1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - This week, local government bond issuance volume decreased, and net financing also decreased. The weighted - average issuance spread widened, and the proportion of long - term issuance increased. The proportion of funds allocated to land reserves in new special bonds increased [1][23][25]. - In the secondary market, the secondary spread of 15Y local government bonds was relatively high, and the spread of 20Y, 10Y, 1Y, and 5Y local government bonds narrowed significantly. The trading volume and turnover rate of local government bonds increased, with relatively high turnover rates in Hebei, Qingdao, and Hunan [6][33][38]. 3. Summary according to the Directory 3.1 First - level Market Issuance Situation - **Net financing**: This week, local government bond issuance was 914 billion yuan, with a repayment of 1052 billion yuan and a net repayment of 137 billion yuan, indicating a decrease in issuance volume and net financing [1]. - **Issuance term**: The issuance proportion of 10Y local government bonds was the highest at 65%, and the proportion of 10Y and above issuance was 84%, showing an increase compared to last week. The proportion of 10Y issuance increased by about 38 percentage points, while the proportions of 5Y and 30Y issuance decreased by about 18 percentage points [1][12]. - **Local government bonds related to debt resolution**: This week, 1.2 billion yuan of special refinancing bonds were issued. In 2025, 33 regions have disclosed plans to issue special bonds for replacing hidden debts, totaling 1907.5 billion yuan [15]. - **Issuance spread**: The weighted - average issuance spread of local government bonds this week was 20.4bp, wider than last week. The weighted - average issuance spread of 15Y local government bonds was the highest at 27.4bp, and the spreads of all maturities widened [23]. - **Allocation of raised funds**: As of the end of this week, the main allocation directions of new special bond funds in 2025 were cold - chain logistics, municipal and industrial park infrastructure construction (25%), social undertakings (18%), affordable housing projects (18%), transportation infrastructure (15%), and land reserves (11%). The proportion of land reserve allocation increased by 10.7% compared to 2024, while that of cold - chain logistics, municipal and industrial park infrastructure construction decreased by 12.3% [2][25]. - **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. Considering the actual issuance volume in July, the total planned issuance volume for the third quarter is expected to reach 2.85 trillion yuan, with 963.3 billion yuan planned for August. Next week, the planned issuance is 369.2 billion yuan, with a repayment of 160.4 billion yuan and a net financing of 208.8 billion yuan, a week - on - week increase of 222.5 billion yuan [3][28][30]. 3.2 Secondary - market Situation - **Secondary spread**: The secondary spread of 15Y local government bonds was relatively high at 16.5bp. The spreads of 20Y, 10Y, 1Y, and 5Y local government bonds narrowed significantly. From a historical percentile perspective in the past three years, the historical percentiles of 1Y and 3Y local government bond secondary spreads were relatively high, both reaching 45% [6][33]. - **Trading situation**: This week, the trading volume and turnover rate of local government bonds increased compared to last week. The turnover rates of local government bonds in Hebei, Qingdao, and Hunan were relatively high. The trading volume reached 349.1 billion yuan, and the turnover rate was 0.66%. Shandong, Sichuan, Hebei, and Hunan had large trading volumes, and the turnover rates in Hebei, Qingdao, and Hunan were all above 1.4% [6][38].

1. Report Industry Investment Rating No relevant information provided. 2. Core Viewpoints of the Report The report analyzes the primary and secondary market conditions of local government bonds in the week of July 06, 2025. It points out that the net financing of local government bonds decreased in the primary market, with long - term issuance proportion declining, the issuance spread narrowing, and the proportion of land reserve investment increasing. In the secondary market, the secondary spreads of 3Y and 15Y local government bonds are advantageous, and the trading volume and turnover rate have slightly increased [1][4][5]. 3. Summary by Relevant Catalogs 3.1 Primary Market Issuance Situation - **Net Financing**: This week, local government bonds issued a total of 721 billion yuan, with a repayment of 505 billion yuan and a net financing of 216 billion yuan. The issuance volume and net financing decreased [1]. - **Issuance Term**: The issuance proportion of 10Y local government bonds was the highest at 21%, and the proportion of 10Y and above decreased to 69% compared with last week. The issuance proportion of 20Y local government bonds decreased significantly by about 8 percentage points [1]. - **Debt - Resolution - Related Local Government Bonds**: No special refinancing bonds were issued this week. In 2025, 33 regions have disclosed plans to issue special bonds for replacing implicit debts, totaling 18,246 billion yuan. Among them, Jiangsu, Sichuan, Shandong, and Guizhou plan to issue 2,511 billion yuan, 1,148 billion yuan, 1,113 billion yuan, and 1,059 billion yuan respectively [2]. - **Issuance Spread**: The weighted average issuance spread of local government bonds this week was 8.6bp, narrowing compared with last week. The weighted average issuance spread of 30Y local government bonds was the highest at 12.9bp. Except for the 3Y and 5Y local government bonds, the issuance spreads of other terms narrowed [1]. - **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 (30%), transportation infrastructure (20%), affordable housing projects (13%), and social undertakings (12%). The proportion of land reserve investment increased by 11.3% compared with 2024, while that of cold - chain logistics, municipal and industrial park infrastructure construction decreased by 7.2% [2]. - **Issuance Plan**: As of the end of this week, 30 regions have disclosed their local government bond issuance plans for the third quarter of 2025, with a total of 2.62 trillion yuan. Among them, the planned issuance in July is 12,796 billion yuan. The planned issuance of new bonds and refinancing bonds in the third quarter is 16,585 billion yuan and 9,623 billion yuan respectively. Next week, the planned issuance of local government bonds is 2,250 billion yuan, with a repayment of 1,216 billion yuan and a net financing of 1,034 billion yuan, an increase of 818 billion yuan compared with this week [3]. 3.2 Secondary Market Situation - **Secondary Spread**: This week, the secondary spreads of 3Y and 15Y local government bonds are advantageous, and the secondary spreads of local government bonds over 10Y narrowed significantly. The secondary spreads of 3Y and 15Y local government bonds are relatively high, reaching 16.9bp and 15.8bp respectively. From the historical quantile of the past 3 years, the historical quantile of the secondary spread of 30Y local government bonds is relatively high at 68%. Regionally, the secondary spreads of local government bonds over 20Y and 3 - 5Y in various regions are relatively high [4][5]. - **Trading Situation**: This week, the trading volume and turnover rate of local government bonds increased slightly compared with last week. The turnover rates of local government bonds in Sichuan, Jiangxi, and Fujian are relatively high. The trading volume of local government bonds this week reached 5,475 billion yuan, with a turnover rate of 1.06%. Sichuan had the highest turnover rate at 7.0%, and the turnover rates in Jiangxi, Fujian, Guangdong, Hunan and other places were at relatively high levels, all above 1.0% [5].