Core Viewpoint - Hainan Province successfully completed its offshore RMB local government bond roadshow in Hong Kong, marking the fourth consecutive year of such issuance, with a focus on attracting international investors [1] Group 1: Bond Issuance Details - The bond issuance is expected to be no more than 5 billion RMB, including China's first aerospace-themed bond [1] - The bonds will have maturities of 3 years, 5 years, and 10 years, with the 3-year bond categorized as a sustainable development bond, the 5-year bond as a blue bond, and the 10-year bond as an aerospace-themed bond [1] Group 2: Fund Allocation - The raised funds will primarily be directed towards marine protection, livelihood security, and key research and infrastructure projects related to the aerospace sector [1]

Group 1 - Kaifeng Development Investment Group Co Ltd plans to issue Reg S, 3-year, RMB-denominated sustainable development bonds [2] - The bonds will be fixed-rate, senior unsecured, and guaranteed by Henan Zhongyu Credit Promotion Co., Ltd [2] - The initial guidance price for the bonds is in the region of 5.7% [2] Group 2 - The funds raised will be used for project construction and to supplement working capital, as per the sustainable development financing framework [2] - The bonds are set to mature on September 5, 2028, with a settlement date of September 5, 2025 [2] - The bonds will be listed on the MOX Australian Exchange and Luxembourg Stock Exchange [2] Group 3 - The minimum denomination for the bonds is 1 million RMB, with increments of 10,000 RMB [2] - Joint global coordinators and bookrunners include Dongfang Securities Hong Kong and Tianfeng International [2] - The second-party opinion provider is China Chengxin Green Finance International [3]

Summary of Key Points Core Viewpoint - In July, the total issuance scale of offshore Chinese bonds was approximately $22.5 billion, reflecting a 10% month-on-month decline, with significant contributions from various sectors including real estate and local government financing [2][3]. Group 1: Issuance Details - The actual total issuance scale of offshore Chinese bonds, excluding the restructuring bonds from Shimao Group, was $15.7 billion in July [3]. - The issuance of offshore RMB-denominated bonds amounted to about $5.1 billion, while USD-denominated bonds reached approximately $13.3 billion, with an average financing cost of 5.25% for fixed-rate bonds [5]. - The issuance of offshore Euro-denominated bonds surged to about $2.1 billion, with notable contributions from China Development Bank and Bright Food International [5]. Group 2: Sector Performance - Excluding sovereign and government bonds, 72 Chinese enterprises issued 97 offshore bonds totaling $20.1 billion in July, with the average bond size increasing to $2.07 million [7]. - The real estate sector's issuance, excluding Shimao Group's restructuring bonds, was $0.8 billion, primarily from Hong Kong enterprises [10]. - Local government financing platforms saw a significant increase, with 49 platforms issuing 55 offshore bonds totaling $6 billion, marking an 89% month-on-month growth [10]. Group 3: Financial Sector Insights - The financial sector's issuance decreased by 32% to approximately $4.2 billion, with 11 financial institutions issuing 20 offshore bonds [15]. - Notably, China Development Bank successfully issued dual-currency bonds in the international market, achieving a record subscription rate [15]. - The issuance of sustainable development bonds by various enterprises, including Zhengzhou Urban Construction and Jiangxi Jiulong Group, highlighted the growing trend towards sustainable financing [11][12]. Group 4: Market Trends and Economic Indicators - The net financing amount for the real estate sector turned positive for the first time this year, reaching approximately $15.2 billion in July, largely due to Shimao Group's debt restructuring [18]. - Central banks, including the Federal Reserve and the European Central Bank, maintained interest rates, influencing market expectations and bond issuance strategies [21]. - Positive developments in the real estate sector were noted, with several companies successfully restructuring debts and obtaining financing [22].