1. Report Industry Investment Rating - No relevant content provided 2. Core Viewpoints - In March 2025, the net financing scale of Chinese - issued US - dollar bonds in the primary market was positive, with an increase in issuance volume month - on - month. The main issuers were comprehensive banks, integrated oil companies, and sovereign bonds. In the secondary market, the long - and short - term interest rates of US Treasury bonds fluctuated, and the pressure on US Treasury bonds increased. The overall yield of the Xingzheng Chinese - issued US - dollar bond tracking index declined, and the spread widened [4][37][39] 3. Summary by Directory 3.1 Primary Market of Chinese - issued US - dollar Bonds - **Overall Situation**: In March, the issuance volume increased month - on - month, and the net financing scale was positive. The main issuers were comprehensive banks, integrated oil companies, and sovereign bonds. The issuance volume in March was 207, compared with 37.79 in February 2025 and 76.85 in 2024. The net financing amount was 151.79 [4] - **Key Industry Tracking** - **Real Estate Industry**: In March, there were 7 issuances with a total amount of 61.14 [22] - **Banking and Urban Investment Financing Platforms**: In March, 10 issuances totaled 20.67, and 27 issuances totaled 46.01 [31] 3.2 Secondary Market of Chinese - issued US - dollar Bonds - **Market Overview**: In March, the long - and short - term interest rates of US Treasury bonds fluctuated, and the pressure on US Treasury bonds increased. The 2 - year US Treasury bond yield decreased from 4.08% in February to 4.03% in March, a decrease of 5bp; the 10 - year US Treasury bond yield decreased from 4.24% in February to 4.23% in March [37] - **Xingzheng Chinese - issued US - dollar Bond Tracking Index**: The overall yield declined, and the spread widened. The yield changes were 0.05, 0.41, 0.91, and the spread changes were 30.74bp, 19.19bp, 16.47bp [39][41] - **Tracking of Active Bonds and Active Issuers in the Month** - **Active Issuers in March**: There were several active Chinese - issued US - dollar bond issuers in March, but there may be deviations in statistical data [44] - **Valuation Changes of Active Bonds in March**: There were significant valuation changes in some bonds in March. For example, the valuation yield of BN3850672 changed by 815.13bp, and that of BQ3057743 changed by 288.40bp [49]

Core Viewpoint - The People's Bank of China (PBOC) emphasizes the resilience of China's foreign exchange market and plans to implement more proactive macroeconomic policies to support employment and growth amid recent fluctuations in the US Treasury market [1][2]. Foreign Exchange Market - The impact of fluctuations in a single market or asset on China's foreign exchange reserves is generally limited, as the reserves are diversified and managed with safety, liquidity, and value preservation in mind [1]. - China's foreign exchange reserves remain stable at over $3.2 trillion, supported by a balanced international payment situation and a resilient foreign exchange market [2]. Monetary Policy - The PBOC plans to maintain a moderately loose monetary policy, with potential adjustments to reserve requirement ratios and interest rates based on domestic and international economic conditions [3]. - The central bank aims to enhance financial support for key sectors such as technology innovation, green finance, and inclusive finance, while ensuring reasonable growth in money and credit [3]. Employment and Economic Growth - The PBOC will intensify support for employment through policies like entrepreneurship guarantee loans, particularly targeting groups such as returning migrant workers and recent graduates [4]. - Financial institutions will be guided to continue lending to small and medium-sized enterprises (SMEs) that are heavily reliant on foreign trade and facing temporary difficulties [4]. Support for Private Enterprises - The PBOC is committed to enhancing financial services for private enterprises, ensuring a favorable monetary environment through adequate liquidity and targeted financial support measures [5]. - The central bank will broaden financing channels for private enterprises, including expanding bond financing and improving access to foreign capital [6]. Data Insights - As of March 2025, the loan balance for privately held enterprises is approximately 45 trillion yuan, with an increase of 2.4 trillion yuan in the first three months of the year [6]. - The weighted average interest rate for new loans to privately held enterprises in March was about 3.41%, a decrease of 58 basis points compared to the same period last year [6].

Core Viewpoint - The People's Bank of China is monitoring recent fluctuations in the US Treasury market and emphasizes that the country's foreign exchange reserves are managed with a focus on safety, liquidity, and value preservation, achieving effective diversification in investment portfolios [1] Group 1 - The recent volatility in the US Treasury market has been noted by the People's Bank of China [1] - China's foreign exchange reserves aim for safety, liquidity, and value appreciation [1] - The investment strategy follows market-oriented and professional principles, allowing for effective diversification [1] Group 2 - The impact of fluctuations in a single market or asset on China's foreign exchange reserves is generally limited [1]

Group 1: U.S. Treasury Market - Recent volatility in the U.S. Treasury market reflects a declining trust in dollar assets, potentially increasing pricing pressure on global sovereign debt markets and driving funds towards alternatives like gold and Chinese or European bonds [1] - In the medium to long term, China's A-shares and RMB assets may become more attractive due to policy support and domestic economic resilience [1] Group 2: Lithium Battery Anode Materials - CATL's recent product launches, including the second-generation Shenxing and sodium-ion batteries, are expected to open new opportunities for anode materials, with the second-generation Shenxing battery achieving a peak charging rate of 12C [2] - The introduction of self-generating anode technology in the Xiaoyao dual-core battery may have limited impact on traditional graphite anode materials, but the overall anode materials and related supply chain are likely to benefit significantly [2] Group 3: Real Estate Policies - Real estate is being integrated into consumption-boosting policies, highlighting its importance in driving consumption through housing-related spending and the wealth effect on consumer confidence [3] - A nationwide policy is anticipated to be introduced in April-May, favoring developers with strong product offerings and those holding quality operational assets [3] Group 4: Photovoltaic Supply Chain - The U.S. "reciprocal tariffs" are impacting the photovoltaic supply chain, but Chinese manufacturers have adapted by utilizing Southeast Asia for indirect exports to the U.S. [5] - Despite increased production costs due to tariffs, Chinese photovoltaic firms may still maintain a relative advantage over U.S. manufacturers, with a focus on diversifying markets and enhancing technology and branding [5] Group 5: Fixed Income Market - Recent reductions in bank deposit rates are aimed at managing interest margin pressures and may lead to a broader decline in interest rates, including government bond yields [6] - The phenomenon of "deposit migration" could intensify as banks adjust their strategies [6] Group 6: Fiscal Data - March fiscal revenue showed a marginal improvement, with tax revenue still in negative growth, while fiscal spending has accelerated, particularly in social security and employment [8] - The issuance of special bonds is expected to accelerate in the second quarter as local self-assessment mechanisms mature [9] Group 7: Solid-State Battery Materials - The upcoming Shanghai Auto Show is expected to catalyze the solid-state battery industry, with policy support likely to strengthen [10] - High-end applications for solid-state batteries are projected to grow significantly by 2025, driving the materials sector into a high-growth phase [10] Group 8: Coal Power Upgrades - The increasing influence of renewable energy is raising demands on coal power, prompting upgrades that support the construction of a new power system [11] - The new coal power upgrade action plan will set higher standards for existing and new units, encouraging regional energy departments to develop tailored action plans [11]

Core Viewpoint - The recent volatility in the US Treasury market reflects a declining trust in dollar-denominated assets, which may lead to increased pricing pressure in the global sovereign debt market and a shift of funds towards alternative assets like gold and Chinese or European bonds [1][4]. Group 1: US Treasury Market Volatility - In April, the US Treasury market experienced significant volatility, with rising yields linked to investor sell-offs and high leverage strategies exacerbating market fluctuations [2][3]. - The fundamental cause of the volatility is the accumulation of long-term risks in the US, including substantial fiscal expansion post-pandemic and high policy interest rates, which have increased the burden on US finances [3][4]. - The decline in the proportion of stable funds in the Treasury market has amplified market volatility risks, and the recognition of US Treasuries as a safe-haven asset has decreased, contributing to selling pressure [3][4]. Group 2: Global Impact of US Treasury Volatility - The fluctuations in US Treasury yields will increase pricing pressure in the global sovereign debt market and accelerate the diversification of reserve assets among countries [4][5]. - The uncertainty surrounding US trade policies, particularly under the Trump administration, is damaging the asset value of US Treasuries, prompting long-term conservative funds to reduce their holdings in US dollar assets [5][6]. - The volatility in US Treasuries is expected to lead to a challenging performance for global stock markets this year, with potential benefits for China's economic policies and A-share market as the situation clarifies [6][7]. Group 3: Implications for China - The recent rise in US Treasury yields may have a short-term negative impact on the Chinese stock market, but there could be a medium to long-term turnaround for Chinese equities [7]. - The short-term effects of US Treasury yield fluctuations on China's bond market are limited, with expectations of stable performance in the medium to long term [7]. - The weakening of US dollar credit and reduced foreign holdings of US Treasuries may support the renminbi's exchange rate stability and internationalization in the long run [7].