1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - Since the second half of 2025, the "anti-involution" policy has catalyzed the stabilization and recovery of commodity prices, and the fundamentals of some industries have shown signs of repair. For example, the non-ferrous metals industry has seen an upward shift in the price center of major metals under the multiple positive factors of continuous increase in policy support for stable growth, rapid expansion of downstream emerging industry demand, and steady improvement in domestic resource security capabilities. The profitability, operational capacity, and solvency of issuing entities have been enhanced. In 2026, the excess returns in the credit bond market may come from the value discovery of industries with fundamental repair. For the non-ferrous metals industry with fundamental repair, it is recommended to focus on allocating AA+/AAA-level central enterprises and regional leading state-owned enterprises and appropriately extend the duration, while also paying attention to avoiding the credit risks of bonds issued by small and medium-sized smelting and processing enterprises with low resource self-sufficiency rates and single industrial chain layouts [5][7][48] - Overall, this week, the credit spreads of most industries and ratings were compressed by less than 10BP, while the AA+ credit spread of the non-bank financial sector widened significantly by 20BP. In terms of urban investment bonds, the credit spreads of urban investment bonds with different maturities were compressed by 1-4BP compared with last week. In terms of industrial bonds, the short-term (1Y) credit spreads of industrial bonds widened significantly, while those above 1Y were mostly compressed to varying degrees. In terms of bank capital bonds, the short-term (within 1Y) spreads of bank perpetual and secondary capital bonds widened slightly, the 3Y spreads were significantly compressed, and the medium- and long-term (5-10Y) spreads were slightly compressed [6][47][48] 3. Summary According to the Directory 3.1 This Week's Credit Hot Events - On January 9th, the National Association of Financial Market Institutional Investors (NAFMII) issued a business reminder on further standardizing the issuance of debt financing instruments, emphasizing five aspects: distribution information entry, withdrawal reporting, subscription record-keeping, lead underwriting syndicate mechanism, and information disclosure quality. It is expected that in the short term (Q1 2026), the issuance efficiency of inter-bank bonds may decline, and the issuance difficulty of some weakly qualified issuers may increase. In the long term, the inter-bank bond issuance market will become more standardized and transparent, which is conducive to improving market liquidity and pricing efficiency [11][12][13] - On January 9th, the Guizhou Provincial People's Government issued policies to support the integrated development of industry, county prosperity, and people's well-being. In the short term, the policies will directly support county-level "Three Guarantees" and debt risk mitigation. In the long term, they will support the continuous improvement of local debts through industrial upgrading and fiscal revenue growth. For the existing platform debts in Guizhou, the policies strengthen the financing support for high-quality projects and force county-level platforms to transform into operating entities, which may further intensify regional credit differentiation [14][15] 3.2 Primary Market 3.2.1 Net Financing Scale - This week, the net financing of credit bonds (excluding asset-backed securities) was 115.3 billion yuan, an increase of 191.6 billion yuan compared with last week. The total issuance was 285.5 billion yuan, an increase of 209.2 billion yuan, and the total repayment was 170.3 billion yuan, an increase of 17.6 billion yuan. The net financing of asset-backed securities was 14.7 billion yuan, an increase of 15 billion yuan [16] - By product type, the net financing of urban investment bonds was 30.9 billion yuan, an increase of 37.5 billion yuan; the net financing of industrial bonds was 89.7 billion yuan, an increase of 144.5 billion yuan; and the net financing of financial bonds was -5.4 billion yuan, an increase of 9.6 billion yuan [16] 3.2.2 Issuance Cost - This week, the issuance volume of urban investment bonds and industrial bonds increased significantly, and the issuance rates of AA and AA+ decreased significantly compared with last week. Specifically, the average issuance rates of AA urban investment bonds and industrial bonds were in the range of 2.6-2.8%, the average issuance rates of AA+ urban investment bonds and industrial bonds were in the range of 2.2-2.3%, and the issuance rates of AAA-level bonds of different varieties were all below 2.3% [23] 3.3 Secondary Market 3.3.1 Transaction Volume - In terms of trading volume, the trading volume of credit bonds (excluding asset-backed securities) increased by 554.6 billion yuan compared with last week. Among them, the trading volume of urban investment bonds was 246 billion yuan, an increase of 139.5 billion yuan; the trading volume of industrial bonds was 329.6 billion yuan, an increase of 172.8 billion yuan; the trading volume of financial bonds was 498.8 billion yuan, an increase of 242.3 billion yuan. The trading volume of asset-backed securities was 16.2 billion yuan, an increase of 4.8 billion yuan [24] - In terms of turnover rate, the overall turnover rate of credit bonds increased compared with last week. Specifically, the turnover rate of urban investment bonds was 1.58%, an increase of 0.89 percentage points; the turnover rate of industrial bonds was 1.7%, an increase of 0.89 percentage points; the turnover rate of financial bonds was 3.21%, an increase of 1.56 percentage points. The turnover rate of asset-backed securities was 0.44%, an increase of 0.13 percentage points [25] 3.3.2 Yield - This week, the yields of 5Y credit bonds of different ratings widened slightly, while the yields of credit bonds of other ratings and maturities fluctuated by no more than 3BP compared with last week. Taking AA+ 5Y bonds of each variety as an example, the yields of different varieties all increased to varying degrees [27][28] 3.3.3 Credit Spread - Overall, the credit spreads of most industries and ratings were compressed by less than 10BP this week, while the AA+ credit spread of the non-bank financial sector widened significantly by 20BP. Specifically, the credit spreads of AA media, mining, commercial trade, and transportation industries were compressed by 7BP, 6BP, 7BP, and 6BP respectively; the credit spreads of AA+ building materials and machinery industries were compressed by 8BP and 10BP respectively; the credit spread of the AAA computer industry was compressed by 7BP. The credit spreads of other industries and ratings fluctuated by no more than 5BP [31] - **Urban Investment Bonds**: In terms of maturity, the credit spreads of urban investment bonds of different maturities were compressed by 1-4BP compared with last week. In terms of regions, the credit spreads of urban investment bonds in different regions were compressed to varying degrees [36][37] - **Industrial Bonds**: This week, the short-term (1Y) credit spreads of industrial bonds widened significantly, while those above 1Y were mostly compressed to varying degrees [40] - **Bank Capital Bonds**: This week, the short-term (within 1Y) spreads of bank perpetual and secondary capital bonds widened slightly, the 3Y spreads were significantly compressed, and the medium- and long-term (5-10Y) spreads were slightly compressed [43] 3.4 This Week's Bond Market Sentiment - This week, the implied ratings of 41 bond issues of 8 entities were downgraded, including 16 issues of AVIC Industry Finance Holdings Co., Ltd. and 10 issues of New Hope Wuxin Industrial Group Co., Ltd. The "21 Wantong 02" issued by Guangxi Wantong Real Estate Co., Ltd. was extended; the "H20 Zhengrong 2" issued by Zhengrong Real Estate Holdings Co., Ltd. defaulted substantially; Shandong Zhangqiu Blower Co., Ltd. was placed on the watch list, and its "Zhanggu Convertible Bond" was also placed on the watch list [4][45] 3.5 Investment Recommendations - This week, a total of 1,323.6 billion yuan of reverse repurchases matured in the open market, and the central bank conducted a total of 102.2 billion yuan of reverse repurchase operations, resulting in a net withdrawal of 1,221.4 billion yuan for the whole week. As of the close on Friday, DR001 closed at 1.28% [6] - For the non-ferrous metals industry with fundamental repair, it is recommended to focus on allocating AA+/AAA-level central enterprises and regional leading state-owned enterprises and appropriately extend the duration, while also paying attention to avoiding the credit risks of bonds issued by small and medium-sized smelting and processing enterprises with low resource self-sufficiency rates and single industrial chain layouts [7][48]

Summary of Key Points Core Viewpoint - The report highlights the current state of credit bond issuance and maturity in China, indicating a decrease in issuance and a mixed performance in net financing across different types of bonds [4][5]. Group 1: Credit Bond Issuance and Maturity - As of December 31, 2025, the total outstanding credit bond balance in China is 31.29 trillion yuan. In December 2025, a total of 1,089.23 billion yuan in credit bonds was issued, representing a month-on-month decrease of 17.19%. The total repayment amount was 912.56 billion yuan, resulting in a net financing of 176.67 billion yuan [4]. - The outstanding balance of local government financing bonds (城投债) is 15.37 trillion yuan. In December 2025, the issuance of local government bonds reached 371.72 billion yuan, which is a month-on-month decrease of 9.19% and a year-on-year decrease of 22.55%. The net financing amount for local government entities was 44.42 billion yuan [4]. - The outstanding balance of industrial bonds (产业债) is 15.92 trillion yuan. In December 2025, the issuance of industrial bonds was 717.52 billion yuan, showing a month-on-month decrease of 20.8% but a year-on-year increase of 22.17%. The net financing for industrial entities was 132.25 billion yuan [4]. Group 2: Credit Bond Transactions and Spreads - In December 2025, the transaction volume of local government bonds was 1,101.40 billion yuan, showing a month-on-month increase but a year-on-year decrease. The turnover rate for local government bonds was 7.17% [5]. - The transaction volume of industrial bonds in December 2025 was 1,473.46 billion yuan, with both month-on-month and year-on-year increases. The turnover rate for industrial bonds was 9.23% [5]. - The credit spreads for local government bonds across various ratings widened compared to the previous month, indicating increased risk perception. Similarly, the credit spreads for industrial bonds also widened across all ratings [5].

Report Industry Investment Rating No information provided in the given content. Core Viewpoints - The issuance guidance rates announced by the National Association of Financial Market Institutional Investors during the period from December 22 to December 28, 2025, showed a differentiated trend, with most high - grade rates declining and most medium - and low - grade rates rising, with an overall change range of - 3 BP to 2 BP [1][15][63]. - The issuance scale of credit bonds decreased compared with the previous period. Corporate bonds remained at zero issuance, the issuance amounts of corporate bonds and private placement notes decreased, while the issuance amounts of medium - term notes and commercial paper increased. The net financing of credit bonds decreased compared with the previous period [1][13][63]. - In the secondary market, the trading volume of credit bonds increased compared with the previous period. The trading volumes of corporate bonds, corporate bonds, medium - term notes, and private placement notes increased, while the trading volume of commercial paper decreased [1][19][63]. - The yields of most credit bonds declined during this period. The credit spreads of medium - and short - term notes, corporate bonds, and urban investment bonds were differentiated, with most 1 - year and 7 - year spreads widening and most 3 - year and 5 - year spreads narrowing [1][22][63]. - From the perspective of absolute return, the shortage of supply and relatively strong allocation demand will promote the continued recovery of credit bonds. In the long run, the yields are still in a downward channel, and the idea of increasing allocation during adjustments is still feasible. From the perspective of relative return, although the compression space of credit spreads at all tenors is insufficient, the probability of unilateral callback in the short term is also small. Therefore, it is still possible to achieve the coupon strategy through credit downgrade and extending the duration [1][63]. Summary by Directory 1. Primary Market Situation 1.1 Issuance and Maturity Scale - From December 22 to December 28, 2025, a total of 211 credit bonds were issued, with an issuance amount of 254.432 billion yuan, a 2.51% decrease compared with the previous period. The net financing of credit bonds was 42.433 billion yuan, a decrease of 18.343 billion yuan compared with the previous period [13]. - Corporate bonds had zero issuance, with a net financing of - 6.252 billion yuan, an increase of 0.498 billion yuan compared with the previous period. Corporate bonds issued 74 bonds, with an issuance amount of 49.363 billion yuan, a 46.55% decrease compared with the previous period, and a net financing of 15.757 billion yuan, a decrease of 29.511 billion yuan compared with the previous period. Medium - term notes issued 66 bonds, with an issuance amount of 109.469 billion yuan, a 30.15% increase compared with the previous period, and a net financing of 78.532 billion yuan, an increase of 37.169 billion yuan compared with the previous period. Commercial paper issued 60 bonds, with an issuance amount of 90.117 billion yuan, a 23.36% increase compared with the previous period, and a net financing of - 44.152 billion yuan, a decrease of 25.187 billion yuan compared with the previous period. Private placement notes issued 11 bonds, with an issuance amount of 5.483 billion yuan, a 52.24% decrease compared with the previous period, and a net financing of - 1.452 billion yuan, a decrease of 1.312 billion yuan compared with the previous period [13]. 1.2 Issuance Interest Rates - The issuance guidance rates announced by the National Association of Financial Market Institutional Investors were differentiated, with most high - grade rates declining and most medium - and low - grade rates rising, with an overall change range of - 3 BP to 2 BP. By tenor, the 1 - year variety had an interest rate change range of - 2 BP to 0 BP, the 3 - year variety had an interest rate change range of - 3 BP to 2 BP, the 5 - year variety had an interest rate change range of - 3 BP to 2 BP, and the 7 - year variety had an interest rate change range of - 2 BP to 1 BP. By grade, the key AAA - grade and AAA - grade varieties had an interest rate change range of - 3 BP to - 1 BP, the AA + - grade variety had an interest rate change range of - 1 BP to 2 BP, the AA - grade variety had an interest rate change range of 0 BP to 2 BP, and the AA - - grade variety had an interest rate change range of 0 BP to 1 BP [15]. 2. Secondary Market Situation 2.1 Market Trading Volume - From December 22 to December 28, 2025, the total trading volume of credit bonds was 1.030617 trillion yuan, a 7.72% increase compared with the previous period. Corporate bonds, corporate bonds, medium - term notes, commercial paper, and private placement notes traded 28.754 billion yuan, 446.075 billion yuan, 347.636 billion yuan, 145.597 billion yuan, and 62.555 billion yuan respectively [19]. 2.2 Credit Spreads - In medium - and short - term notes, the credit spreads of each variety were differentiated. The 1 - year credit spreads widened; among the 3 - year notes, the credit spreads of AA - grade and AA - - grade widened, while the spreads of AAA - grade and AA + - grade narrowed; the 5 - year credit spreads narrowed; among the 7 - year notes, the credit spread of AAA - grade narrowed, while the spread of AA + - grade widened [22]. - In corporate bonds, the credit spreads of each variety were differentiated. The 1 - year AAA - grade credit spread narrowed, while the spreads of other varieties widened; among the 3 - year notes, the credit spreads of AAA - grade and AA + - grade narrowed, while the spreads of AA - grade and AA - - grade widened; the 5 - year credit spreads narrowed; among the 7 - year notes, the credit spread of AAA - grade narrowed, while the spreads of other varieties widened [27]. - In urban investment bonds, the credit spreads of each variety were differentiated. The 1 - year credit spreads widened; the 3 - year credit spreads narrowed; among the 5 - year notes, the credit spreads of AAA - grade and AA + - grade narrowed, while the spreads of AA - grade and AA - - grade widened; among the 7 - year notes, the credit spread of AAA - grade narrowed, while the spreads of other varieties widened [37]. 2.3 Term Spreads and Rating Spreads - For AA + medium - and short - term notes, the 3Y - 1Y term spread narrowed by 1.20 BP, the 5Y - 3Y term spread narrowed by 3.20 BP, and the 7Y - 3Y term spread widened by 3.22 BP. The 3Y - 1Y term spread was at a low - to - middle historical percentile (21.6%), the 5Y - 3Y term spread was at a low - to - middle historical percentile (34.5%), and the 7Y - 3Y term spread was at a historical median (41.9%). In terms of rating spreads, the (AA - )-(AAA) spread of 3 - year medium - and short - term notes widened by 3.00 BP, the (AA)-(AAA) spread widened by 3.00 BP, and the (AA + )-(AAA) spread widened by 2.00 BP [47]. - For AA + corporate bonds, the 3Y - 1Y term spread narrowed by 3.69 BP, the 5Y - 3Y term spread widened by 3.12 BP, and the 7Y - 3Y term spread widened by 8.55 BP. The 3Y - 1Y term spread was at a historical low (12.2%), the 5Y - 3Y term spread was at a low - to - middle historical percentile (36.3%), and the 7Y - 3Y term spread was at a historical median (42.9%). In terms of rating spreads, the (AA - )-(AAA) spread of 3 - year corporate bonds widened by 6.00 BP, the (AA)-(AAA) spread widened by 6.00 BP, and the (AA + )-(AAA) spread remained unchanged from the previous period [52]. - For AA + urban investment bonds, the 3Y - 1Y term spread narrowed by 0.72 BP, the 5Y - 3Y term spread narrowed by 1.67 BP, and the 7Y - 3Y term spread widened by 2.25 BP. The 3Y - 1Y term spread was at a low - to - middle historical percentile (20.3%), the 5Y - 3Y term spread was at a low - to - middle historical percentile (31.2%), and the 7Y - 3Y term spread was at a historical median (46.8%). In terms of rating spreads, the (AA - )-(AAA) spread of 3 - year urban investment bonds narrowed by 1.00 BP, the (AA)-(AAA) spread widened by 1.00 BP, and the (AA + )-(AAA) spread remained unchanged from the previous period [54]. 3. Credit Rating Adjustment and Default Bond Statistics 3.1 Credit Rating Adjustment Statistics - From December 22 to December 28, 2025, a total of 2 companies had their ratings (including outlooks) adjusted, both of which were upgrades. They were Wenzhou Transportation Development Group Co., Ltd. and Guangxi Energy Group Co., Ltd. [60]. 3.2 Default and Extension Bond Statistics - There were no credit bond defaults during the period from December 22 to December 28, 2025. One issuer, Bohai Leasing Co., Ltd., had its credit bonds extended, namely "18 Bojin 03" and "18 Bozu 05", with a total bond balance of 823 million yuan at the time of extension [62]. 4. Investment Viewpoints - The overall idea is to continue to be optimistic about the credit bond market in the long term, but pay attention to short - term fluctuations. In terms of configuration, the coupon strategy can be moderately optimistic, and the trading strategy can be kept optimistic. When selecting bonds, focus on the trend of interest - rate bonds and the coupon value of individual bonds. At the same time, it is possible to achieve the coupon strategy through credit downgrade and extending the duration according to one's own capital characteristics, but pay attention to the rhythm [1][63].

1. Report Industry Investment Rating The document does not provide the industry investment rating. 2. Core View of the Report The report analyzes the credit market from December 22 - December 26, 2025. It shows that the primary - market credit bond issuance and net financing increased, while the repayment decreased, and the asset - backed securities' net financing decreased. In the secondary market, the trading volume of credit bonds increased, and the yield and credit spread of different bonds fluctuated. There were also negative credit events. Investment suggestions are provided for different types of bonds in 2026 [3][5][6]. 3. Summary by Relevant Catalogs 3.1 This Week's Credit Hot Events - "22 Vanke MTN005" multiple extension proposals were not approved, and only the extension of the principal and interest payment grace period to 30 trading days was agreed. The grace period for the bond with a scale of 3.7 billion yuan expires on February 10, 2026. Vanke's debt disposal for public and non - standard debts may be different, and a lack of clear credit enhancement for public debts may lead to increased risks [9][10][12]. - The Shanghai Stock Exchange issued the "Shanghai Stock Exchange Bond Continuation Business Guide No. 5 - Corporate Bond Trustee Management", aiming to clarify trustee responsibilities, encourage active credit management, and improve business quality and efficiency [13]. 3.2 Primary Market 3.2.1 Net Financing Scale - Credit bond (excluding asset - backed securities) net financing was 213.8 billion yuan, an increase of 98.7 billion yuan. The total issuance was 421.3 billion yuan (up 56.9 billion yuan), and the total repayment was 207.5 billion yuan (down 41.8 billion yuan). Asset - backed securities' net financing was 20.6 billion yuan, a decrease of 2.9 billion yuan [15]. - By product type, the net financing of urban investment bonds was 28.6 billion yuan (up 8.4 billion yuan), industrial bonds was 68.3 billion yuan (down 2.6 billion yuan), and financial bonds was 117 billion yuan (up 92.9 billion yuan) [15]. - In terms of issuance and redemption quantity, urban investment bonds' issuance decreased by 14 and redemption decreased by 22; industrial bonds' issuance decreased by 42 and redemption increased by 7; financial bonds' issuance increased by 4 and redemption decreased by 17 [17]. 3.2.2 Issuance Cost - The issuance rate of AA financial bonds remained above 3%, while the rates of AA + urban investment bonds and AAA financial bonds increased slightly. Other bonds' rates decreased to varying degrees. Specifically, the rates of AA urban investment bonds and AA + financial bonds dropped by 53BP and 50BP respectively [21]. 3.3 Secondary Market 3.3.1 Trading Situation - The trading volume of credit bonds (excluding asset - backed securities) increased by 83.7 billion yuan. Urban investment bonds' trading volume was 285.6 billion yuan (up 26.2 billion yuan), industrial bonds was 364.7 billion yuan (down 2.7 billion yuan), and financial bonds was 687.7 billion yuan (up 60.2 billion yuan). Asset - backed securities' trading volume was 20.4 billion yuan (down 5.1 billion yuan) [22]. - Regarding turnover rate, the overall credit bond turnover rate showed mixed changes. Urban investment bonds' turnover rate was 1.83% (up 0.17pct), industrial bonds was 1.88% (down 0.02pct), financial bonds was 4.43% (up 0.37pct), and asset - backed securities was 0.52% (down 0.15pct) [23]. 3.3.2 Yield - The yield of credit bonds with different ratings and maturities fluctuated within 4BP. For example, the yields of 1 - year AA, AAA -, and AAA + credit bonds fluctuated within 1BP, and the yields of 5 - year AA, AAA -, and AAA + credit bonds compressed by 3BP, 4BP, and 2BP respectively [25]. 3.3.3 Credit Spread - Overall, the credit spread of the AA + textile and apparel industry compressed by 12BP, while the spreads of the AAA real estate and AA + pharmaceutical and biological industries widened by 7BP and 9BP respectively. Other industries' spreads fluctuated within 5BP [30]. - For urban investment bonds, the short - term (within 1Y) spread widened by 4BP, and other maturities' spreads fluctuated within 2BP. Regionally, most urban investment bond spreads in different regions widened slightly [32][34]. - For industrial bonds, the short - term credit spread widened significantly, while the spreads of bonds over 1Y compressed to varying degrees [38]. - For bank capital bonds, the spreads of bank Tier 2 and perpetual bonds within 5Y widened significantly, while the spreads of long - term bonds over 5Y fluctuated within 2BP [40]. 3.4 This Week's Bond Market Negative News Two entities' four bond implicit ratings were downgraded, and Bohai Leasing Co., Ltd.'s two bonds announced extensions [4][41]. 3.5 Investment Suggestions - For urban investment bonds, short - duration (within 2Y) bonds can be used as a base position, and high - quality urban investment entities with a duration of 3 - 5Y can be selected to increase returns [6]. - For industrial bonds, high - quality central and state - owned enterprise bonds can be used as a base position with a longer duration, and industries with marginal improvement should be focused on [6]. - For Tier 2 and perpetual bonds, trading opportunities of bonds with good liquidity (preferably 3 - 5Y AAA -) should be grasped, and bonds of high - quality city commercial banks and rural commercial banks in economically developed and debt - resolution - advanced regions should be considered [6].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - This week, the credit spreads of the AAA electrical equipment industry compressed significantly compared to last week, while the credit spreads of other industries and ratings widened to varying degrees. For urban investment bonds, the credit spreads of those with a maturity over 10 years compressed slightly by 1BP, while the spreads of other maturities widened by 3BP. For industrial bonds, most of the industrial credit spreads continued to widen, with the short - end widening more significantly than the long - end. For bank capital bonds, the short - end spreads of bank Tier 2 and perpetual bonds within 1 year widened slightly, while the long - end spreads over 10 years compressed slightly [3][4][30]. - In 2026, for urban investment bonds, short - duration (within 2Y) sinking urban investment bonds can be used as a base position, and high - quality urban investment entities with a moderately extended duration (3 - 5Y) can be selected. For industrial bonds, high - quality central and state - owned enterprise industrial bonds can be used as a base position with an extended duration, and attention should be paid to industries with marginal improvements. For Tier 2 and perpetual bonds, trading opportunities of those with good liquidity (preferably 3 - 5Y AAA -) should be grasped, and attention should be paid to high - quality city commercial banks and rural commercial banks in economically developed areas and areas with advanced debt resolution progress [5][7][44]. 3. Summary by Related Catalogs 3.1 This Week's Credit Hot Events - On December 19th, the Shanghai Stock Exchange issued a notice allowing eligible overseas institutional investors to conduct bond repurchase business on the Shanghai Stock Exchange, providing them with standardized liquidity management tools [11]. - On December 15th, the National Association of Financial Market Institutional Investors launched a self - regulatory investigation into Postal Savings Bank of China for suspected violations in the underwriting and issuance of debt financing instruments [12]. - On December 15th, Guizhou Rural Commercial United Bank Co., Ltd. was approved to open. It acquired the shares of 16 rural commercial banks and 5 rural credit cooperatives, with an increased registered capital of 10.458 billion yuan and new shareholders including the Guizhou Provincial Department of Finance and China Kweichow Moutai Group Co., Ltd. [13]. 3.2 Primary Market 3.2.1 Net Financing Scale - This week, the net financing of credit bonds (excluding asset - backed securities) was 116.1 billion yuan, a decrease of 128.1 billion yuan compared to last week. The total issuance was 365.5 billion yuan, a decrease of 99.1 billion yuan, and the total repayment was 249.3 billion yuan, an increase of 29 billion yuan. The net financing of asset - backed securities was 20.9 billion yuan, a decrease of 27 billion yuan compared to last week [14]. - By product type, the net financing of urban investment bonds was 21.3 billion yuan, an increase of 500 million yuan; the net financing of industrial bonds was 70.9 billion yuan, a decrease of 44.7 billion yuan; and the net financing of financial bonds was 24 billion yuan, a decrease of 83.9 billion yuan [15]. 3.2.2 Issuance Cost - This week, the issuance rates of AA industrial bonds and urban investment bonds were adjusted to over 2.8%, while the average issuance rates of other bonds with different ratings and types were below 2.8%. Specifically, the issuance rates of AA industrial bonds and urban investment bonds increased by 45BP and 27BP respectively compared to last week, and the issuance rate of AA + financial bonds increased by 58BP [17]. 3.3 Secondary Market 3.3.1 Transaction Situation - In terms of trading volume, the trading volume of credit bonds (excluding asset - backed securities) decreased by 44.3 billion yuan compared to last week. By product type, the trading volume of urban investment bonds was 259.4 billion yuan, a decrease of 13.7 billion yuan; the trading volume of industrial bonds was 367.4 billion yuan, an increase of 13.2 billion yuan; the trading volume of financial bonds was 627.5 billion yuan, a decrease of 43.8 billion yuan. The trading volume of asset - backed securities was 25.5 billion yuan, an increase of 1 billion yuan [24]. - In terms of turnover rate, the turnover rate of credit bonds showed a mixed trend compared to last week. Specifically, the turnover rate of urban investment bonds was 1.66%, a decrease of 0.1 pct; the turnover rate of industrial bonds was 1.89%, an increase of 0.06 pct; the turnover rate of financial bonds was 4.05%, a decrease of 0.29 pct; the turnover rate of asset - backed securities was 0.67%, an increase of 0.03 pct [24]. 3.3.2 Yield - This week, the yields of credit bonds with different ratings and maturities fluctuated within 3BP compared to last week. For example, the yields of AA, AAA -, and AAA + credit bonds within 1 year decreased by 2BP, 2BP, and 1BP respectively; the yields of AA and AAA + credit bonds with a 5 - year maturity increased by 2BP and 1BP respectively, while the yield of AAA - credit bonds decreased by 1BP; the yields of AA, AAA -, and AAA + credit bonds with a maturity over 10 years decreased by 1BP, 1BP, and less than 1BP respectively [25]. 3.3.3 Credit Spreads - Overall, the credit spreads of the AAA electrical equipment industry compressed significantly by 14BP compared to last week, while the spreads of other industries and ratings widened to varying degrees. For example, the credit spreads of the AA + leisure service industry widened by 20BP, and the spreads of the AA + media and light manufacturing industries widened by 9BP [30]. - **Urban Investment Bonds**: By maturity, the credit spreads of urban investment bonds with a maturity over 10 years compressed slightly by 1BP, while the spreads of other maturities widened by 3BP. By region, the top five regions with the highest credit spreads of AA - rated urban investment bonds were Guizhou, Yunnan, Jilin, Shandong, and Sichuan; for AA + urban investment bonds, they were Guizhou, Inner Mongolia, Gansu, Shaanxi, and Yunnan; for AAA urban investment bonds, they were Liaoning, Yunnan, Shaanxi, Jilin, and Tianjin [32][34]. - **Industrial Bonds**: Most of the industrial credit spreads continued to widen, with the short - end widening more significantly than the long - end. For example, the credit spreads of 1 - year AAA -, AA +, and AA private industrial bonds widened by 4BP, 4BP, and 7BP respectively compared to last week; the spreads of 10 - year AAA -, AA +, and AA private industrial bonds widened by 2BP, 2BP, and 2BP respectively [36]. - **Bank Capital Bonds**: The short - end spreads of bank Tier 2 and perpetual bonds within 1 year widened slightly, while the long - end spreads over 10 years compressed slightly. For example, the credit spreads of 1 - year AAA -, AA +, and AA Tier 2 capital bonds widened by 4BP, 3BP, and 3BP respectively compared to last week, and the spreads of 10 - year AAA -, AA +, and AA Tier 2 capital bonds compressed by 3BP, 2BP, and 2BP respectively [39]. 3.4 This Week's Bond Market Negative News - This week, the implied ratings of bonds issued by five issuers, including Nanjing Zijin Financial Leasing Co., Ltd. and Beijing Tianheng Yuanxin Capital Investment Management Co., Ltd., were downgraded. The "H20 Tianying 3" issued by Wuhan Tianying Investment Group Co., Ltd. and the "Hongda Debenture" issued by Hongda Xingye Co., Ltd. defaulted in essence [4][40]. 3.5 Investment Recommendations - In 2026, for urban investment bonds, short - duration (within 2Y) sinking urban investment bonds can be used as a base position to obtain stable coupon income, and high - quality urban investment entities with a moderately extended duration (3 - 5Y) can be selected to increase portfolio returns. For industrial bonds, high - quality central and state - owned enterprise industrial bonds can be used as a base position with an extended duration to obtain stable coupon income, and attention should be paid to industries with marginal improvements. For Tier 2 and perpetual bonds, trading opportunities of those with good liquidity (preferably 3 - 5Y AAA -) should be grasped, and attention should be paid to high - quality city commercial banks and rural commercial banks in economically developed areas and areas with advanced debt resolution progress [44].

1. Report Industry Investment Rating No relevant information provided. 2. Core Viewpoints of the Report - In the current period (December 1 - 7, 2025), most of the issuance guidance rates announced by the National Association of Financial Market Institutional Investors declined, with an overall change range of -6 BP to 2 BP. The issuance scale of credit bonds decreased month - on - month. The issuance amount of enterprise bonds increased, while that of other varieties decreased. The net financing of credit bonds decreased month - on - month, with the net financing of enterprise bonds and commercial paper increasing, and that of other varieties decreasing. The net financing of enterprise bonds was negative, while that of other varieties was positive [2][13][60]. - In the secondary market, the trading amount of credit bonds decreased month - on - month. The trading amounts of private placement notes and commercial paper increased, while those of other varieties decreased. The yields of credit bonds all increased in the current period. The credit spreads of medium - and short - term notes, enterprise bonds, and urban investment bonds were differentiated, generally showing a widening at the short end and a narrowing at the medium - and long - ends [2][17][60]. - From the perspective of absolute returns, insufficient supply and relatively strong allocation demand will drive the credit bond market to continue its recovery. Although fluctuations and adjustments are inevitable under the influence of multiple factors, the conditions for a full - scale bear market in the credit bond market are still insufficient. In the long run, yields are still in a downward channel, and the strategy of increasing positions during adjustments is still feasible. Currently, the cost - effectiveness of most varieties for allocation has decreased, and caution is needed when chasing high prices. The coupon strategy can be moderately optimistic in the current allocation thinking, and the trading thinking should remain optimistic. When selecting bonds, the focus should be on the trend of interest - rate bonds while paying attention to the coupon value of individual bonds. From the perspective of relative returns, although the compression space of credit spreads at all tenors is insufficient at present, the probability of a one - sided correction in the short term is also low. Therefore, investors can still achieve the coupon strategy through credit - quality downgrading and extending the duration according to their own capital characteristics, but they need to pay attention to the rhythm during allocation [2][60]. - The central and local governments have been continuously optimizing real estate policies. The support policies have been continuously strengthened, actively releasing rigid and improving housing demand, which has played a positive role in promoting the stabilization of the real estate market. Although the real estate market is still in the transition period between the old and new models, with the effectiveness of various policies to stabilize the property market, the real estate market is moving towards stabilization. In the future, policies to promote the high - quality development of the real estate market are expected. For real estate bonds, the sales recovery process will have a significant impact on bond valuations. As the market shows signs of stabilization, funds with higher risk appetite can consider early layout, especially focusing on enterprises with outstanding performance in new financing and sales recovery. The focus of allocation should still be on central and state - owned enterprises with stable historical valuations and excellent performance, as well as high - quality private - enterprise bonds with strong guarantees. Investors can extend the duration to increase returns and also appropriately play the trading opportunities brought by the valuation repair of bonds of undervalued real - estate enterprises [3][61]. - For urban investment bonds, under the principle of coordinating development and security, the probability of default of urban investment bonds is very low, and they can still be a key allocation variety of credit bonds. Under the strict supervision of promoting the clearance of local financing platforms in an orderly and effective manner, the reform and transformation of financing platforms are accelerating. Attention should be paid to the reform and transformation opportunities of "entity - type" financing platforms. From the perspective of coupon income, investors can be appropriately active. The allocation strategy can give priority to credit - quality downgrading at the medium - and short - ends, and the trading strategy can still choose to extend the duration of medium - and high - grade bonds [4][61][62]. 3. Summary According to Relevant Catalogs 3.1 Primary Market Situation 3.1.1 Issuance and Maturity Scale - In the current period (December 1 - 7, 2025), a total of 291 credit bonds, including enterprise bonds, corporate bonds, medium - term notes, commercial paper, and private placement notes, were issued, with an issuance amount of 232.914 billion yuan, a month - on - month decrease of 32.35%. The net financing of credit bonds was 54.159 billion yuan, a month - on - month decrease of 6.974 billion yuan [13]. - By variety, 1 enterprise bond was issued, with an issuance amount of 1 billion yuan and a net financing of - 3.292 billion yuan, a month - on - month increase of 3.854 billion yuan. 110 corporate bonds were issued, with an issuance amount of 75.694 billion yuan, a month - on - month decrease of 6.20%, and a net financing of 17.749 billion yuan, a month - on - month decrease of 8.128 billion yuan. 78 medium - term notes were issued, with an issuance amount of 61.583 billion yuan, a month - on - month decrease of 62.30%, and a net financing of 14.611 billion yuan, a month - on - month decrease of 81.694 billion yuan. 80 commercial papers were issued, with an issuance amount of 82.462 billion yuan, a month - on - month decrease of 1.88%, and a net financing of 24.686 billion yuan, a month - on - month increase of 23.237 billion yuan. 22 private placement notes were issued, with an issuance amount of 12.175 billion yuan, a month - on - month decrease of 24.73%, and a net financing of 405 million yuan, a month - on - month decrease of 709 million yuan [13]. 3.1.2 Issuance Interest Rates - Most of the issuance guidance rates announced by the National Association of Financial Market Institutional Investors declined, with an overall change range of -6 BP to 2 BP. By tenor, the interest rate of 1 - year varieties changed from -6 BP to 1 BP, that of 3 - year varieties changed from -5 BP to 2 BP, that of 5 - year varieties changed from -5 BP to 0 BP, and that of 7 - year varieties changed from -3 BP to 0 BP. By rating, the interest rate of key AAA - rated and AAA - rated varieties changed from -2 BP to 2 BP, that of AA + - rated varieties changed from -1 BP to 0 BP, that of AA - rated varieties changed from -3 BP to -2 BP, and that of AA - - rated varieties changed from -6 BP to -3 BP [15]. 3.2 Secondary Market Situation 3.2.1 Market Trading Volume - In the current period (December 1 - 7, 2025), the total trading amount of credit bonds was 817.532 billion yuan, a month - on - month decrease of 7.60%. The trading amounts of enterprise bonds, corporate bonds, medium - term notes, commercial paper, and private placement notes were 17.007 billion yuan, 317.964 billion yuan, 281.89 billion yuan, 144.869 billion yuan, and 55.802 billion yuan respectively. The trading amount of credit bonds decreased month - on - month. The trading amounts of private placement notes and commercial paper increased, while those of other varieties decreased [17]. 3.2.2 Credit Spreads - For medium - and short - term notes, the credit spreads of each variety were differentiated. Specifically, the credit spreads of 1 - year and 5 - year notes widened, while those of 3 - year and 7 - year notes narrowed [20]. - For enterprise bonds, the credit spreads of each variety were differentiated. Specifically, the 1 - year credit spread widened; among the 3 - year bonds, the credit spread of AA + - rated varieties widened, while those of other varieties narrowed; among the 5 - year bonds, the credit spreads of AAA - rated and AA - - rated varieties narrowed, while those of AA + - rated and AA - rated varieties widened; the 7 - year credit spread narrowed [27]. - For urban investment bonds, the credit spreads of each variety were differentiated. Specifically, the 1 - year credit spread widened; among the 3 - year bonds, the credit spread of AA - - rated varieties widened, while those of other varieties narrowed; among the 5 - year bonds, the credit spread of AA + - rated varieties widened, while those of other varieties narrowed; the 7 - year credit spread narrowed [36]. 3.2.3 Term Spreads and Rating Spreads - For AA + medium - and short - term notes: In terms of term spreads, the 3Y - 1Y spread narrowed by 0.26 BP, the 5Y - 3Y spread widened by 2.87 BP, and the 7Y - 3Y spread widened by 1.94 BP. Currently, the 3Y - 1Y spread is at a relatively low historical level, at the 32.1% quantile, the 5Y - 3Y spread is at a relatively low historical level, at the 23.6% quantile, and the 7Y - 3Y spread is at a relatively low historical level, at the 29.0% quantile. In terms of rating spreads, the (AA - )-(AAA) spread of 3 - year medium - and short - term notes narrowed by 2.00 BP, the (AA)-(AAA) spread narrowed by 1.00 BP, and the (AA + )-(AAA) spread narrowed by 1.00 BP. Currently, the (AA - )-(AAA) spread is at a historical low, at the 0.0% quantile, the (AA)-(AAA) spread is at a historical low, at the 3.7% quantile, and the (AA + )-(AAA) spread is at a low level, at the 1.0% quantile [44]. - For AA + enterprise bonds: In terms of term spreads, the 3Y - 1Y spread widened by 2.92 BP, the 5Y - 3Y spread widened by 1.28 BP, and the 7Y - 3Y spread narrowed by 2.23 BP. Currently, the 3Y - 1Y spread is at a relatively low historical level, at the 31.7% quantile, the 5Y - 3Y spread is at a relatively low historical level, at the 26.5% quantile, and the 7Y - 3Y spread is at a relatively low historical level, at the 28.2% quantile. In terms of rating spreads, the (AA - )-(AAA) spread of 3 - year enterprise bonds narrowed by 1.00 BP, the (AA)-(AAA) spread remained the same as the previous period, and the (AA + )-(AAA) spread widened by 2.00 BP. Currently, the (AA - )-(AAA) spread is at a historical low, at the 0.7% quantile, the (AA)-(AAA) spread is at a historical low, at the 6.1% quantile, and the (AA + )-(AAA) spread is at a historical low, at the 1.5% quantile [50]. - For AA + urban investment bonds: In terms of term spreads, the 3Y - 1Y spread narrowed by 0.99 BP, the 5Y - 3Y spread widened by 1.12 BP, and the 7Y - 3Y spread narrowed by 0.73 BP. Currently, the 3Y - 1Y spread is at a relatively low historical level, at the 36.2% quantile, the 5Y - 3Y spread is at a relatively low historical level, at the 24.4% quantile, and the 7Y - 3Y spread is at a relatively low historical level, at the 30.1% quantile. In terms of rating spreads, the (AA - )-(AAA) spread of 3 - year urban investment bonds widened by 1.99 BP, the (AA)-(AAA) spread widened by 0.99 BP, and the (AA + )-(AAA) spread narrowed by 0.01 BP. Currently, the (AA - )-(AAA) spread is at a historical low, at the 10.1% quantile, the (AA)-(AAA) spread is at a historical low, at the 5.4% quantile, and the (AA + )-(AAA) spread is at a historical low, at the 0.8% quantile [53]. 3.3 Credit Rating Adjustment and Default Bond Statistics 3.3.1 Credit Rating Adjustment Statistics - According to iFinD statistics, there were no company rating (including outlook) adjustments in the current period (December 1 - 7, 2025) [58]. 3.3.2 Default and Extended - Maturity Bond Statistics - In terms of bond defaults, according to iFinD statistics, there were no credit bond defaults in the current period (December 1 - 7, 2025). - In terms of bond extensions, according to iFinD statistics, there were no credit bond extensions in the current period (December 1 - 7, 2025) [59]. 3.4 Investment Views - The views are consistent with the core viewpoints of the report, including the analysis of the primary and secondary markets of credit bonds, the judgment of the credit bond market from the perspectives of absolute and relative returns, the analysis of the real estate market and real estate bonds, and the analysis of urban investment bonds [60][61][62].

Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - This week, credit bond yields continued to fluctuate slightly at a low level, and most credit spreads in different industries reached historical lows since early 2024. The short - term urban investment bond spreads within 3 years have been compressed to the 3% quantile or lower since early 2024, while the long - term spreads over 5 years still have some room to decline. The credit spreads of 3 - 5Y AA+ industrial bonds are currently in the range of 65 - 70BP, and the credit spreads of 3 - 5Y AA+ secondary perpetual bonds are in the range of 50 - 70BP, with some potential. Considering the support from the opening of amortized open - end bond funds in the next six months for 3 - 5Y credit bonds, investors are advised to pay appropriate attention to investment opportunities in 3 - 5Y general credit bonds and secondary perpetual bonds [5][57]. Summary by Directory 1. This Week's Credit Hot Events - **Low - price trading of Jiutai Rural Commercial Bank's secondary capital bonds**: Since the end of October, there have been multiple secondary transactions of Jiutai Rural Commercial Bank's outstanding secondary capital bond "21 Jiutai Rural Secondary" significantly below the valuation, with a transaction price of around 50 yuan. The bank has not released its 2024 annual report, 2025 quarterly reports, and its operation has been under pressure in recent years, with net profit continuously declining and a large loss in 2024, and the capital adequacy ratio approaching the warning line, which has raised market concerns about non - redemption or write - down [10]. - **Shanghai Stock Exchange's written warnings to 3 bond issuers**: Zhenjiang Urban Construction Industry Group, Guangning County Huiye Asset Operation Co., Ltd., and Hongda Xingye Group Co., Ltd. were warned for issues such as non - standard management of special accounts for raised funds, non - compliance with the use of raised funds as stipulated in the prospectus, and inaccurate and untimely information disclosure [13]. - **PBC Beijing Branch's support for science - and - technology innovation enterprises to raise funds through the bond market**: On November 18, 12 departments including the PBC Beijing Branch issued an implementation plan to support eligible enterprises in service consumption fields such as culture, tourism, and education to issue bonds, encourage science - and - technology innovation enterprises to raise funds through the bond market, and support consumer finance companies, auto finance companies, and financial leasing companies to issue financial bonds [14]. 2. Primary Market 2.1 Net Financing Scale - **Overall situation**: This week, the net financing of traditional credit bonds increased compared with last week, while the net financing of asset - backed securities decreased by 18.4 billion yuan. The net financing of urban investment bonds was 5.6 billion yuan, an increase of 3.11 billion yuan; the net financing of industrial bonds was 13.46 billion yuan, an increase of 6.31 billion yuan; and the net financing of financial bonds was 13.58 billion yuan, an increase of 7.65 billion yuan [3][16]. - **Issuance and redemption quantity**: The issuance quantity of urban investment bonds increased by 32, and the redemption quantity decreased by 22; the issuance quantity of industrial bonds increased by 65, and the redemption quantity increased by 19; the issuance quantity of financial bonds increased by 13, and the redemption quantity decreased by 13 [20]. 2.2 Issuance Cost - The issuance interest rates of AA urban investment bonds and industrial bonds decreased significantly this week, falling within the range of 2.6 - 2.8%. The issuance interest rates of other bonds with different ratings were in the range of 1.9 - 2.4%. Specifically, the average issuance interest rates of AA urban investment bonds and industrial bonds decreased by 24BP and 28BP respectively compared with last week. The average issuance interest rates of AA+ and AAA urban investment bonds increased slightly, and the average issuance interest rate of AAA financial bonds increased by 7BP. The average issuance interest rates of other credit bonds with different ratings decreased by 1 - 4BP [3][24]. 3. Secondary Market 3.1 Transaction Situation - **Trading volume**: The trading volume of credit bonds increased by 34.1 billion yuan compared with last week. The trading volume of urban investment bonds was 234.5 billion yuan, an increase of 14.9 billion yuan; the trading volume of industrial bonds was 381.1 billion yuan, an increase of 46.7 billion yuan; the trading volume of financial bonds was 470.5 billion yuan, a decrease of 27.5 billion yuan; the trading volume of asset - backed securities was 18.7 billion yuan, unchanged from last week [3]. - **Turnover rate**: The turnover rates of credit bonds showed mixed trends compared with last week. The turnover rate of urban investment bonds was 1.51%, an increase of 0.09 percentage points; the turnover rate of industrial bonds was 2.02%, an increase of 0.24 percentage points; the turnover rate of financial bonds was 3.07%, a decrease of 0.2 percentage points; the turnover rate of asset - backed securities was 0.52%, unchanged from last week [26]. 3.2 Yields - The yields of credit bonds with different ratings and maturities fluctuated slightly this week, with a fluctuation range of no more than 3BP. For example, the yields of AA, AAA -, and AAA+ credit bonds within 1 year fluctuated by no more than 1BP; the yields of 5Y AA and AAA+ credit bonds decreased by less than 1BP, and the yield of 5Y AAA - credit bonds increased by 3BP; the yields of AA, AAA -, and AAA+ credit bonds over 10 years increased by 1BP [29]. 3.3 Credit Spreads - **Overall situation**: Except for the relatively large fluctuations in the credit spreads of AA+ non - bank finance, leisure services, and textile and clothing industries compared with last week, the fluctuations of credit spreads in other industries and ratings were within 5BP. The credit spreads of AA+ pharmaceutical biology, textile and clothing, and food and beverage industries compressed by 4BP, 15BP, and 4BP respectively, while the credit spreads of AA+ non - bank finance and leisure services industries widened by 6BP [3]. - **Urban investment bonds**: The long - term credit spreads of urban investment bonds over 10 years compressed significantly this week, while the spreads of other maturities fluctuated by no more than 1BP. In terms of regions, the credit spread of AA urban investment bonds in Yunnan compressed by 11BP, and the fluctuations of credit spreads of urban investment bonds in other regions and ratings were within 3BP [42][44]. - **Industrial bonds**: The overall change in industrial credit spreads this week was not significant, and the change range of spreads with different maturities and ratings was within 5BP [48]. - **Bank capital bonds**: The credit spread of 5Y AA+ bank secondary capital bonds compressed by 5BP this week, and the fluctuations of credit spreads of bank secondary perpetual bonds with other maturities and ratings were within 2BP [51]. 4. This Week's Bond Market Public Opinions - There were 7 bond implicit ratings downgraded for 5 issuers this week. China Yintai Investment Co., Ltd. had 3 bond implicit ratings downgraded, and the other issuers included China Water Resources and Hydropower First Engineering Bureau Co., Ltd., PowerChina Commercial Factoring Co., Ltd., Liaoning Kangping County Zhonghe Rural Credit Micro - loan Co., Ltd., and Jilin Jiutai Rural Commercial Bank Co., Ltd. [4][54]. 5. Investment Recommendations - This week, the central bank achieved a net investment of 434 billion yuan through open - market operations. As of Friday's close, DR001 closed at 1.30%, down from 1.5% at the beginning of the week. Overall, except for the relatively large fluctuations in the credit spreads of AA+ non - bank finance, leisure services, and textile and clothing industries, the fluctuations of credit spreads in other industries and ratings were within 5BP. Considering the current situation of credit spreads and the support from the opening of amortized open - end bond funds in the next six months, investors are advised to pay appropriate attention to investment opportunities in 3 - 5Y general credit bonds and secondary perpetual bonds [56][57].

Report Industry Investment Rating - The report does not explicitly mention the industry investment rating. Core Viewpoints of the Report - The credit strategy in November can remain relatively optimistic. There are three reasons: First, the historical quantiles of medium - and long - term credit bonds are still at relatively high levels since the beginning of the year, especially the 5Y secondary and perpetual bonds still have room to decline. Second, the restart of Treasury bond trading, the overall loose capital interest rates, and the decline in market risk appetite due to the recent adjustment of the equity market are expected to continue the phased upward trend of credit bonds, and there are more positive factors than negative factors in the bond market currently. Third, the rapid decline in bank liability costs supports banks to significantly increase bond investments [4][42]. Summary According to the Directory 1. This Week's Credit Hot Events - Guangxi Jintou's former Party secretary and chairman are under disciplinary review, with the remaining bond balance of the entity being 19.4 billion yuan [1][9]. - Minister of Finance Lan Fuan stated that not increasing implicit debt should be regarded as an "iron - clad discipline" [1][10]. - On November 5, the National Association of Financial Market Institutional Investors warned four institutions including Dongjin Huai Investment and Jintang Xingjin for non - market - based bond issuance [1][11]. - Two bonds, 25 Xiaoshan Airport MTN002B (green) and 25 Jinneng Coal Industry MTN017, cancelled their issuance due to market factors, with a total planned issuance scale of 1.45 billion yuan [1][12]. 2. Primary Market 2.1 Net Financing Scale - The net financing of traditional credit bonds this week increased compared to last week, and the net financing of asset - backed securities increased by 1.17 billion yuan compared to last week. Among different product types, the net financing of urban investment bonds and industrial bonds increased, while that of financial bonds decreased [2][13]. - In terms of the number of issuances and redemptions, the number of urban investment bond issuances and redemptions decreased, the number of industrial bond issuances increased and redemptions decreased, and the number of financial bond issuances decreased and redemptions increased [15]. 2.2 Issuance Cost - Except for a slight increase in the issuance interest rate of AA urban investment bonds, the issuance interest rates of other bonds with different ratings declined to varying degrees. Specifically, the issuance interest rates of industrial and financial bonds with different ratings decreased by 11 - 29BP compared to last week, the AA urban investment bond issuance interest rate increased by 9BP, and the AA + and AAA urban investment bond issuance interest rates decreased by 19BP and 7BP respectively [18]. 3. Secondary Market 3.1 Trading Volume - The trading volume of credit bonds decreased by 53.4 billion yuan compared to last week. Among them, the trading volume of urban investment bonds and industrial bonds decreased, while that of financial bonds increased slightly. The trading volume of asset - backed securities also decreased [19]. - In terms of turnover rate, the turnover rate of most credit bonds decreased compared to last week [20]. 3.2 Yield - The yield of 5Y AA credit bonds decreased by 7BP compared to last week, and the yield of 3Y AAA + credit bonds increased by 4BP. The yield fluctuations of other credit bonds with different ratings and maturities were within 3BP compared to last week [21]. - Taking the 5Y AA + bonds of each variety as an example, the yields of different varieties rose and fell this week [25]. 3.3 Credit Spreads - Overall, except for a slight widening of the credit spread of the AA + non - ferrous metal industry compared to last week, the credit spreads of other industries and ratings compressed to varying degrees. For example, the credit spread of the AA + non - ferrous metal industry widened by 1BP, and the credit spread of the AA non - banking financial industry compressed by 7BP [28]. 3.3.1 Urban Investment Bonds - By maturity, the 3 - 5Y urban investment credit spreads compressed significantly by 8BP, and the compression of other maturities was within the range of 3 - 5BP [31]. - By region, the urban investment credit spreads in different regions compressed to varying degrees, and many regions have reached historical lows since the beginning of 2024 [33]. 3.3.2 Industrial Bonds - Except for a slight widening of the industrial credit spreads of a few maturities and ratings, most industrial credit spreads compressed to varying degrees [35]. 3.3.3 Bank Capital Bonds - Except for a 5BP and 4BP widening of the credit spreads of 5Y AAA - and AA + bank perpetual bonds respectively, the credit spreads of other secondary and perpetual bonds with different maturities and ratings fluctuated slightly within 2BP [37]. 4. This Week's Bond Market Sentiment - "Xiangyiyou" issued by Shanghai Xiangyuan Investment Holding Co., Ltd. defaulted in essence, and the implied ratings of "17 Fucheng A" and "17 Fucheng B" issued by Fujian Fucheng Group Co., Ltd. were downgraded [40]. 5. Investment Suggestions - Overall, except for a slight widening of the credit spread of the AA + non - ferrous metal industry, the credit spreads of other industries and ratings compressed to varying degrees. In terms of urban investment bonds, the 3 - 5Y urban investment credit spreads compressed significantly, and in terms of industrial bonds, most credit spreads compressed. In terms of bank capital bonds, most credit spreads fluctuated slightly [4][42].

Group 1: Report Overview - The report is a weekly credit bond research report by Xiangcai Securities, dated November 9, 2025 [1][2] Group 2: Industry Investment Rating - No industry investment rating is provided in the report Group 3: Core Viewpoints - The credit bond market showed a mixed performance this week. The primary market saw an increase in issuance and net financing, while the secondary market experienced slower trading and a narrowing of most credit spreads. Looking ahead, the credit bond market is expected to continue its volatile pattern, and investors could consider moderately extending the duration and focusing on the narrowing spread opportunities of 5 - year credit bonds [3][4][6] Group 4: Primary Market of Credit Bonds - From November 3 - 9, 2025, a total of 337 credit bonds (excluding policy - bank bonds) were issued, with a scale of about 457.667 billion yuan, and 155 bonds matured, with a total repayment of about 250.715 billion yuan, resulting in a net financing of about 206.952 billion yuan. The issuance volume increased, and the total repayment decreased, leading to a significant rise in net financing [3][9] - By category, enterprise bonds issued 1 bond with a scale of about 1.6 billion yuan, a net financing of about - 3.066 billion yuan; corporate bonds issued 131 bonds with a scale of about 103.88 billion yuan, a net financing of about 34.5 billion yuan; medium - term notes issued 94 bonds with a scale of 91.915 billion yuan, a net financing of about 30.254 billion yuan; and short - term financing issued 68 bonds with a scale of about 78.532 billion yuan, a net financing of about 29.684 billion yuan [10] Group 5: Secondary Market of Credit Bonds - From November 3 - 9, 2025, the inter - bank market traded 484.495 billion yuan, and the exchange traded 406.434 billion yuan, with a total trading volume of 890.929 billion yuan, indicating slower trading. Secondary trading was mainly concentrated in corporate bonds and medium - term notes [4][17] - Credit bond yields varied. For medium - and short - term notes, short - end yields generally increased, while 3 - year and 5 - year yields showed different changes. Enterprise bond yields of high - grade bonds mostly increased, while those of medium - and low - grade bonds generally decreased. For urban investment bonds, 1 - year yields increased, and 5 - year yields decreased [21] - Due to the general increase in the risk - free rate, most credit spreads narrowed. The narrowing range of medium - and short - term note credit spreads was between 1 - 12BP; enterprise bond credit spreads narrowed by 2 - 9BP; and urban investment bond credit spreads changed between - 11 - 2BP [4][21] Group 6: Credit Bond Default or Extension - No credit bonds defaulted or were extended from November 3 - 9, 2025 [5][22] Group 7: Investment Recommendations - The central bank maintained a net withdrawal this week, the risk - free rate fluctuated weakly, and the credit bond market showed a mixed performance. In terms of the yield structure, short - end yields of credit bonds generally increased, while long - end yields mostly decreased [6][23] - In October, exports decreased by 1.1% year - on - year, affected by the high base last year and the weakening of the "rush - to - export" effect, while imports increased by 1% year - on - year, showing continuous domestic demand recovery. In terms of capital, the central bank's net investment in open - market treasury bond trading in October was 20 billion yuan, which, although smaller than the same period last year, helps release liquidity in the long run. Coupled with the alleviation of banks' liability - side pressure, most capital interest rates decreased [6][23] - Looking ahead, the credit bond market is expected to continue its volatile pattern. Investors could consider moderately extending the duration and focusing on the narrowing spread opportunities of 5 - year credit bonds [6][23]

1. Report Industry Investment Rating - No information provided in the content 2. Core Views of the Report - This week, credit bond yields declined significantly, and spreads showed a divergent trend, with 4 - 5y varieties outperforming. Although the SSE Composite Index breaking through 4000 points had an impact on the bond market, the central bank's announcement of restarting treasury bond trading and the unexpected decline in the October manufacturing PMI led to a relatively strong performance in the bond market. The improvement in institutional sentiment towards credit bond allocation drove the relatively strong performance of 4 - 5y credit varieties, with a large narrowing in spreads, while most 1 - 2y varieties and medium - term notes over 5y widened passively [1][7]. - Key policies and hot events included the release of the "Administrative Measures for Asset Management Trusts (Draft for Comment)" by the Financial Regulatory Administration, Vanke receiving a loan of up to 2.2 billion yuan from its major shareholder Shenzhen Metro Group, Vanke's Q3 2025 report showing a decline in operating income and a net loss, and the central bank's report on the financial work situation indicating a significant reduction in the number of financing platforms and the scale of operating financial debts [1][2][10]. 3. Summaries According to the Table of Contents 3.1 Credit Bond Market Review: Most Yields Declined, 4 - 5y Varieties Performed Better - Credit bond yields declined significantly this week, and spreads showed a divergent trend, with 4 - 5y varieties outperforming. The central bank's announcement of restarting treasury bond trading and the unexpected decline in the October manufacturing PMI led to a relatively strong performance in the bond market. The improvement in institutional sentiment towards credit bond allocation drove the relatively strong performance of 4 - 5y credit varieties, with a large narrowing in spreads, while most 1 - 2y varieties and medium - term notes over 5y widened passively [1][7]. 3.2 Key Policies and Hot Events: Vanke Received Another Loan from Shenzhen Metro Group, and the "Administrative Measures for Asset Management Trusts (Draft for Comment)" was Released - On October 31, the Financial Regulatory Administration released the "Administrative Measures for Asset Management Trusts (Draft for Comment)" to strengthen supervision, prevent risks, and standardize the development of the trust industry [10]. - On October 30, Vanke announced that its major shareholder Shenzhen Metro Group would provide a loan of up to 2.2 billion yuan to repay the principal and interest of its publicly - issued bonds. As of the announcement date, Shenzhen Metro Group had provided a cumulative loan of 26.93 billion yuan (excluding this time) [2][10]. - On October 30, Vanke released its Q3 2025 report. In the first three quarters, the company's total operating income was 161.388 billion yuan, a year - on - year decrease of 26.61%, and the net profit attributable to the parent company was a loss of 28.016 billion yuan, a year - on - year decrease of 56.14%. Although Vanke's self - repayment ability was weak, it had received support from its major shareholder and financial institutions [2][11]. - On October 28, the central bank released the State Council's report on the financial work situation, stating that as of the end of September 2025, the number of national financing platforms and the scale of operating financial debts had decreased by 71% and 62% respectively compared to the end of March 2023, and risks had been significantly mitigated. The central bank emphasized continuing to support the debt - resolution work of financing platforms and their market - oriented transformation [2][12]. 3.3 Secondary Market: Credit Bond Yields Generally Declined, and Credit Spreads Showed a Divergent Trend - Yields of medium - and short - term notes generally declined by 2 - 13BP, with spreads of 4 - 5y varieties narrowing by 4 - 8BP, and spreads of most other maturities widening by 0 - 4BP [14]. - For urban investment bonds, yields of various varieties generally declined by 4 - 11BP, with 4 - 5y varieties performing better. Credit spreads showed a divergent trend, with spreads of most varieties narrowing by 1 - 6BP [14]. - For real estate bonds, except for the 1y and 3y AAA varieties, yields of other varieties generally declined by 3 - 12BP. Spreads of most varieties generally narrowed by 0 - 8BP [15]. - For cyclical bonds, yields of coal bonds generally declined by 2 - 12BP, and spreads of most varieties narrowed by 0 - 9BP. Yields of steel bonds generally declined by 3 - 12BP, and spreads of most varieties narrowed by 0 - 8BP [15]. - For financial bonds, yields of bank secondary capital bonds and perpetual bonds of various maturities declined by 5 - 12BP, and spreads of most varieties narrowed by 1 - 8BP. Yields of securities firm sub - bonds generally declined by 1 - 9BP, and spreads of most varieties generally narrowed by 0 - 3BP. Yields of insurance sub - bonds generally declined by 5 - 11BP, and spreads of most varieties generally narrowed by 1 - 4BP [15]. 3.4 Primary Market: Net Financing of Credit Bonds and Urban Investment Bonds Declined Month - on - Month - This week, the issuance scale of credit bonds was 224.8 billion yuan, a month - on - month decrease of 246.7 billion yuan, and the net financing was - 12.6 billion yuan, a month - on - month decrease of 148.5 billion yuan. The issuance scale of urban investment bonds was 105.6 billion yuan, a decrease of 5.83 billion yuan from last week, and the net financing was - 36.6 billion yuan, a decrease of - 4.96 billion yuan from last week [4]. 3.5 Trading Liquidity: Trading Activity in the Inter - bank Market Decreased, and Trading Activity in the Exchange Market Increased - This week, the trading activity of credit bonds in the inter - bank market decreased, and the trading volume decreased from 586 billion yuan last week to 580.7 billion yuan. The trading activity in the exchange market increased, and the trading volume increased from 381.7 billion yuan last week to 435.8 billion yuan [4]. 3.6 Rating Adjustment: One Entity's Rating was Upgraded, and No Entity's Rating was Downgraded - This week, the rating of one entity was upgraded, and no entity's rating was downgraded [4].