1. Report Industry Investment Rating The provided text does not mention the industry investment rating. 2. Core Viewpoints of the Report - The central bank had a net withdrawal of 281.9 billion yuan in the open - market operations this week [5]. - The yield of medium - and long - term credit bonds decreased significantly, while the short - term yield mostly decreased slightly [2][22]. - The credit spread of the AA+ non - bank financial industry widened significantly, and the fluctuations of credit spreads of other industries and ratings were within 5BP [2][24]. - After the end of the quarter, the scale of wealth management products in April 2026 is expected to resume positive monthly growth, which will support the allocation of credit bonds [3]. - The current credit spreads of different varieties are at a relatively low historical level, and the credit spreads of 4 - 5Y credit bonds may still have some room to decline [3]. 3. Summary by Directory 3.1 Primary Market - The net financing of traditional credit bonds increased, and the net financing of asset - backed securities decreased by 36.2 billion yuan compared with last week [1][8]. - The net financing of urban investment bonds increased by 69.1 billion yuan, and that of industrial bonds increased by 55.8 billion yuan, while the net financing of financial bonds decreased by 64.2 billion yuan [8]. - The issuance volume of urban investment bonds increased by 47, and the redemption volume decreased by 49; the issuance volume of industrial bonds decreased by 21, and the redemption volume decreased by 36; the issuance volume of financial bonds decreased by 3, and the redemption volume remained unchanged [10]. 3.2 Secondary Market 3.2.1 Trading Volume - The trading volume of credit bonds decreased by 60.5 billion yuan compared with last week. The trading volume of urban investment bonds decreased by 6.7 billion yuan, that of industrial bonds decreased by 0.5 billion yuan, and that of financial bonds decreased by 53.4 billion yuan. The trading volume of asset - backed securities increased by 3.1 billion yuan [17]. - The turnover rate of traditional credit bonds decreased, while that of asset - backed securities increased slightly [17]. 3.2.2 Yield - The yields of 1Y AA, AAA -, and AAA+ credit bonds decreased by no more than 1BP; the yields of 5Y AA, AAA -, and AAA+ credit bonds decreased by 4BP, 3BP, and 2BP respectively; the yields of 10Y AA, AAA -, and AAA+ credit bonds decreased by 4BP [22]. - Taking AA+ 5Y bonds of various varieties as an example, the yields of different varieties decreased to varying degrees [23]. 3.2.3 Credit Spread - The credit spread of the AA+ non - bank financial industry widened by 10BP, and the fluctuations of credit spreads of other industries and ratings were within 5BP [24]. - For urban investment bonds, the credit spreads of different maturities fluctuated slightly within 2BP. The credit spreads of most regions decreased, except for Hainan AA+ and Xinjiang AAA [30][32]. - For industrial bonds, the short - term credit spreads continued to narrow, and the 10Y long - term spreads decreased slightly [35]. - For bank capital bonds, the credit spreads of medium - and long - term bank Tier 2 and perpetual bonds decreased slightly [38]. 3.3 Bond Market舆情 - The implied ratings of 15 debt issues issued by AVIC Industry Finance Holdings Co., Ltd. were downgraded, and the implied rating of "Gucanal A" issued by Wuxi Chengnan Construction Investment and Development Co., Ltd. was downgraded [40]. 3.4 Investment Suggestions - Overall, the credit spread of the AA+ non - bank financial industry widened significantly, and the fluctuations of credit spreads of other industries and ratings were within 5BP. - For urban investment bonds, the credit spreads of different maturities fluctuated slightly within 2BP. - For industrial bonds, the short - term credit spreads continued to narrow, and the 10Y long - term spreads decreased slightly. - For bank capital bonds, the credit spreads of medium - and long - term bank Tier 2 and perpetual bonds decreased slightly [5][42].

1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - The issuing guidance rates announced by the National Association of Financial Market Institutional Investors (NAFMII) during the period from March 16th to March 22nd showed a divergence, with most rates for medium - and short - term maturities decreasing and most for long - term maturities increasing, with an overall change range of -2 BP to 1 BP [1][51]. - The issuance scale of credit bonds continued to increase on a week - on - week basis and was at a historically high level. Corporate bonds remained at zero issuance, the issuance amount of private placement notes decreased, and the issuance amounts of other varieties increased. The net financing of credit bonds increased on a week - on - week basis [1][51]. - In the secondary market, the trading volume of credit bonds increased on a week - on - week basis, with the trading volume of corporate bonds decreasing and that of other varieties increasing [1][51]. - The yields of credit bonds declined overall, with a larger decline in the medium - and short - term [1][51]. - In terms of credit spreads, the medium - and short - term credit spreads of medium - and short - term notes and corporate bonds generally narrowed, while the long - term spreads widened; the 5 - year credit spread of urban investment bonds widened, and most spreads of other maturities narrowed [1][51]. - From an absolute return perspective, the relatively strong allocation demand will drive the credit bond market to continue its recovery. Although fluctuations and adjustments are inevitable under the influence of multiple factors, the conditions for a full - scale bear market in credit bonds are still insufficient. In the long run, future yields are still in a downward channel, and the idea of increasing allocation during adjustments is still feasible [1][51]. - From a relative return perspective, the compression space of credit spreads at all maturities is insufficient at present, and the cost - effectiveness of most varieties for allocation is not high. The coupon strategy in the current allocation should be cautious, while the trading strategy can be moderately optimistic. The key to bond selection is to focus on the trend of interest - rate bonds and the coupon value of individual bonds [1][51]. - The end - of - quarter factor may cause some disturbances. Considering the possible volatile market in the near future, it is necessary to coordinate and transform the allocation and trading strategies in line with the trend. Attention should also be paid to the effectiveness of growth - stabilizing policies, the impact of the equity market on the bond market, and the influence of changes in the capital market and supply - demand pattern on market sentiment [1][51]. - The central and local governments are continuously and actively optimizing real - estate policies, which have played a positive role in promoting the stabilization of the real - estate market. For real - estate bonds, investors with higher risk tolerance can consider early layout, focusing on enterprises with outstanding new financing and sales recovery, and balancing risks and returns. The focus of allocation should be on central and local state - owned enterprises with stable historical valuations and excellent performance, as well as high - quality private enterprise bonds with strong guarantees. Longer durations can be used to increase returns, and trading opportunities from the valuation repair of oversold real - estate enterprise bonds can also be appropriately explored [2][52][53]. - For urban investment bonds, the possibility of default is low, and they can still be a key allocation variety for credit bonds. The debt resolution has achieved remarkable results, and the reform and transformation of financing platforms are in the final stage. Attention can be paid to the reform and transformation opportunities of "entity - type" financing platforms [3][53]. 3. Summary by Directory 3.1 Primary Market Situation 3.1.1 Issuance and Maturity Scale - From March 16th to March 22nd, a total of 482 credit bonds were issued, with an issuance amount of 396.635 billion yuan, a week - on - week increase of 17.70%. The net financing of credit bonds was 92.633 billion yuan, an increase of 11.306 billion yuan on a week - on - week basis [12]. - By variety, corporate bonds had zero issuance with a net financing of -9.783 billion yuan, an increase of 0.999 billion yuan on a week - on - week basis; 182 corporate bonds were issued, with an issuance amount of 138.026 billion yuan, a week - on - week increase of 19.10%, and a net financing of 45.560 billion yuan, an increase of 28.919 billion yuan on a week - on - week basis; 148 medium - term notes were issued, with an issuance amount of 124.231 billion yuan, a week - on - week increase of 3.52%, and a net financing of 53.343 billion yuan, a decrease of 6.639 billion yuan on a week - on - week basis; 122 short - term financing bills were issued, with an issuance amount of 119.022 billion yuan, a week - on - week increase of 46.39%, and a net financing of 9.016 billion yuan, a decrease of 1.171 billion yuan on a week - on - week basis; 30 private placement notes were issued, with an issuance amount of 15.356 billion yuan, a week - on - week decrease of 22.38%, and a net financing of -5.503 billion yuan, a decrease of 10.802 billion yuan on a week - on - week basis [12]. 3.1.2 Issuance Interest Rates - The issuing guidance rates announced by the NAFMII showed a divergence, with most rates for medium - and short - term maturities decreasing and most for long - term maturities increasing, with an overall change range of -2 BP to 1 BP. By maturity, the rate change range for 1 - year varieties was -1 BP to 1 BP, for 3 - year varieties was -2 BP to 0 BP, for 5 - year varieties was -1 BP to 1 BP, and for 7 - year varieties was -2 BP to 1 BP. By rating, the rate change range for key AAA - rated and AAA - rated varieties was -1 BP to 1 BP, for AA + - rated varieties was 0 BP to 1 BP, for AA - rated varieties was -2 BP to -1 BP, and for AA - - rated varieties was -1 BP to 1 BP [13]. 3.2 Secondary Market Situation 3.2.1 Market Trading Volume - From March 16th to March 22nd, the total trading volume of credit bonds was 980.127 billion yuan, a week - on - week increase of 10.10%. The trading volumes of corporate bonds, corporate bonds, medium - term notes, short - term financing bills, and private placement notes were 17.686 billion yuan, 382.526 billion yuan, 358.574 billion yuan, 162.769 billion yuan, and 58.572 billion yuan respectively. The trading volume of credit bonds increased on a week - on - week basis, with the trading volume of corporate bonds decreasing and that of other varieties increasing [16]. 3.2.2 Credit Spreads - For medium - and short - term notes, most varieties' credit spreads widened. Specifically, the 1 - year AAA - rated variety's credit spread widened, while those of other varieties narrowed; for the 3 - year period, the credit spreads of AAA - rated and AA + - rated varieties widened, while those of other varieties narrowed; the 5 - year and 7 - year credit spreads widened [19]. - For corporate bonds, most varieties' credit spreads widened. Specifically, for the 1 - year and 3 - year periods, the credit spread of the AAA - rated variety widened, while those of other varieties narrowed; the 5 - year and 7 - year credit spreads widened [26]. - For urban investment bonds, the credit spreads of each variety showed mixed trends. Specifically, for the 1 - year and 7 - year periods, the credit spread of the AAA - rated variety widened, while those of other varieties narrowed; for the 3 - year period, the credit spreads of AAA - rated and AA + - rated varieties widened, while those of other varieties narrowed; the 5 - year credit spread widened [29]. 3.2.3 Term Spreads and Rating Spreads - For AA + medium - and short - term notes, the 3Y - 1Y term spread widened by 0.79 BP, the 5Y - 3Y term spread widened by 1.52 BP, and the 7Y - 3Y term spread narrowed by 1.65 BP. The 3Y - 1Y term spread was at a historically low - to - medium percentile, at the 25.8% percentile; the 5Y - 3Y term spread was at the 28.3% percentile; the 7Y - 3Y term spread was at the 35.0% percentile. In terms of rating spreads, the (AA - )-(AAA) spread of 3 - year medium - and short - term notes narrowed by 2.00 BP, the (AA)-(AAA) spread narrowed by 2.00 BP, and the (AA + )-(AAA) spread remained the same as the previous period. The (AA - )-(AAA) spread was at a historically low level, at the 0.6% percentile; the (AA)-(AAA) spread was at the 5.0% percentile; the (AA + )-(AAA) spread was at the 1.6% percentile [36]. - For AA + corporate bonds, the 3Y - 1Y term spread widened by 0.41 BP, the 5Y - 3Y term spread widened by 2.31 BP, and the 7Y - 3Y term spread widened by 2.39 BP. The 3Y - 1Y term spread was at a historically low - to - medium percentile, at the 27.1% percentile; the 5Y - 3Y term spread was at the 25.8% percentile; the 7Y - 3Y term spread was at the 33.8% percentile. In terms of rating spreads, the (AA - )-(AAA) spread of 3 - year corporate bonds narrowed by 2.00 BP, the (AA)-(AAA) spread narrowed by 2.00 BP, and the (AA + )-(AAA) spread narrowed by 2.00 BP. The (AA - )-(AAA) spread was at a historically low level, at the 0.1% percentile; the (AA)-(AAA) spread was at the 5.2% percentile; the (AA + )-(AAA) spread was at the 3.0% percentile [41]. - For AA + urban investment bonds, the 3Y - 1Y term spread widened by 0.40 BP, the 5Y - 3Y term spread widened by 1.07 BP, and the 7Y - 3Y term spread widened by 0.07 BP. The 3Y - 1Y term spread was at a historically low - to - medium percentile, at the 23.0% percentile; the 5Y - 3Y term spread was at the 20.4% percentile; the 7Y - 3Y term spread was at the 37.7% percentile. In terms of rating spreads, the (AA - )-(AAA) spread of 3 - year urban investment bonds narrowed by 2.00 BP, the (AA)-(AAA) spread narrowed by 2.00 BP, and the (AA + )-(AAA) spread narrowed by 1.00 BP. The (AA - )-(AAA) spread was at a historically low level, at the 2.1% percentile; the (AA)-(AAA) spread was at the 0.5% percentile; the (AA + )-(AAA) spread was at the 0.5% percentile [44]. 3.3 Credit Rating Adjustment and Default Bond Statistics 3.3.1 Credit Rating Adjustment Statistics - According to iFinD statistics, during the period from March 16th to March 22nd, the ratings (including outlooks) of 2 companies were adjusted, with 1 downgraded and 1 upgraded [48]. 3.3.2 Default and Extended - Maturity Bond Statistics - There were no defaults of credit bonds under any issuer during the period from March 16th to March 22nd. There were also no extended - maturity credit bonds under any issuer during this period [50]. 3.4 Investment Views - The same as the core views of the report, including the analysis of primary and secondary markets, yield, credit spreads, and investment strategies from absolute and relative return perspectives, as well as investment suggestions for real - estate bonds and urban investment bonds [1][51][52][53].

1. Report Industry Investment Rating - Not provided in the given content 2. Core View of the Report - The net supply of ordinary credit bonds in the primary market decreased compared to the previous period, and there were no new issuances or maturities of bank perpetual and subordinated bonds. In the secondary market, short - term yields declined while medium - and long - term yields increased, and most credit spreads widened except for the 1 - year bonds. The credit spreads in March may fluctuate weakly, but the risk of a significant widening is relatively controllable. It is recommended to moderately reduce the duration and wait for potential allocation opportunities in the short - to medium - term [4]. 3. Summary by Directory 3.1 Primary Market - **Ordinary Credit Bonds**: The issuance of ordinary credit bonds increased, but the net financing decreased. The issuance of industrial bonds increased, and the net financing also increased slightly. The issuance of urban investment bonds increased slightly, but the net financing turned negative. The weighted issuance term of ordinary credit bonds decreased to 2.87 years. The bid - cap to coupon rate of credit bonds increased from 0.45% to 0.46%, and the subscription multiple decreased from 3.22 to 3.00 [4][7][21]. - **Bank Perpetual and Subordinated Bonds**: There were no new issuances or maturities of bank perpetual and subordinated bonds this period, and there have been no issuances for 10 consecutive weeks [4][25]. 3.2 Secondary Market - **Yields**: Short - term yields declined, and medium - and long - term yields increased. For example, 1 - year medium - term notes of all ratings decreased by 1.7BP, while 10 - year AAA -/AA +/AA - grade bank perpetual bonds all increased by 6.8BP, and 10 - year AAA - grade bank secondary capital bonds increased by 7.3BP [4]. - **Credit Spreads**: Most credit spreads widened except for short - term (1 - year) medium - term notes and bank perpetual and subordinated bonds. The 1 - year bank secondary capital bonds performed the best, with the AAA - grade narrowing by 0.7BP, AA +/AA - grade narrowing by 0.9BP, and AA - grade narrowing by 1.9BP. The 10 - year bank secondary capital bonds had the largest widening amplitude [4]. - **Turnover Rate**: The turnover rates of urban investment bonds and bank perpetual and subordinated bonds increased this week, while the turnover rate of industrial bonds decreased [4][57]. 3.3 Urban Investment Bonds - **Yields**: Yields in different regions showed differentiation. For example, in Anhui, the yields of AAA - series, AA +, AA, AA(2), and AA - were 1.85%, 1.84%, 1.83%, 1.91%, and 2.12% respectively as of March 13, 2026 [69]. - **Credit Spreads**: Most credit spreads widened. For example, in Anhui, the credit spreads of AAA - series, AA +, AA, AA(2), and AA - were 22.71BP, 23.08BP, 24.10BP, 32.84BP, and 55.01BP respectively [71]. - **Turnover Rate**: The turnover rates in different regions also showed differences [72]. 3.4 Industrial Bonds - **Yields**: The yields of various industries decreased overall. For example, the yields of the agriculture, forestry, animal husbandry, and fishery industry's AAA - series, AA +, AA, and AA - were 1.89%, 1.88%, 1.99%, and 2.92% respectively as of March 13, 2026 [78]. - **Credit Spreads**: Most credit spreads widened passively. For example, the credit spreads of the agriculture, forestry, animal husbandry, and fishery industry's AAA - series, AA +, AA, and AA - were 21.80BP, 27.70BP, 41.40BP, and 135.64BP respectively [80]. - **Turnover Rate**: The turnover rates of different industries showed differences [82]. 3.5 Financial Bonds - **Yields**: Yields showed differentiation. For example, the yields of the AAA - grade bank secondary capital bonds of state - owned large - scale banks, joint - stock banks, and small and medium - sized banks were 2.03%, 2.02%, and 1.90% respectively as of March 13, 2026 [107]. - **Credit Spreads**: Most credit spreads widened. For example, the credit spreads of the AAA - grade bank secondary capital bonds of state - owned large - scale banks, joint - stock banks, and small and medium - sized banks were 33.03BP, 33.27BP, and 26.95BP respectively [107]. - **Turnover Rate**: The turnover rates of bank secondary capital bonds and bank perpetual bonds in different regions and with different ratings showed differences [94]. 3.6 Stock Bond Distribution - The current yields are mostly distributed within 2.4%. The average yields of industrial bonds in various industries and urban investment bonds in different regions are presented in detail, showing different distributions according to implicit ratings and remaining maturities [119][121].

1. Report's Industry Investment Rating No information about the industry investment rating is provided in the report. 2. Core Viewpoints of the Report - During the period from March 2nd to March 8th, most of the issuance guidance rates announced by the National Association of Financial Market Institutional Investors (NAFMII) increased, with an overall change range of -1 BP to 6 BP. Due to the low - base effect, the issuance scale of credit bonds increased significantly on a month - on - month basis. Corporate bonds remained at zero issuance, while the issuance amounts of other varieties increased. The net financing of credit bonds increased, with corporate bond net financing decreasing and that of other varieties increasing. Corporate bond net financing was negative, while that of other varieties was positive. [1][11][55] - In the secondary market, the trading volume of credit bonds increased on a month - on - month basis, with the trading volume of each variety increasing. The yields of credit bonds all declined. The credit spreads of each variety were differentiated, showing a general widening trend at the short - to - medium end and a narrowing trend at the long end. In terms of quantiles, the spreads of most varieties were at historical lows, with the quantiles of 7 - year varieties being relatively high. [1][15][55] - From the perspective of absolute return, the relatively strong allocation demand will drive the credit bond market to continue its recovery. Although fluctuations and adjustments are inevitable under the influence of both positive and negative factors, the conditions for a full - scale bear market in the credit bond market are still insufficient. In the long run, future yields are still on a downward path, and the idea of increasing allocations during adjustments is still feasible. [1][55] - From the perspective of relative return, the compression space of credit spreads at each maturity is currently insufficient, and the cost - effectiveness of allocating most varieties is not high. The coupon strategy in the current allocation thinking should remain cautious, while the trading thinking can be moderately optimistic. When selecting bonds, the focus should still be on the changing trend of interest - rate bonds while paying attention to the coupon value of individual bonds. [1][55] - The central and local governments continue to actively optimize real - estate policies, and the supporting policies are continuously strengthening, actively releasing rigid and improved housing demand, which has played a positive role in promoting the stabilization of the real - estate market. Although the real - estate market is currently in the transition period between old and new models, with the effectiveness of various policies to stabilize the real - estate market, the market is moving towards stabilization. [2][58] - For real - estate bonds, the sales recovery process will have a significant impact on bond valuations. As the market shows signs of stabilization, funds with higher risk appetite can consider early layout, especially focusing on enterprises with outstanding performance in new financing and sales recovery. The allocation focus should still be on central and state - owned enterprises with stable historical valuations and excellent performance, as well as high - quality private - enterprise bonds with strong guarantees. [2][58] - For urban investment bonds, under the principle of coordinating development and security, the probability of default of urban investment bonds is very low, and they can still be a key allocation variety in the credit bond market. Under the strict supervision of promoting the clearance of local financing platforms in an effective and orderly manner, the reform and transformation of financing platforms are accelerating, and attention should be paid to the opportunities for the reform and transformation of "entity - type" financing platforms. [2][58] 3. Summary According to the Directory 3.1 Primary Market Situation 3.1.1 Issuance and Maturity Scale - From March 2nd to March 8th, a total of 334 credit bonds, including corporate bonds, corporate - issued bonds, medium - term notes, commercial paper, and private placement notes, were issued, with a total issuance amount of 263.087 billion yuan, a month - on - month increase of 177.64%. The net financing of credit bonds was 79.394 billion yuan, a month - on - month increase of 145.668 billion yuan. [11] - Specifically, corporate bonds had zero issuance, with a net financing of - 12.849 billion yuan, a month - on - month decrease of 10.344 billion yuan. Corporate - issued bonds had 127 issuances, with an issuance amount of 101.718 billion yuan, a month - on - month increase of 255.45%, and a net financing of 46.670 billion yuan, a month - on - month increase of 82.174 billion yuan. Medium - term notes had 102 issuances, with an issuance amount of 74.731 billion yuan, a month - on - month increase of 305.05%, and a net financing of 11.835 billion yuan, a month - on - month increase of 49.080 billion yuan. Commercial paper had 77 issuances, with an issuance amount of 68.448 billion yuan, a month - on - month increase of 51.53%, and a net financing of 29.020 billion yuan, a month - on - month increase of 15.901 billion yuan. Private placement notes had 28 issuances, with an issuance amount of 18.190 billion yuan, a month - on - month increase of 621.54%, and a net financing of 4.718 billion yuan, a month - on - month increase of 8.859 billion yuan. [11] 3.1.2 Issuance Interest Rates - Most of the issuance guidance rates announced by the NAFMII increased, with an overall change range of -1 BP to 6 BP. By maturity, the interest rate of 1 - year varieties changed from 0 BP to 2 BP, that of 3 - year varieties from 0 BP to 6 BP, that of 5 - year varieties from -1 BP to 3 BP, and that of 7 - year varieties from -1 BP to 2 BP. By rating, the interest rate of key AAA - rated and AAA - rated varieties changed from 0 BP to 2 BP, that of AA + - rated varieties from -1 BP to 4 BP, that of AA - rated varieties from 2 BP to 6 BP, and that of AA - - rated varieties from -1 BP to 4 BP. [13] 3.2 Secondary Market Situation 3.2.1 Market Trading Volume - From March 2nd to March 8th, the total trading volume of credit bonds was 915.999 billion yuan, a month - on - month increase of 76.45%. The trading volumes of corporate bonds, corporate - issued bonds, medium - term notes, commercial paper, and private placement notes were 17.907 billion yuan, 363.026 billion yuan, 328.115 billion yuan, 151.917 billion yuan, and 55.034 billion yuan respectively, with the trading volumes of all varieties increasing. [15] 3.2.2 Credit Spreads - For medium - and short - term notes, the credit spreads of each variety were differentiated. Specifically, the credit spreads of 1 - year and 3 - year varieties widened, while those of 5 - year and 7 - year varieties narrowed. [18] - For corporate bonds, the credit spreads of each variety were also differentiated. Specifically, the 1 - year credit spreads widened; for 3 - year varieties, the credit spreads of AA + - rated and above widened, while those of other varieties narrowed; the 5 - year and 7 - year credit spreads narrowed. [28] - For urban investment bonds, the credit spreads of each variety were differentiated. Specifically, the credit spreads of 1 - year and 3 - year varieties widened, while those of 5 - year and 7 - year varieties narrowed. [32] 3.2.3 Term Spreads and Rating Spreads - **For medium - and short - term notes**: In terms of term spreads, the 3Y - 1Y spread of AA + medium - and short - term notes widened by 0.28 BP, the 5Y - 3Y spread narrowed by 1.55 BP, and the 7Y - 3Y spread widened by 0.52 BP. Currently, the 3Y - 1Y spread is at a historical low, at the 19.8% quantile, the 5Y - 3Y spread is at a historical low, at the 18.4% quantile, and the 7Y - 3Y spread is at a low - to - medium historical level, at the 33.4% quantile. In terms of rating spreads, the spreads of (AA - )-(AAA), (AA)-(AAA), and (AA + )-(AAA) for 3 - year medium - and short - term notes remained the same as the previous period. Currently, (AA - )-(AAA) is at a historical low, at the 1.6% quantile, (AA)-(AAA) is at a historical low, at the 11.3% quantile, and (AA + )-(AAA) is at a low level, at the 4.0% quantile. [39] - **For corporate bonds**: In terms of term spreads, the 3Y - 1Y spread of AA + corporate bonds widened by 0.17 BP, the 5Y - 3Y spread narrowed by 0.04 BP, and the 7Y - 3Y spread narrowed by 0.69 BP. Currently, the 3Y - 1Y spread is at a low - to - medium historical level, at the 21.8% quantile, the 5Y - 3Y spread is at a historical low, at the 9.5% quantile, and the 7Y - 3Y spread is at a low - to - medium historical level, at the 24.8% quantile. In terms of rating spreads, the (AA - )-(AAA) spread of 3 - year corporate bonds narrowed by 2.00 BP, the (AA)-(AAA) spread narrowed by 2.00 BP, and the (AA + )-(AAA) spread narrowed by 1.00 BP. Currently, the (AA - )-(AAA) spread is at a historical low, at the 0.1% quantile, the (AA)-(AAA) spread is at a historical low, at the 7.4% quantile, and the (AA + )-(AAA) spread is at a historical low, at the 5.4% quantile. [45] - **For urban investment bonds**: In terms of term spreads, the 3Y - 1Y spread of AA + urban investment bonds widened by 1.32 BP, the 5Y - 3Y spread narrowed by 2.11 BP, and the 7Y - 3Y spread narrowed by 2.90 BP. Currently, the 3Y - 1Y spread is at a low - to - medium historical level, at the 20.2% quantile, the 5Y - 3Y spread is at a historical low, at the 8.3% quantile, and the 7Y - 3Y spread is at a low - to - medium historical level, at the 34.8% quantile. In terms of rating spreads, the (AA - )-(AAA) spread of 3 - year urban investment bonds narrowed by 0.01 BP, the (AA)-(AAA) spread widened by 0.99 BP, and the (AA + )-(AAA) spread widened by 0.99 BP. Currently, the (AA - )-(AAA) spread is at a historical low, at the 3.5% quantile, the (AA)-(AAA) spread is at a historical low, at the 1.4% quantile, and the (AA + )-(AAA) spread is at a historical low, at the 2.2% quantile. [48] 3.3 Credit Rating Adjustments and Default Bond Statistics 3.3.1 Credit Rating Adjustment Statistics - According to iFinD statistics, there were no company rating (including outlook) adjustments from March 2nd to March 8th. [52] 3.3.2 Default and Extended - Maturity Bond Statistics - In terms of bond defaults, according to iFinD statistics, there were no defaults of credit bonds issued by any issuer from March 2nd to March 8th. [53] - In terms of bond extensions, according to iFinD statistics, there were no extensions of credit bonds issued by any issuer from March 2nd to March 8th. [53] 3.4 Investment Views - The investment views are consistent with the core viewpoints, emphasizing the trends of the primary and secondary markets of credit bonds, the analysis from the perspectives of absolute and relative returns, and the investment suggestions for real - estate bonds and urban investment bonds. [1][55][58]

Group 1 - The net supply of ordinary credit bonds in the primary market decreased compared to the previous period, with no new issuances or maturities for perpetual bonds [3][6][12] - The total issuance and net financing of ordinary credit bonds for the period (2026.02.23-2026.03.01) were 952 billion yuan and -892 billion yuan, respectively, compared to 1390 billion yuan and 363 billion yuan in the previous period [3][6][12] - The issuance of industrial bonds decreased to 503 billion yuan, with net financing turning negative at -294 billion yuan, while local government bonds also saw a decline in issuance to 449 billion yuan, with net financing at -598 billion yuan [3][6][12] Group 2 - In the secondary market, yields generally increased, with credit spreads showing differentiation, where high-quality bonds outperformed perpetual bonds [3][6][12] - The yield on high-quality bonds mostly increased, while some lower-rated medium-term notes saw a decline in yield, with the 1Y AA- rated notes down by 4.7 basis points and 5Y AA rated notes down by 4.6 basis points [3][6][12] - The credit spreads for high-quality bonds narrowed, while most perpetual bonds experienced widening spreads, particularly the 7Y perpetual bonds which widened by 4.7, 4.6, and 3.7 basis points for AAA, AA+, and AA- rated bonds, respectively [3][6][12] Group 3 - The strategy suggests a cautious approach towards long-duration assets, focusing on short to medium-term credit bonds with higher certainty [3][6][12] - The demand for credit bonds is expected to be supported by stable but limited downward space in deposit rates, alongside expectations of wider credit and government bond supply pressures [3][6][12] - Investment opportunities include 2-year or shorter high-quality central state-owned enterprise real estate bonds, 3-year or shorter lower-rated local government bonds, and 3-5 year high-grade insurance subordinated bonds [3][6][12] Group 4 - The trading volume of credit bond ETFs is expected to stabilize around the Spring Festival, with potential demand for credit bond ETFs approaching the end of March, although to a lesser extent than the previous year [3][6][12] - The current credit spreads are at relatively low historical levels, indicating limited room for further compression, thus highlighting the importance of selecting bonds with good value [3][6][12] - For perpetual bonds, attention should be paid to the progress of approvals from the People's Bank of China in March and the potential for resuming issuances [3][6][12]

1. Report Industry Investment Rating No relevant information provided. 2. Core Viewpoints of the Report - During the period from February 9th to February 15th, most of the issuance guidance rates announced by the National Association of Financial Market Institutional Investors declined, with an overall change range of -4 BP to 0 BP. The issuance scale of credit bonds decreased month - on - month, corporate bonds remained at zero issuance, and the issuance amounts of other varieties decreased. The net financing of credit bonds decreased month - on - month, with an increase in corporate bond net financing and a decrease in the net financing of other varieties. Corporate bonds and short - term financing bills had negative net financing, while other varieties had positive net financing [1][11][59]. - In the secondary market, the trading volume of credit bonds increased slightly month - on - month. The trading amounts of corporate bonds and medium - term notes increased, while those of corporate bonds, short - term financing bills, and private placement bonds decreased. Most of the credit bond yields declined, and most of the credit spreads narrowed. In terms of quantiles, most spreads were at historical lows, with 7 - year varieties having relatively higher quantiles [1][16][59]. - From an absolute return perspective, the relatively strong allocation demand will drive the credit bond market to continue its recovery. Although fluctuations and adjustments are inevitable under the influence of multiple factors, the conditions for a full - scale bear market in credit bonds are still insufficient. In the long run, future yields are still in a downward channel, and the idea of increasing allocations during adjustments is still feasible. From a relative return perspective, the compression space of credit spreads at all tenors is insufficient at present, and the cost - effectiveness of most varieties for allocation is not high. The coupon strategy in the current allocation thinking should be cautious, while the trading thinking can be moderately optimistic. The key to bond selection is to focus on the trend of interest - rate bonds and the coupon value of individual bonds. Considering the possible volatile market in the near future, it is necessary to coordinate and transform allocation and trading strategies according to the trend. Attention should also be paid to the effectiveness of growth - stabilizing policies, the impact of the equity market on the bond market, and the influence of changes in the capital market and supply - demand pattern on market sentiment [1][59]. - The central and local governments have been continuously optimizing real estate policies, which has played a positive role in promoting the real estate market to stop falling and stabilize. As the real estate market is in the transition period between old and new models, with the effectiveness of real - estate - stabilizing policies, the market is moving towards stabilization. The next - stage goal is to build a new real - estate development model and promote high - quality development of the real - estate market. In the real - estate bond market, the sales recovery process will have a significant impact on bond valuations. Funds with higher risk appetite can consider early layout, focusing on enterprises with outstanding new financing and sales recovery. The focus of allocation is on central and state - owned enterprises with stable historical valuations and excellent performance, as well as high - quality private - enterprise bonds with strong guarantees. Longer durations can be used to increase returns, and trading opportunities from the valuation repair of oversold real - estate enterprise bonds can also be appropriately explored. For urban investment bonds, under the principle of coordinating development and security, the probability of default is low, and they can still be a key allocation variety for credit bonds. Under strict supervision, the reform and transformation of local financing platforms are accelerating, and opportunities for the reform and transformation of "entity - type" financing platforms should be noted [2][60][61]. 3. Summary by Directory 3.1 Primary Market Situation 3.1.1 Issuance and Maturity Scale - From February 9th to February 15th, a total of 167 credit bonds were issued, with an issuance amount of 139.043 billion yuan, a month - on - month decrease of 61.04%. The net financing of credit bonds was 33.904 billion yuan, a month - on - month decrease of 221.159 billion yuan. Corporate bonds had zero issuance and a net financing of - 1.266 billion yuan, an increase of 0.552 billion yuan month - on - month. Corporate bonds, medium - term notes, short - term financing bills, and private placement bonds all had a decrease in issuance amount and net financing, with corporate bonds and short - term financing bills having negative net financing [11]. 3.1.2 Issuance Interest Rates - Most of the issuance guidance rates announced by the National Association of Financial Market Institutional Investors declined, with an overall change range of -4 BP to 0 BP. By tenor, the 1 - year variety had an interest - rate change range of -3 BP to 0 BP, the 3 - year variety had a range of -3 BP to -1 BP, the 5 - year variety had a range of -2 BP to 0 BP, and the 7 - year variety had a range of -4 BP to -1 BP. By rating, the key AAA - rated and AAA - rated varieties had an interest - rate change range of -2 BP to 0 BP, the AA + - rated variety had a range of -4 BP to 0 BP, the AA - rated variety had a range of -3 BP to -1 BP, and the AA - - rated variety had a range of -3 BP to -2 BP [13]. 3.2 Secondary Market Situation 3.2.1 Market Trading Volume - From February 9th to February 15th, the total trading volume of credit bonds was 875.712 billion yuan, a month - on - month increase of 0.45%. The trading amounts of corporate bonds, corporate bonds, medium - term notes, short - term financing bills, and private placement bonds were 21.184 billion yuan, 341.892 billion yuan, 332.454 billion yuan, 130.102 billion yuan, and 50.080 billion yuan respectively. The trading volume of credit bonds increased slightly month - on - month, with the trading amounts of corporate bonds and medium - term notes increasing and those of corporate bonds, short - term financing bills, and private placement bonds decreasing [16]. 3.2.2 Credit Spreads - For medium - and short - term notes, most credit spreads narrowed. Specifically, the spreads of AAA - rated and AA + - rated varieties narrowed; for AA - rated varieties, the 1 - year spread narrowed, while the spreads of other tenors widened; the spreads of AA - - rated varieties widened. For corporate bonds, all varieties' credit spreads narrowed. For urban investment bonds, most credit spreads narrowed, with the 3 - year AA - - rated variety's spread widening and the spreads of other varieties narrowing [19][25][32]. 3.2.3 Term Spreads and Rating Spreads - For medium - and short - term notes with AA + rating, the 3Y - 1Y term spread widened by 1.00 BP, the 5Y - 3Y spread narrowed by 2.56 BP, and the 7Y - 3Y spread narrowed by 1.74 BP. The 3Y - 1Y spread was at a historical low (15.3% quantile), the 5Y - 3Y spread was at a low - to - medium historical level (23.8% quantile), and the 7Y - 3Y spread was at a low - to - medium historical level (35.1% quantile). In terms of rating spreads, the (AA - )-(AAA) spread of 3 - year medium - and short - term notes widened by 4.00 BP, the (AA)-(AAA) spread widened by 2.00 BP, and the (AA + )-(AAA) spread widened by 1.00 BP. The (AA - )-(AAA) spread was at a historical low (0.9% quantile), the (AA)-(AAA) spread was at a historical low (11.1% quantile), and the (AA + )-(AAA) spread was at a low level (1.3% quantile) [42]. - For AA + corporate bonds, the 3Y - 1Y term spread narrowed by 2.29 BP, the 5Y - 3Y spread narrowed by 1.65 BP, and the 7Y - 3Y spread narrowed by 0.84 BP. The 3Y - 1Y spread was at a historical low (9.7% quantile), the 5Y - 3Y spread was at a historical low (11.9% quantile), and the 7Y - 3Y spread was at a low - to - medium historical level (30.2% quantile). In terms of rating spreads, the (AA - )-(AAA) spread of 3 - year corporate bonds narrowed by 3.00 BP, the (AA)-(AAA) spread narrowed by 2.00 BP, and the (AA + )-(AAA) spread remained unchanged. The (AA - )-(AAA) spread was at a historical low (0.8% quantile), the (AA)-(AAA) spread was at a historical low (7.5% quantile), and the (AA + )-(AAA) spread was at a historical low (4.7% quantile) [49]. - For AA + urban investment bonds, the 3Y - 1Y term spread narrowed by 1.20 BP, the 5Y - 3Y spread narrowed by 0.75 BP, and the 7Y - 3Y spread narrowed by 2.60 BP. The 3Y - 1Y spread was at a historical low (14.1% quantile), the 5Y - 3Y spread was at a low - to - medium historical level (22.1% quantile), and the 7Y - 3Y spread was at a low - to - medium historical level (36.5% quantile). In terms of rating spreads, the (AA - )-(AAA) spread of 3 - year urban investment bonds widened by 2.00 BP, the (AA)-(AAA) spread remained unchanged, and the (AA + )-(AAA) spread remained unchanged. The (AA - )-(AAA) spread was at a historical low (3.6% quantile), the (AA)-(AAA) spread was at a historical low (0.3% quantile), and the (AA + )-(AAA) spread was at a historical low (0.3% quantile) [52]. 3.3 Credit Rating Adjustment and Default Bond Statistics 3.3.1 Credit Rating Adjustment Statistics - From February 9th to February 15th, a total of 4 companies had their ratings (including outlooks) adjusted, with 3 downgraded and 1 upgraded [56]. 3.3.2 Default and Bond Extension Statistics - No credit bonds of any issuer defaulted during the period from February 9th to February 15th. One issuer, Xiamen Yuzhou Hongtu Real Estate Development Co., Ltd., extended the maturity of its credit bond "H19 Yuzhou 1", with a bond balance of 1.075 billion yuan at the time of extension [58]. 3.4 Investment Views - The views are consistent with the core viewpoints of the report, emphasizing the trends in the primary and secondary markets of credit bonds, and providing investment suggestions from both absolute and relative return perspectives, as well as views on the real - estate bond and urban investment bond markets [1][59][60].

1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - During the period from February 2nd to February 8th, most of the issuance guidance rates announced by the National Association of Financial Market Institutional Investors increased, with an overall change range of -1 BP to 4 BP. The issuance scale of credit bonds increased month - on - month, corporate bonds remained at zero issuance, the issuance amounts of corporate bonds, medium - term notes, and private placement notes increased, while the issuance amount of commercial paper decreased. The net financing amount of credit bonds increased month - on - month, the net financing amount of commercial paper decreased, the net financing amounts of other varieties increased, and the net financing amount of corporate bonds was negative [1][60]. - In the secondary market, the trading volume of credit bonds continued to decline month - on - month. The trading volume of private placement notes increased, while the trading volumes of other varieties decreased. Most of the yields of credit bonds declined, and most of the credit spreads widened. In terms of quantiles, most of the spreads were at historical lows, and the quantiles of 7 - year varieties were relatively high [1][60]. - From an absolute return perspective, the relatively strong allocation demand will drive the credit bond market to continue its recovery. Although fluctuations and adjustments are inevitable under the influence of both positive and negative factors, the conditions for a comprehensive bear market in credit bonds are still insufficient. In the long run, the yields are still on a downward path, and the idea of increasing allocation during adjustments is still feasible. From a relative return perspective, the compression space of credit spreads at all tenors is insufficient at present, and the cost - effectiveness of most varieties for allocation is not high. The coupon strategy should be cautious in the current allocation thinking, and the trading thinking should be moderately optimistic. The key to bond selection is to keep an eye on the changing trend of interest - rate bonds and pay attention to the coupon value of individual bonds [1][60]. - The central and local governments continue to actively optimize real - estate policies, which have played a positive role in promoting the stabilization of the real - estate market. Although the real - estate market is still in the transition period between old and new models, it is moving towards stabilization. The subsequent policy rhythm and intensity are worth looking forward to. For real - estate bonds, investors with high risk appetite can consider early layout, focusing on enterprises with outstanding new financing and sales recovery, and balancing risks and returns. The focus of allocation is still on central and state - owned enterprises with stable historical valuations and excellent performance, as well as high - quality private enterprise bonds with strong guarantees. They can also appropriately bet on the trading opportunities brought by the valuation repair of bonds of over - sold real - estate enterprises [2][63]. - For urban investment bonds, under the principle of coordinating development and security, the probability of default is very low, and they can still be a key allocation variety for credit bonds. Under the strict supervision of the clearance of local financing platforms, the reform and transformation of financing platforms are accelerating. Opportunities for the reform and transformation of "entity - type" financing platforms can be concerned. With a coupon - oriented approach, appropriate positive actions can be taken. The allocation strategy can give priority to short - to medium - term credit sinking, and the trading strategy can still choose to extend the duration of medium - to high - grade bonds [3][63]. 3. Summary According to Relevant Catalogs 3.1 Primary Market Situation 3.1.1 Issuance and Maturity Scale - From February 2nd to February 8th, a total of 440 credit bonds were issued, with an issuance amount of 356.856 billion yuan, a month - on - month increase of 15.70%. The net financing amount of credit bonds was 255.063 billion yuan, an increase of 95.222 billion yuan month - on - month [12]. - By variety, corporate bonds had zero issuance with a net financing amount of - 1.818 billion yuan; corporate bonds issued 190 with an issuance amount of 144.4 billion yuan, a month - on - month increase of 57.73%, and a net financing amount of 122.621 billion yuan; medium - term notes issued 126 with an issuance amount of 110.337 billion yuan, a month - on - month increase of 32.30%, and a net financing amount of 87.862 billion yuan; commercial paper issued 90 with an issuance amount of 81.706 billion yuan, a month - on - month decrease of 31.91%, and a net financing amount of 35.325 billion yuan; private placement notes issued 34 with an issuance amount of 20.413 billion yuan, a month - on - month increase of 51.26%, and a net financing amount of 11.073 billion yuan [13]. 3.1.2 Issuance Interest Rates - Most of the issuance guidance rates announced by the National Association of Financial Market Institutional Investors increased, with an overall change range of -1 BP to 4 BP. By tenor, the interest rate change range of 1 - year varieties was 0 BP to 3 BP, 3 - year varieties was -1 BP to 3 BP, 5 - year varieties was -1 BP to 4 BP, and 7 - year varieties was -1 BP to 4 BP. By rating, the interest rate change range of key AAA - rated and AAA - rated varieties was -1 BP to 1 BP, AA + - rated varieties was -1 BP to 2 BP, AA - rated varieties was 3 BP to 4 BP, and AA - - rated varieties was 3 BP to 4 BP [14]. 3.2 Secondary Market Situation 3.2.1 Market Trading Volume - From February 2nd to February 8th, the total trading volume of credit bonds was 871.756 billion yuan, a month - on - month decrease of 6.58%. The trading volumes of corporate bonds, corporate bonds, medium - term notes, commercial paper, and private placement notes were 15.904 billion yuan, 354.344 billion yuan, 312.069 billion yuan, 131.161 billion yuan, and 58.278 billion yuan respectively. The trading volume of credit bonds continued to decline month - on - month, the trading volume of private placement notes increased, while the trading volumes of other varieties decreased [17]. 3.2.2 Credit Spreads - For medium - and short - term notes, all varieties' credit spreads widened. For enterprise bonds, most varieties' credit spreads widened, with the spreads of 1 - year AA - rated and AA - - rated, and 3 - year AA - - rated varieties narrowing. For urban investment bonds, most varieties' credit spreads widened, with the spreads of 3 - year AA - - rated, 5 - year AA - rated and AA - - rated varieties narrowing [20][29][37]. 3.2.3 Term Spreads and Rating Spreads - For AA + medium - and short - term notes, the 3Y - 1Y term spread narrowed by 2.69 BP, the 5Y - 3Y spread widened by 1.32 BP, and the 7Y - 3Y spread widened by 1.60 BP. In terms of rating spreads, the 3 - year (AA - )-(AAA) spread remained unchanged, the (AA)-(AAA) spread narrowed by 1.00 BP, and the (AA + )-(AAA) spread narrowed by 1.00 BP [45]. - For AA + enterprise bonds, the 3Y - 1Y term spread widened by 0.84 BP, the 5Y - 3Y spread narrowed by 1.00 BP, and the 7Y - 3Y spread narrowed by 0.73 BP. In terms of rating spreads, the 3 - year (AA - )-(AAA) spread narrowed by 4.00 BP, the (AA)-(AAA) spread narrowed by 1.00 BP, and the (AA + )-(AAA) spread remained unchanged [49]. - For AA + urban investment bonds, the 3Y - 1Y term spread narrowed by 0.83 BP, the 5Y - 3Y spread widened by 0.70 BP, and the 7Y - 3Y spread narrowed by 1.34 BP. In terms of rating spreads, the 3 - year (AA - )-(AAA) spread narrowed by 3.21 BP, the (AA)-(AAA) spread narrowed by 2.01 BP, and the (AA + )-(AAA) spread narrowed by 1.01 BP [52]. 3.3 Credit Rating Adjustment and Default Bond Statistics 3.3.1 Credit Rating Adjustment Statistics - According to iFinD statistics, there were no company rating (including outlook) adjustments during the period from February 2nd to February 8th [57]. 3.3.2 Default and Extended - Maturity Bond Statistics - According to iFinD statistics, there were no defaults or extended - maturity of credit bonds issued by any issuer during the period from February 2nd to February 8th [58]. 3.4 Investment Views - The same as the core views mentioned above, including the analysis of credit bonds, real - estate bonds, and urban investment bonds [1][2][3].

1. Report Industry Investment Rating No information provided in the content. 2. Core Viewpoints of the Report - Interest rates are fluctuating narrowly, credit bond yields have slightly declined, and most credit spreads are still narrowing. [3][9] - Most urban investment bond spreads have decreased by 1 - 2BP. [14] - Real - estate bond spreads are still widening, while most other industrial bond spreads are converging. [25] - This week, Tier 2 and perpetual bonds (Two - and - Perpetual bonds, "Two - and - Perpetual" bonds refer to bank Tier 2 capital bonds and perpetual bonds) have shown weak performance. Except for the 5Y variety, most yields have increased. [4][33] - The excess spread of 3Y industrial perpetual bonds has narrowed, while the excess spread of urban investment bonds has shown differentiation. [4][36] 3. Summary According to Relevant Catalogs 3.1 Interest rates are fluctuating narrowly, credit bond yields have slightly declined, and most credit spreads are still narrowing - Interest - rate bond yields fluctuated narrowly. The yields of 1Y and 10Y China Development Bank bonds increased by 1BP, the yield of 3Y decreased by 1BP, and the yields of 5Y and 7Y remained flat. [3][9] - Credit bond yields generally declined slightly. The yields of 1Y AA + and above - grade credit bonds increased by 1BP, while the other grades remained flat; the yield of 3Y AAA remained flat, and the other grades decreased by 2 - 4BP; the yields of 5Y AA + and above - grade remained flat, and the other grades increased by 1BP; the yields of 7Y all grades decreased by 1 - 3BP; the yields of 10Y all grades increased by 1BP. [3][9] - Most credit spreads slightly converged. The credit spreads of 1Y AA + and above - grade remained flat, and the other grades narrowed by 1BP; the spread of 3Y AAA increased by 1BP, the spread of AA - decreased by 1BP, and the other grades compressed by 3BP; the spreads of 5Y AA + and above - grade remained flat, and the other grades widened by 1BP; the spreads of 7Y all grades narrowed by 1 - 3BP; the spreads of 10Y all grades narrowed by 1BP. [3][9] 3.2 Most urban investment bond spreads have decreased by 1 - 2BP - In terms of external ratings, the credit spreads of external - rated AAA platforms generally decreased by 1BP compared with last week, and the credit spreads of AA + and AA platforms generally decreased by 2BP. [14] - By administrative level, the credit spreads of provincial - level platforms generally decreased by 1BP compared with last week, and the credit spreads of prefecture - level and district - county - level platforms generally decreased by 2BP. [19] 3.3 Real - estate bond spreads are still widening, while most other industrial bond spreads are converging - Most industrial bond spreads converged. The spread of Vanke continued to compress significantly, but the spreads of central and state - owned enterprise real - estate bonds and other private - enterprise real - estate bonds still widened overall. [25] - The spreads of central and state - owned enterprise real - estate bonds widened by 1 - 3BP, the spread of mixed - ownership real - estate bonds converged by 188BP, and the spread of private - enterprise real - estate bonds increased by 15BP. [25] - The spread of Longfor decreased by 2BP, that of CIFI increased by 49BP, that of Vanke decreased by 1802BP, that of Midea Real Estate decreased by 1BP, that of Huafa increased by 13BP, and that of Poly increased by 3BP. [25] - The spread of AA - grade coal bonds increased by 1BP, and the other grades decreased by 1BP; the spread of AAA - grade steel bonds remained flat, and that of AA + decreased by 2BP; the spread of AAA - grade chemical bonds remained flat, and that of AA + decreased by 1BP. [25] 3.4 This week, Tier 2 and perpetual bonds have shown weak performance. Except for the 5Y variety, most yields have increased - The yields of 1Y all - grade Tier 2 capital bonds remained flat, and the spreads decreased by 0 - 1BP; the yields of all - grade perpetual bonds increased by 1 - 2BP, and the spreads increased by 0 - 1BP. [33] - The yields of 3Y all - grade Tier 2 capital bonds increased by 2 - 3BP, and the spreads widened by 3 - 4BP; the yields of all - grade perpetual bonds remained flat, and the spreads widened by 1BP. [33] - The yields of 5Y all - grade Tier 2 capital bonds decreased by 0 - 2BP, the yields of perpetual bonds remained flat, and the spreads changed by the same margin. [33] - The yields of 10Y all - grade Tier 2 capital bonds increased by 2 - 5BP, and the spreads widened by 1 - 3BP; the yields of perpetual bonds increased by 5BP, and the spreads increased by 3BP. [33] 3.5 The excess spread of 3Y industrial perpetual bonds has narrowed, while the excess spread of urban investment bonds has shown differentiation - The excess spread of industrial AAA - grade 3Y perpetual bonds converged by 0.76BP compared with last week to 13.91BP, at the 36.17% percentile since 2015. The excess spread of industrial 5Y perpetual bonds remained the same as last week at 13.21BP, at the 33.60% percentile since 2015. [36] - The excess spread of urban - investment AAA - grade 3Y perpetual bonds increased by 0.83BP to 4.86BP, at the 5.43% percentile. The excess spread of urban - investment 5Y perpetual bonds decreased by 3.72BP to 9.62BP, at the 11.15% percentile. [36] 3.6 Credit Spread Database Compilation Instructions - The overall market credit spreads, commercial bank Tier 2 and perpetual spreads, and urban - investment/industrial perpetual bond credit spreads are calculated based on ChinaBond Medium - and Short - Term Notes and ChinaBond Perpetual Bonds data. The historical percentiles are since the beginning of 2015. [38] - The credit spreads related to urban - investment and industrial bonds are compiled and statistically analyzed by the Huafu Securities Research Institute, and the historical percentiles are since the beginning of 2015. [38] - The credit spreads of industrial and urban - investment individual bonds = the ChinaBond valuation (exercise) of individual bonds - the yield to maturity of the same - term China Development Bank bonds (calculated by the linear interpolation method), and finally the arithmetic average method is used to calculate the credit spreads of the industry or regional urban - investment bonds. [40] - The excess spread of bank Tier 2 capital bonds/perpetual bonds = the credit spread of bank Tier 2 capital bonds/perpetual bonds - the credit spread of bank ordinary bonds of the same grade and term. The excess spread of industrial/urban - investment perpetual bonds = the credit spread of industrial/urban - investment perpetual bonds - the credit spread of medium - term notes of the same grade and term. [40] - Sample screening criteria and other information: Both industrial and urban - investment bonds select medium - term notes and public - offering corporate bond samples, and exclude guaranteed bonds and perpetual bonds. If the remaining term of an individual bond is less than 0.5 years or more than 5 years, it will be excluded from the statistical samples. Industrial and urban - investment bonds are all external entity ratings, while commercial banks use ChinaBond implicit debt ratings. [40]

1. Report Industry Investment Rating - Not provided in the given content 2. Core Viewpoints of the Report - This week, the yields and credit spreads of credit bonds showed a divergent trend. The credit bonds performed better than interest - rate bonds. The yields of medium - to long - term general credit bonds (3y and above) and 2 - 4y brokerage subordinated bonds declined, and the spreads narrowed. The rest of the varieties mostly saw rising yields, and the spreads, except for 1y varieties, mainly widened. The credit bond market continued to recover, and the spreads of 3 - 5y general credit bonds were further compressed due to the peak of amortized bond fund openings [1][7]. 3. Summaries According to the Table of Contents 3.1 Credit Bond Market Review - This week, the yields and credit spreads of credit bonds showed a divergent trend. The equity market was in a high - level shock. Driven by the continuation of the early - year allocation market and the innovation of central bank monetary policy tools, the yields continued to recover. Credit bonds outperformed interest - rate bonds. The yields of 3y and above medium - to long - term general credit bonds and 2 - 4y brokerage subordinated bonds declined, and the spreads narrowed. The 3 - 4y general credit bonds, 5y urban investment bonds, and 4y brokerage subordinated bonds performed relatively well. The yields of most other varieties rose, and the spreads, except for 1y varieties, mainly widened. Currently, it is still the peak of amortized bond fund openings, and the spreads of 3 - 5y general credit bonds are further compressed [1][7]. 3.2 Key Policies and Hot Events - On January 26, the deputy governor of the central bank stated that the supply of offshore RMB treasury bonds would be increased, which is conducive to meeting the needs of overseas investors for high - quality RMB asset allocation, activating market transactions, and enhancing RMB pricing ability [10]. - On January 27, Jilin Province successfully exited the list of key provincial - level debt regions. The relatively small debt volume in Jilin Province and its early exit from the list basically met market expectations. Attention can be paid to the regional development opportunities and the new financing space of bond - issuing entities after the exit [10]. - On January 28, Vanke announced a borrowing plan of up to 2.36 billion yuan from Shenzhen Metro Group. The borrowing plan backed by Shenzhen Metro will provide funds for partial bond repayment, and the mitigation of Vanke's debt risk will help stabilize market expectations in the short term [11][12]. - On January 28, it was reported that many real - estate enterprises are no longer required by regulatory authorities to report "three red lines" - related data monthly. Only some troubled real - estate enterprises need to regularly report core financial indicators. This reflects the regulatory shift towards enterprise - specific and precise classification [12]. - On January 29, it was mentioned at the press conference on Yunnan's financial operation in 2025 that the number of bond - issuing entities in Yunnan increased steadily in 2025. Bonds are becoming an important way for enterprises to expand financing channels, which is conducive to promoting the stable and high - quality development of the regional economy [12]. 3.3 Secondary Market - The yields and credit spreads of credit bonds showed a divergent trend. For medium - and short - term notes, except for the 1 - 2y, 5y, and 10y varieties whose yields rose by 0 - 1BP, the yields of the remaining varieties declined by 0 - 4BP. In terms of spreads, except for the 2y, 5y varieties and the 3y implicit - rating AAA variety whose spreads widened by 0 - 2BP, the spreads of the remaining varieties narrowed by 0 - 4BP [15]. - For urban investment bonds, except for the 2 - 3y implicit - rating AAA variety whose yield rose by 1BP, the yields of the remaining varieties declined by 0 - 6BP. In terms of spreads, except for the 2 - 3y implicit - rating AA+ and above varieties whose spreads widened by 0 - 2BP, the spreads of the remaining varieties narrowed by 0 - 6BP. Regionally, except for the Gansu urban investment bonds whose spreads widened by 2BP, the spreads of urban investment bonds in other provinces generally narrowed by 0 - 4BP, with the credit spreads of Heilongjiang narrowing by 4BP [15]. - For real - estate bonds, the yields of the 1y implicit - rating AAA and AA varieties, 2y varieties, and 5y varieties rose by 0 - 8BP, while the yields of the remaining varieties declined by 0 - 4BP. In terms of spreads, except for the 1y implicit - rating AA+ variety, 3y implicit - rating AA+ and below varieties, 4y varieties, and 5y implicit - rating AA+ variety whose spreads narrowed by 1 - 4BP, the spreads of the remaining varieties widened by 0 - 8BP [15]. - For cyclical bonds, for coal bonds, except for the 3 - 4y varieties whose yields declined by 0 - 4BP, the yields of the remaining varieties rose by 0 - 1BP. In terms of spreads, except for the 2y, 5y varieties and the 3y implicit - rating AAA variety whose spreads widened by 0 - 2BP, the credit spreads of the remaining varieties narrowed by 0 - 3BP. For steel bonds, the yields of the 1y implicit - rating AAA - variety, 2y varieties, and 5y implicit - rating AA variety rose by 0 - 1BP, while the yields of the remaining varieties declined by 0 - 5BP. In terms of spreads, except for the 2y varieties, 3y implicit - rating AAA - variety, and 5y implicit - rating AA variety whose spreads widened by 1 - 2BP, the spreads of the remaining varieties narrowed by 0 - 4BP [16]. - For financial bonds, for bank secondary bonds, except for the 5y varieties whose yields declined by 0 - 2BP, the yields of the remaining varieties rose by 0 - 3BP. In terms of spreads, for bank secondary capital bonds, except for the 1y, 5y varieties whose spreads narrowed by 0 - 2BP, the credit spreads of the remaining varieties widened by 1 - 4BP. The yields of bank perpetual bonds rose by 0 - 2BP, and the credit spreads widened by 0 - 1BP. The yields of 2 - 4y brokerage subordinated bonds declined by 1 - 4BP, while the yields of the remaining varieties rose by 1 - 2BP. In terms of spreads, the spreads of 2 - 4y varieties narrowed by 0 - 4BP, while the spreads of the remaining varieties widened by 1 - 2BP. The yields of 1y varieties and 4y implicit - rating AA+ variety of insurance subordinated bonds declined by 1BP, while the yields of the remaining varieties rose by 0 - 2BP. In terms of spreads, the spreads of 1y varieties and 4 - 5y implicit - rating AA+ variety narrowed by 1BP, while the spreads of the remaining varieties widened by 0 - 3BP [17]. 3.4 Primary Market - This week, the issuance scale of credit bonds was 307.4 billion yuan, a decrease of 21.4 billion yuan compared with the previous week, and the net financing amount was 155.7 billion yuan, an increase of 14.8 billion yuan compared with the previous week. Specifically, the issuance scale of urban investment bonds was 110.5 billion yuan, an increase of 12.9 billion yuan compared with the previous week, and the net financing amount was 48.3 billion yuan, an increase of 54.4 billion yuan compared with the previous week. In terms of varieties, the net financing amounts of short - term commercial paper and corporate bonds increased to 63 billion yuan and 62.1 billion yuan respectively compared with the previous week; the net financing amounts of medium - term notes and enterprise bonds decreased to 31.5 billion yuan and - 6.8 billion yuan respectively compared with the previous week. In terms of ratings, the issuance proportion of AAA varieties decreased to 69.66%, while the issuance proportions of AA+ and AA varieties increased to 23.60% and 6.74% respectively. In terms of terms, the issuance proportions of 1 - 3y, 3 - 5y, and 5y varieties decreased to 4.19%, 21.44%, and 25.70% respectively, while the issuance proportions of varieties within 1y and over 5y increased to 37.84% and 10.83% respectively. In terms of enterprise nature, the issuance proportions of central state - owned enterprises, local state - owned enterprises, and private enterprises increased to 34.20%, 61.21%, and 2.80% respectively, while the issuance proportion of other enterprises decreased to 1.79%. In terms of industries, the industries with large issuance scales this week were urban investment, public utilities, and comprehensive industries. In terms of cancelled issuances, a total of 2 credit bonds were cancelled or postponed for issuance this week, involving a scale of 700 million yuan, a decrease of 200 million yuan compared with the previous week [42]. 3.5 Trading Liquidity - This week, the trading activity in the inter - bank market and the exchange market for credit bonds decreased. The trading volume in the inter - bank market decreased from 601.6 billion yuan last week to 544.4 billion yuan, and the trading volume in the exchange market decreased from 391.1 billion yuan last week to 338.2 billion yuan [59]. 3.6 Rating Adjustments - This week, the ratings of 7 entities were upgraded. Among them, Shandong Shouguang Jinxin Investment Development Holding Group Co., Ltd., Nanjing Liuhe New City Construction (Group) Co., Ltd., and Shaoxing Shangyu Water Group Co., Ltd. are urban investment entities [61].

Group 1 - The report highlights a significant increase in the activity of the credit bond secondary market due to structural interest rate cuts and excess MLF operations, with a weekly transaction volume reaching 9,929 billion yuan, marking a high point since July 2025 [10][12]. - Vanke's 1.1 billion yuan bond ("21 Vanke 02") extension was approved with a high vote of 92.11%, providing a precedent for the handling of other extended bonds [12][15]. - The net financing amount for credit bonds (excluding asset-backed securities) was 185.1 billion yuan, an increase of 120.1 billion yuan compared to the previous week, with total issuance rising to 418.6 billion yuan [16][19]. Group 2 - In the primary market, the average issuance rates for AA city investment bonds, AA+ industrial bonds, and financial bonds increased significantly, while other credit bonds showed fluctuations within 10 basis points [20][21]. - The secondary market saw a 1,350 billion yuan increase in transaction volume, with the turnover rate for credit bonds showing slight fluctuations [22][26]. - Credit spreads for AA+ electronic and non-bank financial sectors expanded significantly, while the AA+ pharmaceutical and biological sector saw a compression of 6 basis points [34][49]. Group 3 - The report indicates that the yields on credit bonds have continued to decline, with various credit products experiencing a reduction in spreads, making coupon assets increasingly scarce [50]. - The report suggests that mid-to-short-term credit bonds will remain a preferred choice for bond funds seeking safety, particularly recommending a focus on 3-5 year bank capital bonds [6][50].