Group 1: Report Industry Investment Rating - No relevant content provided Group 2: Core Views of the Report - The main policy tone is still "controlling new debts and resolving existing ones." The issuance and net financing of urban investment bonds have decreased, while the issuance of innovative varieties such as science and technology innovation bonds has increased [4][54][56]. - In the short - term, although the Sino - US tariff game has eased, the bond market will continue to fluctuate. It is recommended to allocate high - quality platform targets in strong regions, moderately extend the duration, and also pay attention to strong urban investment in key debt - resolving regions and new entities formed during the industrial transformation and integration of urban investment [6][9][49]. Group 3: Summary by Directory 1. April 2025 Urban Investment Bond Market Operation Characteristics - **Issuance scale and net financing**: The issuance scale of urban investment bonds decreased by 10.34% month - on - month to 554.27 billion yuan, with a net outflow of 75.279 billion yuan for two consecutive months. The approval rates of the exchange and the inter - bank market both decreased month - on - month. 21 provinces had net outflows, and the net outflow scale of economic powerhouses increased significantly [7][10][13]. - **Innovative varieties**: 22 innovative urban investment bonds were issued, with a total scale of 16.78 billion yuan. The issuance of science and technology innovation bonds increased significantly, with 12 bonds issued, totaling 9.02 billion yuan [20]. - **Issuance term**: The weighted average issuance term was 2.76 years, a decrease of 0.87 years month - on - month. The proportion of borrowing new to repay old remained above 90%, and 14 provinces reached 100%. Among the 10 key provinces, 9 had a 100% borrowing - new - to - repay - old ratio [23]. - **Issuance interest rate and spread**: The weighted average issuance interest rate was 2.43%, a decrease of 0.17 percentage points month - on - month; the weighted average issuance spread was 91.93BP, a narrowing of 5.43BP month - on - month [26]. - **Overseas bonds**: The issuance scale of overseas urban investment bonds increased by 25.44% month - on - month to 41.177 billion yuan, and the weighted average issuance interest rate rose to 5.57% [31]. - **Yield and credit spread**: The yield of urban investment bonds decreased overall. The credit spreads of key provinces mostly narrowed, while those of non - key provinces mostly widened [35]. 2. Credit Analysis - One urban investment enterprise had its credit rating upgraded. In April 2025, Orient Golden Credit upgraded the rating of Shanghai Northern Enterprise (Group) Co., Ltd. from AA+ to AAA [43]. - The number, scale, and frequency of abnormal transactions of urban investment bonds decreased. Guizhou had the largest abnormal transaction scale, and "20 Boshui 01" had the largest deviation [43][44]. 3. Maturity and Early Redemption - The maturity and put - option scale of urban investment bonds this year exceeded 3 trillion yuan. 129 urban investment enterprises redeemed bond principal and interest in advance, with a scale of 24.963 billion yuan, a decrease of 12.55% month - on - month [46]. 4. Strategy - Allocate high - quality platform targets in strong regions and moderately extend the duration. For medium - and short - term durations, focus on strong urban investment in regions with significant debt - resolution progress. Also, pay attention to new entities formed during industrial transformation and integration, but set an appropriate duration [6][9][49]. 5. Recent Policy and Hot Event Review - The policy emphasizes resolving existing debts and preventing new ones. The issuance of special refinancing bonds for debt replacement has exceeded 60%. The supervision of new hidden debts remains strict, and the support for science and technology innovation bonds has increased [6][50]. - At the local level, many places are accelerating the integration and transformation of state - owned enterprises and standardizing financing management [51].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In Q1 2025, the issuance and net financing scale of urban investment bonds hit a three - year low. The policy tightening forces urban investment companies to make "real transformations". The debt pressure of urban investment companies may be further relieved, and there is still room for compression of credit spreads [4][14]. - With the implementation of the "6 + 4+2" debt - resolution package, the credit risk of urban investment has slightly converged. It is recommended to invest in high - quality enterprises in strong regions and selectively sink the credit quality to seek the spread compression space [6][13]. - In the future, the borrowing - new - to - repay - old ratio of urban investment bonds will remain high, and the level of financing entities may continue to move up. Attention should be paid to issues such as local investment and financing needs, debt repayment pressure, asset idleness, and transformation authenticity [7][9]. 3. Summary According to Relevant Catalogs 3.1 Q1 2025 Review of Urban Investment Bond Market Operation 3.1.1 Five Characteristics of Urban Investment Bond Market Operation - **Issuance and net financing scale at a three - year low**: The issuance scale was 1.48 trillion yuan, a year - on - year decrease of 15.13%. The net financing was 75.105 billion yuan, a year - on - year decrease of 46.76%. The net financing of low - level and weak - quality entities declined significantly. Some urban investment companies turned to overseas bond issuance, with the new issuance increasing by 9.49% year - on - year [4]. - **Overall decline in issuance interest rates but monthly increase within the quarter**: The weighted average issuance interest rate was 2.45%, a year - on - year decrease of 0.54 percentage points. The decline of weak - quality entities was less than that of stronger ones [4]. - **Long - term issuance and increased reliance on borrowing new to repay old**: The weighted average term increased by 0.29 years to 3.77 years. The proportion of medium - term notes continued to rise. The broad and narrow borrowing - new - to - repay - old ratios reached 97.65% and 94.66% respectively [5]. - **Trading contraction and spread compression**: The trading scale decreased by nearly 20% year - on - year, and the trading spread was further compressed compared with the end of 2024 [5]. - **Improvement in net financing in key areas**: The net financing in key areas turned positive year - on - year and quarter - on - quarter. 17 provinces had a 100% borrowing - new - to - repay - old ratio, and Jilin and Chongqing issued project - construction urban investment bonds [5][39]. 3.1.2 Credit Situation - **Convergence of credit risk**: No non - standard defaults occurred in Q1. The number of commercial paper overdue times decreased year - on - year. Two companies in Jiangsu and Guangdong had their credit ratings upgraded. The number and scale of abnormal transactions decreased significantly year - on - year, with frequent abnormal transactions in Shandong and Guizhou [6]. 3.1.3 Issuance Forecast - It is expected that the issuance scale from April to December will be about 4.4 trillion yuan. The borrowing - new - to - repay - old ratio will remain high, and the level of financing entities may continue to move up. There may be months with negative net financing, and the total net financing scale is about 0.025 trillion yuan [7]. 3.2 Follow - up Concerns - **Local investment and financing needs**: Although there are marginal improvements in local investment and financing, the pressure on new financing is still high. It is necessary to optimize financing policies and support the opening of new investment spaces [9]. - **Debt repayment pressure**: A large amount of debt still needs to be resolved independently. Hidden - debt - related interest and government arrears should be reasonably included in the replacement scope [10]. - **Asset idleness**: Urban investment companies have a large amount of idle land assets. They should seize the opportunity of special bonds for land acquisition and adopt various ways to revitalize the assets [11]. - **Transformation authenticity**: The next two years are the critical period for transformation. Attention should be paid to the authenticity of transformation and the risk of the withdrawal of debt - resolution policies after exiting the platform [12]. 3.3 Urban Investment Bond Strategy - It is recommended to invest in high - quality enterprises in strong regions based on fundamentals to obtain coupon income. Selectively sink the credit quality, such as weak urban investment in strong regions and strong urban investment in weak regions, to seek the spread compression space brought by debt - resolution results [13].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In 2025, the infrastructure investment and financing (hereinafter referred to as "base investment") industry policies continue the overall idea of "controlling new debts and resolving existing debts" of the "package debt - resolution" policy in 2024, and pay more attention to the balance between debt resolution and development [3][5]. - The "package debt - resolution" policy has achieved phased results, with many regions achieving zero implicit debts. The industry adheres to resolving debts while developing and vice versa, strengthens special - bond support, and guides the standardized development of government investment funds to assist the transformation of base - investment enterprises [5][7][8]. - Under the influence of policies, the short - term debt - repayment pressure of base - investment enterprises has been relieved, the financing channels are continuously adjusted, the marginal liquidity is improved, and the bond financing cost is reduced. However, the non - standard debt situation in some provinces still needs attention [14]. - In 2025, the base - investment industry policies are expected to continue the main tone of "controlling new debts and resolving existing debts", and the industry's debt risk is generally controllable. New investment space may be opened, but issues such as the tightening of financing channels, non - standard debt replacement progress, and changes in the government - enterprise relationship after enterprise transformation need to be concerned [23][25]. 3. Summary by Relevant Catalogs 3.1 Policy Review - **Policy Continuity and New Requirements**: In 2025, the base - investment industry policies continue the "controlling new debts and resolving existing debts" idea of 2024, and the 2025 national government work report puts forward new requirements such as dynamically adjusting the list of high - risk debt regions and opening up new investment space [3][5]. - **Phased Results of Debt Resolution**: In the first quarter of 2025, many regions announced that they had achieved zero implicit debts in 2024, involving 10 provinces and 23 cities. For example, Xuzhou in Jiangsu Province used 11.881 billion yuan of special bonds to replace implicit debts and completed the task of zero implicit debts [5]. - **Debt Resolution in Development**: The 2025 national government work report proposes to dynamically adjust the list of high - risk debt regions. Some regions may be planning to withdraw from the list of key provinces. The central bank also guides the resolution of financial debt risks of financing platforms and supports their market - oriented transformation [7]. - **Support for Enterprise Transformation**: Special bonds are strengthened to support infrastructure construction, rural revitalization, and consumption - related fields. The State Council General Office issues a guiding opinion on promoting the high - quality development of government investment funds, and the Shanghai Stock Exchange revises relevant rules to guide the transformation of base - investment enterprises [8][9][11]. 3.2 Policy Main Impacts - **Relieved Short - term Debt - Repayment Pressure**: Since November 2024, the government has increased the local government debt limit to replace existing implicit debts. In the first quarter of 2025, 1.34 trillion yuan of special bonds were issued for this purpose, exceeding half of the annual quota, and the short - term debt - repayment pressure of base - investment enterprises has been relieved [14][15]. - **Adjusted Financing Channels**: In the first quarter of 2025, the issuance scale and net financing of base - investment bonds decreased compared with the same period last year. The non - standard debt scale decreased, and the proportion of bank loans in the debt of base - investment enterprises may increase [16]. - **Improved Liquidity and Reduced Financing Cost**: The liquidity of base - investment enterprises has been continuously improved, and the weighted average issuance interest rate of base - investment bonds in the first quarter of 2025 decreased by 11BP compared with the fourth quarter of 2024. The financing cost of base - investment enterprises in key provinces has decreased significantly [17]. - **Converged Non - standard and Bill Public Opinions**: The negative public opinions of base - investment non - standard risks have converged. In the first quarter of 2025, the total number of non - standard risk events decreased by about 41% compared with the fourth quarter of 2024 and about 51% compared with the first quarter of 2024. However, the non - standard risk situation in some regions still needs attention [18]. - **Released Liquidity by Special Bonds**: Special bonds support project investment and land asset recovery. In the first quarter of 2025, the new quota of government special bonds for infrastructure construction increased significantly, and some special bonds were used for land reserve projects, which helped base - investment enterprises dispose of idle and inefficient land assets and release liquidity [19][20]. - **Enterprise Transformation and High - quality Development**: Policy guidance promotes the transformation and high - quality development of base - investment enterprises. The proportion of market - oriented entities among bond - issuing enterprises has increased, and the transformation is expected to accelerate [21][22]. 3.3 Industry Development Expectations - **Controllable Debt Risk**: In 2025, the base - investment industry policies will continue the main tone of "controlling new debts and resolving existing debts". The debt risk of the industry is generally controllable, but the implementation of financial debt - resolution policies and the adjustment of financing channels need to be concerned [23][25]. - **New Investment Space and Enterprise Transformation**: The current debt - resolution work emphasizes the balance between debt resolution and development. New investment space may be opened, and base - investment enterprises are expected to focus on key investment fields and industrial investment. The process of enterprises withdrawing from the platform and industrial transformation is expected to accelerate [25]. - **Challenges and Concerns**: The fundamental improvement of base - investment enterprises is still under pressure, and the progress of non - standard debt replacement is uncertain, which may affect the public opinion trend. The changes in the government - enterprise relationship after enterprise transformation also need continuous attention [25][33][34].