1. Report Industry Investment Rating - No information provided in the report 2. Core Viewpoints of the Report - In January 2026, the bond market showed an overall recovery. The ChinaBond New Composite Index, which represents the domestic bond market, rose 0.39% since the beginning of the year. Long - term interest - rate bonds had better returns, and the ChinaBond Preferred Investment - Grade Credit Bond Index had a return of 0.37% since the start of the year, slightly better than other representative broad - based credit bond indices. The ChinaBond AAA Science and Technology Innovation Bond Index had a slightly higher return than other representative theme indices [6]. - The yields of government bonds at most key tenors decreased slightly, and long - term interest - rate bond indices performed well. The yields of credit bonds of various grades were slightly differentiated, and the overall wealth index return of the credit bond market was positive. The spreads between various industries and government bonds remained basically unchanged, and the wealth index returns of all industries increased [7]. 3. Summary according to the Directory 3.1 2026 Bond Market Review - The ChinaBond New Composite Index rose 0.39% since the beginning of 2026. Long - term interest - rate bonds had good returns. The ChinaBond Preferred Investment - Grade Credit Bond Index had a 0.37% return, and the ChinaBond AAA Science and Technology Innovation Bond Index had a relatively high return [6]. - The yields of government bonds at most key tenors decreased slightly in January, and long - term interest - rate bond indices performed well. Credit bond yields were slightly differentiated, with positive overall wealth index returns. Industry - government bond spreads were stable, and industry wealth index returns increased [7]. - The trading volume of the domestic RMB bond market decreased slightly compared with the previous month. The monthly standard deviation of the daily return of the ChinaBond New Composite Wealth Index was about 0.047%, a 0.010 - percentage - point decrease from the previous month. The market trading volume was about 26.06 trillion yuan [13]. 3.2 This Month's Interest - Rate Bond Market Review - At the end of the month, government bond yields decreased slightly at key tenors such as 1, 5, 7, and 10 years, and slightly increased at other key tenors (including 30 years). The term spread of government bonds and the spread between China Development Bank bonds and government bonds remained basically unchanged [22]. - The ChinaBond Aggregate Index's wealth index rose 0.36%. Medium - and long - term government bond indices had slightly better returns. The ChinaBond Preferred Investment Government Bond Index performed slightly better than the ChinaBond Preferred Investment Policy - Financial Bond Index [28]. - Long - term interest - rate bond indices performed well this month. The top 5 interest - rate bond indices in terms of monthly return included the ChinaBond 10 - Year Government Bond Index with a return of 0.66% and a duration of 7.63 years [32][33]. 3.3 This Month's Credit Bond Market Review - Credit bond yields fluctuated slightly, and the overall wealth index return of the credit bond market was positive. The ChinaBond Credit Bond Aggregate Index's wealth index rose 0.30% [34]. - The spreads of high - grade credit bonds were slightly differentiated. Taking 3 - year credit bonds as an example, the spread of AAA - rated credit bonds remained basically unchanged, while the spreads of other grades narrowed slightly. The spreads between the yield curves of ChinaBond enterprise bonds of four grades (AAA, AAA -, AA +, AA) and government bonds were at the 43%, 35%, 32%, and 29% percentiles of the past 3 years respectively [37]. - The spreads between various industries and government bonds remained basically unchanged, and the wealth index returns of all industries increased. The ChinaBond Real Estate Industry Credit Bond Index had a return of about 0.44%, performing the best [40]. - The return of credit bond indices was positive, and the commercial bank secondary capital bond index performed well. The top 5 credit bond indices in terms of monthly return included the ChinaBond State - owned Large - scale Commercial Banks and Joint - stock Commercial Bank Secondary Capital Bond Index with a return of 0.50% and a duration of 3.51 years [45][46]. - There were no new default issuers this month [47]. 3.4 Appendix: Correlation of Returns of Major Bond Types - The report presents the correlation coefficients of the daily wealth index returns of various bond indices in the past 3 months as of January 30, 2026, including the ChinaBond Preferred Investment Government Bond Index, ChinaBond Preferred Investment Policy - Financial Bond Index, etc. [48] 3.5 Awards - The institution has won multiple awards, such as being the "Best Fixed - Income Index Provider" for six consecutive years (2020 - 2025) by The Asset, the "Best ETF Index Provider" in 2025 by The Asset, etc. [51]

Group 1: Manufacturing Sector - In November, the manufacturing Purchasing Managers' Index (PMI) rose to 49.2%, an increase of 0.2 percentage points from the previous month, indicating an improvement in business sentiment among manufacturing enterprises [1] - The production and business activity expectation index reached 53.1%, up by 0.3 percentage points from last month, reflecting increased confidence in market development [1] - The steel industry PMI fell to 48%, a decrease of 1.2 percentage points from the previous month, indicating a slowdown in industry operations [1] Group 2: Green Bonds - China has become the world's largest green bond market, with green bond issuance totaling $101.8 billion, a year-on-year increase of 92%, accounting for 20% of the global total [1] Group 3: Oil Market - Major oil-producing countries have decided to maintain their production plans, suspending any increase in output for the first three months of 2026, with a flexible adjustment based on market conditions [3] Group 4: Corporate Announcements - Arctech plans to establish a joint venture with its controlling shareholder to adjust its business in the U.S. market [4] - Jiangxi Copper is planning to acquire shares of the overseas-listed company SolGold Plc [4] - Huayang Co. has launched a project to produce 200 tons of high-performance carbon fiber annually [4] - Enjie Co. is planning to purchase 100% equity of Zhongke Hualian, leading to a stock suspension [4] - ST Tianrui's controlling shareholder is planning matters related to a change in company control, resulting in stock suspension [4] - ST Dongyi still faces the risk of being declared bankrupt due to failed restructuring [4]

Core Insights - The article emphasizes the significant role of the green bond market in facilitating China's green and low-carbon transition, marking the fifth anniversary of the "dual carbon" goals in 2025 [1][5] - The focus of the green bond market is shifting from quantity to quality, with improvements in supporting policies, cost advantages, information disclosure, and environmental benefits [2][5] Development of Green Bond Market - Since its inception in 2016, China's green bond market has rapidly grown to become the largest globally, providing robust financial support for the "dual carbon" goals [1][5] - The release of the Catalogue of Green Finance-Supported Projects (2025 Edition) has unified definitions for various green financial products, enhancing the quality of the market [2][5] Key Metrics - In 2024, the cost advantage of green bonds over conventional bonds increased to 11.1 basis points [2][5] - By mid-2025, proceeds from publicly issued green-oriented bonds are expected to support the reduction of over 600 million tons of carbon dioxide equivalent [2][5] Future Directions - To promote high-quality development in the green bond market, four areas of focus are suggested: cultivating a diverse market ecosystem, enhancing information disclosure, improving policy incentives, and deepening international cooperation [3][4][5] - Encouraging the issuance of green local government bonds and attracting institutional investors to green bonds are key strategies for market diversification [3][5] Information Disclosure and Policy Improvements - Issuers are encouraged to disclose environmental benefit information according to the financial industry standard, improving standardization in information disclosure [3][4] - The establishment of carbon accounting methods for green bonds and the wider application of environmental benefit information in financial evaluations are recommended [3][4] International Cooperation - Promoting mutual recognition of standards and expanding the global coverage of the Common Ground Taxonomy are essential for enhancing the international influence of China's green bonds [4][5]