1. Report Industry Investment Rating - Not provided in the given content 2. Report's Core View - The report analyzes the primary and secondary market conditions of local government bonds in 2025, including net financing, issuance terms, issuance spreads, secondary spreads, trading volume, and turnover rate, and also provides information on debt - resolution - related bonds and issuance plans [1][5] 3. Summary by Relevant Catalogs 3.1 Primary Market Conditions - **Net financing**: This week, local government bonds issued 196.1 billion yuan, with a repayment of 73.6 billion yuan and a net financing of 122.5 billion yuan. The issuance volume and net financing increased. Next week, the planned issuance is 107.2 billion yuan, with a repayment of 9.1 billion yuan and a net financing of 98.1 billion yuan, a decrease of 24.4 billion yuan compared to this week [1][3] - **Issuance term**: The 30 - year local government bond issuance accounted for the highest proportion (38%) this week, and the proportion of 10 - year and above issuances was 84%, an increase compared to last week. The 30 - year issuance proportion increased by about 16 percentage points, while the 7 - year and 10 - year proportions decreased by about 12 and 11 percentage points respectively [1][12] - **Debt - resolution - related local government bonds**: This week, special refinancing bonds issued 1.14 billion yuan. In 2025, 33 regions have disclosed plans to issue special bonds for replacing hidden debts, totaling 1,995.7 billion yuan. Special special bonds issued 5.06 billion yuan this week, and as of the end of this week, the disclosed and issued scales of special special bonds in 2025 are 1,204.9 billion and 1,201.2 billion yuan respectively [2][16] - **Issuance spread**: This week, the weighted average issuance spread of local government bonds was 23.9bp, widening compared to last week. The 15 - year local government bond had the highest weighted average issuance spread at 27.6bp. The weighted average issuance spreads of 7 - year and 10 - year local government bonds narrowed, while those of other terms widened. There was significant regional differentiation [2][25] - **Fund - raising direction**: As of the end of this week, the main investment directions of newly - added special bonds in 2025 were cold - chain logistics, municipal and industrial park infrastructure construction (29%), transportation infrastructure (18%), land reserve (14%), affordable housing projects (12%), and social undertakings (12%). The proportion of land reserve investment increased by 14.2% compared to 2024, while that of cold - chain logistics, municipal and industrial park infrastructure construction decreased by 7.5% [2][30] - **Issuance plan**: As of the end of this week, 35 regions have disclosed their local government bond issuance plans for the third quarter of 2025, with an expected total issuance of 2.9 trillion yuan. The planned issuances of new bonds and refinancing bonds in the third quarter are 1,745 billion and 1,176 billion yuan respectively. Some regions have disclosed their fourth - quarter issuance plans, totaling 844.5 billion yuan, with 540.6 billion yuan in October [3][33] 3.2 Secondary Market Conditions - **Secondary spread**: This week, the secondary spreads of 5 - year and 10 - year local government bonds were relatively high, and the secondary spreads of local government bonds of all terms widened. The 5 - year and 10 - year secondary spreads reached 16.1bp and 15.7bp respectively. The historical quantile of the 5 - year secondary spread in the past 3 years was relatively high at 68%. Regionally, the 3 - 5 - year secondary spreads in each region were relatively high, and the 10 - 15 - year and 15 - 20 - year secondary spreads in medium - strength and strong regions were also relatively high [5][37] - **Trading volume and turnover rate**: This week, the trading volume and turnover rate of local government bonds increased compared to last week. Qinghai had a relatively high turnover rate. The trading volume this week reached 489.1 billion yuan, and the turnover rate was 0.92%. Guangdong, Hunan, and Shandong had large trading volumes, and Qinghai had the highest turnover rate at 4.0%, higher than Xinjiang Production and Construction Corps' 3.7% [5][43]

Report Industry Investment Rating No relevant information is provided in the content. Core View of the Report - Current period's local government bond issuance and net financing both increased compared to the previous period, and it is expected that both will rise significantly in the next period. As of July 18, 2025, the cumulative issuance progress of new general bonds and new special bonds is faster than that of 2024 but slower than that of 2023. The issuance of new local government bonds accelerated in the current period and is expected to continue to speed up in the next period [2]. - The planned issuance scale of local government bonds from July to September 2025 is 286.17 billion yuan, including 161.1 billion yuan of new special bonds. As of July 18, 2025, 31 regions have disclosed their planned issuance scales [2]. - In the current period, 102.7 billion yuan of special new special bonds were issued, but no special refinancing bonds for replacing implicit debts were issued. As of July 18, 2025, the cumulative issuance of special new special bonds reached 622.2 billion yuan, and the issuance progress of special refinancing bonds for replacing implicit debts reached 91.2% [2]. - In the current period, the spreads between 10Y and 30Y local government bonds and treasury bonds both narrowed, and the weekly turnover rate increased month - on - month. Currently, the spread - mining space for local government bonds is shrinking. For institutions such as bank self - operations, insurance, and securities firm self - operations, local government bonds have certain allocation value; for institutions such as public funds, local government bonds still have trading value [2]. Summary According to the Directory 1. The current period's local government bond issuance volume increased, and the weighted issuance term lengthened - The total issuance/net financing of local government bonds in the current period (July 14 - 20, 2025) was 251.183 billion yuan/152.933 billion yuan (compared to 231.79 billion yuan/107.789 billion yuan in the previous period), and it is expected to be 375.754 billion yuan/292.39 billion yuan in the next period (July 21 - 27, 2025) [2][9]. - The weighted issuance term of local government bonds in the current period was 14.57 years, longer than 14.17 years in the previous period (July 7 - 13, 2025) [2]. - As of July 18, 2025, the cumulative issuance of new general bonds/new special bonds accounted for 61.7% and 54.3% of the annual quota respectively, and considering the expected issuance in the next period, it would be 64.6% and 59.0%. The cumulative issuance progress in 2024 was 48.8%/40.2%, and in 2023 it was 62.7%/57.6% [2][18]. - As of July 18, 2025, the cumulative issuance of special new special bonds was 622.2 billion yuan (with 102.7 billion yuan issued in the current period); the cumulative issuance of special refinancing bonds for replacing implicit debts was 1824.6 billion yuan (0 billion yuan issued in the current period), and the issuance progress reached 91.2%, with 24 regions such as Zhejiang having completed all issuances [2][20]. 2. In the current period, the spreads between 10Y and 30Y local government bonds and treasury bonds both narrowed, and the weekly turnover rate increased month - on - month - As of July 18, 2025, the spreads between 10 - year and 30 - year local government bonds and treasury bonds were 10.48BP and 16.15BP respectively, narrowing by 0.99BP and 0.44BP compared to July 11, 2025, and were at the 6.10% and 63.20% historical quantiles since 2023 [2]. - The weekly turnover rate of local government bonds in the current period was 0.74%, up from 0.71% in the previous period. The yields and liquidity of 20 - 30Y local government bonds in regions such as Yunnan, Inner Mongolia, and Hunan were better than the national average [2].