26, 2026 [5] Domestic News - As of the end of September 2025, foreign institutions held 3.78 trillion RMB in the interbank bond market, accounting for approximately 2.2% of the total custody volume [6] - The Bond Connect Northbound trading volume reached 581 billion RMB in September, with an average daily trading volume of 25.3 billion RMB [7] - The first "Yulan Bond" in the financial leasing industry was successfully issued by China Everbright Financial Leasing Co., Ltd., with a scale of 1 billion RMB and a 3-year term at an interest rate of 2.02% [8] Overseas News - The Indonesian government successfully issued its first offshore RMB bond, totaling 6 billion RMB, marking a milestone for Southeast Asian sovereign institutions [9] - The U.S. federal government debt exceeded 38 trillion USD for the first time, reflecting a significant increase in the national debt [10] Offshore Bond Alerts - Zhengrong Real Estate Holdings reached a settlement in a loan dispute involving 467 million RMB [11] - Feicheng Huayu applied for the listing of a 248 million RMB bond on the MOX exchange [12] - Shangkun Real Estate will be delisted from the Hong Kong Stock Exchange on October 27, 2025, due to failure to resume trading [13]

Group 1: Open Market Operations - The central bank conducted a 7-day reverse repurchase operation on September 30, with a fixed rate and a total of 242.2 billion yuan at an interest rate of 1.40%, with the same amount being bid and awarded [1] - On the same day, 276.1 billion yuan in reverse repos matured, resulting in a net withdrawal of 33.9 billion yuan [1] Group 2: Liquidity Conditions - On the last trading day of September, the interbank market liquidity remained stable, with overnight repo rates for deposit institutions rising over 7 basis points but still below 1.4%, which is considered a comfortable level for quarter-end [3] - The overnight financing rate in the U.S. was reported at 4.16% [3] Group 3: Interbank Certificates of Deposit - The latest transaction for one-year interbank certificates of deposit in the secondary market was around 1.675% [7] Group 4: Bond Market Overview - Major interest rate bonds in the interbank market saw a decline in yields across the board [8] - Government bond futures closed higher, with the 30-year main contract up by 0.1%, the 10-year contract up by 0.17%, the 5-year contract up by 0.11%, and the 2-year contract up by 0.04% [13] Group 5: Key News - The Shanghai Clearing House announced a full exemption of bond issuance registration fees from October 1, 2025, to September 30, 2026, and a 50% reduction in service fees for bond interest payment and redemption [14] - The interbank dealer association released a revised evaluation scheme for lead underwriters of non-financial corporate debt financing tools, emphasizing resource allocation to technology finance and inclusive finance [14] Group 6: Bond Defaults and Risks - Recent updates on bond defaults include the restructuring progress of Dongxu PPN001 and the slow debt restructuring of Sanbao Group [17] - A list of negative events in the bond market includes delayed ratings for several entities, indicating potential risks in the sector [17]

Primary Market - A total of 24 offshore bonds were issued this week, including 4 offshore RMB bonds, 11 USD bonds, 7 HKD bonds, 1 SGD bond, and 1 EUR bond, with issuance scales of 14.2717 billion RMB, 1.9226 billion USD, 78.486 billion HKD, 125 million SGD, and 150 million EUR respectively [2] - The largest single issuance in the offshore RMB bond market was 1.1 billion RMB by Xinyin (Hong Kong) Investment Co., Ltd. The highest coupon rate for RMB bonds this week was 6.9%, issued by Zoucheng City Investment Holding Group Co., Ltd. [2] - In the USD bond market, the largest single issuance was 500 million USD by Guangdong Hengjian Investment Holdings Co., Ltd., with the highest coupon rate of 11.88% from New Town Development Holdings Limited [2] Secondary Market - The yield of Chinese offshore USD bonds rose across the board this week, with the Markit iBoxx Chinese USD bond composite index increasing by 0.27% to 243 [3] - The real estate USD bond index rose by 0.6% to 179.89, while the city investment USD bond index increased by 0.3% to 149.02 [3] - The largest weekly increase in Chinese offshore bonds was seen in the USD bond issued by Peng Bo Telecom, which surged by 365.79% to 8.85 [3][4] Credit Ratings - On June 9, Mudanjiang Urban Investment Group's "BB+" international long-term issuer rating was withdrawn at the company's request [9] - On June 10, Chengdu Jiaozi Modern Urban Industrial Development Co., Ltd.'s "BBB" international long-term issuer rating was also withdrawn for commercial reasons [9] Domestic News - As of June 7, the issuance of technology innovation bonds exceeded 370 billion RMB, with 147 institutions participating [11] - The total issuance of MOX bonds reached approximately 938.943 billion MOP, with RMB-denominated bonds accounting for about 39.067 billion MOP [12] - Public funds have distributed over 95.643 billion RMB in dividends this year, with bond funds being the main contributors [13] Offshore Debt Alerts - New Town Development announced a cash tender offer for two USD bonds maturing this year, issuing 300 million USD in new bonds with a coupon rate of 11.88% [15] - Rongsheng Development plans to settle debts of approximately 810 million RMB through asset swaps [16] - Kaisa Group seeks to extend its restructuring deadline to September 30, 2025, due to regulatory approval delays [17] - Yuexiu Property secured a sustainable development-linked loan of 1.56 billion HKD with a three-year term [18]

Group 1 - As of March 31, 2025, there are 5,625 issuers of corporate credit bonds and financial bonds in the interbank market, with 3,065 non-financial corporate debt financing tools, 4,189 corporate bonds, and 505 financial bond issuers [1] - The distribution of issuer ratings shows that AA-rated issuers account for 25.51%, 38.74%, and 9.31% respectively, while issuers rated AA+ and above account for 70.54%, 51.47%, and 65.35% [1] - There are 12,266 outstanding local government bonds, with AAA-rated bonds making up 97.11%, and 9,684 asset-backed securities with 44.53% rated AA and above [1] Group 2 - In the first quarter, 15 rating agencies collectively undertook 2,609 bond products, a decrease of 4.92% quarter-on-quarter, and 2,200 issuer ratings, down 21.06% [2] - The leading agencies by business volume are China Chengxin International and United Ratings, with market shares of 33.92% and 20.9% respectively [2] Group 3 - There were 19 rating adjustments made by rating agencies in the first quarter, a decrease of 36% quarter-on-quarter, with 8 positive adjustments and 7 negative adjustments [3] - China Chengxin International made the most positive adjustments, raising the ratings of 4 issuers, while Zhongceng Pengyuan had the most negative adjustments, lowering the ratings of 4 issuers [3] Group 4 - In the first quarter, 114 issuers changed their rating agencies, a decrease of 22 year-on-year and 60 quarter-on-quarter, with an upgrade rate of 7.02% for those whose new agency provided a higher rating [4] - Standard & Poor's (China) upgraded 4 issuers, representing 100% of its new agency assignments [4] Group 5 - As of March 31, 2025, there are 902 issuers with ratings from two or more agencies, representing 17.22% of outstanding bond issuers, with a discrepancy rate of 7.10% [5] - The discrepancies in ratings are all within one sub-level, with China Chengxin International rating 11 issuers higher than others, accounting for 2.14% [5]

Primary Market - A total of 23 offshore bonds were issued this week (June 2 - June 6, 2025), including 8 offshore RMB bonds, 9 USD bonds, 4 HKD bonds, 1 SGD bond, and 1 EUR bond, with issuance scales of 14.2717 billion RMB, 2.7447 billion USD, 81.587 billion HKD, 800 million SGD, and 1 billion EUR respectively [2] - The largest single issuance in the offshore RMB bond market was 2 billion RMB by State Grid Corporation, while the highest coupon rate was 6.9% issued by Weifang Ocean Investment Group [2] - In the USD bond market, the largest single issuance was 400 million USD by Shanghai Pudong Development Bank's London branch, with the highest coupon rate at 6.4% from Guangxi Chongzuo Urban Construction Investment Development Group [2] Secondary Market - Most yields on Chinese USD bonds fell this week, with the Markit iBoxx Chinese USD bond composite index remaining flat at 242.35, while the investment-grade USD bond index rose by 0.04% to 235.23 [3] - The high-yield USD bond index decreased by 0.26% to 236.3, with the real estate USD bond index down 0.58% to 178.81 [3] - The largest weekly gain in offshore Chinese bonds was seen in the USD bond issued by Zhengrong Real Estate, which surged by 242.33% to 1.03 [3] Credit Ratings - Several credit ratings were adjusted this week, including the withdrawal of long-term credit ratings for Tai'an Taishan Holdings and Sheyang State-owned Assets Investment Group due to commercial reasons [10] - Standard & Poor's confirmed the long-term issuer credit rating of Geely Holding Group and Geely Automobile at "BBB-", changing the outlook from "stable" to "negative" [10] Domestic News - In May 2025, real estate companies raised a total of 28.88 billion RMB in bond financing, a year-on-year increase of 23.5%, with an average financing rate of 2.35%, down 0.43 percentage points year-on-year [12] - The Ministry of Finance issued 12.5 billion RMB of government bonds in Hong Kong, with a subscription rate of 3.96 times [13] - The Hong Kong government successfully priced approximately 27 billion HKD of green and infrastructure bonds, marking the longest maturity for HKD bonds issued by the government [14] Overseas News - Eurozone inflation in May fell to 1.9%, below the European Central Bank's target, leading to a decline in Eurozone bond yields [15] - The U.S. Treasury conducted a record $10 billion bond repurchase, viewed as a "mini QE" to enhance liquidity in older bonds [16] Offshore Debt Alerts - Longguang updated its restructuring plan for 21 domestic debts totaling over 21.9 billion RMB, aiming to secure cash for repayment [17] - Ping An Insurance plans to issue 11.765 billion HKD of zero-coupon convertible bonds due in 2030 [18] - CIFI Holdings' offshore debt restructuring plan received overwhelming support from creditors [20] - Shimao Group reported a contract sales amount of approximately 2.135 billion RMB in May 2025 [21]