Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - The high - pressure situation of implicit debt supervision remains unchanged, emphasizing the prevention of "risks from risk disposal". The audit report reveals over a hundred billion yuan of irregular use of special bonds and the persistence of new implicit debt since March 2023, highlighting the need for continuous improvement of debt management mechanisms [5][7][9]. - Guangxi will spare no effort to support Liuzhou in debt resolution, aiming to balance debt reduction and high - quality development [5][10]. Summary by Directory 1. News Review - **Irregular Use of Special Bonds and New Implicit Debt**: The audit report shows that irregularities such as illegal borrowing, false reporting of expenditures, and idle misappropriation of special bonds still exist, involving over a thousand billion yuan. New implicit debt has also emerged since March 2023, along with irregularities like irregular fund collection by urban investment companies and false debt resolution. This indicates the need to improve the regular supervision system for special bonds and address deep - seated institutional issues in debt management [5][7][9]. - **Guangxi's Support for Liuzhou's Debt Resolution**: On June 25, Guangxi held a meeting to support Liuzhou in debt resolution, emphasizing the balance between debt reduction and high - quality development. Resolving Liuzhou's debt is a top priority for the region [10]. - **Early Redemption of Bonds by Urban Investment Enterprises**: Twenty urban investment enterprises redeemed bond principal and interest in advance this week, involving 21 bonds with a total scale of 40.86 billion yuan, a decrease of 4.51 billion yuan from the previous value. Most of these enterprises are from the eastern region, and the majority of their credit ratings are AA [12]. 2. Issuance of Local Government Bonds and Urban Investment Enterprise Bonds - **Local Government Bonds**: This week, the issuance scale and net financing of local government bonds increased, while the issuance interest rate decreased and the spread narrowed. As of now, the issuance progress of new special bonds this year is less than 40%, and the local debt replacement progress has reached 87%. A total of 60 local bonds were issued this week, with a scale of 261.753 billion yuan, and the net financing increased by 167.346 billion yuan to 124.334 billion yuan. The weighted average issuance interest rate dropped by 9.85BP to 1.72%, and the weighted average issuance spread narrowed by 3.37BP to 10.18BP [14]. - **Urban Investment Bonds**: The issuance scale of urban investment bonds increased this week, but the net financing turned negative. The issuance interest rate rose, and the spread widened. A total of 197 urban investment bonds were issued, with a scale of 128.875 billion yuan, an increase of 1.79% from the previous value. The net financing decreased by 445.82 billion yuan to - 32.634 billion yuan. The average issuance interest rate was 2.25%, up 1.74BP from the previous value, and the issuance spread was 77.89BP, widening by 4.95BP [17]. 3. Trading of Local Government Bonds and Urban Investment Enterprise Bonds - **Funding Situation**: The central bank conducted 960.3 billion yuan of reverse repurchases in the open market this week, with 858.2 billion yuan of reverse repurchases maturing, resulting in a net withdrawal of 79.9 billion yuan. Short - term funding rates mostly rose [24]. - **Urban Investment Rating Adjustment**: On June 18, 2025, Dagong Global downgraded the credit rating of Guizhou Guiyang Economic and Technological Development Zone Guihe Investment Development Co., Ltd. from AA to AA - and its bond rating from AA to AA - [24]. - **Credit Events and Regulatory Penalties**: No urban investment credit risk events occurred this week [24]. - **Local Government Bonds**: The trading volume of local government bonds decreased by 12.75% to 544.437 billion yuan, and the maturity yields generally declined, with an average decline of 4.78BP [24]. - **Urban Investment Bonds**: The trading volume of urban investment bonds increased by 15.88% to 378.924 billion yuan, and the maturity yields generally declined, with an average decline of 5.33BP. The spreads of 1 - year and 3 - year AA+ urban investment bonds widened, while that of 5 - year AA+ urban investment bonds narrowed [25]. - **Abnormal Trading of Urban Investment Bonds**: Under the broad - based criteria, 24 urban investment entities had 28 abnormal bond trades, with an increase in the number of entities, bonds, and trading times [25]. 4. Important Announcements of Urban Investment Enterprises - Forty - seven urban investment enterprises announced changes in senior management, legal representatives, directors, supervisors, etc., as well as changes in controlling shareholders, actual controllers, equity/asset transfers, suspected disciplinary violations, changes in the use of raised funds, and external guarantees [28].

Report Overview - The report is the 21st issue of the weekly monitoring report on the local government debt and urban investment industry in 2025, covering the period from June 9 to June 15, 2025 [1][3] Industry Investment Rating - Not mentioned in the report Core Viewpoints - The State Council Executive Meeting emphasized greater efforts to stabilize and rebound the real estate market, and incremental support policies are expected to be introduced. The real estate market still faces pressure in stabilizing and rebounding, and it is necessary to introduce incremental policies from both supply and demand sides [5][6][7] - Heilongjiang Province improved the emergency reserve fund system for debt repayment to support "bridge financing" for cities and counties with implicit debt repayment gaps. Henan Province promoted state - owned capital investment promotion and accelerated the transformation of urban investment companies into industrial investment companies [9][10] Summary by Directory 1. News Review (1) Real Estate Policy Support - On June 13, the State Council Executive Meeting proposed to build a new real - estate development model, promote the construction of "good houses" in urban renewal, and conduct a survey of real - estate land and projects. Since April, the real - estate improvement has slowed down. The meeting's emphasis on "greater efforts" signals further policy support. Local governments have also introduced measures, such as Guangzhou considering canceling restrictions and Hunan arranging for the acquisition of commercial housing as affordable housing. It is recommended to introduce incremental policies from both supply and demand sides [6][7][8] (2) Debt Management and Investment Promotion - On June 17, Heilongjiang issued a plan to improve the fiscal budget and debt management system, including establishing an emergency reserve fund system for debt repayment. Henan proposed to promote state - owned capital investment promotion and transform urban investment companies into industrial investment companies [9][10] (3) Early Redemption of Urban Investment Bonds - 23 urban investment enterprises redeemed bond principal and interest in advance this week, involving 24 bonds with a total scale of 45.37 billion yuan, an increase of 23.22 billion yuan compared with the previous value. Most of the enterprises are from the western region, and the main credit rating is AA [13] (4) Cancellation of Urban Investment Bond Issuance - Two urban investment bonds, "25 WanTouJi MTN002" and "25 HuiLinInvestment MTN001A", were cancelled this week, with a planned issuance scale of 950 million yuan. As of June 15, 58 urban investment bonds have been postponed or cancelled this year, with a total scale of 3.5348 billion yuan [14] 2. Issuance of Local Government Bonds and Urban Investment Enterprise Bonds (1) Local Government Bonds - This week, the issuance scale and net financing of local government bonds decreased, the issuance interest rate decreased, and the spread widened. As of June 15, the issuance progress of new special bonds this year is less than 40%, and the local debt replacement progress has reached 84%. A total of 22 local bonds were issued this week, with a scale of 107.786 billion yuan, a decrease of 1.65%. The net financing decreased by 9.3513 billion yuan to - 4.3012 billion yuan. The weighted average issuance interest rate decreased by 1.83BP to 1.82%, and the weighted average spread widened by 2.87BP to 13.55BP [15][16] (2) Urban Investment Bonds - This week, the issuance scale and net financing of urban investment bonds increased, and the net financing turned positive. The issuance interest rate decreased, and the spread narrowed. A total of 176 urban investment bonds were issued, with a scale of 126.607 billion yuan, an increase of 63.89%. The net financing increased by 1.1982 billion yuan to 1.1948 billion yuan. The overall issuance interest rate was 2.23%, a decrease of 4.19BP, and the issuance spread was 72.94BP, a decrease of 1.67BP. Seven overseas urban investment bonds were issued, with a total scale of 2.764 billion yuan [19] 3. Trading of Local Government Bonds and Urban Investment Enterprise Bonds - The central bank conducted 858.2 billion yuan of reverse repurchases this week, with 930.9 billion yuan of reverse repurchases maturing, resulting in a net withdrawal of 72.7 billion yuan. Short - term capital interest rates mostly declined. On June 6, 2025, Shanghai Brilliance upgraded the credit rating of Shanghai Pudong Land Holding (Group) Co., Ltd. from AA+ to AAA. No urban investment credit risk events occurred this week. The trading volume of local government bonds increased by 65.14% to 623.982 billion yuan, and the yield to maturity generally declined by an average of 3BP. The trading volume of urban investment bonds increased by 45.45% to 327.002 billion yuan, and the yield to maturity generally declined by an average of 3.95BP. The spreads of 1 - year, 3 - year, and 5 - year AA+ urban investment bonds narrowed. Under the broad - based criteria, 13 urban investment entities had 15 abnormal bond transactions [22][24][25] 4. Important Announcements of Urban Investment Enterprises - 43 urban investment enterprises issued announcements regarding changes in senior management, legal representatives, directors, supervisors, controlling shareholders, actual controllers, equity/asset transfers, and cumulative new borrowings this week [28]

Report Industry Investment Rating - Not provided in the document Core Viewpoints of the Report - The "376 Document" strengthens the full - process supervision of PPP projects, preventing the risk of local governments adding hidden debts through the PPP model, and improving the quality and standardization of PPP projects [6][11] - Shandong aims to clear all hidden debts by the end of 2028, and Fujian clarifies five situations where special bond funds can be recovered, which helps to prevent local debt risks [6][12][13] - This week, the issuance scale and net financing of local government bonds decreased significantly, while the issuance scale of urban investment bonds decreased and the net financing increased, but the net financing has been negative for six consecutive weeks [16][19] Summary According to Relevant Catalogs 1. News Review - **"376 Document" on PPP New Mechanism**: The "376 Document" further clarifies the review standards and strengthens the full - life - cycle supervision of PPP projects. It has new requirements in project access, franchise plan review, fiscal risk prevention, and performance assessment, aiming to prevent hidden debt risks and improve infrastructure investment efficiency [6][9][10] - **Shandong and Fujian Policies**: Shandong proposes to clear all hidden debts by the end of 2028, and Fujian clarifies five situations where special bond funds can be recovered, which helps to prevent local debt risks and improve the efficiency of special bond use [6][12][13] - **Early Redemption of Urban Investment Bonds**: Sixteen urban investment enterprises redeemed bond principal and interest in advance this week, with a total scale of 2215 million yuan, mainly from the western region and with AA - rated entities [6][15] 2. Issuance of Local Government Bonds and Urban Investment Enterprise Bonds - **Local Government Bonds**: This week, 26 local government bonds were issued, with a scale of 109595 million yuan, a 51.98% decrease from the previous value, and a net financing of 50501 million yuan, a 63.24% decrease. As of June 8, the new special bond issuance progress is less than 40%, but the local debt replacement progress has reached 83%, with more than half of the provinces completing their annual tasks [16] - **Urban Investment Bonds**: This week, 100 urban investment bonds were issued, with a scale of 77253 million yuan, a 23.57% decrease from the previous value, and a net financing of - 35 million yuan, an increase of 4600 million yuan from the previous value. The overall issuance interest rate is 2.27%, a 4.90BP decrease from the previous value, and the issuance spread is 74.61BP, a 3.90BP narrowing [19] 3. Trading of Local Government Bonds and Urban Investment Enterprise Bonds - **Funding Situation**: The central bank conducted 9309 billion yuan of reverse repurchases this week, with 16026 billion yuan of reverse repurchases maturing, resulting in a net withdrawal of 6717 billion yuan. Short - term funding rates mostly declined [23] - **Urban Investment Rating Adjustment**: On June 3, 2025, Zhongzheng Pengyuan upgraded the rating of four bonds issued by Zhejiang Huzhou Changxing Urban Construction Investment Group Co., Ltd. from AA+ to AAA [23][25] - **Credit Events and Regulatory Penalties**: No urban investment credit risk events occurred this week [25] - **Local Bond Trading**: The spot trading volume of local bonds was 377844 million yuan, a 5.83% decrease from the previous value, and most of the maturity yields increased, with an average increase of 1.71BP [25] - **Urban Investment Bond Trading**: The trading volume of urban investment bonds was 224820 million yuan, a 24.03% decrease from the previous value. Most of the maturity yields increased, with an average increase of 0.84BP. The spreads of 1 - year, 3 - year, and 5 - year AA+ urban investment bonds widened [25] - **Abnormal Trading of Urban Investment Bonds**: Under the broad - based statistics, 14 urban investment entities had 15 abnormal bond trades this week [25] 4. Important Announcements of Urban Investment Enterprises - Thirty - six urban investment enterprises announced changes in senior management, legal representatives, directors, supervisors, controlling shareholders, actual controllers, and equity/asset transfers this week [29]

1. Report Industry Investment Rating No relevant content provided. 2. Core Views - The "Opinions on Continuously Promoting Urban Renewal Actions" was released, defining the "roadmap" and "timetable" for urban renewal, and multiple - dimensional financing support will be strengthened [6][7]. - Xinjiang plans to clear all financing platforms by the end of 2025, and Jilin aims to exit the list of key provinces with high - risk debts [6][12]. - This week, 10 urban investment enterprises prepaid bond principal and interest, with a total scale of 1524 million yuan [6][14]. 3. Summary by Directory 3.1. News Review 3.1.1. "Opinions on Continuously Promoting Urban Renewal Actions" - Since 2019, the central and local governments have actively promoted urban renewal. By the end of 2024, China's urbanization rate reached 67%. From 2019 - 2024, 280,000 old communities were renovated, benefiting over 120 million people. Various infrastructure improvement projects have also achieved remarkable results [8]. - Future urban renewal focuses on eight tasks, aiming to make important progress by 2030 [9]. - Financing support includes central finance (continuing to increase investment and special treasury bond support), local finance (expanding special bond investment areas), financial institutions (formulating special loan management methods), and diversifying financing methods (such as PPP and REITs) [10][11]. 3.1.2. Xinjiang and Jilin's Debt - related Goals - Xinjiang plans to complete the clearance of all financing platforms by the end of 2025, and prohibits the establishment of new ones [12]. - Jilin aims to exit the list of high - risk debt provinces by innovating investment and financing models,盘活 "three capitals" of finance, and reducing the number of financing platforms [12]. 3.1.3. Pre - payment of Bonds by Urban Investment Enterprises - This week, 10 urban investment enterprises prepaid 10 bonds, with a total scale of 1524 million yuan, a decrease of 14.409 billion yuan compared to the previous value. Most of these enterprises are from the east and west regions, and the majority of their credit ratings are AA [14]. 3.2. Issuance of Local Government Bonds and Urban Investment Bonds 3.2.1. Local Government Bonds - This week, 51 local government bonds were issued, with a total scale of 197.25 billion yuan, a decrease of 0.66% from the previous value, and a net financing increase of 7.02% to 171.114 billion yuan. As of May 18, the replacement progress of local bonds this year reached 80%, and more than half of the provinces completed their annual tasks [6][16]. - The weighted average issuance interest rate decreased by 1.49BP to 1.88%, and the weighted average issuance spread narrowed by 2.04BP to 12.79BP [16]. - Anhui had the largest issuance scale of 56.452 billion yuan, and Guangxi had the highest issuance interest rate and spread [16]. 3.2.2. Urban Investment Bonds - This week, 35 urban investment bonds were issued, with a total scale of 32.227 billion yuan, a significant decrease of 80.01% from the previous value, mainly due to seasonal factors. The net financing increased by 4.51 billion yuan to - 21.62 billion yuan [6][20]. - The overall issuance interest rate was 2.17%, a decrease of 28.78BP from the previous value, and the issuance spread was 67.58BP, a narrowing of 26.77BP [20]. - Private placement bonds were the main issuance type, accounting for 45.71%. The 3 - year term was the most common, accounting for 37.14%. The issuer's main credit rating was AAA, accounting for 40.00% [20][21]. - Three overseas urban investment bonds were issued, with a total scale of 862 million yuan, and the weighted average issuance interest rate was 5.90% [21]. 3.3. Trading of Local Government Bonds and Urban Investment Bonds - The central bank conducted 486 billion yuan of reverse repurchases this week, with a net withdrawal of 475.1 billion yuan. Short - term capital interest rates mostly increased [26]. - This week, the trading volume of local government bond spot was 452.947 billion yuan, a decrease of 17.66% from the previous value, and most of the maturity yields increased, with an average increase of 3.33BP [26]. - The trading volume of urban investment bonds was 290.14 billion yuan, a decrease of 31.50% from the previous value, and most of the maturity yields increased, with an average increase of 1.41BP. The credit spreads of 1 - year, 3 - year, and 5 - year AA + urban investment bonds narrowed by 7.96BP, 3.71BP, and 6.10BP respectively [26]. - In a broad sense, 25 bonds of 22 urban investment entities had 30 abnormal trades, with an increase in the number of entities, bonds, and abnormal trades [27]. 3.4. Important Announcements of Urban Investment Enterprises - This week, 63 urban investment enterprises announced changes in senior management, legal representatives, directors, supervisors, etc., as well as changes in controlling shareholders, actual controllers, equity/asset transfers, cumulative new borrowings, and external guarantees [32].