Core Viewpoint - The recent announcement by the China Interbank Market Dealers Association regarding the self-regulation of underwriting quotes in the interbank bond market aims to enhance the quality and stability of the bond market, addressing issues such as price wars and promoting a market-oriented pricing mechanism [1][2]. Group 1: Impact on Bond Market - The new regulations are expected to end the "price war" phenomenon in the bond market, encouraging a return to market-based pricing mechanisms [1][2]. - As of June, the interbank market accounted for 88.4% of the total bond market custody balance, highlighting its significance in China's bond market [1]. Group 2: Changes for Underwriting Institutions - The regulations will push underwriting institutions to restructure their profit models, promoting long-term and stable development [3]. - The current low underwriting fees have led to concerns about the quality of due diligence and compliance, potentially increasing default risks in the bond market [2][3]. Group 3: Financing for the Real Economy - By regulating underwriting quotes, the new rules are expected to broaden financing channels for the real economy, directing funds towards weaker sectors and key areas [4]. - The regulations aim to enhance the willingness of underwriting institutions to serve small and micro enterprises, as well as technology innovation companies, thereby improving market transparency and investor decision-making quality [4].

Core Viewpoint - The recent notice from the China Interbank Market Dealers Association aims to regulate the bond underwriting market by addressing issues such as distorted pricing, non-market-based issuance, and interference in the underwriting process, emphasizing that underwriting fees must not be quoted below cost [1][4][5]. Group 1: Regulatory Measures - The notice reiterates that underwriters must not quote fees below cost, requiring main underwriters to establish internal management systems for pricing and to assess project costs comprehensively [5][6]. - This is the second notice issued within a month regarding low underwriting fees, indicating a growing concern over practices such as low-price underwriting and potential collusion among market participants [6][7]. - The association has initiated self-regulatory investigations into firms that engaged in low-cost bidding, highlighting the need for stricter compliance and accountability [6][9]. Group 2: Pricing Mechanism and Underwriter Selection - The notice mandates that issuers and main underwriters adhere to market principles when determining pricing ranges, ensuring that these ranges reflect comparable bond rates or fair market prices [8]. - It limits the number of underwriters based on the issuance scale, allowing a maximum of two underwriters for short-term and ultra-short-term notes, three for issues between 2 billion and 5 billion, and four for issues above 5 billion [8]. - The notice also emphasizes the importance of maintaining a balance between underwriting and investor participation, ensuring that underwriting does not crowd out legitimate market demand [8]. Group 3: Complaint and Integrity Mechanism - The association plans to establish a complaint and integrity public disclosure mechanism to address violations of laws and self-regulatory rules during the issuance process [9]. - Complaints regarding interference in pricing, low-cost bidding, and other unethical practices will be documented and made public, promoting transparency and accountability in the bond market [9].

Group 1 - A joint statement from 21 Arab and Islamic countries condemns Israel's attacks on Iran, emphasizing the need for respect for sovereignty and peaceful dispute resolution [2] - The U.S. President Trump announces a temporary halt on sanctions against Russia to facilitate negotiations, while Russia expresses hope that this pause will not last long [3] - A fireworks explosion in Hunan, China, results in one death, six missing, and nine injuries, with ongoing rescue efforts [4][5] Group 2 - The Central Social Work Department and the Ministry of Housing and Urban-Rural Development in China are promoting measures to address urgent issues faced by new employment groups [6][7] - Gree Titanium responds to the freezing of 1.806 billion shares, attributing it to the previous actual controller's unauthorized guarantees, while assuring that business operations remain normal [8] - OpenAI executives are discussing potential antitrust actions against Microsoft, their main supporter, regarding competitive behavior during their collaboration [15] Group 3 - GAC Aion confirms that its production and operations are normal, refuting rumors about employee stock ownership plans [12] - Huawei's executive explains the HarmonyOS, highlighting its capability to connect hardware and software, with over 1 billion devices currently connected [10][11] - The People's Bank of China plans to issue 30 billion yuan in central bank bills in Hong Kong, with 20 billion yuan maturing this month [20] Group 4 - The China Interbank Market Dealers Association issues a notice to regulate bond underwriting practices, addressing issues like low underwriting fees and market competition [21] - Trump announces a new mobile phone service under his brand, promising value for American consumers and including various support services [26][27][28] - A trade agreement between the U.S. and the U.K. includes quotas on car imports and tariffs on steel and aluminum, aiming to strengthen supply chains in aerospace [29]