Report Industry Investment Rating No relevant content provided. Core Views - During the period from July 21st to July 27th, most of the issuance guidance rates announced by the National Association of Financial Market Institutional Investors (NAFMII) declined, with an overall change range of -5 BP to 2 BP. The issuance scale of credit bonds increased month - on - month, and the issuance amount of each variety increased. The net financing of credit bonds increased month - on - month. The yield of credit bonds all increased, and the credit spreads of medium - and short - term notes, enterprise bonds, and urban investment bonds mostly widened, but the 7 - year varieties still mainly narrowed. [1][58] - From an absolute return perspective, after adjustment, the yields of most varieties have retraced to the level of 2 months ago, but the conditions for a trend reversal of credit bonds are still insufficient. Supply shortage and relatively strong allocation demand will still support credit bonds, and the marginal loosening of the capital side will also help promote the repair market. The possibility of a decline in yields in the future is still high, and the idea of increasing allocation on adjustments is still feasible. [1][58] - From a relative return perspective, given that rating spreads are generally at historical lows, credit sinking is not effective at present. In the short term, high - grade varieties have greater potential for a catch - up rise. In the real estate bond market, as the market stabilizes, risk - preference funds can consider early layout. Urban investment bonds can still be a key allocation variety for credit bonds. [1][60][58] Summary by Directory 1. Primary Market Situation 1.1 Issuance and Maturity Scale - From July 21st to July 27th, a total of 371 credit bonds were issued, with an issuance amount of 352.639 billion yuan, a month - on - month increase of 25.49%. The net financing of credit bonds was 57.525 billion yuan, a month - on - month increase of 12.623 billion yuan. [12] - By variety, the issuance amount of enterprise bonds, corporate bonds, medium - term notes, short - term financing bills, and private placement notes all increased month - on - month. The net financing of medium - term notes and short - term financing bills increased, while that of enterprise bonds, corporate bonds, and private placement notes decreased. [12] 1.2 Issuance Interest Rates - Most of the issuance guidance rates announced by NAFMII declined, with an overall change range of -5 BP to 2 BP. By term, the 1 - year variety had an interest rate change range of -5 BP to 0 BP, the 3 - year variety -3 BP to 1 BP, the 5 - year variety -3 BP to 2 BP, and the 7 - year variety -1 BP to 1 BP. By grade, the interest rate change range of key AAA - grade and AAA - grade varieties was -5 BP to 0 BP, AA + - grade -1 BP to 2 BP, AA - grade 0 BP to 2 BP, and AA - - grade -3 BP to -1 BP. [14] 2. Secondary Market Situation 2.1 Market Trading Volume - From July 21st to July 27th, the total trading volume of credit bonds was 897.286 billion yuan, a month - on - month increase of 3.78%. The trading volume of each variety increased. [17] 2.2 Credit Spreads - For medium - and short - term notes, the credit spreads of each variety were differentiated. The 1 - year credit spread widened, the 3 - year AA - grade and above varieties' credit spreads widened, the 5 - year AAA - grade and AA + - grade credit spreads widened, and the rest of the 5 - year varieties' spreads narrowed, while the 7 - year credit spread narrowed. [20] - For enterprise bonds, most varieties' credit spreads widened. The 1 - year, 3 - year, and 5 - year credit spreads widened, and the 7 - year credit spread narrowed. [27] - For urban investment bonds, most varieties' credit spreads widened. The 1 - year and 3 - year credit spreads widened; among the 5 - year varieties, the AAA - grade and AA + - grade credit spreads widened, and the rest narrowed; among the 7 - year varieties, the AA - - grade spread widened, and the rest narrowed. [34] 2.3 Term Spreads and Rating Spreads - In terms of term spreads, the 3Y - 1Y spread of AA + medium - and short - term notes widened by 1.79 BP, the 5Y - 3Y spread narrowed by 0.83 BP, and the 7Y - 3Y spread narrowed by 6.64 BP. In terms of rating spreads, the 3 - year medium - and short - term notes' (AA - )-(AAA) spread narrowed by 3.00 BP, (AA)-(AAA) spread widened by 1.00 BP, and (AA + )-(AAA) spread widened by 1.00 BP. [43] - Similar analyses were also conducted for enterprise bonds and urban investment bonds in terms of term spreads and rating spreads, with different changes in spreads and their positions in historical quantiles. [48][52] 3. Credit Rating Adjustment and Default Bond Statistics 3.1 Credit Rating Adjustment Statistics - From July 21st to July 27th, a total of 3 companies' ratings (including outlooks) were adjusted, with 1 downgraded and 2 upgraded. [55] 3.2 Default and Extension Bond Statistics - There were no credit bond defaults during the period from July 21st to July 27th. The corporate bonds of Shenzhen Longfor Holdings Co., Ltd. and Aoyuan Group Co., Ltd. were extended, with a total bond balance of 10.892 billion yuan at the time of extension. [57] 4. Investment Views - The issuance guidance rates mostly declined, the issuance scale of credit bonds increased, and the net financing increased. The yield of credit bonds rose, and the credit spreads mostly widened. [1][58] - For real estate bonds, as the market stabilizes, risk - preference funds can consider early layout, focusing on central and state - owned enterprises with stable historical valuations and excellent performance, as well as high - quality private enterprise bonds with strong guarantees. [60] - Urban investment bonds can still be a key allocation variety for credit bonds, with low short - term credit risk, and the current strategy can be positive. [60]

Report Industry Investment Rating No relevant content provided. Core View of the Report In the bond market adjustment, credit bonds were relatively strong, with the yields of 1Y - term varieties declining against the trend. The yields of interest - rate bonds rose across the board this week due to the increased risk appetite brought by the rise in the equity market. Credit bond yields generally followed the interest - rate increase but showed relative strength. Credit spreads mostly declined, and the spreads of urban investment bonds and industrial bonds also showed various downward trends, while the performance of secondary perpetual bonds was weaker than that of ordinary credit bonds, and the excess spreads of industrial perpetual bonds remained flat while those of urban investment bonds increased slightly [2]. Summary According to the Directory 1. Credit bonds were relatively strong in the bond market adjustment, and the yields of 1Y - term varieties declined against the trend - Affected by the increased risk appetite from the equity market, the yields of interest - rate bonds rose across the board this week. The yields of 1Y, 3Y, 5Y, 7Y, and 10Y term China Development Bank bonds rose by 5BP, 4BP, 5BP, 3BP, and 3BP respectively. Credit bond yields generally followed the interest - rate increase, but 1Y - term and some 10Y - term varieties had declining yields. The yields of 1Y - term credit bonds of all ratings declined by 1 - 2BP [2][5]. - Credit spreads mostly declined, with high - grade 7Y - term varieties rising slightly. Rating spreads and term spreads mostly remained flat or declined [2][5]. 2. The spreads of urban investment bonds declined across the board, and medium - and low - grade varieties performed better - The credit spreads of external - rated AAA, AA +, and AA - grade urban investment platforms declined by 3BP, 4BP, and 5BP respectively. The spreads of most AAA - grade platforms declined by 2 - 4BP, with Inner Mongolia down 8BP; the spreads of most AA + - grade platforms declined by 3 - 5BP, with Heilongjiang, Inner Mongolia, Liaoning, and Tibet having relatively large declines; the spreads of most AA - grade platforms declined by 4 - 6BP, with Yunnan down 9BP and Guizhou down 12BP [2][9]. - By administrative level, the credit spreads of provincial, prefecture - level, and district - county - level platforms declined by 3BP, 4BP, and 4BP respectively [2][15]. 3. Most spreads of industrial bonds declined, and the spreads of AAA - grade coal bonds declined significantly - This week, the spreads of central and local state - owned enterprise real - estate bonds declined by 5 - 6BP, the spreads of mixed - ownership real - estate bonds declined by 1BP, and the spreads of private - enterprise real - estate bonds rose by 2BP. Longfor's spreads declined by 20BP, Midea Real Estate's by 5BP, Vanke's by 5BP, and Gemdale's by 4BP, while CIFI's rose by 151BP [2][13]. - The spreads of AAA, AA +, and AA - grade coal bonds declined by 13BP, 5BP, and 3BP respectively; the spreads of AAA and AA + - grade steel bonds declined by 5BP and 2BP respectively; the spreads of all - grade chemical bonds declined by 4 - 6BP [2][13]. 4. The performance of secondary perpetual bonds was weaker than that of ordinary credit bonds, and the spreads of 3Y - term varieties rose - Affected by the increase in certificate of deposit prices, the performance of secondary perpetual bonds was weaker than that of ordinary credit bonds this week, and the spreads of 3Y - term varieties rose. The yields of 1Y - term secondary perpetual bonds of all ratings rose by 3 - 4BP, and the spreads compressed by 1 - 2BP. The yields of 3Y - term AAA - grade secondary capital bonds rose by 6BP, and those of other ratings rose by 4BP, with spreads rising by 0 - 2BP; the yields of all - grade perpetual bonds rose by 5BP, and the spreads rose by 1BP [2][25][27]. 5. The excess spreads of industrial perpetual bonds remained flat, and the excess spreads of urban investment bonds increased slightly - This week, the excess spreads of 3Y - term AAA industrial perpetual bonds remained flat at 3.82BP, at the 0.95% quantile since 2015; the 5Y - term excess spreads remained flat at 8.51BP, at the 6.38% quantile. The excess spreads of 3Y - term AAA urban investment perpetual bonds rose by 0.64BP to 4.40BP, at the 0.59% quantile; the 5Y - term excess spreads rose by 0.21BP to 10.12BP, at the 10.27% quantile [2][29]. 6. Credit spread database compilation instructions - Market - wide credit spreads, commercial bank secondary 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, with historical quantiles since the beginning of 2015. Urban investment and industrial bond - related credit spreads are compiled and statistically analyzed by Cinda Securities R & D Center, with historical quantiles since the beginning of 2015 [35]. - Industrial and urban investment individual - bond credit spreads = individual - bond ChinaBond valuation (exercise) - same - term China Development Bank bond yield to maturity (calculated by linear interpolation method), and then the credit spreads of industries or regional urban investments are obtained by the arithmetic mean method [35]. - Excess spreads of bank secondary capital bonds/perpetual bonds = credit spreads of bank secondary capital bonds/perpetual bonds - credit spreads of bank ordinary bonds of the same rating and term; excess spreads of industrial/urban investment perpetual bonds = credit spreads of industrial/urban investment perpetual bonds - credit spreads of medium - term notes of the same rating and term [35].

Report Industry Investment Rating - Not provided in the given content Core Viewpoints of the Report - The Shanghai Stock Exchange piloted the continuous issuance business of corporate bonds, which enriches the issuance methods of corporate bonds, enhances financing flexibility, and promotes the development of the bond market [3][9]. - In April, the growth rates of major economic indicators slowed down, but the economic recovery still showed some resilience. The central bank net - injected funds, and the capital prices showed mixed trends. The issuance of credit bonds in the primary market heated up, while the trading activity in the secondary market declined, and the yields of most bonds decreased [4][5][6][31]. Summary by Relevant Catalogs Market Hotspot - On May 22, 2025, the Shanghai Stock Exchange issued a notice to pilot the continuous issuance of corporate bonds and the expansion of asset - backed securities. The continuous issuance of corporate bonds allows incremental issuance on existing bonds, which has advantages such as improving issuance efficiency and enhancing bond liquidity. Credit rating agencies need to optimize rating methods [3][9][10]. Macroeconomic Data - In April, the growth rates of production, consumption, and investment data slowed down slightly. The year - on - year growth rate of industrial added value was 6.1%, 1.6 percentage points lower than the previous month. The year - on - year growth rate of social retail sales was 5.1%, 0.8 percentage points lower than the previous month. The cumulative year - on - year growth rate of fixed - asset investment from January to April was 4.0%, 0.2 percentage points lower than in the first quarter. However, equipment purchase investment played a leading role [4][12]. Money Market - Last week, the central bank net - injected 960 billion yuan through open - market operations. The overnight and 7 - day pledged repurchase rates decreased by 7bp and 5bp respectively, while the other - term pledged repurchase rates increased by 1 - 5bp. The 3 - month Shibor remained unchanged from the previous week, and the 1 - year Shibor increased by 1bp, with the spread widening to 4bp [5][14]. Primary Market of Credit Bonds - Last week, the issuance of credit bonds heated up, with a scale of 241.311 billion yuan, an increase of 108.134 billion yuan from the previous period. The issuance scales of various bond types and industries increased. The average issuance interest rates of bonds of various terms and grades generally increased, with an increase range of 2bp - 44bp [6][17][18]. Secondary Market of Credit Bonds - Last week, the trading volume of cash bonds in the secondary market was 8.408721 trillion yuan, and the average daily trading volume decreased by 31.2034 billion yuan from the previous period. The yields of interest - rate bonds fluctuated slightly, and the yield of 10 - year treasury bonds increased by 4bp to 1.72%. The yields of credit bonds decreased comprehensively, with a change range of 1 - 7bp. The credit spreads narrowed comprehensively, with a range of 1bp - 9bp, and the rating spreads showed mixed trends [7][31][34]. Regulatory and Market Innovation Dynamics - Multiple regulatory policies were introduced in May 2025, including promoting the construction of a scientific and technological finance system, supporting the issuance of science and technology innovation bonds, and providing policy support such as fee reduction and exemption to encourage innovation in the bond market and support scientific and technological innovation [44][46][47]. Bond Market Credit Risk Events - There were multiple credit risk events in the bond market, including bond principal and interest extensions, defaults, etc., involving companies such as Wuhan Contemporary Technology Investment Co., Ltd. and Guangzhou R & F Properties Co., Ltd. [43].

Group 1: Report Industry Investment Rating - Not provided in the given content Group 2: Core Viewpoints of the Report - During the period from June 30 to July 6, the issuance guidance rates announced by the National Association of Financial Market Institutional Investors mostly declined, with an overall change range of -14 BP to 2 BP. The issuance scale of credit bonds decreased month - on - month, while the net financing amount increased. In the secondary market, the trading volume of credit bonds decreased month - on - month, and the yields of all credit bonds declined. The credit spreads of medium - and short - term notes, enterprise bonds, and urban investment bonds mostly narrowed, and each rating was generally at a historical low [1]. - On July 2, the first batch of 10 Sci - tech Bond ETFs were approved and will be issued on July 7, with a maximum initial fundraising scale of 3 billion yuan each. Their investment opportunities are worth attention [2]. - With the optimization of real - estate policies, the real - estate market is moving towards stabilization. For real - estate bonds, investors with high risk tolerance can consider early layout, focusing on central and state - owned enterprises and high - quality private enterprise bonds with strong guarantees [2]. - In the context of stable growth and prevention of systemic risks, the probability of urban investment bond defaults is very low, and urban investment bonds can still be a key allocation variety [3]. Group 3: Summary According to the Directory 3.1 Primary Market Situation 3.1.1 Issuance and Maturity Scale - From June 30 to July 6, a total of 221 credit bonds were issued, with an issuance amount of 213.317 billion yuan, a month - on - month decrease of 30.80%. The net financing amount was 94.097 billion yuan, a month - on - month increase of 105.798 billion yuan. Different bond types showed different trends in issuance and net financing [12]. 3.1.2 Issuance Interest Rates - The issuance guidance rates announced by the National Association of Financial Market Institutional Investors mostly declined, with different change ranges for different terms and ratings, from -14 BP to 2 BP [13]. 3.2 Secondary Market Situation 3.2.1 Market Trading Volume - From June 30 to July 6, the total trading volume of credit bonds was 939.898 billion yuan, a month - on - month decrease of 15.26%. The trading volume of short - term financing bills increased, while that of other varieties decreased [19]. 3.2.2 Credit Spreads - For medium - and short - term notes, most credit spreads narrowed. For enterprise bonds and urban investment bonds, similar trends were observed, with different changes in spreads for different terms and ratings [23][32][35]. 3.2.3 Term Spreads and Rating Spreads - For AA+ medium - and short - term notes, enterprise bonds, and urban investment bonds, term spreads and rating spreads showed different changes, and most were at historical lows [44][50][53]. 3.3 Credit Rating Adjustments and Default Bond Statistics 3.3.1 Credit Rating Adjustment Statistics - From June 30 to July 6, a total of 5 companies had their ratings (including outlooks) adjusted, with 2 downgraded and 3 upgraded [56]. 3.3.2 Default and Extension Bond Statistics - There were no credit bond defaults during this period. The credit bonds of Guangzhou Fangyuan Real Estate Development Co., Ltd. were extended, with a remaining balance of 918 million yuan [58]. 3.4 Investment Views - In the long run, the yield of credit bonds is still in a downward channel. When allocating, investors can wait for opportunities and increase allocation during adjustments, focusing on the coupon value of individual bonds. Currently, credit sinking is not effective, and high - grade 5 - year bonds can be considered first. Attention should also be paid to the impact of policies and market supply - demand on the bond market [1][59]. - The investment opportunities of Sci - tech Bond ETFs are worthy of attention. For real - estate bonds, high - risk - tolerance investors can consider early layout. Urban investment bonds can be a key allocation variety [2][3][60].

Report Industry Investment Rating No relevant content provided. Core Viewpoints - Long - term credit bonds adjusted with interest rates, while short - term credit bond spreads significantly compressed. This week, affected by the easing of Sino - US trade tariff policies, market interest rates fluctuated upward. Credit bond trends were differentiated, with long - end yields adjusting with interest rates and medium - short - end yields falling. Credit spreads of various types of credit bonds compressed, with short - term varieties having a larger decline [2][5]. - Urban investment bond spreads declined. Spreads of urban investment bonds generally decreased this week, with different levels of decline for platforms of different external subject ratings and in different regions and administrative levels [2][9]. - Industrial bond spreads generally declined, and the spreads of mixed - ownership real estate bonds significantly compressed. Central and local state - owned real estate bond spreads decreased, mixed - ownership real estate bond spreads dropped significantly, and private real - estate bond spreads slightly increased. Spreads of coal, chemical, and steel bonds also declined [2][19]. - Secondary and perpetual bond spreads were generally stable, and their overall performance was weaker than that of ordinary credit bonds. Most yields of secondary and perpetual bonds followed the interest rate upward, with only some weakly - qualified varieties slightly falling [2][29]. - Industrial perpetual excess spreads were basically flat, and urban investment perpetual excess spreads slightly declined [2][32]. Summary by Directory 1. Long - term credit bonds adjusted with interest rates, short - term credit bond spreads significantly compressed - Market interest rates fluctuated upward. 1Y, 3Y, 5Y, 7Y, and 10Y maturity China Development Bank bond yields increased by 3BP, 3BP, 6BP, 6BP, and 5BP respectively [2][5]. - Credit bond trends were differentiated. 1Y maturity credit bond yields of all grades decreased by 3 - 6BP, 3Y maturity yields decreased by 0 - 2BP, 5Y maturity yields increased by 1 - 2BP, and 7Y and 10Y maturity yields increased by 2 - 3BP [2][5]. - Credit spreads compressed. 1Y maturity credit bond spreads of all grades decreased by 6 - 9BP, 3Y, 5Y, and 7Y maturity spreads decreased by 3 - 5BP, and 10Y maturity spreads decreased by 2BP. Rating spreads and term spreads were differentiated [2][5]. 2. Urban investment bond spreads declined - Spreads of different rating platforms declined. AAA - rated platform credit spreads decreased by 7BP, while AA+ and AA - rated platform spreads decreased by 8BP [2][9]. - Regional spreads showed different declines. In different provinces, spreads of AAA - rated platforms mostly decreased by 6 - 8BP, AA+ - rated platforms mostly decreased by 7 - 9BP, and AA - rated platforms mostly decreased by 6 - 8BP. Different regions had different decline amplitudes [9][11][12]. - Spreads of different administrative levels declined. Provincial, municipal, and district - county - level platform credit spreads decreased by 7BP, 7BP, and 8BP respectively [2][15]. 3. Industrial bond spreads generally declined, mixed - ownership real estate bond spreads significantly compressed - Real estate bond spreads varied. Central and local state - owned real estate bond spreads decreased by 6 - 7BP, mixed - ownership real estate bond spreads decreased by 104BP, and private real - estate bond spreads increased by 4BP. Spreads of some real - estate companies like Longfor and Vanke also changed [2][19]. - Spreads of other industrial bonds declined. Spreads of coal, chemical, and steel bonds decreased, with coal and chemical bonds decreasing by 7BP and steel bonds decreasing by 8BP [2][19]. 4. Secondary and perpetual bond spreads were generally stable, overall performance was weaker than that of ordinary credit bonds - Yields and spreads of different terms and grades changed. 1Y maturity secondary capital bonds and AA+ and above perpetual bonds' yields increased by 2 - 3BP, with spreads decreasing by 0 - 1BP; AA - rated perpetual bond yields decreased by 1BP, with spreads decreasing by 4BP. Similar changes occurred in 3Y and 5Y maturity bonds [2][29]. 5. Industrial perpetual excess spreads were basically flat, urban investment perpetual excess spreads slightly declined - Industrial perpetual excess spreads were stable. The AAA3Y excess spread was 11.71BP, at the 20.54% quantile since 2015, and the AAA5Y excess spread was 9.22BP, at the 9.54% quantile [2][32]. - Urban investment perpetual excess spreads declined slightly. The AAA3Y urban investment perpetual bond excess spread decreased by 0.03BP to 7.25BP, at the 3.45% quantile; the AAA5Y excess spread decreased by 0.89BP to 10.56BP, at the 9.68% quantile [2][32]. 6. Credit Spread Database Compilation Instructions - Market credit spreads and related excess spreads were calculated based on ChinaBond medium - short - term notes and perpetual bonds data, with historical quantiles starting from the beginning of 2015. Credit spreads of urban investment and industrial bonds were compiled and statistically analyzed by the R & D center of Cinda Securities, also with historical quantiles starting from 2015 [38]. - Calculation methods were provided for industrial and urban investment individual bond credit spreads, bank secondary capital bond/perpetual bond excess spreads, and industrial/urban investment perpetual bond excess spreads [38][39]. - Sample selection criteria were given, including selecting medium - term notes and public corporate bonds, excluding guaranteed and perpetual bonds, and removing bonds with remaining maturities below 0.5 years or above 5 years. Different rating types were used for different bond types [40].