Core Viewpoint - The China Interbank Market Dealers Association has issued self-discipline penalties to four entities, including Shanghai Tengwen Industrial Development Co., Ltd., Xinjing Development Investment Co., Ltd., Xiangyu Management Consulting (Shanghai) Co., Ltd., and Chengdu Dongjin Huaizhou New City Investment Group Co., Ltd., for violations related to the issuance and trading of debt financing instruments [1][2]. Group 1: Shanghai Tengwen - Shanghai Tengwen assisted a debt financing tool issuer in indirectly subscribing to its own issued debt financing tools and failed to cooperate with self-discipline investigations, resulting in a warning from the association [1]. Group 2: Xinjing Development - Xinjing Development issued and traded its bonds in a non-market manner, including arranging institutions to subscribe to its debt financing tools and providing financial support, leading to a warning and a directive for comprehensive rectification of its issuance management issues [1][2]. Group 3: Xiangyu Consulting - Xiangyu Consulting, as a client for related products, assisted Xinjing Development in issuing bonds in a non-market manner and received a severe warning from the association [2]. Group 4: Chengdu Dongjin Huaizhou - Chengdu Dongjin Huaizhou, as the parent company of Xinjing Development, facilitated non-market issuance and trading of bonds, resulting in a severe warning from the association [2].

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].