Primary Market - A total of 24 offshore bonds were issued this week, including 6 RMB bonds, 10 USD bonds, 3 HKD bonds, and 5 EUR bonds, with issuance scales of 8.842 billion RMB, 3.2032 billion USD, 13.195 billion HKD, and 4.85 billion EUR respectively [1] - The largest single issuance in the offshore RMB bond market was 5 billion RMB by Hong Kong Mortgage Corporation Limited, while the highest coupon rate for RMB bonds was 6.9% issued by Zibo High-tech State-owned Capital Investment Co., Ltd [1] - In the USD bond market, the largest single issuance was 1.07197 billion USD, with the highest coupon rate of 9% issued by New World Development Company Limited [1] Secondary Market - The Markit iBoxx China USD Bond Composite Index rose by 0.06% to 251.16, while the investment-grade USD bond index increased by 0.07% to 243.85. The high-yield USD bond index decreased by 0.05% to 244.11 [2] - The real estate USD bond index fell by 0.12% to 183.44, while the city investment bond index rose by 0.09% to 153.36, and the financial bond index increased by 0.08% to 290.78 [2] Benchmark Spread - The spread between the 10-year benchmark government bonds of China and the US narrowed to 228.76 basis points, a decrease of 5.52 basis points from the previous week [3] Rating Changes - Moody's confirmed the "A1" issuer rating for Hong Kong and China Gas Company Limited, changing the outlook from "stable" to "negative" on November 17 [5] Domestic News - The Ministry of Finance and the People's Bank of China announced that savings bonds (electronic) will be included in the personal pension product range starting June 2026 [6] - The Ministry of Finance successfully issued 4 billion euros in sovereign bonds in Luxembourg, with a total subscription amount of 100.1 billion euros, 25 times the issuance amount [7] - The Bond Connect Northbound trading volume reached 572.3 billion RMB in October, with an average daily trading volume of 31.8 billion RMB [8] Overseas News - Major overseas investors held 9.25 trillion USD in US Treasury bonds as of September, with Japan continuing to increase its holdings [9] - Japan's 10-year government bond yield reached 1.765%, the highest since the financial crisis, driven by concerns over potential large-scale fiscal stimulus [10] Default and Restructuring - 78% of creditors have signed a restructuring support agreement with Zhongjun Group Holdings [11] - Western Cement announced a cash offer to repurchase its 4.95% senior notes due in 2026 while issuing new senior notes [12] - Road King Group's subsidiary received a winding-up petition related to approximately 442 million USD in unpaid principal and interest [13]

Market Overview - In the primary market, a total of 7 offshore bonds were issued by Chinese entities from October 6 to October 10, including 5 USD bonds and 2 HKD bonds, with issuance sizes of USD 1.7 million and HKD 500 million respectively. All bonds were issued via direct issuance [1] - The largest single issuance in the USD corporate bond market this week was USD 0.5 million by the International Finance Corporation, with the highest coupon rate at 4.5% also from the same issuer [1] Secondary Market Insights - The yield on Chinese USD bonds mostly increased this week. As of October 10, the Markit iBoxx Chinese USD bond composite index rose by 0.22% to 250.46, while the investment-grade USD bond index increased by 0.25% to 242.9. The high-yield USD bond index decreased by 0.05% to 245.55. The real estate USD bond index fell by 0.14% to 187.22, while the city investment USD bond index rose by 0.08% to 152.35, and the financial USD bond index increased by 0.12% to 290.03 [2] Benchmark Spread - As of October 10, the spread between the 10-year benchmark government bonds of China and the US narrowed to 228.02 basis points, a decrease of 8.47 basis points from the previous week [3] Domestic News - A one-stop account opening platform for foreign institutions in the interbank bond market was launched for trial operation on October 9, as per the People's Bank of China [5] - The Central Securities Depository and Clearing Company, in collaboration with the Interbank Lending Center, launched a centralized bond lending business, with 78 institutions participating in the first batch [6] - The Hong Kong government plans to issue HKD 16.75 billion and RMB 11 billion in bonds over the next six months, with a tentative schedule for six bidding sessions [7] Overseas News - Federal Reserve Governor Christopher Waller indicated support for further interest rate cuts but emphasized the need for caution due to mixed economic signals, suggesting a potential 25 basis point cut in each of the remaining two meetings this year [9] Offshore Debt Alerts - Fantasia Holdings announced that the hearing for its offshore debt restructuring plan is scheduled for January 16, 2026 [10] - Poly Developments announced that 4.512 billion shares will be transferred without compensation to Poly Group, making it the controlling shareholder [11] - Aoyuan Meigu's first temporary creditors' meeting is set to be held on October 25, 2025 [12]

Primary Market - A total of 22 offshore bonds were issued by Chinese entities from September 1 to 5, 2025, including 3 offshore RMB bonds, 11 USD bonds, and 8 HKD bonds, with issuance sizes of 30 billion RMB, 4.15 billion USD, and 5.475 billion HKD respectively [1] - The largest single issuance in the offshore RMB bond market was 2 billion RMB by China Construction Bank's London branch, with the highest coupon rate of 2.95% issued by East Asia Bank [1] - In the USD bond market, the largest single issuance was 2 billion USD by the Asian Infrastructure Investment Bank, with the highest coupon rate of 6.9% issued by Zhengding County State-owned Assets Holding and Operating Group [1] Secondary Market Overview - The yield on Chinese USD bonds rose across the board, with the Markit iBoxx Chinese USD Bond Composite Index increasing by 0.18% to 248.3, and the investment-grade USD bond index rising by 0.19% to 240.64 [2] - The high-yield USD bond index increased by 0.07% to 244.64, while the real estate USD bond index rose by 0.13% to 186.03 [2] - The local government financing vehicle (LGFV) USD bond index increased by 0.08% to 151.34, and the financial USD bond index rose by 0.1% to 288.27 [2] Benchmark Spread - The spread between the 10-year benchmark government bonds of China and the US narrowed to 241.16 basis points, a decrease of 6.07 basis points from the previous week [3] Rating Changes - Fitch adjusted Meituan's long-term issuer rating outlook from "Positive" to "Stable" on September 4 [4] - Moody's confirmed CITIC Resources' "Ba2" corporate family rating, changing the outlook from "Stable" to "Negative" on September 3 [4] - Several companies, including Weifang Haifa and Sichuan Xinyao Group, had their international long-term ratings withdrawn at their request [4] - Fitch changed Baidu's long-term foreign and local currency issuer default rating outlook from "Stable" to "Negative" on September 2 [4] Domestic News - Local government bond issuance in August exceeded expectations, with actual issuance of 977.6 billion RMB, higher than the planned 940.8 billion RMB, and a planned issuance of 726.5 billion RMB in September [5] - The existing stock of local government debt reached 53.05 trillion RMB, with general debt at 17.1 trillion RMB and special debt at 35.95 trillion RMB [5] Offshore RMB Bonds - Kazakhstan Development Bank successfully issued its first offshore RMB bond of 2 billion RMB with a 3.35% coupon rate on September 2, marking several market firsts [6] - Multiple offshore RMB local government bonds were announced, including plans from Hainan and Shenzhen to issue up to 5 billion RMB each [7] - Guangdong Province successfully issued 2.5 billion RMB in offshore RMB local government bonds in Macau, continuing a five-year trend [7] Overseas News - Federal Reserve's Williams indicated that policy rates are expected to gradually decrease over time, aligning with the dual mandate goals [8][9] Offshore Debt Alerts - Kaisa Group announced that its offshore debt restructuring plan is expected to take effect by the end of September, aiming to optimize its debt structure and reduce debt by approximately 8.6 billion USD [10] - AVIC Capital announced the early redemption of 32.45 million USD principal of its bond on September 4 [11] - Alibaba initiated an exchange offer for its outstanding senior notes, with a total principal amount not exceeding 1 billion USD for 2030 notes and 1.15 billion USD for 2035 notes [12] - DBS China signed a green loan agreement of 490 million RMB with Henderson Land for financing retail and office projects in Shanghai [13]

Group 1 - The largest decline in the price of offshore Chinese bonds on that day was observed in the bonds issued by Sunshine City Group, with a drop of 80.20%, bringing the price down to 0.10 [2][4] - The current prices of various bonds from different companies indicate a range of values, with some bonds from Zhengrong Real Estate Group priced as low as 0.54 and others from MicroPort Medical Science priced at 123.46 [2][4] - The data source for the bond prices is the China Economic Society's corporate external debt risk monitoring system, with updates as of Beijing time in 2025 [2][4] Group 2 - Zhengrong Real Estate Group has multiple bonds listed, with varying interest rates and maturities, reflecting the company's diverse financing strategies [2] - Sunshine City Group's bonds are consistently priced at 0.10, indicating potential liquidity issues or market concerns regarding the company's financial health [4] - The presence of multiple companies, such as Rongxin China Holdings and Lihigh Real Estate Group, in the bond market highlights the competitive landscape within the real estate sector [4]