Summary of Financing Balances by Industry Core Insights - As of June 24, the total market financing balance reached 1,810.30 billion yuan, reflecting an increase of 5.13 billion yuan from the previous trading day, with 20 out of 31 industries showing an increase in financing balance [1][2] Industry Financing Increases - The power equipment industry saw the largest increase in financing balance, rising by 1.31 billion yuan to a total of 129.50 billion yuan, marking a 1.03% increase [1] - Other notable increases were observed in the electronics industry (1.15 billion yuan increase), computer industry (668 million yuan increase), and pharmaceutical and biological industry (664 million yuan increase) [1] Industry Financing Decreases - 11 industries experienced a decrease in financing balance, with the communication industry facing the largest drop of 4.27 billion yuan, bringing its total to 60.00 billion yuan, a decrease of 0.71% [1][2] - Other industries with significant decreases included national defense and military industry (1.95 billion yuan decrease) and construction decoration industry (1.87 billion yuan decrease) [2] Summary of Financing Balances by Industry | Industry | Latest Financing Balance (billion yuan) | Change from Previous Day (billion yuan) | Percentage Change (%) | |-------------------|-----------------------------------------|------------------------------------------|-----------------------| | Power Equipment | 1295.03 | 13.17 | 1.03 | | Electronics | 2081.19 | 11.53 | 0.56 | | Computer | 1364.58 | 6.68 | 0.49 | | Pharmaceutical | 1315.83 | 6.64 | 0.51 | | Mechanical Equipment | 939.85 | 5.78 | 0.62 | | Media | 411.07 | 3.97 | 0.98 | | Automotive | 944.02 | 3.52 | 0.37 | | Non-ferrous Metals | 770.20 | 3.43 | 0.45 | | Agriculture | 250.27 | 1.56 | 0.63 | | Light Industry | 127.62 | 0.68 | 0.53 | | Retail | 212.65 | 0.65 | 0.31 | | Construction Materials | 116.04 | 0.34 | 0.30 | | Environmental | 148.15 | 0.33 | 0.22 | | Basic Chemicals | 782.64 | 0.24 | 0.03 | | Beauty Care | 59.28 | 0.23 | 0.39 | | Coal | 154.34 | 0.23 | 0.15 | | Public Utilities | 421.94 | 0.23 | 0.05 | | Comprehensive | 32.43 | 0.06 | 0.19 | | Non-bank Financial | 1501.68 | 0.06 | 0.00 | | Steel | 144.41 | 0.04 | 0.03 | | Social Services | 96.00 | -0.07 | -0.07 | | Real Estate | 300.05 | -0.07 | -0.02 | | Transportation | 340.92 | -0.14 | -0.04 | | Textile and Apparel | 67.20 | -0.46 | -0.69 | | Banking | 532.07 | -0.75 | -0.14 | | Home Appliances | 259.87 | -0.78 | -0.30 | | Oil and Petrochemicals | 257.65 | -1.20 | -0.46 | | Food and Beverage | 520.28 | -1.70 | -0.32 | | Construction Decoration | 318.04 | -1.87 | -0.59 | | National Defense | 636.01 | -1.95 | -0.30 | | Communication | 600.02 | -4.27 | -0.71 | [1][2]

Group 1: Report General Information - Report Type: Fixed Income Report [1] - Release Time: June 24, 2025 [1] - Analyst: Liang Weichao, SAC Registration Number: S1340523070001 [2] - Research Assistant: Xie Peng, SAC Registration Number: S1340124010004 [2] Group 2: Core Viewpoints - In the urban investment bond market, the liquidity of medium - to long - term and high - rated bond items has increased. In the industrial bond market, the liquidity of medium - and high - rated bond items has increased [3][4][10][20] Group 3: Urban Investment Bonds Liquidity Analysis - Regionally, high - grade liquid bond items in Jiangsu increased, while those in Shandong, Sichuan, Tianjin, and Chongqing remained stable. In terms of maturity, medium - to long - term liquidity increased, and short - term liquidity decreased. By implied rating, high - grade bond item liquidity increased, and low - grade liquidity decreased [3][10] - Among the top twenty with rising liquidity scores, the main body levels are mainly AA, concentrated in regions such as Jiangsu, Zhejiang, and Anhui, and the industries mainly involve construction decoration and comprehensive industries. Among the top twenty with falling liquidity scores, the main body levels are mainly AA, and the regional distribution is mainly in Zhejiang, Sichuan, Shandong, etc., with industries mainly in construction decoration and comprehensive industries [12] Yield Analysis - Regionally, the yields of high - grade liquid bond items in Jiangsu, Shandong, Sichuan, Tianjin, and Chongqing mainly decreased, with the amplitude concentrated between 1 - 5BP. By maturity, the yields of high - grade liquid bond items at all maturities mainly decreased, with the amplitude concentrated between 1 - 5BP. By implied rating, the yields of bond items at all implied levels mainly decreased, with the amplitude concentrated between 1 - 3BP [3][12] Group 4: Industrial Bonds Liquidity Analysis - By industry, the high - grade liquid bond items in industries such as public utilities and coal increased, while those in real estate, transportation, and steel remained stable. By maturity, the high - grade liquid bond items at all maturities increased overall. By implied rating, the high - grade liquid bond items with implied ratings of AAA and AA+ increased, while AAA+, AAA -, and AA remained stable overall [4][20] - In terms of the rising liquidity scores, the industries of the top twenty main bodies are mainly construction decoration, public utilities, and transportation, with the main body levels mainly AAA. The industries of the top twenty bonds are mainly transportation and public utilities. In terms of the falling liquidity scores, the top twenty main bodies are mainly in the construction decoration and real estate industries, with the main body levels mainly AAA and AA+. The industries of the top twenty bonds are mainly transportation and coal [25] Yield Analysis - By industry, the yields of bond items in all industries mainly decreased, with the amplitude concentrated between 1 - 3BP. By maturity, except for the 1 - 2 - year - term, the yields of bond items at other maturities mainly decreased, with the amplitude concentrated between 3 - 5BP; the yields of 1 - 2 - year - term bond items mainly increased, with the amplitude between 1 - 2BP. By implied level, the yields of all levels mainly decreased, with the amplitude concentrated between 1 - 3BP [4][23]

Group 1: Market Performance - The SW Construction Decoration Index decreased by 2.24%, while the CSI 300 Index fell by 0.45%, resulting in a relative return of -1.79 percentage points [1] - The top three sub-industries with the largest weekly declines were state-owned infrastructure enterprises (-1.54%), national infrastructure enterprises (-1.68%), and private infrastructure enterprises (-2.07%) [1] - The top three sub-industries with the highest annual growth were ecological landscaping (+10.84%), decorative curtain walls (+7.86%), and specialized engineering (+3.82%) [1] Group 2: Company Performance - The top five individual stocks with the highest weekly gains were Shen Shui Institute (+15.45%), ST Jiao Investment (+7.1%), Chengdu Road and Bridge (+6.51%), Huilv Ecology (+6.49%), and Shikong Technology (+6.29%) [1] - The bottom five individual stocks with the largest weekly declines were Zhi Te New Materials (-18%), Ao Ya Shares (-17.6%), Huo Pu Shares (-11.78%), Zhenhai Shares (-11.25%), and ST Hua Wang (-10.71%) [1] Group 3: Industry Changes - National Bureau of Statistics reported that from January to May 2025, national fixed asset investment increased by 3.7% year-on-year, manufacturing investment rose by 8.5%, and infrastructure investment (full caliber) grew by 10.4% [2] - Infrastructure investment (excluding electricity) increased by 5.6%, while real estate investment decreased by 10.7% [2] Group 4: Key Company Developments - China National Chemical Engineering signed a business contract for the second phase of a 500,000-ton soda ash plant project in Kazakhstan, with a total amount of $337 million, accounting for 19.8% of the company's 2024 revenue [2] - China Chemical's new contracts signed from January to May 2025 totaled 150.8 billion yuan, a year-on-year decrease of 9.92% [2] Group 5: Investment Recommendations - The industry is currently weak, but regional investments may gain elasticity with the deepening of national strategic layouts [2] - Recommended undervalued state-owned enterprises include China Chemical, China Railway, and China Railway Construction, with a focus on China Communications Construction and China Metallurgical Group [2] - Recommended private enterprises include Zhi Te New Materials and Honglu Steel Structure, with a focus on Zhongyan Dadi, Shenzhen Ruijie, and Huayang International [2]

Core Viewpoint - The State Administration for Market Regulation (SAMR) will conduct national quality supervision and random inspections on 164 types of products in 2025, focusing on ensuring product safety and quality across various sectors [1] Group 1: Inspection Scope and Methodology - SAMR will employ a dual-random approach to select enterprises for inspection and match them with sampling inspection institutions [1] - A total of over 16,000 batches of samples will be collected from production, circulation, and online sales, covering eight key areas including electronics, agricultural materials, construction materials, and food-related products [1] Group 2: Focus Areas for 2025 - Children's products will remain a key focus for inspections this year [1] - The inspection intensity for products sold through live streaming and online sales will significantly increase, with the number of batches inspected rising by 70% compared to 2024 [1] - The inspection batches for products such as power banks and electric bicycles will also see a substantial increase [1] Group 3: Emerging Industries - To support the rapid development of emerging industries, electric vehicle charging stations, power batteries, drones, and photovoltaic components will be included in the inspection scope [1]

1. Report Industry Investment Rating - No industry investment rating is provided in the report. 2. Core Viewpoints of the Report - The report conducts a comprehensive analysis of the convertible bond market, issuer financial performance, and credit risk based on the 2024 annual reports and Q1 2025 reports. With convertible bonds entering the peak redemption and repayment period in 2025, the importance of credit risk research has become prominent. Some industries face challenges such as price pressure, demand shortfalls, and supply - demand mismatches, leading to increased operating pressure, weakened profitability, and cash flow issues for some issuers, thus highlighting the need to focus on their credit risks [1][20]. 3. Summary by Relevant Catalogs 3.1 Convertible Bond Market Development Overview - **Issuance and Stock Situation**: In 2024, China's convertible bond issuance scale decreased year - on - year, with a total issuance of 38.757 billion yuan, a 72.78% decline. From January to May 2025, the issuance scale increased compared to the same period in 2024, reaching 25.923 billion yuan, a 156.40% increase. As of June 13, 2025, there were 484 outstanding convertible bonds, with a balance of 668.343 billion yuan. Private enterprises were the main issuers, with 383 convertible bonds and a balance of 388.428 billion yuan. Convertible bonds with lower credit ratings accounted for a relatively high proportion, indicating that some issuers had relatively weak creditworthiness [1][11][12]. - **Importance of Convertible Bond Credit Risk Research**: In recent years, the number of convertible bond credit risk events has increased. Since 2023, credit risk events have occurred in bonds such as Soute Convertible Bond, Hongda Convertible Bond, etc. With convertible bonds entering the peak redemption and repayment period in 2025, the importance of credit risk research has become more prominent [20]. 3.2 Financial Performance of Convertible Bond Issuers - **Profitability**: In 2024, the overall operating income and net profit of convertible bond issuers decreased year - on - year, but showed improvement in Q1 2025. In 2024, industries such as agriculture, forestry, animal husbandry, and fishery turned from losses to profits, while industries like power equipment and building materials saw significant net profit declines. In Q1 2025, industries such as agriculture, forestry, animal husbandry, and fishery continued to perform well, but industries like power equipment and coal had significant net profit declines [23][29]. - **Cash Flow**: In 2024, the overall operating net cash flow of convertible bond issuers decreased year - on - year. Industries such as communication, media, and construction decoration saw significant improvements, while industries like national defense and military industry and power equipment weakened significantly. In Q1 2025, the net outflow of operating cash flow decreased. In 2024, the overall net outflow of investment cash flow decreased, and the net inflow of financing cash flow decreased year - on - year. Industries such as power equipment, electronics, and basic chemicals had large net inflows of financing cash flow and were more dependent on external financing [2][3][49]. - **Debt Burden and Solvency**: At the end of 2024, the overall asset - liability ratio of issuers was 60.93%, an increase of 1.29 percentage points from the end of 2023. The total debt scale increased, and the short - term debt ratio decreased compared to the end of 2023. The overall solvency weakened at the end of 2024 [3]. 3.3 Summary of the Current Credit Risk Status of Outstanding Convertible Bonds - Some industries, including coal, steel, construction materials, and power equipment, face challenges such as price pressure, demand shortfalls, and supply - demand mismatches. Some issuers in these industries have increased operating pressure, weakened profitability, cash flow problems, increased debt burdens, and weakened solvency, requiring close attention to their credit risks [4][63][66].

创业板股最新融资余额为3460.12亿元，环比减少10.75亿元，25只股融资余额环比增长超10%，融资余 额环比降幅超10%的有17只。 证券时报·数据宝统计显示，6月19日创业板指下跌1.36%，创业板股两融余额合计3469.13亿元，较上一 交易日减少11.03亿元，其中，融资余额合计3460.12亿元，环比上一日减少10.75亿元；融券余额9.01亿 元，环比减少2851.29万元。 具体来看，融资余额增长的创业板股有375只，其中，25股融资余额增幅超过10%。增幅最大的是逸豪 新材，该股最新融资余额5548.52万元，环比上一交易日增幅为66.81%；股价表现上，该股当日上涨 20.02%，表现强于创业板指；融资余额增幅较多的还有凯旺科技、海科新源等，分别增长36.27%、 23.86%。 融资余额增幅10%以上的个股中，从市场表现来看，当日平均上涨2.27%，上涨的有10只，涨停的有逸 豪新材、凯旺科技等3只，涨幅居前的有江苏雷利、清水源、万兴科技，涨幅分别为11.76%、7.13%、 4.35%。跌幅居前的有万邦医药、争光股份、稳健医疗，跌幅分别为5.59%、5.52%、3.47%。 资金流向 ...

Investment Rating - The industry rating is "Outperform the Market" (maintained rating) [4] Core Viewpoints - The western fixed asset investment (FAI) is experiencing high growth, with the issuance of special bonds accelerating, which will provide stronger support for infrastructure [1][21] - The GDP growth rate in the western region from 2019 to 2024 has reached a compound annual growth rate (CAGR) of 7%, with significant support from central financial policies and national strategic planning [28][32] - The issuance of special bonds in the central and western regions has significantly accelerated, with a notable increase in new special bonds in provinces like Sichuan and Shaanxi [21][32] Summary by Sections 1. High Prosperity of Western Fixed Asset Investment - The western region has maintained double-digit growth in FAI, with provinces like Inner Mongolia, Xinjiang, and Tibet showing strong performance [1] - The issuance of special bonds has increased significantly, with Sichuan's issuance up by 162% year-on-year [21] 2. Investment Opportunities in Key Regions - **Sichuan-Chongqing**: The transportation planning investment in Sichuan during the 14th Five-Year Plan is expected to increase by 16.5% compared to the previous plan, benefiting local construction companies [2][36] - **Tibet**: Active mining and robust infrastructure projects are expected to drive high regional investment demand, with significant projects like the construction of major copper mines [2][48] - **Xinjiang**: The coal chemical industry is thriving, with nearly 500 billion yuan invested in the past five years, and the region is expected to see continued infrastructure support [3][60] 3. Major Infrastructure Projects Boosting Regional Investment - The construction of the Pinglu Canal is expected to significantly enhance water transport infrastructure in Guangxi, with a total investment of approximately 727 billion yuan [3] - The Western Land-Sea New Corridor is projected to connect multiple provinces and enhance regional infrastructure growth, with completion expected by 2035 [3][60] 4. Investment Recommendations - Key stocks recommended include Sichuan Road and Bridge, China Chemical, and China Energy Engineering, all rated as "Buy" [9][47]

Group 1 - A total of 638 stocks reported their latest shareholder numbers as of June 10, with 268 stocks showing a decrease compared to the previous period [1][3] - Among the stocks with a decline in shareholder numbers, 16 stocks experienced a drop of over 10% [3] - The stock with the largest decrease in shareholder numbers was Shanshui Bide, which saw a 22% drop to 4,744 shareholders [3] Group 2 - The average increase of concentrated stocks since May 21 was 0.76%, outperforming the Shanghai Composite Index, which rose by 0.25% [2] - 44% of concentrated stocks achieved excess returns relative to the market [2] - Yuanlong Yatu had the highest increase among stocks with a decline in shareholder numbers, rising by 48.42% since May 21 [2] Group 3 - The latest concentrated stocks showed an average increase of 2.66% since June 1, with notable performers including Tongyuan Petroleum, Zhun Oil Co., and Jinchengzi, which increased by 85%, 55.44%, and 51.42% respectively [3] - Industries with the most concentrated stocks included machinery, electronics, and basic chemicals, with 31, 29, and 24 stocks respectively [3]

Group 1 - Urban renewal has become a key initiative for promoting sustainable urban development, encompassing the comprehensive renovation of old residential areas, old streets, old factories, and urban villages [1][4] - The progress of urban renewal is significant, with nearly 220,000 old residential communities under renovation from 2021 to 2024, surpassing the target of 219,000 set in the 14th Five-Year Plan [1][12] - The number of new urban renewal projects has stabilized around 60,000 annually since 2022, but total investment amounts have been notably lower in recent years, highlighting the importance of funding assurance for future projects [1][13] Group 2 - Funding for urban renewal primarily comes from four sources: central finance, local finance, financial institutions, and other social capital, with local government investment playing a dominant role [2][15] - In 2023, government investment accounted for over 40% of total funding in representative cities, with an average investment of approximately 16.6 billion yuan [15] - The diversification of financing mechanisms is continuously improving, with recent innovations including the issuance of special bonds and collaboration with policy-based financial institutions [2][18] Group 3 - Urban renewal is expected to provide long-term support for the real estate market, improve ecological environments, enhance public welfare, and promote cultural development [3][27] - The real estate development industry will need to shift from traditional incremental development models to stock updating models, increasing industry concentration as competition intensifies [32] - Demand for new building materials is anticipated to grow, particularly for high-quality pipes and environmentally friendly materials, as urban renewal emphasizes energy efficiency and sustainability [35]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The convertible bond market reached a critical stage in June 2025, a high - incidence period for convertible bond credit events. The report reviews the 2024 convertible bond credit storm and seeks coping strategies [1][9]. - The 2024 credit shock was the most extensive in the history of the convertible bond market. The root cause was the weak performance of the underlying stocks, and there were also other factors such as issuer fundamentals, market structure, and institutional behavior [2][3]. - In 2025, the approach to convertible bond credit risks has changed. The probability of a continuous and significant decline in the equity market has decreased, reducing delisting risks and repayment pressure. It is recommended to appropriately explore opportunities for mispricing repair [4][73]. 3. Summary According to the Catalog 3.1. Revisiting the 2024 Credit Storm: A Lesson from History 3.1.1. Review of Seven Important Credit Storm Events - **Event 1: April 2024 - New Nine - National Policies and Delisting Rules Triggered a Small - Scale Credit Shock**: On April 12, 2024, the new Nine - National Policies and delisting rules were released, causing significant differentiation in the equity and convertible bond markets. Small - cap stocks were under pressure, and nearly a hundred convertible bonds fell more than 5% within two days. Investor sentiment became cautious. After the regulatory clarification, the market recovered, and there was an inflow of incremental funds, but it also laid the groundwork for subsequent adjustments [11][12]. - **Event 2: May 2024 - Concentration of Credit Events of Weak - Quality Individual Bonds Signaled the Brewing of a Major Credit Storm**: In late April, some convertible bonds were affected by ST or non - disclosure of annual reports. In May, credit events such as debt overdue and rating downgrades of Lingnan Convertible Bond, and rating downgrades of Sanfang and Hongtu Convertible Bonds shattered the recovery trend of low - price bond valuations [18]. - **Event 3: Mid - June 2024 - Doubts about the Capital Chain of Photovoltaic Convertible Bonds Led to Institutional Selling**: On June 19, due to concerns about the capital liquidity of a photovoltaic component convertible bond issuer and the actual controller's attempt to reduce holdings, there was a large - scale sell - off of photovoltaic convertible bonds, intensifying market credit concerns [23]. - **Event 4: Late June 2024 - Concentrated Rating Downgrades, Including Unexpected Large - Cap Bonds**: After the adjustment of photovoltaic convertible bonds, there was a concentrated rating downgrade. The rating downgrade of Wentai Convertible Bond on June 20 significantly exceeded expectations, suppressing institutional sentiment and increasing concerns about future rating adjustments [29]. - **Event 5: Self - Rescue of Shanying Convertible Bond**: Shanying Convertible Bond faced repayment pressure. After the issuer announced a series of self - rescue measures on June 21, the bond price rebounded. Eventually, with the recovery of the equity market, the bond's parity rose above the maturity repayment price, and the repayment pressure was greatly relieved [35][36]. - **Event 6: Guanghui Convertible Bond's Repeated Struggles and Final Delisting**: Due to industry and company - specific problems, Guanghui Convertible Bond's underlying stock price fell below the face value, triggering delisting risk. Despite efforts to boost the stock price, it still entered the delisting process on July 18, causing market adjustments [40][41]. - **Event 7: Lingnan Convertible Bond's Default Shocked the Market**: On August 14, 2024, Lingnan Convertible Bond announced its inability to pay principal and interest on schedule, becoming the first convertible bond to default in the market. Its default had a greater impact on the market than previous defaults [45]. 3.1.2. Scar Effect of the Credit Storm - The 2024 credit shock was the most extensive in history, with over 50% of convertible bonds falling below the bond floor, and the proportion of bonds falling below the face value was also at a historical high [47]. - The pricing anchor for weak - quality individual bonds was lost, making it difficult for investors to make decisions. However, considering industry cycles and issuer efforts, the bond floor can still be used as a pricing anchor for debt - oriented convertible bonds [51][52]. - In terms of market structure, cyclical sectors such as agriculture, new energy, and chemicals had a higher proportion of convertible bonds falling deeply below the bond floor. AAA - rated convertible bonds had stronger credit risk resistance [55]. 3.2. Essence and Enlightenment of the Credit Storm - **Root Cause**: The weak performance of the underlying stocks was the root cause of the 2024 convertible bond market decline. When the equity market was weak, credit events would amplify negative feedback. In addition, there were other factors such as low - risk - preference incremental funds, weak issuer fundamentals, regulatory tightening, and market structural "aging" [3][60][64]. - **Coping Strategies**: Monitor the equity market's small - cap sector. Avoid bonds with obvious risks, especially those with high delisting pressure. Adjust positions based on the credit impact on different - quality bonds. During the shock, allocate large - cap and near - bond - floor bonds. Institutions with stable liabilities can consider participating in mispriced markets, while those with sensitive liabilities should wait for positive equity signals [68][69].