Core Viewpoint - The successful issuance of China's first "carbon asset + rural revitalization" dual-labeled medium-term note by Shanghai Pudong Development Bank and Guangxi Guokong Capital Operation Group represents an innovative financial product that aligns with national "dual carbon" goals and rural revitalization strategies, providing a replicable model for green financing and regional economic development [1][4][6] Group 1: Financial Innovation - The medium-term note has a total issuance scale of 500 million yuan and a five-year term, linking carbon assets to create new pathways for green financing [1][4] - The note's core innovation lies in its carbon asset yield as the underlying support, offering investors additional carbon asset yield distribution linked to the issuer's subsidiaries' carbon quotas [4] - The issuance attracted significant market interest, with a subscription multiple of nearly three times, reflecting confidence in Guangxi Guokong Group's capabilities and strategic positioning in the green low-carbon sector [4][5] Group 2: Fund Utilization - Proceeds from the medium-term note will primarily support the procurement of raw materials for sugar production, specifically purchasing sugarcane from local farms to ensure stable supply [5] - The funding is strategically directed towards rural revitalization and the real economy, transforming financial resources into drivers for rural development and industrial upgrades [5] - This initiative aims to enhance employment and income for sugarcane farmers, thereby activating the rural economy's self-sustaining capabilities [5][6] Group 3: Strategic Positioning - Guangxi Guokong Group, established in June 2025 with a registered capital of 11 billion yuan, integrates resources from various state-owned enterprises under the Guangxi State-owned Assets Supervision and Administration Commission [4] - The group focuses on leveraging Guangxi's policy advantages and unique industries, aiming to become a leading state-owned capital operation company and a top food industry enterprise in China [4]

Core Viewpoint - The Ministry of Finance and the State Administration of Taxation issued a notice to support the transfer of state-owned equity and cash income to enhance the social security fund, providing tax exemptions for certain income types related to this transfer [1][2]. Group 1: Tax Policy and Implementation - The notice exempts value-added tax on all interest and interest-like income from loans and income from the transfer of financial products for the entities managing the transferred state-owned equity and cash income [1]. - The notice will take effect on April 1, 2024, and tax payments made prior to this date may be refunded if they meet the notice's criteria [1]. Group 2: Management and Operational Guidelines - A temporary measure was introduced to clarify the management of state-owned equity and cash income, aiming to standardize operations and enhance the safety of these assets [2]. - The guidelines expand the investment scope for cash income, aiming to preserve and increase its value, thereby strengthening the country's ability to address aging population challenges and boosting public confidence in the social security system [2]. Group 3: Tax Exemptions for Income - Income from the transfer of state-owned equity and cash income will be classified as non-taxable income for corporate income tax purposes [2]. - The transfer of non-listed state-owned equity will be exempt from stamp duty, while listed equity transfers and securities transactions will have a deferred tax collection policy [2].

Report Industry Investment Rating - Not provided in the content Core Viewpoints of the Report - Since July 2023, local government debt resolution policies have been intensively introduced, forming a "Document 35 + 6" policy system, which strictly regulates urban investment financing. Under the current refinancing environment that emphasizes both strict supervision and debt resolution, urban investment new - financing shows significant characteristics of "total volume control and structural differentiation", and the credit stratification and regional differentiation in the urban investment financing market will further intensify [2][4]. - The policy will continue to adhere to the principle of differentiated management, strictly curb new implicit debts, and support the transformation of qualified urban investment platforms. Regions with resource advantages and industrial support are expected to expand financing channels through industrial investment platforms, while regions with slow transformation and scarce resources will face severe constraints on platform financing capabilities [4]. Summary by Relevant Catalogs Urban Investment Financing Policy - Since July 2023, a "Document 35 + 6" policy system has been formed. Document 35 classifies regions and local state - owned enterprises and implements differentiated management of financing policies. The six supplementary documents further clarify measures such as controlling new government investment projects, expanding the scope of debt resolution measures, and specifying the exit path for high - risk key provinces. Overall, it comprehensively regulates urban investment financing [6]. - In March 2025, the Shanghai Stock Exchange issued Guidance Document No. 3, which added many review points for urban investment issuers, including clarifying the boundaries of urban investment entities, raising the threshold for bond issuance, and putting forward review requirements for the chaos in urban investment transformation, which is both a specific implementation of strict review and a guide for urban investment transformation [7]. - In the current urban investment financing review practice, bond issuance approval mainly relies on the list - based management, and the overall review scale is still strict. Even if the issuer is not on or has exited the "3899 list", it still needs to meet relevant regulations to issue new bonds [8]. Overview of New Urban Investment Financing - From October 2023 to July 2025, 534 urban investment entities in 28 provinces achieved new bond issuance. Economically developed provinces such as Guangdong, Jiangsu, and Zhejiang are dominant. In terms of administrative levels, prefecture - level and district - level entities are the main ones. High - rating entities (AAA and AA+) are the leading ones in new financing. The number of entities achieving new financing in the inter - bank market and the exchange market is basically the same, but there are obvious structural differences among different administrative levels [13][14][16]. - Most entities only issued 1 new bond, and those that could issue more than 3 new bonds were concentrated in AAA - rated provincial and prefecture - level entities. In terms of bond types, the scale of inter - bank products in new urban investment bonds significantly leads that of exchange products, and medium - term notes and ultra - short - term financing bills have the largest scale. New urban investment bonds are mainly public - offering bonds, and the main use of raised funds is to repay interest - bearing debts [18][22]. Overview of Entities Issuing Bonds for the First Time First - time Issuance of Urban Investment Platforms - From October 2023, among the 534 urban investment entities that achieved new financing, 69 were first - time bond issuers. They are characterized by "relatively weak credit qualifications (mainly district - level and AA+), leading number of first - time issuers in the exchange, and private - offering products as the mainstay". Different issuance venues have obvious regional preferences [34]. - Guangdong has significantly more first - time urban investment new - issuance entities than other provinces. There are three main types of regional preferences: regions with zero hidden debts, good economic foundations, and relatively loose supervision; regions with good economic foundations but large existing urban investment debts and different supervision intensities in the inter - bank and exchange markets; regions with relatively large economic volumes but heavy debt burdens, mainly achieving new issuance in the exchange [41][42]. First - time Issuance of Quasi - Urban Investment Industrial Entities - The first - time issuance of quasi - urban investment industrial entities is characterized by "mainly prefecture - level and AA+ entities, leading number of first - time issuers in the exchange, and both public - offering and private - offering products thriving". Their credit levels are generally better than those of first - time urban investment entities, and their financing channels are more diverse [47]. - These entities can be classified into three types according to business types: industrial holding, public utilities, and transportation. Industrial holding platforms account for more than 70% of the samples, and their credit qualifications are highly differentiated, which can be further divided into five sub - types [57][70].

Group 1 - The meeting between Shandong Guotou Company and Rizhao Municipal Government focused on enhancing cooperation in talent development and the life and health industry [1][2] - Rizhao City prioritizes the life and health industry as a strategic emerging industry, aiming to cultivate it as a key industrial chain with significant market demand [2] - Shandong Guotou Company is the only provincial state-owned capital operation company in Shandong, focusing on capital operation and asset management, with a strategic plan to invest 90% of new investments in strategic emerging industries and future industries [3][4] Group 2 - The collaboration between Shandong Guotou Company and Shandong Talent Group aims to integrate talent work with market supply, enhancing the synergy between technology, talent, and industry [4] - Shandong Talent Group has established a strategic framework to strengthen its core business areas, including talent recruitment, service, investment, and empowerment [4] - The partnership is expected to leverage mutual strengths and expand cooperation across multiple fields, contributing to national strategies and the development of Shandong Province [4]

Report Industry Investment Rating No relevant information provided. Core Viewpoints of the Report - Since April 29, the interest rates of credit bonds have been oscillating downward. The 5-year, 6-year, and 7-year medium-term notes have performed well. The historical percentile of the valuation of industrial bonds with a maturity of over 5 years is generally between 3% and 7% [15]. - Local governments are implementing various measures to boost economic development, aiming to transform into "service-oriented governments" and enhance the competitiveness of local enterprises and cities [5][67]. - In the financial bond market, the yields of various financial bond varieties have declined, and the credit spreads have actively narrowed. The current preferred strategy is the coupon strategy. For Tier 2 perpetual bonds, institutions with stable liability ends can consider extending the duration in advance [5][6][87]. Summary by Related Catalogs 5y+ Industrial Bonds Selection - Consider central state-owned enterprises with significant social responsibilities and influence, such as China Chengtong and China Guoxin. For example, 25 Chengtong Holdings MTN001 has a remaining term of 9.9836 years and a ChinaBond exercise valuation of around 2.17% [15]. - Focus on provincial state-owned enterprises with investment or both urban investment and industrial attributes, like Nantong Metro, Shandong Hi-Speed, and Yuexiu Group. Institutions with high return requirements can consider Shuidi Group and Shaanxi Tourism Group. For instance, 25 Shuidi Group MTN007 has a remaining term of 2.9479 + 2 years and a ChinaBond exercise valuation of around 2.56%, and 25 Shaanxi Tourism V1 has a remaining term of 9.8603 years and a ChinaBond exercise valuation of around 3.27% [16]. - Pay attention to large provincial comprehensive investment entities, such as Fujian Investment & Development Group, which is involved in industries like electricity, gas, financial services, and railways [16]. - Focus on high-grade long-term credit bonds with good liquidity, such as Kunpeng Capital, Hengjian Holdings, and China Everbright Group. China Everbright Group has over 10-year outstanding bonds worth 3 billion yuan and a valuation of about 2.2% [17]. Urban Investment Bonds and Regional Macroeconomics Local Governments Stimulate the Economy with Various Measures - Local governments are implementing measures in various aspects, including boosting consumption, talent cultivation, salary mechanisms, institutional opening, attracting foreign investment, urban renewal, debt resolution, platform transformation, and supporting private enterprises, to enhance local market cultivation, guide enterprise transformation, and encourage scientific research innovation [5][67]. - Examples include Guangzhou's plan to boost consumption, Shenzhen's deepening of reform and opening up, Shanghai's promotion of the replication and implementation of pilot measures in the free trade zone, Shandong's support for the high-quality development of the private economy, and the improvement of the development index of small and medium-sized enterprises [46][51][56][60][66]. Investment Recommendations - Focus on "major economic provinces" with good development momentum and debt management, such as Guangdong, Jiangsu, Zhejiang, Fujian, Anhui, Shanghai, and Beijing. Consider extending the duration to 5 years [71]. - Pay attention to regions where significant policies or substantial funds for debt resolution have been implemented, such as Chongqing, Tianjin, Guangxi, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Gansu, Guizhou, and Yunnan. Consider a duration of 3 - 5 years [72]. - Focus on prefecture-level cities with strong industrial bases and financial support, such as cities in Hunan, Hubei, Henan, Sichuan, Chongqing, Shaanxi, Guangxi, Shanxi, and Jiangxi. Consider a duration of 2 - 3 years [73][76][78]. Financial Bond Weekly Views - The yields of various financial bond varieties have declined, and the credit spreads have actively narrowed. The current preferred strategy is the coupon strategy. For Tier 2 perpetual bonds, institutions with stable liability ends can consider extending the duration in advance. There is still a certain positive carry in short- and medium-term Tier 2 perpetual bonds, and opportunities for spread compression can be explored [6][87]. - The credit spreads of commercial bank bonds with a maturity of over 4 years are at a historical percentile of over 20% since 2022, with greater room for compression. The credit spreads of Tier 2 perpetual bonds with a maturity of over 5 years are also at a historical percentile of over 20%, with potential for spread compression and the possibility of obtaining excess returns in a downward interest rate cycle [6]. - The yield curves of 4-year and 6-year bonds have convex points, providing good riding effects [6].

Group 1 - China Guoxin successfully issued the second phase of special bonds for stable growth and investment expansion, with a scale of 23 billion and a maturity of 10 years at a coupon rate of 2.09% [1] - In 2024, the State-owned Assets Supervision and Administration Commission (SASAC) decided to support China Guoxin in issuing 300 billion special bonds in batches to inject capital into relevant central enterprises [1] - The issuance of special bonds this time has a longer maturity compared to the previous issuance, with significant participation from major financial institutions [1] Group 2 - As a national-level state-owned capital operation company, China Guoxin has utilized various market-oriented methods to support the sustainable development of the real economy [2] - China Guoxin has established multiple actively managed funds, raising over 87 billion through a capital contribution of 29.3 billion, leading to investments in over 100 projects [2] - The company has invested over 346 billion in strategic emerging industries, focusing on sectors such as semiconductors, storage chips, new energy batteries, and biotechnology [2] Group 3 - China Guoxin aims to enhance the high-quality development of the real economy through higher-level state-owned capital operations, contributing to China's modernization [3]

Group 1 - Recently, China Chengtong and China Guoxin, two state-owned capital operation companies, announced plans to use stock repurchase and increase loan funds to enhance their stakes in listed companies [1] - The People's Bank of China has created two tools to support the stable development of the capital market, with initial quotas of 500 billion yuan and 300 billion yuan for securities, fund, and insurance company swap facilities and stock repurchase increase loans, respectively [1] - On May 7, the central bank announced the merger of the quotas for these two tools, totaling 800 billion yuan, to better meet the needs of different types of institutions and support the internal stability of the capital market [1] Group 2 - Both China Chengtong and China Guoxin are platforms under the State-owned Assets Supervision and Administration Commission, and most of their invested listed companies are "China-character" enterprises [2] - The loan interest rate for stock repurchase increase loans from commercial banks is around 2.25%, which may lead to a higher willingness to use these loans among companies that focus on shareholder returns and have high potential returns [2] - The Hong Kong Stock Connect Central Enterprise Dividend Index had a dividend yield of 8.06% as of May 15, significantly higher than the 10-year China Central Government Bond yield of 1.68%, highlighting the value of high-dividend stocks [2]