Report Industry Investment Rating No relevant content provided. Core Viewpoints - The situation where face - value redemption was the mainstream for urban investment bonds' early redemption has changed. Issuers tend to offer fairer prices such as face - value plus compensation or net price for early redemption. The choice of face - value redemption is related to the bond issuance method, issuer region, and issuer qualification, showing three characteristics: private placement bonds have a higher face - value redemption ratio than public bonds; there are differences in the face - value redemption ratio among different regions; the lower the implied rating, the higher the ratio of premium bonds redeemed at face value [4][30] Summary by Directory 1. How has the early redemption of urban investment bonds been since 2025? - **Overall scale and rhythm**: As of August 12, 2025, the scale of urban investment bonds proposed for early redemption since 2025 was 55.8 billion yuan. Compared with the two small peaks of early redemption after October 2023 (2023Q4 and 2024Q4), the early redemption rhythm slowed down in 2025, and no obvious peak was formed. Only in 2025Q2 was the scale relatively high, with 28.5 billion yuan proposed for early redemption [1][9] - **Provincial distribution**: Regions with more early redemptions since 2025 include Chongqing, Yunnan, Hunan, Jiangsu, Sichuan, and Hubei, with the scale of proposed early - redeemed urban investment bonds all exceeding 4.5 billion yuan. Some regions with large - scale early redemptions in 2023 - 2024 had few early redemptions since 2025, such as Guizhou, Liaoning, Anhui, and Zhejiang [11] - **Redemption price distribution**: From 2023Q4 to 2024Q1, face - value redemption was the mainstream. Since 2024Q2, the face - value redemption ratio has declined, and the ratios of face - value plus compensation and ChinaBond valuation net - price redemption have increased. Since 2025, the face - value redemption ratio has generally remained below half. In 2025Q3, the face - value redemption ratio was only 22% [2][13] - **Redemption price distribution for premium and discount bonds**: Discount bonds are basically redeemed at face value. For premium bonds, from 23Q4 - 24Q2, face - value redemption was the main method, with the ratio in the 67 - 78% range. Since 24Q3, the face - value redemption ratio of premium bonds has decreased significantly, and except for a slightly higher ratio in 2025Q1, it has been generally below 50% in other quarters [20] 2. Which premium bonds are redeemed at face value? - **By issuance method**: Private placement bonds have a higher ratio of face - value redemption than public bonds. From 2023Q4 to August 12, 2025, among premium bonds, the proportion of private placement bonds proposed for face - value redemption was 61.23%, while that of public bonds was 45.24%. Since 2025Q2, the gap between public and private placement bonds has become more obvious [23] - **By region and administrative level**: Among regions with large - scale early redemptions, Guizhou, Guangxi, and Heilongjiang have a high ratio of face - value redemption of premium bonds (over 90% in the country), followed by Liaoning, Zhejiang, and Hubei (over 80%). Chongqing, Jiangsu, and Anhui have relatively low ratios. In terms of administrative levels, the differences in the distribution of each administrative level are not large. District - level and national - level parks have relatively high ratios of face - value redemption of premium bonds, at 64% and 60% respectively; the ratio for prefecture - level cities is 56% [26] - **By implied rating**: Generally, the lower the implied rating, the higher the ratio of premium bonds proposed for face - value redemption. The ratios of AAA, AA +, AA, AA(2), AA -, and below AA implied ratings for face - value redemption of premium bonds are 0%, 8%, 28%, 47%, 68%, and 100% respectively. Regions with relatively low ratios of face - value redemption of premium bonds with medium - low implied ratings include Chongqing, Yunnan, Jiangsu, Anhui, and Xinjiang [29]