1. Report Industry Investment Rating No industry investment rating is provided in the report. 2. Core Viewpoints of the Report - The issuance and net financing of local government bonds increased significantly on a weekly basis this period but are expected to decline significantly next period. As of November 28, 2025, the cumulative issuance of new general bonds and new special-purpose bonds accounted for 91.4% and 100.7% of the annual quota respectively, and 92.8% and 101.6% considering the expected issuance next period [4]. - As of November 28, 2025, the issuance of special new special-purpose bonds this period was 541 billion yuan, the issuance of special refinancing bonds for replacing hidden debts was 27 billion yuan, and the issuance of special refinancing bonds for repaying existing debts was 788 billion yuan. The cumulative issuance of special new special-purpose bonds reached 13,508 billion yuan, the cumulative issuance of special refinancing bonds for replacing hidden debts reached 19,989 billion yuan with a progress of 99.9%, and the cumulative issuance of special refinancing bonds for repaying existing debts since October 2025 was 2,204 billion yuan [4]. - The spread between local government bonds and treasury bonds widened for 10Y and 30Y, and the weekly turnover rate decreased on a weekly basis. As of November 28, 2025, the spreads of 10-year and 30-year local government bonds over treasury bonds were 17.88BP and 22.49BP respectively, up 3.54BP and 4.25BP from November 21, 2025. The weekly turnover rate of local government bonds this period was 0.69%, down from 0.80% last period [4]. - Currently, the spreads of 15/20/30Y, especially 15Y, local government bonds over treasury bonds have certain value for investment. Since 2018, the top of the spread adjustment may be about 20 - 25BP above the lower limit of the issuance spread, and the bottom may be near the lower limit of the issuance spread. Currently, the top of the spread between local government bonds and treasury bonds may be around 30 - 35BP, and the bottom may be around 5 - 10BP [4]. 3. Summary According to the Table of Contents 3.1 This Period: Local Government Bond Issuance Increased and the Weighted Issuance Term Lengthened - This period (November 24 - 30, 2025), the total issuance/net financing of local government bonds was 351.359 billion yuan/326.212 billion yuan (last period was 184.659 billion yuan/126.343 billion yuan), and next period (December 1 - 7, 2025), the expected issuance/net financing is 108.717 billion yuan/60.494 billion yuan [4][11]. - The weighted issuance term of local government bonds this period was 15.41 years, longer than 14.30 years last period (November 17 - 23, 2025) [4][12]. - As of November 28, 2025, the cumulative issuance of new general bonds and new special-purpose bonds accounted for 91.4% and 100.7% of the annual quota respectively, and 92.8% and 101.6% considering the expected issuance next period. The part exceeding 100% may come from the 500 billion yuan of remaining quota mentioned in the press conference of the Ministry of Finance on October 17 [4][20]. - The planned issuance of local government bonds in December 2025 is 105 billion yuan in total, including 21.3 billion yuan of new special-purpose bonds. As of November 28, 2025, 11 regions have disclosed a total planned issuance of 105 billion yuan, compared with 242.6 billion yuan and 8 billion yuan in the same regions and 1,091.3 billion yuan and 21.1 billion yuan nationwide in the same period last year [4][26]. - As of November 28, 2025, the cumulative issuance of special new special-purpose bonds was 13,508 billion yuan (54.1 billion yuan issued this period); the cumulative issuance of special refinancing bonds for replacing hidden debts was 19,989 billion yuan (2.7 billion yuan issued this period) with a progress of 99.9%, and 32 regions including Zhejiang have completed the issuance (only 1.1 billion yuan of quota in Henan remains to be issued); since October 2025, the cumulative issuance of special refinancing bonds for repaying existing debts (possibly from the 500 billion yuan of remaining quota mentioned in the press conference of the Ministry of Finance on October 17) was 2,204 billion yuan (78.8 billion yuan issued this period) [4][22]. 3.2 This Period: The Spread between Local Government Bonds and Treasury Bonds Widened for 10Y and 30Y, and the Weekly Turnover Rate Decreased on a Weekly Basis - As of November 28, 2025, the spreads of 10-year and 30-year local government bonds over treasury bonds were 17.88BP and 22.49BP respectively, up 3.54BP and 4.25BP from November 21, 2025, and were at the 42.70% and 88.00% historical percentiles since 2023 respectively [4][36]. - The weekly turnover rate of local government bonds this period was 0.69%, down from 0.80% last period. The yields and liquidity of 7 - 10Y local government bonds in regions such as Yunnan, Inner Mongolia, and Tianjin were better than the national average [4].

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].