Report Date - The report was released on September 29, 2025 [1] Global Asset Market Performance 10 - Year Treasury Yields of Major Economies - On September 26, 2025, yields in countries like the US were 4.176%, UK 4.745%, etc. Changes varied across different time - frames (latest, one - week, one - month, one - year). For example, the US had a latest change of 0.005, a one - week change of 0.048, a one - month change of - 0.054, and a one - year change of 0.434 [2] 2 - Year Treasury Yields of Major Economies - On September 26, 2025, yields such as the US at 3.570, UK at 4.009, etc. had different changes over different periods. For instance, the US had a latest change of 0.040, a one - week change of 0.050, a one - month change of 0.030, and a one - year change of - 0.040 [2] Dollar Exchange Rates Against Major Emerging Economies' Currencies - On September 26, 2025, the dollar - to - Brazilian real rate was 5.344 with a latest change of - 0.37%. Rates against other currencies also had various changes over different time - spans [2] RMB Data - On September 26, 2025, on - shore RMB was 7.135, off - shore RMB was 7.144, the mid - price was 7.115, and the 12 - month NDF was 6.994. Each had different percentage changes over different periods [2] Major Economies' Stock Indexes - On September 26, 2025, the S&P 500 was 6643.700, the Dow Jones Industrial Index was 46247.290, etc. Indexes had different latest, one - week, one - month, and one - year changes. For example, the S&P 500 had a latest change of 0.59%, a one - week change of - 0.31%, a one - month change of 2.84%, and a one - year change of 16.50% [2] Credit Bond Indexes - Different credit bond indexes (US investment - grade, euro - zone investment - grade, etc.) had different latest, one - week, one - month, and one - year changes. For example, the US investment - grade credit bond index had a latest change of 0.06%, a one - week change of - 0.40%, a one - month change of 1.22%, and a one - year change of 3.16% [2][3] Stock Index Futures Trading Data Index Performance - Closing prices of A - shares, CSI 300, etc. had corresponding percentage changes. For example, A - shares closed at 3828.11 with a - 0.65% change [4] Valuation - PE (TTM) and its环比 changes were provided for indexes like CSI 300, S&P 500, etc. For example, the CSI 300 had a PE (TTM) of 14.04 with a - 0.09环比 change [4] Risk Premium - Risk premium data and its环比 changes were given for some indexes. For example, the S&P 500 had a 1/PE - 10 rate of - 0.56 with a - 0.03环比 change [4] Fund Flows - Latest values and 5 - day average values of fund flows for different indexes were presented. For example, A - shares had a latest fund flow of - 1188.84 and a 5 - day average of - 537.15 [4] Trading Volume - Latest trading volumes and环比 changes were provided for different markets. For example, the Shanghai and Shenzhen stock markets had a latest trading volume of 21468.85 with a - 2242.05环比 change [4] Main Contract Premium or Discount - Basis and percentage changes were given for futures contracts like IF, IH, IC. For example, IF had a basis of - 25.05 and a - 0.55% change [4] Treasury Bond Futures Trading Data - Closing prices and percentage changes were provided for treasury bond futures like T00, TF00, etc. For example, T00 closed at 107.680 with a - 0.04% change [5] - Funding rates (R001, R007, SHIBOR - 3M) and their daily changes were presented. For example, R001 was 1.3344% with a - 47.00 BP daily change [5]

Group 1: Market Conditions - The current financial market exhibits multiple bubble signs reminiscent of the pre-2007 financial crisis, with a resurgence of large-scale leveraged buyouts and a significant increase in risk debt [1][2] - Major Wall Street banks are preparing to arrange over $20 billion in merger debt financing, echoing the pre-crisis environment [2] - The risk premium for U.S. investment-grade corporate bonds has reached its lowest level in 27 years, indicating overly optimistic risk pricing in the market [5] Group 2: Consumer Debt and Defaults - Rising auto loan default rates signal increasing financial pressure on consumers, with some subprime auto lenders filing for bankruptcy [3] - Although overall consumer borrowing levels are lower than in 2007, specific areas of default are raising concerns, similar to the early stages of the subprime mortgage crisis [3] Group 3: Economic Indicators - Early signs of economic slowdown are emerging, with the U.S. unemployment rate rising to its highest level since 2021 and consumer confidence dropping to a four-month low [7] - These deteriorating economic indicators provide a realistic basis for concerns in the bond market, suggesting potential volatility ahead as the bubble-like financial market adjusts to cyclical slowdowns [7] Group 4: Regulatory Environment and Market Differences - Current market conditions differ significantly from 2007, with stricter bank regulations and larger capital buffers in place [5] - Leveraged buyout firms are utilizing more equity in their transactions, and the impact of private credit on the financial market remains uncertain [5]

Group 1: Company Overview - The report focuses on Fulei New Materials (605488), a leading company in functional coating composite materials, with growth potential in electronic skin technology [5] - The recommendation logic highlights the company's leadership in the domestic market and the acceleration of humanoid robot industrialization as key growth drivers [5] Group 2: Financial Projections - Revenue projections for Fulei New Materials are estimated at 3,049 million, 3,557 million, and 4,069 million CNY for 2025, 2026, and 2027 respectively, reflecting growth rates of 20.0%, 16.7%, and 14.4% [5] - The net profit attributable to the parent company is forecasted to be 115 million, 158 million, and 212 million CNY for the same years, with growth rates of -17.4%, 37.1%, and 34.6% [5] Group 3: Market Dynamics - The report identifies the leading position in electronic skin technology and mass production capabilities as a significant competitive advantage [5] - The report notes that the development of flexible tactile sensors may not meet expectations, which could impact market performance [5] Group 4: Industry Insights - The macroeconomic environment is highlighted as a potential risk factor, with fluctuations in the economic cycle and increased market competition being significant concerns [5] - The report emphasizes the importance of policy impacts on supply-side dynamics, particularly in relation to the "anti-involution" effect on industrial profits [9]

Summary of Key Points from Conference Call Records Industry Overview - The records primarily focus on the bond market, specifically the trends and expectations for the fourth quarter of 2025 and the performance of various financial instruments including government bonds and local government bonds. Core Insights and Arguments 1. **Market Trends**: The bond market is expected to exhibit a "weak before strong" pattern in the fourth quarter, contrasting with historical trends. The market is anticipated to be relatively stable in October, with limited speculative opportunities due to weak positioning [1][2][3]. 2. **October Performance**: October 2025 is projected to show some recovery from previous declines, driven by adjustments in market sentiment and the release of prior pressures. This recovery is not expected to be as weak as in previous years [4][5]. 3. **Policy Changes**: There is a notable shift in policy consistency and proactivity in 2025 compared to previous years. The government is unlikely to announce significant new bond issuance in October, which may lead to lower interest rates in the short term [5][6]. 4. **Central Bank Actions**: The central bank and major banks are actively buying government bonds to stabilize the market. This strategy aims to prevent significant declines in market indices, although it has limited effects on other bond types [6][7]. 5. **Market Reactions**: Recent market declines were attributed to the introduction of new fund fee regulations, which may have been overestimated in their impact. The insurance and wealth management sectors remain stable, mitigating potential risks from credit loans and government bonds [7][8]. 6. **Investment Strategies**: Insurance institutions are increasingly purchasing local government bonds, viewing them as attractive investments due to their yield. This trend indicates a shift towards securing current yield levels rather than capital gains [8][9]. 7. **Long-term Bonds**: There is a divergence in market expectations for local government bonds versus 30-year government bonds. Local bonds are favored for their higher yields, while long-term bonds face skepticism due to their volatility [10][11]. 8. **Credit Bonds Sentiment**: The sentiment towards credit bonds is cautious, influenced by policy uncertainties and new fund redemption fee regulations. The market is expected to stabilize once these uncertainties are resolved [14][15]. Additional Important Content 1. **ETF Market Dynamics**: The second batch of STAR Market ETFs has seen rapid expansion, with significant inflows and a total scale reaching 2,474 billion yuan. However, some products still lack sufficient scale, indicating potential for further growth [12][13]. 2. **Future of Convertible Bonds**: The convertible bond market is showing resilience, with recommendations to focus on high-quality options that exhibit strong anti-drawdown characteristics. The issuance of convertible bonds is expected to normalize, with a focus on technology and undervalued sectors [16][18]. 3. **Investment Opportunities**: There are recommendations for strategic investments in sectors such as AI computing, consumer electronics, and low-valuation sectors like banking and chemicals, which have recently attracted significant capital inflows [18]. This summary encapsulates the key points and insights from the conference call records, providing a comprehensive overview of the current state and future expectations of the bond market and related financial instruments.

Group 1 - The core viewpoint of the report indicates that the simulated credit style portfolio yields have generally declined, while the losses in most interest rate style portfolios have narrowed [3][11] - The AA+ medium-short secondary bonds and interest rate bonds in the heavy positions have stabilized in yield compared to early this month [3][18] - The average weekly yield of the credit style portfolio has decreased by 7 basis points to -0.11%, which is less than the recovery seen last week, indicating a controlled overall decline [3][18] Group 2 - In terms of yield sources, most strategy combinations have seen an increase in coupon rates, with city investment and mixed bullet strategies rising by over 0.04 basis points [4][26] - The annualized coupon rates for medium-long strategies, including city investment duration, bullet, and perpetual bond duration combinations, have risen to over 2.16% [4][26] - The coupon contributions of the credit style portfolio have fallen into the range of -35% to 0%, indicating that coupon yields are unable to cover capital loss [4][26] Group 3 - Over the past four weeks, the cumulative excess losses and volatility of the perpetual bond duration strategy have both increased [5][30] - The cumulative excess yields for city investment short-end sinking, commercial bank bond bullet, and brokerage bond duration strategies are 21.3 basis points, 14.2 basis points, and -0.8 basis points respectively [5][30] - The short-duration deposit strategies have outperformed, with excess yields reaching the highest point since March [5][32]

Report Industry Investment Rating No information provided in the report. Core Viewpoints - The bond market has both "long - term concerns" and "immediate worries" this week. The short - selling inertia persists, but the buying of bonds by large banks and central bank operations have played a stabilizing role, and interest rates have recovered after consecutive increases. However, more positive and definite signals are needed to reverse the short - selling inertia [1][7]. - The calendar effect of the bond market is not obvious, and holidays do not change the main trend of the market. The main factors influencing bond market trends around the National Day are the fundamentals and fiscal policies [18][20]. - In the bond market adjustment, the decline of secondary perpetual bonds, policy - financial bonds, and ultra - long - term bonds favored by public funds is particularly obvious. It is recommended to pay attention to the re - evaluation risks of the interest rate tops of ultra - long - term bonds and 5Y secondary perpetual bonds [3][33]. Summary by Directory 1. This Week's Bond Market Review - The bond market has "long - term concerns" and "immediate worries". The short - selling inertia remains, and the market is worried about the formal implementation of the fund fee solicitation draft and the introduction of unexpected fiscal stimulus policies, as well as the current cross - quarter liquidity support and fund liability - side redemption pressure. The expectation of large banks' entry and the central bank's restart of bond - buying can drive interest rates down, but the extent and sustainability are not firm [1][7]. - From Monday to Friday, the bond market showed different trends. Overall, compared with September 19, by September 26, the 1Y, 5Y, 10Y, and 30Y ChinaBond Treasury bond yields decreased by 0.7BP, increased by 0.5BP, decreased by 0.2BP, and increased by 1.7BP respectively [7][9][11]. 2. The Bond Market Calendar Effect - The equity market usually has a strong calendar effect around the National Day. Before the holiday, investors are cautious and tend to leave the market, and after the holiday, the market usually rebounds. In the past 9 years since 2015, the Wind All - A Index fell in 6 years in the five trading days before the National Day, with a decline of 0.7 - 3.2 percentage points; it only rose in 2 years, with an increase of 1.4 - 2.5 percentage points. After the holiday, the equity market usually rebounds, except in the two years when it rose before the holiday [18]. - The bond market's liquidity usually fluctuates greatly before the National Day and shows a significant seasonal decline after the holiday. However, the calendar effect of Treasury bond interest rates is not obvious. Since 2019, interest rates around the National Day have mostly risen, mainly affected by fundamentals and fiscal policies, which can be divided into three situations [20]. 3. Which Bond Types Are Under Greater Pressure Under Fund Selling Pressure? - In the recent bond market adjustment, the decline of secondary perpetual bonds, policy - financial bonds, and ultra - long - term bonds favored by public funds is particularly obvious. Compared with last Friday, the interest rates of 3 - 5Y bank secondary perpetual bonds generally increased by more than 10BP, while other credit varieties of the same term only increased by about 3 - 7BP. The term spread between 30Y and 10Y Treasury bonds continued to widen by 2BP to 34BP, and the over - decline of China Development Bank bonds compared with Treasury bonds spread from 10Y to 3 - 7Y [3][29]. - This "structural over - decline" reflects the redemption pressure on the liability side of bond funds under the double pressure of weak performance and possible adjustment of redemption fees. From the 23rd to the 25th, the net selling of funds continued to increase, reaching a peak of 68.3 billion yuan on the 25th. The selling was concentrated in 7 - 10Y policy - financial bonds, old Treasury bonds over 10Y, and 7 - 10Y other bonds, with average daily net selling of 8.4 billion yuan, 5.1 billion yuan, and 4.0 billion yuan respectively [3][31]. - Looking ahead, it is recommended to pay attention to the re - evaluation risks of the interest rate tops of ultra - long - term bonds and 5Y secondary perpetual bonds. Ultra - long - term bonds face the risk of supply - demand mismatch, and the buying power of 5Y secondary perpetual bonds is gradually weakening, and the adjustment risk may spread from long - term to short - term and from secondary perpetual bonds to general credit bonds [4][33][35].

Core Insights - The debt crisis is a systemic challenge for the global economy, significantly impacting financial stability, geopolitical dynamics, and market trends [1][17] - The rapid increase in U.S. federal debt, projected to reach $37.3 trillion by September 2025, poses risks to both domestic and international economic conditions [1][17] - Understanding the causes, manifestations, and potential consequences of the debt crisis is crucial for investors, economists, and policymakers [1] Causes of the Debt Crisis - The primary driver of the rapid growth in U.S. federal debt is the persistent budget deficit, with a projected deficit of $1.9 trillion for the fiscal year 2025, equivalent to 6% of GDP [2] - Tax cuts and increased spending, particularly from the Trump administration, have significantly reduced federal revenue, leading to an estimated $3.4 trillion increase in deficits from 2025 to 2034 [2] - Mandatory spending, including Social Security and Medicare, along with rising interest payments, are major contributors to the expanding deficit [2] Interest Costs and Market Dynamics - High interest costs exacerbate the debt issue, with projected interest payments reaching $952 billion in 2025, accounting for 18.4% of federal revenue [3] - The current high-interest environment, with a 10-year Treasury yield around 4.1%, has led to a significant increase in interest costs compared to previous years [3] - Rising bond yields across major economies signal a potential reset of the monetary system, affecting the value of the dollar and inflation pressures [4] Interconnectedness of Debt and Markets - The bond market, valued at over $50 trillion, is highly interconnected with equity and precious metals markets, with rising debt leading to increased borrowing costs [5] - The S&P 500 index has seen significant growth, but its valuation relative to GDP indicates potential bubble risks [5] - Gold has emerged as a hedge against currency devaluation, with prices rising from $1,770 per ounce in 2020 to $3,682 per ounce in 2025 [5][6] Geopolitical Implications - High debt levels limit diplomatic flexibility, particularly in U.S.-China relations, where China holds approximately $780 billion in U.S. debt [8] - The trend of de-dollarization is accelerating, with non-dollar trade increasing and central banks shifting towards gold as a primary asset [8] - Historical patterns suggest that high debt levels can lead to military conflicts as a means to divert public attention from domestic issues [8] Social and Political Consequences - Wealth inequality has reached historic highs, with 90% of stock market wealth concentrated among the top 10% of the population [9] - Public concern over the federal budget deficit is significant, but political divisions hinder effective reform [9] - The lack of coherent fiscal policy exacerbates the debt crisis, with differing approaches from political parties complicating solutions [9] Fiscal Management and Cash Flow - The U.S. Treasury General Account (TGA) has a balance of $410 billion, significantly below the target of $850 billion, necessitating frequent borrowing [10] - The short-term nature of U.S. debt makes the government sensitive to interest rate fluctuations, increasing refinancing costs [10] - The debt ceiling poses a significant risk, with potential market turmoil if Congress fails to raise or suspend it in a timely manner [11] Solutions and Future Outlook - Addressing the debt crisis requires a multi-faceted approach, including economic growth strategies, spending controls, and inflation management [13] - Long-term reforms should focus on balancing the budget, optimizing tax policies, and fostering international cooperation to attract foreign investment [15] - The next decade is critical for U.S. fiscal stability, necessitating decisive action to ensure long-term economic prosperity [16][17]

Economic Indicators - The National Bureau of Statistics will release the PMI data for September on September 30, with August's manufacturing PMI at 49.4%, a 0.1 percentage point increase from July; the non-manufacturing business activity index at 50.3%, up 0.2 percentage points; and the composite PMI output index at 50.5%, an increase of 0.3 percentage points, indicating continued economic expansion in China [1] Monetary Policy - The People's Bank of China (PBOC) held a monetary policy committee meeting, signaling a shift towards enhancing the foresight, targeting, and effectiveness of monetary policy, while maintaining policy continuity and stability [2] - The PBOC, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange jointly announced that foreign institutional investors can participate in bond repurchase transactions in China's bond market, aligning trading methods with international standards [2][3] Industry Growth Plans - The Ministry of Industry and Information Technology and seven other departments issued a growth plan for the petrochemical industry, targeting an average annual growth of over 5% in value-added from 2025 to 2026, with a focus on technological innovation and environmental sustainability [5] - The Ministry of Industry and Information Technology and eight departments released a plan for the non-ferrous metals industry, aiming for an average annual growth of around 5% in value-added and a 1.5% increase in the production of ten non-ferrous metals from 2025 to 2026 [4] Market Developments - The China Securities Regulatory Commission announced the classification results for securities firms in 2025, with 53 classified as A, 43 as B, and 11 as C, indicating a stable distribution among categories [6] - Wanda Group's chairman Wang Jianlin faced high consumption restrictions due to economic disputes involving subsidiary projects, with the company clarifying that negotiations were ongoing [7] IPO and Stock Market Activity - Moore Threads' IPO application has been approved, with plans to raise 8 billion yuan, positioning it as a potential leader in the domestic GPU market [7] - Zhongji Xuchuang announced plans to reduce its stake by up to 0.49% through block trading, with no impact on company control or governance structure [8] Regulatory Actions - Fuhuang Steel Structure is under investigation by the China Securities Regulatory Commission for suspected information disclosure violations, while the company continues normal operations and will cooperate with the investigation [9][10]

Global Asset Performance - The global market is experiencing a divergence between safe-haven assets and risk assets, with gold prices continuing to rise while equities show mixed performance [5][50] - The S&P 500 and Nasdaq indices have seen declines due to strong U.S. economic data reinforcing expectations for sustained high interest rates, negatively impacting growth stocks [50][51] - The A-share market has demonstrated resilience amidst global volatility, with a slight increase in the index [50] Commodity Market - Gold prices reached a historical high of $3758.78 per ounce on September 22, with a weekly increase of 2.01%, driven by the market's reaction to the Federal Reserve's interest rate cuts [7][8] - The oil market is characterized by rising prices due to geopolitical risks, with WTI and Brent crude oil prices increasing by 4.85% and 5.17% respectively [12][13] Bond Market - U.S. Treasury yields unexpectedly rose following the Fed's rate cut, with the 10-year yield increasing to 4.20%, reflecting a "sell the fact" behavior among investors [18][19] - The Chinese bond market showed a slight upward trend in yields, influenced by liquidity conditions and the strong performance of the A-share market [20][22] Currency Market - The U.S. dollar index exhibited a strong performance, supported by robust U.S. economic data, while the euro weakened against the dollar due to widening economic data disparities between the U.S. and Europe [25][31] - The British pound declined against the dollar, driven by weak economic data from the UK and contrasting monetary policy signals from the Bank of England and the Federal Reserve [40][42] Equity Market - European stock markets, particularly the UK, Germany, and France, showed gains, while U.S. markets faced declines, highlighting a divergence in performance based on regional economic conditions [50][51] - The Japanese stock market benefited from domestic stimulus expectations and a weaker yen, supporting export-oriented companies [50]

Group 1: Report Industry Investment Rating - No relevant content provided Group 2: Core Viewpoints of the Report - As of the end of 2024, China's government debt scale was 92.6 trillion yuan, with local government implicit debt reduced to 10.5 trillion yuan, and the overall risk was controllable. The State Council and relevant departments continuously optimized and improved government debt management to better发挥 the function of government debt. However, there were still some difficulties and problems in government debt management and risk prevention and resolution, such as the need to strengthen government debt management, the occurrence of illegal new implicit debt and false debt resolution, and the need to optimize the government debt scale and structure. To address the problems and challenges in China's fiscal and debt fields, it was necessary to change ideas, moderately increase policy intensity, and promote medium - and long - term structural reforms [6][7][8]. - Henan actively supported the clearance of government - owed enterprise accounts through the coordinated efforts of "special bonds + special loans." Zhengzhou adjusted special bond funds to repay debts, and Xuchang completed the issuance of special working capital loans [6][10]. - This week, 25 urban investment enterprises prepaid bond principal and interest, and 2 urban investment bonds cancelled issuance [6][13][14]. - This week, the issuance and net financing scale of local government bonds decreased, and Shenzhen and Hainan issued offshore RMB local bonds in Macau and Hong Kong respectively. Only Henan and Hubei had not completed the issuance of the 2 - trillion - yuan replacement quota. The issuance and net financing scale of urban investment bonds increased, with rising issuance interest rates and widening spreads [6][15][20]. - This week, there was no adjustment to the urban investment credit rating and no occurrence of urban investment credit risk events. The spot trading scale of local government bonds and urban investment bonds increased, and the yield to maturity of urban investment bonds increased across the board. There were 15 abnormal transactions of 11 urban investment bonds [23][25]. - This week, 51 urban investment enterprises announced changes in senior management, legal representatives, directors, supervisors, etc., as well as changes in controlling shareholders and actual controllers, and equity/asset transfers [29]. Group 3: Summary by Relevant Catalogs 1. News Review (1) The 2024 Government Debt Management Report was released, with implicit debt reduced to 10.5 trillion yuan - As of the end of 2024, China's government debt balance was 92.6 trillion yuan, including 34.6 trillion yuan in national debt, 47.5 trillion yuan in local government legal debt, and 10.5 trillion yuan in local government implicit debt, a decrease of 3.8 trillion yuan from the end of 2023. The national government legal debt - to - GDP ratio was 60.9%, and after adding the 10.5 - trillion - yuan local government implicit debt balance, the national government debt - to - GDP ratio was 68.7% [7]. - The State Council and relevant departments optimized and improved government debt management in aspects such as system mechanism construction, prevention and resolution of local government implicit debt risks, and improvement of the local government debt monitoring and supervision system [8]. - There were problems in government debt management, including the need to improve the management of ultra - long - term special national debt, the occurrence of illegal new implicit debt and false debt resolution, and the need to optimize the government debt scale and structure [8]. (2) Henan supported "debt clearance" through "special bonds + special loans," and Zhengzhou adjusted special bond funds to repay debts and Xuchang completed the issuance of special working capital loans - Zhengzhou promoted the clearance of debts owed to enterprises, carried out a new round of debt investigations, and adjusted special bond funds to repay debts. Xuchang's Xiangcheng Sub - branch of the Agricultural Bank of China approved a 10 - million - yuan working capital loan for a debt - owing entity and completed the first issuance of 5 million yuan [10]. (3) 25 urban investment enterprises prepaid bond principal and interest this week - 25 urban investment enterprises prepaid the principal and interest of 28 bonds, with a total scale of 4.799 billion yuan. The prepaid urban investment enterprises were mainly from the central region, and the main credit rating was AA [13]. (4) 2 urban investment bonds cancelled issuance this week - "25 Tongzhouwan PPN003" and "25 Xianggaosu CP003" cancelled issuance, with a planned total issuance scale of 1.33 billion yuan. As of September 12, 81 urban investment bonds had postponed or cancelled issuance this year, with a total scale of 51.594 billion yuan [14]. 2. Issuance of Local Government Bonds and Urban Investment Enterprise Bonds (1) Local government bonds - This week, 65 local bonds were issued, with a issuance scale of 194.519 billion yuan, a decrease of 35.52% from the previous value, and a net financing amount of 36.855 billion yuan, a decrease of 80.88%. As of September 19, 2025, the scale of local bonds in the存续 period was 53.3 trillion yuan. The issuance of new bonds this year had reached 4.176385 trillion yuan, accounting for 80.32% of the annual new quota, and the issuance of new special bonds was 3.517665 trillion yuan, accounting for 79.95% of the annual new quota. The issuance of refinancing bonds was 4.096984 trillion yuan, of which 1.974915 trillion yuan was used to replace existing implicit debt, completing 98.75% of the 2 - trillion - yuan quota for the year, and only 2.5085 billion yuan remained to be issued; 953.2 million yuan was used to repay existing government debt [15]. - The issuance term of local bonds was mainly 10 - year, and the weighted average issuance term was 15.55 years, 2.30 years shorter than the previous value. Ten provinces issued local bonds this week, with Henan having the largest issuance scale of 38.315 billion yuan. Shenzhen, Guangdong, and Hainan issued a total of 6 billion yuan of offshore RMB local bonds in Macau and Hong Kong. The weighted average issuance interest rate of local bonds increased by 2.24BP to 2.18%, and the weighted average issuance spread widened by 2.24BP to 21.71BP [15][16]. (2) Urban investment bonds - This week, 209 urban investment bonds were issued, with a issuance scale of 145.455 billion yuan, an increase of 52.95% from the previous value, and a net financing amount of 33.243 billion yuan, an increase of 1.1681 billion yuan. As of September 19, the scale of urban investment bonds in the存续 period was 14.26 trillion yuan. The overall issuance interest rate of urban investment bonds was 2.41%, an increase of 2.50BP from the previous value, and the issuance spread was 87.48BP, a widening of 7.00BP. The issuance was mainly in the form of general medium - term notes, with a 5 - year term as the main term. The issuer's main credit rating was AA +. This week, 10 urban investment overseas bonds were issued, with a total scale of 4.66 billion yuan [20]. 3. Trading of Local Government Bonds and Urban Investment Enterprise Bonds - This week, the central bank conducted 1.8268 - trillion - yuan reverse repurchase operations in the open market, with 1.2645 - trillion - yuan reverse repurchases maturing, resulting in a net investment of 562.3 billion yuan. Short - term capital interest rates mostly increased. There was no adjustment to the urban investment credit rating and no occurrence of urban investment credit risk events [23]. - The spot trading scale of local government bonds was 493.12 billion yuan, an increase of 13.41% from the previous value, and the yield to maturity fluctuated, with an average increase of 1.20BP. The trading scale of urban investment bonds was 317.943 billion yuan, an increase of 25.47% from the previous value, and the yield to maturity increased across the board, with an average increase of 2.69BP. In terms of credit spreads, the spreads of 1 - year and 5 - year AA + urban investment bonds widened, while the spread of 3 - year AA + urban investment bonds narrowed. There were 15 abnormal transactions of 11 urban investment bonds of 11 urban investment entities [25]. 4. Important Announcements of Urban Investment Enterprises - This week, 51 urban investment enterprises announced changes in senior management, legal representatives, directors, supervisors, etc., as well as changes in controlling shareholders and actual controllers, and equity/asset transfers [29].