Core Viewpoint - The bond underwriting market has been stirred by a "700 yuan" service fee bid, leading to widespread market attention and subsequent self-regulatory investigations by the interbank market trading association [1][2]. Group 1: Market Reactions - On July 10, 2023, Guangfa Bank announced the selection results for the underwriting service providers for its 2025-2026 secondary capital bond issuance, with six firms selected, including China Galaxy Securities and Industrial Bank, both quoting a remarkably low fee of 700 yuan [1][2]. - The announcement triggered discussions in the market, prompting the trading association to initiate a self-regulatory investigation into the six selected underwriters on the evening of July 11, 2023 [2]. Group 2: Regulatory Framework - In June 2023, the trading association issued a notice to strengthen the self-regulatory management of bond issuance and underwriting, emphasizing the need for market-based principles and fair treatment of all investors [3]. - The notice prohibits underwriters from quoting below cost and mandates that underwriting fees must be fair and compliant with established procedures [3][4]. Group 3: Enforcement Actions - The trading association has increased scrutiny on non-market-based bond issuance practices, with 88 self-regulatory penalties issued in 2024, affecting 47 institutions and 41 individuals [5]. - The association is focused on serious violations in the bond issuance process, including structured issuance and interest rate manipulation, and is actively monitoring and enforcing compliance [5][6].

Core Viewpoint - The selection of underwriters for the 2025-2026 secondary capital bond issuance by Guangfa Bank has sparked market discussions, particularly due to the low underwriting fees proposed by some firms, leading to a self-regulatory investigation by the interbank market association [1][4][3]. Group 1: Selection of Underwriters - Guangfa Bank has publicly announced the selection results for the underwriting service providers for its 2025-2026 secondary capital bond issuance, with a maximum of six suppliers chosen [1][2]. - The selected underwriters include China Galaxy Securities, Guangfa Securities, Industrial Bank, Guotai Junan Securities, CITIC Securities, and CITIC Jianan Securities [4][2]. - The total underwriting service fee is set at RMB 63.48 million, with a 6% VAT invoice provided [2]. Group 2: Market Reactions and Investigations - The announcement of the low underwriting fees, particularly the "floor price" of RMB 700 quoted by some firms, has raised concerns in the market [4]. - Following the announcement, the interbank market association initiated a self-regulatory investigation into the six selected underwriters due to the market's reaction to the low fees [4][3]. - The association monitors compliance with self-regulatory rules and will take action if any violations are found during the investigation [4][5]. Group 3: Regulatory Environment - In June, the interbank market association issued a notice to strengthen the regulation of bond issuance and underwriting practices, emphasizing market-based principles and fair treatment of investors [5][6]. - The notice prohibits underwriters from quoting below cost and mandates compliance with payment obligations [6]. - The association has increased scrutiny on non-market-based bond issuance practices and has reported disciplinary actions against multiple institutions for violations [8][7].