Report Industry Investment Rating - Not provided in the content Core Viewpoints of the Report - Since July 2023, local government debt resolution policies have been intensively introduced, forming a "Document 35 + 6" policy system, which strictly regulates urban investment financing. Under the current refinancing environment that emphasizes both strict supervision and debt resolution, urban investment new - financing shows significant characteristics of "total volume control and structural differentiation", and the credit stratification and regional differentiation in the urban investment financing market will further intensify [2][4]. - The policy will continue to adhere to the principle of differentiated management, strictly curb new implicit debts, and support the transformation of qualified urban investment platforms. Regions with resource advantages and industrial support are expected to expand financing channels through industrial investment platforms, while regions with slow transformation and scarce resources will face severe constraints on platform financing capabilities [4]. Summary by Relevant Catalogs Urban Investment Financing Policy - Since July 2023, a "Document 35 + 6" policy system has been formed. Document 35 classifies regions and local state - owned enterprises and implements differentiated management of financing policies. The six supplementary documents further clarify measures such as controlling new government investment projects, expanding the scope of debt resolution measures, and specifying the exit path for high - risk key provinces. Overall, it comprehensively regulates urban investment financing [6]. - In March 2025, the Shanghai Stock Exchange issued Guidance Document No. 3, which added many review points for urban investment issuers, including clarifying the boundaries of urban investment entities, raising the threshold for bond issuance, and putting forward review requirements for the chaos in urban investment transformation, which is both a specific implementation of strict review and a guide for urban investment transformation [7]. - In the current urban investment financing review practice, bond issuance approval mainly relies on the list - based management, and the overall review scale is still strict. Even if the issuer is not on or has exited the "3899 list", it still needs to meet relevant regulations to issue new bonds [8]. Overview of New Urban Investment Financing - From October 2023 to July 2025, 534 urban investment entities in 28 provinces achieved new bond issuance. Economically developed provinces such as Guangdong, Jiangsu, and Zhejiang are dominant. In terms of administrative levels, prefecture - level and district - level entities are the main ones. High - rating entities (AAA and AA+) are the leading ones in new financing. The number of entities achieving new financing in the inter - bank market and the exchange market is basically the same, but there are obvious structural differences among different administrative levels [13][14][16]. - Most entities only issued 1 new bond, and those that could issue more than 3 new bonds were concentrated in AAA - rated provincial and prefecture - level entities. In terms of bond types, the scale of inter - bank products in new urban investment bonds significantly leads that of exchange products, and medium - term notes and ultra - short - term financing bills have the largest scale. New urban investment bonds are mainly public - offering bonds, and the main use of raised funds is to repay interest - bearing debts [18][22]. Overview of Entities Issuing Bonds for the First Time First - time Issuance of Urban Investment Platforms - From October 2023, among the 534 urban investment entities that achieved new financing, 69 were first - time bond issuers. They are characterized by "relatively weak credit qualifications (mainly district - level and AA+), leading number of first - time issuers in the exchange, and private - offering products as the mainstay". Different issuance venues have obvious regional preferences [34]. - Guangdong has significantly more first - time urban investment new - issuance entities than other provinces. There are three main types of regional preferences: regions with zero hidden debts, good economic foundations, and relatively loose supervision; regions with good economic foundations but large existing urban investment debts and different supervision intensities in the inter - bank and exchange markets; regions with relatively large economic volumes but heavy debt burdens, mainly achieving new issuance in the exchange [41][42]. First - time Issuance of Quasi - Urban Investment Industrial Entities - The first - time issuance of quasi - urban investment industrial entities is characterized by "mainly prefecture - level and AA+ entities, leading number of first - time issuers in the exchange, and both public - offering and private - offering products thriving". Their credit levels are generally better than those of first - time urban investment entities, and their financing channels are more diverse [47]. - These entities can be classified into three types according to business types: industrial holding, public utilities, and transportation. Industrial holding platforms account for more than 70% of the samples, and their credit qualifications are highly differentiated, which can be further divided into five sub - types [57][70].

1. Report Industry Investment Rating The document does not mention the industry investment rating. 2. Core View of the Report The report focuses on the issuance of new special-purpose bonds in 2025, analyzes which urban investment platforms have received the bonds, whether there is financing substitution, and the performance of the outstanding bonds of urban investment platforms that have received the bonds [9]. 3. Summary According to the Table of Contents 3.1 2025, How is the Issuance of Special-Purpose Bonds? - As of March 31, 2025, the issuance of new special-purpose bonds this year is 960.2 billion yuan, with an issuance progress of 22%. The issuance scale is higher than that in 2024, but the overall progress is still relatively slow compared with 2022 and 2023 [10]. - This year, 843 billion yuan of ordinary special-purpose bonds and 117.2 billion yuan of special new special-purpose bonds have been issued [11]. - In 2025, urban and rural construction and transportation construction remain the key directions for special-purpose bonds. Land reserve special-purpose bonds were restarted this year [15]. 3.2 2025, Which Urban Investment Platforms Have Received Special-Purpose Bonds? - As of March 21, 2025, since 2019, a total of 2,513 bond-issuing urban investment platforms across the country have received special-purpose bond projects. Among them, 587 bond-issuing urban investment platforms have received special-purpose bond projects since 2025, including 4 first-time recipients in 2025 and 248 in 2024 [19]. - In terms of administrative levels, district-level and prefecture-level cities are the main recipients, accounting for 42% and 30% respectively. In terms of subject ratings, AA+ and AA subjects account for a relatively large proportion, accounting for 32% and 46% respectively [23]. - Since 2019, self-review and self-issuance provinces such as Zhejiang, Jiangsu, Shandong, and Sichuan have more bond-issuing urban investment platforms in undertaking special-purpose bond projects, significantly more than non-self-review and self-issuance provinces. In non-self-review and self-issuance provinces, Hubei, Jiangxi, and Chongqing have more than 100 bond-issuing urban investment platforms, accounting for more than 60% of all bond-issuing urban investment platforms [22]. - In terms of the scale of special-purpose bond funds obtained by different urban investment platforms, prefecture-level city urban investment platforms have the highest scale, followed by district-level and municipality-level platforms. The scale of special-purpose bond funds obtained by AA urban investment platforms is much smaller than that of AAA urban investment platforms [28][29]. - For urban investment projects in districts and counties with relatively weak financial resources, the importance of special-purpose bond funds is significantly higher [31]. - Self-review and self-issuance provinces have a larger overall scale of special-purpose bond funds than non-self-review and self-issuance provinces. In non-self-review and self-issuance provinces, Chongqing's urban investment platforms received nearly 20 billion yuan in special-purpose bond funds in 2025, and Hubei's urban investment platforms received more than 10 billion yuan [35][36]. 3.3 Does Receiving Special-Purpose Bonds Have Financing Substitution? - Before 2023, the net financing of urban investment platforms that received special-purpose bonds was significantly higher than that of those that did not. However, since 2024, due to the large overall maturity scale of urban investment platforms that received special-purpose bonds, the net financing of these platforms has declined significantly, and this trend continued in 2025 [50]. - In self-review and self-issuance provinces, the net financing of urban investment platforms has declined in the past two years, and the net financing of urban investment platforms that received special-purpose bonds is weaker than that of those that did not. In non-self-review and self-issuance provinces, the net financing of most provinces' urban investment platforms that received special-purpose bonds was better than that of those that did not in 2025 [54]. - In self-review and self-issuance provinces, the growth rate of interest-bearing debt of urban investment platforms declined in 2024, and the growth rate of most urban investment platforms that received special-purpose bonds was lower than that of those that did not. In non-self-review and self-issuance provinces, the growth rate of interest-bearing debt in some provinces still increased [55]. 3.4 How is the Performance of the Outstanding Bonds of Urban Investment Platforms that Have Received Special-Purpose Bonds? - A total of 1,355 urban investment platforms with outstanding bonds participated in receiving special-purpose bonds this year. The scale of the outstanding bonds of urban investment platforms that received special-purpose bonds this year is 8.7 trillion yuan, of which about 95% of the outstanding bonds of urban investment platforms have a valuation of less than 3%, and 5% have a valuation of more than 3% [57]. - In terms of credit spreads, the proportions of credit spreads within 50bp, 50-100bp, 100-200bp, and 200-300bp are 22%, 64%, 13%, and 1% respectively [57]. - Bonds with slightly higher valuations are mostly private placement bonds, or those with a subject rating of AA or below, or those with a longer term. A list of public bonds in 2025 that have received special-purpose bonds, with a subject rating of AA+ or above, and a credit spread of more than 150BP is provided for market reference [60].