1. Report Industry Investment Rating - No information provided regarding the industry investment rating. 2. Core Viewpoints of the Report - Family - support - oriented fiscal policies are continuously introduced, optimizing the fiscal expenditure structure towards a "people - investment" and "people's livelihood - focused" direction, with potential long - term economic and social benefits [5][8][9]. - The Ministry of Finance has once again reported six typical cases of implicit debt accountability, highlighting the need to strengthen the investigation and accountability of implicit debt and improve the investment and financing mechanisms in key policy - supported areas [10][11][13]. - The process of key provinces "exiting the list" continues, with Inner Mongolia being the first to officially announce its exit, and efforts are needed to consolidate the results and prevent new implicit debts [14]. 3. Summary by Relevant Catalogs 3.1. Important News Reviews 3.1.1. Family - support - oriented Fiscal Policies - Since July, family - support - oriented policies such as the implementation plan for child - rearing subsidies and the gradual implementation of free preschool education have been successively introduced. These policies are expected to increase the proportion of people's livelihood expenditure in fiscal expenditure, optimize the central - local expenditure structure, and stimulate consumption and human capital development [5][8][9]. 3.1.2. Ministry of Finance's Report on Implicit Debt Accountability - On August 1, 2025, the Ministry of Finance reported six typical cases of implicit debt accountability, all involving new implicit debts. The new implicit debts occurred relatively recently and were concentrated in policy - supported areas such as urban renewal and high - standard farmland construction [10][11][13]. 3.1.3. Key Provinces "Exiting the List" - Inner Mongolia has officially announced its exit from the list of key provinces with local debt risks. However, it still faces challenges such as high debt ratios in some areas and large temporary fiscal payments, and efforts are needed to prevent new implicit debts [14]. 3.1.4. Early Redemption of Bonds by Urban Investment Enterprises - This week, 32 urban investment enterprises redeemed bond principal and interest in advance, involving 33 bonds with a total scale of 59.14 billion yuan. The enterprises are mainly from the central region, and the majority of the bond issuers have an AA rating [17]. 3.1.5. Cancellation of Bond Issuance - Two urban investment bonds were cancelled this week, with a planned total issuance scale of 17.5 billion yuan. As of August 4, 77 urban investment bonds have been postponed or cancelled this year, with a total scale of 442.26 billion yuan [18]. 3.2. Issuance of Local Government Bonds and Urban Investment Enterprise Bonds 3.2.1. Local Government Bonds - This week, the issuance scale and net financing of local government bonds decreased. The issuance progress of new special bonds exceeded 60%. The issuance interest rate and spread both increased. The weighted average issuance interest rate rose to 1.89%, and the weighted average issuance spread rose to 10.42BP [19]. 3.2.2. Urban Investment Bonds - The issuance scale of urban investment bonds decreased this week, while the net financing scale increased. The issuance interest rate increased, and the spread widened. The overall issuance interest rate was 2.33%, and the issuance spread was 78.73BP. Five overseas urban investment bonds were issued, with a total scale of 33.22 billion yuan [22][23]. 3.3. Trading of Local Government Bonds and Urban Investment Enterprise Bonds - The central bank conducted 1663.2 billion yuan in reverse repurchases this week, with 1656.3 billion yuan in reverse repurchases maturing, resulting in a net investment of 690 million yuan. Short - term capital interest rates generally declined [26]. - This week, the trading scale of local government bond cash bonds decreased by 7.14% to 380.769 billion yuan, and most of the maturity yields declined, with an average decline of 1.50BP. The trading scale of urban investment bonds increased by 2.69% to 277.6 billion yuan, and most of the maturity yields declined, with an average decline of 2.44BP [27]. - There were 16 abnormal transactions of 14 bonds from 14 urban investment entities this week. The number of entities decreased, but the number of bonds and abnormal transactions increased [28]. 3.4. Important Announcements of Urban Investment Enterprises - This week, 50 urban investment enterprises issued announcements regarding changes in senior management, legal representatives, directors, supervisors, etc., as well as changes in controlling shareholders, actual controllers, equity/asset transfers, names, and business scopes [31].

Report Overview - The report is the 21st issue of the weekly monitoring report on the local government debt and urban investment industry in 2025, covering the period from June 9 to June 15, 2025 [1][3] Industry Investment Rating - Not mentioned in the report Core Viewpoints - The State Council Executive Meeting emphasized greater efforts to stabilize and rebound the real estate market, and incremental support policies are expected to be introduced. The real estate market still faces pressure in stabilizing and rebounding, and it is necessary to introduce incremental policies from both supply and demand sides [5][6][7] - Heilongjiang Province improved the emergency reserve fund system for debt repayment to support "bridge financing" for cities and counties with implicit debt repayment gaps. Henan Province promoted state - owned capital investment promotion and accelerated the transformation of urban investment companies into industrial investment companies [9][10] Summary by Directory 1. News Review (1) Real Estate Policy Support - On June 13, the State Council Executive Meeting proposed to build a new real - estate development model, promote the construction of "good houses" in urban renewal, and conduct a survey of real - estate land and projects. Since April, the real - estate improvement has slowed down. The meeting's emphasis on "greater efforts" signals further policy support. Local governments have also introduced measures, such as Guangzhou considering canceling restrictions and Hunan arranging for the acquisition of commercial housing as affordable housing. It is recommended to introduce incremental policies from both supply and demand sides [6][7][8] (2) Debt Management and Investment Promotion - On June 17, Heilongjiang issued a plan to improve the fiscal budget and debt management system, including establishing an emergency reserve fund system for debt repayment. Henan proposed to promote state - owned capital investment promotion and transform urban investment companies into industrial investment companies [9][10] (3) Early Redemption of Urban Investment Bonds - 23 urban investment enterprises redeemed bond principal and interest in advance this week, involving 24 bonds with a total scale of 45.37 billion yuan, an increase of 23.22 billion yuan compared with the previous value. Most of the enterprises are from the western region, and the main credit rating is AA [13] (4) Cancellation of Urban Investment Bond Issuance - Two urban investment bonds, "25 WanTouJi MTN002" and "25 HuiLinInvestment MTN001A", were cancelled this week, with a planned issuance scale of 950 million yuan. As of June 15, 58 urban investment bonds have been postponed or cancelled this year, with a total scale of 3.5348 billion yuan [14] 2. Issuance of Local Government Bonds and Urban Investment Enterprise Bonds (1) Local Government Bonds - This week, the issuance scale and net financing of local government bonds decreased, the issuance interest rate decreased, and the spread widened. As of June 15, the issuance progress of new special bonds this year is less than 40%, and the local debt replacement progress has reached 84%. A total of 22 local bonds were issued this week, with a scale of 107.786 billion yuan, a decrease of 1.65%. The net financing decreased by 9.3513 billion yuan to - 4.3012 billion yuan. The weighted average issuance interest rate decreased by 1.83BP to 1.82%, and the weighted average spread widened by 2.87BP to 13.55BP [15][16] (2) Urban Investment Bonds - This week, the issuance scale and net financing of urban investment bonds increased, and the net financing turned positive. The issuance interest rate decreased, and the spread narrowed. A total of 176 urban investment bonds were issued, with a scale of 126.607 billion yuan, an increase of 63.89%. The net financing increased by 1.1982 billion yuan to 1.1948 billion yuan. The overall issuance interest rate was 2.23%, a decrease of 4.19BP, and the issuance spread was 72.94BP, a decrease of 1.67BP. Seven overseas urban investment bonds were issued, with a total scale of 2.764 billion yuan [19] 3. Trading of Local Government Bonds and Urban Investment Enterprise Bonds - The central bank conducted 858.2 billion yuan of reverse repurchases this week, with 930.9 billion yuan of reverse repurchases maturing, resulting in a net withdrawal of 72.7 billion yuan. Short - term capital interest rates mostly declined. On June 6, 2025, Shanghai Brilliance upgraded the credit rating of Shanghai Pudong Land Holding (Group) Co., Ltd. from AA+ to AAA. No urban investment credit risk events occurred this week. The trading volume of local government bonds increased by 65.14% to 623.982 billion yuan, and the yield to maturity generally declined by an average of 3BP. The trading volume of urban investment bonds increased by 45.45% to 327.002 billion yuan, and the yield to maturity generally declined by an average of 3.95BP. The spreads of 1 - year, 3 - year, and 5 - year AA+ urban investment bonds narrowed. Under the broad - based criteria, 13 urban investment entities had 15 abnormal bond transactions [22][24][25] 4. Important Announcements of Urban Investment Enterprises - 43 urban investment enterprises issued announcements regarding changes in senior management, legal representatives, directors, supervisors, controlling shareholders, actual controllers, equity/asset transfers, and cumulative new borrowings this week [28]

1. Report Industry Investment Rating No information provided. 2. Core Viewpoints of the Report - As of April 28, 2025, the Ministry of Finance has issued five notifications on typical cases of accountability for local government implicit debt, with the latest on April 18, 2025, which expanded the scope of investigations and emphasized a zero - tolerance attitude [1][9]. - The violation cases mainly involve two types: new implicit debt and false debt resolution, with new implicit debt being the dominant form. Provinces such as Jiangxi, Henan, and Anhui have more reported cases [3][18]. - By analyzing the similarities and differences in the general and summary paragraphs of the five notifications, the evolution of implicit debt supervision logic can be understood [1][10]. 3. Summary by Relevant Catalogs 3.1. Previous Ministry of Finance Notifications on Implicit Debt Accountability - **Notification Times**: There were five notifications in total. In 2022, there were two (May 18 and July 29), and one each in 2023 (November 6), 2024 (September 19), and 2025 (April 18) [1][9]. - **General Paragraph Similarities**: All notifications are based on the requirements of the Party Central Committee and the State Council for "lifelong accountability and retroactive investigation" of implicit debt issues, focus on new implicit debt and false debt resolution, and aim to deter through case notifications [10]. - **General Paragraph Differences**: - 2025.4.18: Expanded the scope of investigations to three types, added a zero - tolerance statement, and had a broader timeframe for case investigations [2][11]. - 2024.9.19: Quoted the spirit of the Third Plenary Session of the 20th CPC Central Committee and had a more time - sensitive case selection [11]. - 2023.11.6: Investigated cases since 2022 [12]. - 2022.7.29: Focused on financing platform companies' illegal financing [12]. - 2022.5.18: Had a unique "set an example" statement [12]. - **Summary Paragraph Differences**: - 2025.4.18: Emphasized political stance, elevated debt resolution to an important political task, added cross - departmental joint punishment, and proposed preventing repeated debt [14]. - 2024.9.19: Similar to the 2023 notification [15]. - 2023.11.6: Changed the statement to "effectively improve the political stance" [16]. - 2022.7.29: Targeted financing platform companies for strict control [16]. - 2022.5.18: Mentioned the economic situation and proposed a pressure - transmission management mechanism [16]. 3.2. Concerns in Notified Cases - **Violation Types and Regional Distribution**: Violation cases mainly revolve around new implicit debt and false debt resolution, with new implicit debt being more prevalent. Jiangxi, Henan, and Anhui have more cases, and false debt resolution cases are mainly in Jiangxi, Jilin, Anhui, Inner Mongolia, and Hunan [3][18]. - **Forms of New Implicit Debt**: - Borrowing or advancing funds through state - owned enterprises, public hospitals, schools, etc. for projects that should be funded by the fiscal budget [24][25]. - Directly borrowing from or occupying funds of local state - owned enterprises [27]. - Illegal financing by financing platforms through fiscal guarantees, government commitment letters, or collateral of public welfare assets [28][29]. - Promising minimum returns, repurchasing principal and interest of social capital, and other illegal PPP project packaging [30]. - **Forms of False Debt Resolution**: - Using state - owned enterprises to finance and repay implicit debt while wrongly recording it as debt resolution [31]. - Changing contract amounts as debt resolution [32][33].