Group 1: Bond Issuance Overview - In the first four months of 2025, local state-owned enterprises (SOEs) issued a total of CNY 21,203.51 billion in public credit bonds, a year-on-year decrease of 17.47%[7] - Of the total bond issuance, 88.01% (CNY 18,661.92 billion) was used to repay existing debt, which is an increase of 0.47 percentage points compared to the previous year[7] - The proportion of bonds issued for project construction increased slightly to 2.40%, up 0.17 percentage points year-on-year, despite a decrease in absolute terms to CNY 508.95 billion[14] Group 2: Investment Focus Shift - The issuance of bonds for equity or fund investments increased by 31.41%, while funding for infrastructure or real estate projects decreased by 47.85%[15] - In the first four months of 2025, CNY 250.74 billion was allocated to "innovation sector investments," accounting for nearly 50% of the total new bond issuance, with a year-on-year growth rate of 16%[20] - The shift towards innovation sector investments may lead to discrepancies between fixed asset investment data and high-frequency indicators like construction materials and machinery[24] Group 3: Risk Considerations - There are potential inaccuracies in the categorization of the use of funds from public credit bonds issued by local SOEs[27] - Some bonds may not disclose their fundraising purposes, which could distort the statistical results presented in the report[27] - The analysis may not fully capture private bond information from local SOEs that do not undergo public disclosure, potentially affecting the accuracy of the conclusions drawn[27]