Core Viewpoint - The bond financing activities of securities firms in China are expected to remain robust into 2026, driven by policy guidance and declining interest rates, with a significant increase in issuance observed in 2025 [1][2]. Group 1: Bond Financing Scale and Growth - In 2025, 77 securities firms issued a total of 1,004 domestic bonds, amounting to CNY 1.89 trillion, representing a year-on-year increase of nearly 40% [2][3]. - Major players in the bond issuance include China Galaxy Securities, Guotai Junan, Huatai Securities, CITIC Securities, and others, with each issuing over CNY 100 billion [2]. - The primary uses of the raised funds are to repay short-term debts and supplement operational capital, with short-term financing bonds primarily aimed at operational funding [2][3]. Group 2: Types of Bonds and Financing Channels - The issuance of perpetual subordinated bonds has seen a significant rise, with 14 securities firms issuing a total of CNY 668 billion in 2025, marking an increase of over 40% from 2024 [4][5]. - The issuance of sci-tech bonds has also grown, with CNY 834.4 billion issued in 2025, reflecting a rising share of the overall bond issuance by securities firms [4][5]. - The average financing cost for outstanding securities company bonds is 1.97%, with some high-rated firms achieving rates as low as 1.54% [3]. Group 3: International Financing Activities - In 2025, seven securities firms issued 30 offshore bonds totaling USD 4.703 billion, with growth exceeding 30% compared to 2024 [5][6]. - The offshore bonds primarily serve to supplement the operational capital of international subsidiaries and repay existing offshore debts [5]. - The trend of increasing offshore bond issuance is expected to continue, supported by a favorable environment for USD bond issuance as US Treasury rates decline [6].

Core Viewpoint - The bond financing activity of securities firms remains strong as they enter 2026, with significant growth in issuance and diversification in financing channels [1][2]. Group 1: Bond Financing Scale and Growth - In 2025, the total bond issuance by 77 securities firms reached 1.89 trillion yuan, marking a nearly 40% increase compared to 2024, with an additional 529.36 billion yuan [3]. - Major players in bond issuance include China Galaxy Securities, Guotai Junan, Huatai Securities, CITIC Securities, and others, with each issuing over 100 billion yuan, collectively accounting for a significant portion of the market [3]. - The primary purposes of the raised funds are to repay short-term debts and supplement operational capital, with short-term financing bonds mainly used for operational funding [3][4]. Group 2: Types of Bonds and Financing Costs - In 2025, 326 short-term financing bonds were issued, totaling 574.17 billion yuan, while 678 corporate bonds accounted for 1.32 trillion yuan [4]. - The average coupon rate for outstanding securities company bonds is 1.97%, with some high-rated firms achieving rates as low as 1.54% [4]. - The average financing cost for short-term bonds is 1.76%, with a minimum of 1.52% and a maximum of 2.25% [4]. Group 3: Emergence of New Bond Types and International Financing - The issuance of perpetual subordinated bonds saw a significant increase, with 14 firms issuing a total of 66.8 billion yuan, reflecting a growth of over 40% from 2024 [5][6]. - The issuance of Sci-tech bonds also rose, totaling 83.44 billion yuan, indicating a growing share in the overall bond issuance by securities firms [6]. - International financing activities have increased, with seven firms issuing 30 offshore bonds worth 4.703 billion USD, representing a growth of over 30% from 2024 [6][7].

Core Insights - The bond financing activities of securities firms in China have significantly increased this year, with a total issuance exceeding 1 trillion yuan [4][2]. - As of September 19, 2023, 71 securities firms have issued 657 bonds, marking a year-on-year growth of 64.25% [4]. - The total bond issuance scale for the year has reached 1.18 trillion yuan, representing a year-on-year increase of 69.93% [4]. Group 1: Bond Issuance Data - The top 10 securities firms by bond issuance scale as of 2025 include China Galaxy (107.9 billion yuan), Huatai Securities (93.7 billion yuan), and Guotai Junan (75.8 billion yuan) [5]. - Other notable firms in the top 10 include GF Securities (68.52 billion yuan) and China Merchants Securities (62.7 billion yuan) [5][6]. Group 2: Bond Holding Data - As of September 19, 2023, the total bond holding scale of 76 securities firms is 2.96 trillion yuan [7]. - The top 10 firms by bond holding scale include Guotai Junan (252.6 billion yuan), China Galaxy (188.6 billion yuan), and Huatai Securities (188 billion yuan) [7][8]. Group 3: Recent Approvals for Bond Issuance - In September, several securities firms, including Guotai Junan and CITIC Securities, received approval to issue bonds to professional investors [9]. - CITIC Securities has been approved to issue bonds with a face value of up to 60 billion yuan [13].