1. Report Industry Investment Rating No information provided in the report. 2. Core Viewpoints of the Report - In 2025, fiscal and financial debt resolution policies continued to advance, accelerating the settlement of arrears in various regions and achieving certain results in debt resolution. Meanwhile, regulatory authorities continued to tighten supervision over urban investment financing and industries such as trusts and financial leasing. The overall scale of non - standard urban investment financing and the number of related public opinions decreased significantly, and the debt risk marginally converged [4][8]. - Looking forward to 2026, the comprehensive debt resolution plan will be further implemented in detail. Financially, the 10 - trillion - yuan debt resolution package will continue to exert its strength. In the financial aspect, multiple departments such as the central bank and the financial regulatory bureau mentioned guiding financial institutions to implement relevant policies for financial support in debt resolution, and legally and compliantly carry out the restructuring and replacement of the existing debt of financing platforms. Financial support for debt resolution may be the focus. It is expected that the progress of bank loans replacing non - standard debts will accelerate. Coupled with stricter supervision in the trust and leasing industries, the scale of non - standard urban investment financing may continue to decline. In addition, policies still attach importance to the management and control of local government debt risks, and the number of urban investment public opinion events may continue to decrease [5][31]. 3. Summary According to the Table of Contents 3.1 Urban Investment Non - standard Financing Continues to Be Under Strict Supervision, and the Financing Scale Continues to Decline 3.1.1 Trust Financing: Supervision Continues to Tighten, and the Number and Scale of Urban Investment Financing Decline by More Than Half Year - on - Year - The management measures for the high - quality development of the trust industry have been introduced, and overall supervision has tightened, significantly restricting urban investment trust financing. In 2024, some trust companies received window guidance from regulatory authorities in May, requiring strict implementation of the "Document No. 35", ensuring that for entities on the supervision list of the "Financing Platform Inquiry System", relevant non - standard debts only decrease and do not increase, and reducing the interest rates of high - interest non - standard debts. In 2025, the China Trust Registration Co., Ltd. required that starting from September 1st, for asset management trusts, trust companies should implement portfolio investment requirements and not carry out trust business that essentially provides financing for a single financing party. The China Financial Regulatory Administration issued relevant management measures in September and October to further strengthen the supervision of trust companies and products [4][8][9]. - In 2025, the number and scale of national urban investment trust financing both decreased by more than 50% year - on - year. The national urban investment companies and their subsidiaries had a total of 2,669 trust financing transactions, with a total financing scale of 162.7 billion yuan, a year - on - year decrease of 52% and 59% respectively [2][9]. - At the regional level, in 2025, urban investment entities in 21 provinces were involved in trust financing. Except for Gansu and Beijing, the number and scale in other provinces decreased. Regions such as Jilin and Tianjin led in terms of decline [2][12]. 3.1.2 Leasing Financing: Regulatory Authorities Guide Financial Leasing Companies to Withdraw from Urban Investment Business in a Prudent Manner, and the Financing Scale Continues to Decline Slightly - Regulatory authorities guided financial leasing companies to withdraw from urban investment business in a prudent manner. In May 2024, the Party branch of the Non - Banking Institution Supervision Department of the financial regulatory bureau proposed to promote financial leasing companies to withdraw from financing platform business in an active and prudent manner and prohibit the restructuring and renewal of ineligible leased assets [2][16]. - In 2025, the number of national urban investment leasing financing transactions increased by 2% year - on - year, while the scale decreased by 8% year - on - year. The national urban investment companies and their subsidiaries had a total of 9,029 leasing financing transactions, with a total scale of 904.3 billion yuan [2][16]. - At the regional level, in 2025, urban investment entities in all 31 provinces were involved in leasing financing. The number in 12 provinces decreased year - on - year, and the scale in 20 provinces decreased year - on - year [2][21]. 3.2 Urban Investment Credit Risk Public Opinions Decrease, and Debt Risks Continue to Mitigate - In 2025, the number of urban investment non - standard risk events (excluding commercial bill overdue) decreased by 21 year - on - year. There were 23 such events, mainly involving the non - payment of principal or interest of non - standard products. Regionally, they were mainly distributed in Shandong, Yunnan, etc. In terms of administrative levels, they were mainly distributed at the district - county and prefecture - city levels, accounting for 65% and 35% respectively [2][25]. - In 2025, the number of urban investment entities with continuous commercial bill overdue remained stable at a high level of 55 - 61. They were mainly distributed in Shandong, Yunnan, Henan, etc. [3][27]