Report Industry Investment Rating - Not provided in the document Core Viewpoints - The scale of operating financial debts of financing platforms may decline to 5.7 trillion yuan or less, and the National People's Congress Financial and Economic Committee emphasizes increasing support for resolving "non-standard" and "dual non" debts [7]. - The National People's Congress Financial and Economic Committee proposes to study and implement measures to maintain a reasonable macro - tax burden level and sustainable fiscal operation, and to explore the establishment of a tax - expenditure system [8][9]. - Hunan will use policies such as new local government special bonds to increase the repayment of "chain debts", and the scale of special bonds for "debt clearance" nationwide is expected to remain at a high level this year [10]. - This week, 7 urban investment enterprises declared to become market - oriented operating entities or withdraw from the financing platform list, and 18 urban investment enterprises prepaid bond principal and interest [11][14]. Summary by Directory 1. News Review - **Financing platform debt and tax - system reform**: As of the end of 2025, compared with the beginning of 2023, the number and debt scale of financing platforms decreased by more than 70%. The operating financial debt scale of financing platforms may decline to 5.7 trillion yuan or less. The National People's Congress Financial and Economic Committee emphasizes increasing support for resolving "non - standard" and "dual non" debts. The committee also proposes to study the establishment of a tax - expenditure system to improve the standardization of the tax system and the effectiveness of tax macro - regulation [7][8][9]. - **Hunan's debt repayment measures**: Hunan will use new local government special bonds and other policies, explore ways such as盘活存量 assets and debt replacement to raise repayment funds, and increase the repayment of "chain debts". The scale of special bonds for "debt clearance" nationwide may range from 300 billion to 600 billion yuan this year [10]. - **Urban investment enterprises' "exit from platform"**: This week, 7 urban investment enterprises declared to become market - oriented operating entities or withdraw from the financing platform list, with a decrease in quantity compared to the previous period. Since October 2023, a total of 1,062 enterprises have made such declarations [11][12]. - **Pre - payment of urban investment bonds**: This week, 18 urban investment enterprises prepaid bond principal and interest, involving 19 bonds with a total scale of 2.412 billion yuan, a decrease of 473 million yuan compared to the previous period [14]. 2. Issuance of Local Government Bonds and Urban Investment Enterprise Bonds - **Local government bonds**: This week, the issuance scale and net financing scale of local government bonds both decreased. New bonds completed over 20% of the quota, and about 40% of the 2 - trillion - yuan replacement quota was issued. The weighted average issuance term was 17.95 years, and the weighted average issuance interest rate increased. Guangdong had the largest issuance scale [15][16]. - **Urban investment bonds**: The issuance scale of urban investment bonds decreased, and the net financing scale turned positive. The issuance interest rate increased, and the issuance spread narrowed. The issuance term was mainly 5 - year, and the issuer's main body level was mainly AAA. This week, 3 overseas urban investment bonds were issued with a total scale of 3.266 billion yuan [20]. 3. Trading of Local Government Bonds and Urban Investment Enterprise Bonds - **Fund situation**: The central bank conducted 277.6 billion yuan of reverse repurchase operations this week, with a net withdrawal of 1.4474 trillion yuan. Short - term capital interest rates mostly declined [25]. - **Local government bonds**: The spot trading scale of local government bonds was 647.56 billion yuan, an increase of 26.24% compared to the previous period, and the maturity yields fluctuated [25]. - **Urban investment bonds**: The trading scale of urban investment bonds was 436.937 billion yuan, an increase of 36.12% compared to the previous period. The maturity yields decreased by an average of 2.76BP, and the credit spreads of 1 - year, 3 - year, and 5 - year AA+ urban investment bonds narrowed [25]. - **Abnormal trading of urban investment bonds**: There were 7 abnormal trades of 7 bonds from 6 urban investment entities, with a decrease in the number of entities, bonds, and abnormal trades compared to the previous period [26]. 4. Important Announcements of Urban Investment Enterprises - This week, 30 urban investment enterprises issued announcements regarding changes in senior management, legal representatives, directors, supervisors, etc., changes in controlling shareholders and actual controllers, equity/asset transfers, and name changes [30][31][32]

1. Report Industry Investment Rating No information provided in the content. 2. Core Viewpoints of the Report - In 2026, China will continue to implement a more proactive fiscal policy and a moderately loose monetary policy, aiming to enhance macro - economic governance efficiency. The proactive fiscal policy has five highlights: maintaining a high fiscal deficit, expanding expenditure, optimizing the expenditure structure, resolving local government debt risks, and promoting fiscal and tax system reform [6][7][9]. - Xinjiang has fully resolved its stock of implicit debts, and Siping and Tonghua in Jilin have declared zero implicit debts. This indicates significant progress in debt resolution in these regions [6][17][18]. - During the statistical period, 15 urban investment enterprises declared themselves as market - oriented operating entities or exited the financing platform list, and 18 urban investment enterprises prepaid bond principal and interest [6][19][22]. - The issuance scale of local government bonds decreased, while the issuance scale of urban investment bonds increased, but the net financing scale decreased. The trading volume of both local government bonds and urban investment bonds increased [6][23][29]. 3. Summary by Relevant Catalogs 3.1 News Reviews 3.1.1 Five Highlights of the Proactive Fiscal Policy in the Government Work Report - Fiscal deficit remains high: The budget deficit rate in 2026 is planned to be around 4%, with a deficit scale of 5.89 trillion yuan. The central government's deficit ratio reaches a new high, and the special treasury bond scale decreases. The general deficit scale is 13.89 trillion yuan, with a slightly lower deficit rate. The central and local government leverage ratios increase, and the debt structure is optimized [9]. - Expand expenditure and improve transfer payments: The general public budget expenditure in 2026 will reach 30 trillion yuan. The central budget - inner investment increases, and the central transfer payments to local governments exceed 10 trillion yuan. A pilot project on integrating and coordinating the use of transfer payment funds is proposed [11]. - Optimize the expenditure structure: Focus on boosting consumption, investing in people, and improving people's livelihoods. Allocate 100 billion yuan for fiscal - financial coordinated special funds to expand domestic demand. Explore the preparation of a full - scale government investment plan, and guide private investment to new tracks [12][13]. - Resolve local government debt risks: Continue to resolve local government debt risks in an orderly manner, optimize the replacement rhythm, and build a long - term debt management mechanism. The implicit debt scale may drop to 3.5 trillion yuan by the end of 2026 [14]. - Promote fiscal and tax system reform: Increase the proportion of state - owned capital income collection, expand the scope of zero - based budget reform pilots, and improve the local tax system, including promoting consumption tax reform [16]. 3.1.2 Xinjiang and Some Cities in Jilin Resolve Implicit Debts - Xinjiang announced the full resolution of its stock of implicit debts, becoming the fourth province to achieve full - scale zero implicit debts. Siping and Tonghua in Jilin also declared zero implicit debts [17][18]. 3.1.3 Urban Investment Enterprises "Exit the Platform" - During the statistical period, 15 urban investment enterprises declared themselves as market - oriented operating entities or exited the financing platform list. Most of them are from eastern provinces, with AA + ratings and district - county administrative levels [19]. 3.1.4 Pre - payment of Bonds by Urban Investment Enterprises - 18 urban investment enterprises prepaid bond principal and interest, involving 19 bonds with a total scale of 2.885 billion yuan. Most of the enterprises have AA ratings [22]. 3.2 Issuance of Local Government Bonds and Urban Investment Enterprise Bonds 3.2.1 Local Government Bonds - The issuance scale and net financing of local government bonds decreased. A total of 76 local bonds were issued, with a scale of 578.556 billion yuan. The weighted average issuance term was 18.27 years, and the issuance cost increased [23]. 3.2.2 Urban Investment Bonds - The issuance scale of urban investment bonds increased, but the net financing decreased. A total of 197 urban investment bonds were issued, with a scale of 135.796 billion yuan. The overall issuance interest rate decreased, and the issuance spread narrowed. Four overseas urban investment bonds were issued, with a scale of 3.617 billion yuan [29]. 3.3 Trading of Local Government Bonds and Urban Investment Enterprise Bonds - The central bank had a net capital injection of 935.5 billion yuan. The short - term capital interest rates showed mixed trends. There were no adjustments to urban investment ratings or credit risk events during the statistical period [33]. - The trading volume of local government bonds increased by 90.66% to 877.793 billion yuan, and the maturity yields mostly increased. The trading volume of urban investment bonds increased by 59.86% to 436.937 billion yuan, and the maturity yields mostly decreased. The spreads of 1 - year, 3 - year, and 5 - year AA + urban investment bonds narrowed [35]. - There were 9 abnormal transactions of 9 bonds of 8 urban investment entities, with a decrease in the number of entities, bonds, and transactions compared to the previous period [35]. 3.4 Important Announcements of Urban Investment Enterprises - 86 urban investment enterprises announced changes in senior management, legal representatives, directors, supervisors, controlling shareholders, actual controllers, and equity/asset transfers [39].

Report Industry Investment Rating - Not mentioned in the provided content Core Viewpoints - The central No. 1 document emphasizes innovating the investment and financing mechanism for rural revitalization, aiming to build a diversified investment mechanism from multiple dimensions to ensure capital for agricultural and rural modernization in the "15th Five-Year Plan" starting year [5][6] - Liaoning and Gansu have achieved significant results in reducing financing platforms, with cumulative reductions exceeding 80%, and both provinces have plans to continue preventing and resolving government debt risks in 2026 [5][10][11] Summary by Directory I. News Review - **Central No. 1 Document on Rural Revitalization Investment and Financing Mechanism**: The document proposes strengthening fiscal investment, improving the fiscal - financial coordinated investment mechanism, revitalizing rural resources, and improving risk prevention and fund supervision mechanisms to promote rural development. Urban investment enterprises can participate in rural revitalization projects [5][6][9] - **Liaoning and Gansu's Government Debt and Financing Platform Situation**: Liaoning over - completed the annual task of resolving implicit debt in 2025, with a cumulative reduction of 85.2% in financing platforms. In 2026, it will continue debt replacement and platform transformation. Gansu had 36 cities and counties clear implicit debt ahead of schedule by the end of 2025, with a financing platform reduction of 81.3%. It will use debt - resolution policies to promote debt clearance and platform transformation in 2026 [5][10][11] - **Tracking of Urban Investment Enterprises "Exiting Platforms"**: Seven urban investment enterprises declared to become market - oriented business entities or exit the financing platform list this week. Since October 2023, 1019 enterprises have made such declarations, mainly from eastern provinces and with AA + ratings [12] - **Early Redemption of Urban Investment Enterprise Bonds**: Twenty - three urban investment enterprises redeemed bond principal and interest in advance this week, involving 25 bonds with a total scale of 29.87 billion yuan [14] - **Postponed Issuance of Urban Investment Bonds**: Two urban investment bonds were postponed due to market fluctuations and corporate financing arrangement changes [15] II. Issuance of Local Government Bonds and Urban Investment Enterprise Bonds - **Local Government Bonds**: This week, the issuance and net financing scale of local government bonds increased, with rising issuance interest rates and narrowing spreads. A total of 68 local bonds were issued, with a scale of 439.275 billion yuan. As of February 1, the outstanding local bond scale was 55.31 trillion yuan [16] - **Urban Investment Bonds**: The issuance and net financing scale of urban investment bonds increased this week, with a downward issuance interest rate and narrowing spreads. A total of 165 urban investment bonds were issued, with a scale of 103.467 billion yuan. As of February 1, the outstanding urban investment bond scale was 14.17 trillion yuan [21] III. Trading of Local Government Bonds and Urban Investment Enterprise Bonds - **Funding Situation**: The central bank conducted 1761.5 billion yuan of reverse repurchase operations this week, with a net investment of 530.5 billion yuan. Short - term funding interest rates mostly increased [28] - **Local Government Bonds**: The trading scale of local government bonds decreased by 0.93% to 383.405 billion yuan this week, and the maturity yields mostly declined, with an average decline of 2.67BP [28] - **Urban Investment Bonds**: The trading scale of urban investment bonds decreased by 8.63% to 294.824 billion yuan this week, and the maturity yields mostly declined, with an average decline of 1.27BP. The credit spreads of 1 - year and 5 - year AA + urban investment bonds narrowed, while that of 3 - year AA + urban investment bonds widened [29] - **Abnormal Trading of Urban Investment Bonds**: Six urban investment entities' 6 bonds had 7 abnormal trades this week, with a decrease in the number of entities, bonds, and abnormal trades compared to the previous period [29] IV. Important Announcements of Urban Investment Enterprises - Forty - four urban investment enterprises announced changes in senior management, legal representatives, directors, supervisors, controlling shareholders, actual controllers, equity/asset transfers, and changes in the use of raised funds this week [33]

Report Industry Investment Rating - Not provided in the document Core Viewpoints - The high-pressure situation of implicit debt supervision remains unchanged, and emphasis is placed on preventing the "risk of risk disposal." Local governments are accelerating their exit from the list of key debt provinces. The issuance and trading of local government bonds and urban investment bonds have shown certain trends, and the dynamic adjustment of the debt situation and corporate operations need to be continuously monitored [2][4][8] Summary by Directory 1. News Review - **Policy for Inter - city Railways**: The National Development and Reform Commission issued an opinion to regulate inter - city railway construction, focusing on debt risk control from both asset and liability sides. On the asset side, strict access and exit standards are set based on passenger flow density; on the liability side, high - risk areas are restricted from adding new local government debt for inter - city railway construction [5][6][7] - **Exit from Key Provinces**: Jilin officially announced its successful exit from the list of key debt provinces, and Qinghai aims to exit in 2026. After exiting, the provinces may promote infrastructure investment and economic recovery, but risks such as blind transformation of urban investment enterprises should be watched out for [8] - **"Exit from Platform" of Urban Investment Enterprises**: Nine urban investment enterprises declared to become market - oriented business entities or exit the financing platform list this week, mainly in the infrastructure investment and financing industry. Since October 2023, a total of 1012 enterprises have made such declarations, with more in eastern provinces [11] - **Early Redemption of Bonds**: Twenty - three urban investment enterprises redeemed bond principal and interest in advance this week, involving 24 bonds with a total scale of 39.15 billion yuan [13] - **No Postponement or Cancellation of Bond Issuance**: There was no postponement or cancellation of urban investment bond issuance this week [14] 2. Issuance of Local Government Bonds and Urban Investment Enterprise Bonds - **Local Government Bonds**: The issuance and net financing scale of local government bonds increased this week, and the stock scale exceeded 55 trillion yuan for the first time. A total of 26 local bonds were issued, with new bonds and refinancing bonds issued. The weighted average issuance term decreased, and the issuance cost decreased [14][15] - **Urban Investment Bonds**: The issuance and net financing scale of urban investment bonds increased this week, with a decrease in issuance interest rate and a narrowing of issuance spread. The issuance was mainly private - placement bonds, with a 5 - year term as the main type. The issuer's main body level was mainly AA +. One overseas urban investment bond was issued [20] 3. Trading of Local Government Bonds and Urban Investment Enterprise Bonds - **Market Liquidity**: The central bank conducted net investment in the open market, but due to the approaching Spring Festival and tax - payment period, the capital market was tight, and short - term capital interest rates increased [26] - **Level Adjustment and Credit Events**: There were no urban investment level adjustment events or urban investment credit risk events this week [26] - **Local Government Bonds**: The spot trading volume of local government bonds increased by 3.90%, and the maturity yields of most terms decreased, with an average decline of 2.67BP [26] - **Urban Investment Bonds**: The trading volume of urban investment bonds increased by 0.98%, and the maturity yields of most terms decreased, with an average decline of 2.74BP. The credit spreads of 1 - year, 3 - year, and 5 - year AA + urban investment bonds narrowed [27] - **Abnormal Trading of Urban Investment Bonds**: Thirteen abnormal transactions of 11 bonds of 9 urban investment entities occurred this week, with a decrease in the number of abnormal transactions, entities, and bonds compared with the previous period [27] 4. Important Announcements of Urban Investment Enterprises - Forty - two urban investment enterprises issued announcements on changes in senior management, legal representatives, etc., changes in controlling shareholders and actual controllers, equity/asset transfers, cumulative new borrowings, and name changes [32]

Investment Rating - The report does not explicitly provide an investment rating for the local government debt and urban investment industry. Core Insights - The report emphasizes the ongoing high-pressure regulatory environment regarding hidden debt and the need to prevent "risks from risk disposal" [3][6] - It highlights the significant progress in the use of the 500 billion yuan balance limit, with over 90% utilization [4][17] - The report notes that the audit report revealed issues in the local government debt sector, including illegal borrowing and misreporting of expenditures, amounting to 132.6 billion yuan [7][9] Summary by Relevant Sections Local Government Debt and Urban Investment Debt Trading Situation - The issuance of local government bonds decreased, with a total issuance of 24 bonds amounting to 40.037 billion yuan, a year-on-year decline [17] - The net financing amount also fell to 28.074 billion yuan, with a cumulative issuance of new bonds reaching 53,316.52 billion yuan, exceeding the annual limit by 2.53% [17] - Urban investment bonds saw a decrease in issuance scale but an increase in net financing, with 124 bonds issued totaling 78.427 billion yuan [21] Audit Report Insights - The audit report indicated that since March 2023, new hidden debt behaviors have continued, totaling 5.909 billion yuan, with significant amounts used for repaying principal and interest [8][9] - The report outlines that 9 provinces have rectified issues involving 64.75 billion yuan, with specific measures taken to improve the management of special bonds [6][7] Measures Taken by Local Governments - Gansu Province has implemented measures to mitigate debt risks, including adjusting repayment plans and reducing interest rates, saving 140 million yuan in financial costs [10][11] - A total of 7 urban investment enterprises have declared themselves as market-oriented entities or exited the financing platform, with a focus on infrastructure investment [12] Market Dynamics - The report notes that the average issuance rate for urban investment bonds has increased to 2.30%, with a widening of the issuance spread [21][22] - The trading volume for local government bonds was 450.066 billion yuan, reflecting a decrease of 9.35% from the previous period [28]

1. Core Views - The Central Economic Work Conference emphasized addressing local fiscal difficulties, with a focus on the "three guarantees" at the grass - roots level. It was proposed to maintain a deficit rate above 4% in 2026, with a general fiscal expenditure scale of about 15 trillion yuan. The management of local government special bonds was optimized, and the operational debts of financing platforms became the focus of debt resolution [6][9][11]. - Jilin Province announced that it had reached the standard to exit the list of key provinces for local debt. Liaoning Province aimed to build a closed - loop debt management system to promote effective debt resolution [15][16]. - This week, 8 urban investment companies declared themselves as market - oriented operating entities or exited the financing platform list. 25 urban investment companies prepaid bond principal and interest, and 1 urban investment bond was cancelled for issuance [18][22][23]. 2. News Comment Central Economic Work Conference - First, it was the first time to mention "addressing local fiscal difficulties" and ensuring the "three guarantees" at the grass - roots level. The contradiction between revenue reduction and expenditure increase was prominent, especially at the grass - roots level. It was necessary to increase transfer payments from the central government, optimize the transfer payment structure, and enhance local independent financial resources [9]. - Second, the positive fiscal policy was continued, with a focus on both total force and structural optimization. It was recommended that the deficit rate in 2026 be maintained above 4%, the general fiscal expenditure scale be about 15 trillion yuan, and the total scale of new government debt be increased to 14.8 - 15.5 trillion yuan. The structure of fiscal expenditure should be optimized [10][11]. - Third, the management of the use of local government special bonds was optimized, and the efficiency and quality of the "negative list" management were improved. Attention should be paid to the quality and comprehensive benefits of investment [12]. - Fourth, the operational debts of financing platforms became the focus of debt resolution. It was necessary to classify and handle debts, optimize debt restructuring and replacement methods, and establish a risk - sharing mechanism [13][14]. Jilin and Liaoning's Debt Management - Jilin Province announced reaching the standard to exit the list of key provinces for local debt, aiming to build a long - term government debt management mechanism and promote state - owned enterprise reform [15]. - Liaoning Province aimed to build a closed - loop debt management system, accelerate the resolution of implicit debts and the reform and transformation of financing platforms, and strictly prevent the increase of implicit debts [16]. Urban Investment Companies' "Exit from Platform" - This week, 8 urban investment companies declared themselves as market - oriented operating entities or exited the financing platform list. Since October 2023, a total of 963 companies have made such declarations, mainly in eastern provinces, with AA + as the main credit rating [18]. Prepayment and Cancellation of Urban Investment Bonds - 25 urban investment companies prepaid bond principal and interest this week, involving 26 bonds with a total scale of 31.57 billion yuan. One urban investment bond, "25 Chuanfa MTN003 (Hybrid Science and Technology Innovation Bond)", was cancelled for issuance, with a planned issuance scale of 1 billion yuan [22][23]. 3. Bond Issuance Local Government Bonds - This week, the issuance and net financing scale of local government bonds increased. The special refinancing bonds for replacing implicit debts in 2025 have been fully issued. As of December 14, the cumulative issuance of new bonds reached 5296.432 billion yuan, completing 101.85% of the annual quota. The weighted average issuance term was 12.52 years, and the weighted average issuance rate was 2.08% [24][25][26]. Urban Investment Bonds - This week, the issuance scale of urban investment bonds decreased, while the net financing scale increased. The issuance rate and spread both increased. The overall issuance rate was 2.28%, and the issuance spread was 77.64BP. The issuance was mainly private placement bonds, with a 5 - year term as the main one, and the issuer's main credit rating was AA + [35]. 4. Bond Trading Fund Situation - This week, the central bank conducted 668.5 billion yuan of reverse repurchase operations in the open market, with 663.8 billion yuan of reverse repurchases maturing, resulting in a net investment of 4.7 billion yuan. Short - term capital interest rates mostly increased [39]. Bond Trading - The trading scale of local government bonds decreased by 2.40% to 496.486 billion yuan, and the trading scale of urban investment bonds increased by 16.79% to 316.22 billion yuan. The credit spreads of 1 - year, 3 - year, and 5 - year AA + urban investment bonds narrowed [41]. Abnormal Trading of Urban Investment Bonds - This week, 12 urban investment entities had 12 abnormal bond transactions. The number of entities, bonds, and abnormal transactions increased compared with last week [41]. 5. Important Announcements of Urban Investment Companies - This week, 76 urban investment companies announced changes in senior management, legal representatives, directors, supervisors, etc., changes in controlling shareholders and actual controllers, equity/asset transfers, and cumulative new borrowings [44].

1. Report Industry Investment Rating No relevant information provided. 2. Core Views of the Report - The Politburo meeting in December set the tone for the macro - policies in 2026, with the economy in 2025 expected to achieve its main goals. In 2026, the economy may face challenges, and the estimated growth rate under the neutral assumption is 4.8%. Fiscal policy should be more proactive with a suggested deficit rate of 4.5% - 5% and a broad - based deficit scale exceeding 16 trillion. Monetary policy will remain moderately loose, with expected interest rate cuts and reserve requirement ratio cuts [5][8][10]. - Nearly 20 regions have issued the "15th Five - Year Plan" suggestions, focusing on constructing government debt management mechanisms, resolving hidden debts, establishing local balance sheets, and promoting the transformation of financing platforms. It is expected that over 90% of platforms will complete their exit by the end of 2026 [5][15]. - This week, 5 urban investment enterprises declared themselves as market - oriented operating entities, 23 urban investment enterprises prepaid bond principal and interest, and 2 urban investment bonds cancelled their issuance [19][22][23]. - The issuance and net financing scale of local government bonds and urban investment bonds both decreased this week. The special refinancing bonds for replacing hidden debts in 2025 have all been issued [5][24][29]. 3. Summary by Relevant Catalogs 3.1. Important News Review 3.1.1. Politburo Meeting Emphasizes Policy Coordination - The Politburo meeting in December analyzed the economic work in 2026, stating that the economy in 2025 will achieve its main goals. In 2026, more proactive fiscal and moderately loose monetary policies will be implemented, with an emphasis on policy coordination and the integration of stock and incremental policies [7][8][10]. - It is suggested that the deficit rate in 2026 be raised to 4.5% - 5%, and the broad - based deficit scale exceed 16 trillion. The monetary policy will arrange one interest rate cut and 1 - 2 reserve requirement ratio cuts, and expand the scope of special re - loans [10]. - The key economic work in 2026 includes "domestic demand - led", "people's livelihood as the top priority", and the position of "risk prevention" has dropped to the last [13]. 3.1.2. "15th Five - Year Plan" Suggestions on Local Debt Management - Nearly 20 regions have issued "15th Five - Year Plan" suggestions, focusing on four aspects: constructing government debt management mechanisms, resolving hidden debts, establishing local balance sheets, and promoting the transformation of financing platforms [15]. - Most regions aim to resolve local government debt risks, and it is expected that over 90% of platforms will complete their exit by the end of 2026 [15][17]. 3.1.3. Tracking of Urban Investment Enterprises' "Exit from Platforms" - This week, 5 urban investment enterprises declared themselves as market - oriented operating entities, with the majority being AA + rated and from prefecture - level and district - county levels [19]. 3.1.4. Prepayment of Bond Principal and Interest by Urban Investment Enterprises - This week, 23 urban investment enterprises prepaid bond principal and interest, involving 23 bonds with a total scale of 34.02 billion yuan [22]. 3.1.5. Cancellation of Urban Investment Bond Issuance - This week, 2 urban investment bonds cancelled their issuance, with a planned total issuance scale of 6 billion yuan. As of December 7, 101 urban investment bonds have postponed or cancelled their issuance this year, with a total scale of 645.28 billion yuan [23]. 3.2. Issuance of Local Government Bonds and Urban Investment Enterprise Bonds 3.2.1. Local Government Bonds - The issuance and net financing scale of local government bonds decreased this week. The special refinancing bonds for replacing hidden debts in 2025 have all been issued. The total issuance scale was 1087.17 billion yuan, and the net financing amount was 604.93 billion yuan [24]. - As of December 7, the cumulative issuance of new bonds (excluding special bonds for small and medium - sized banks) was 52253.78 billion yuan, completing 100.49% of the annual new quota [24]. 3.2.2. Urban Investment Bonds - The issuance and net financing scale of urban investment bonds decreased this week. The total issuance scale was 878.19 billion yuan, and the net financing amount was - 7.11 billion yuan [29]. - The overall issuance interest rate was 2.20%, a decrease of 1.60BP from the previous value, and the issuance spread was 70.92BP, a decrease of 0.09BP [29]. 3.3. Trading of Local Government Bonds and Urban Investment Enterprise Bonds - The central bank conducted 6638 billion yuan of reverse repurchase operations in the open market this week, with 15118 billion yuan of reverse repurchases maturing, resulting in a net withdrawal of 8480 billion yuan [33]. - The short - term capital interest rates mostly declined this week [33]. - There were no adjustments to the urban investment ratings and no urban investment credit risk events this week [33]. - The trading scale of local government bonds increased by 29.40% to 5086.82 billion yuan, and most of the maturity yields increased [35]. - The trading scale of urban investment bonds decreased by 6.61% to 2707.68 billion yuan, and most of the maturity yields increased, with an average increase of 4.05BP [35]. - There were 9 abnormal transactions of 5 bonds from 5 urban investment entities this week, with a decrease in the number of entities and bonds compared to last week [35]. 3.4. Important Announcements of Urban Investment Enterprises - This week, 51 urban investment enterprises issued announcements regarding changes in senior management, legal representatives, directors, supervisors, etc. [38].

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]