1. Report Industry Investment Rating No information about the report industry investment rating is provided in the given content. 2. Core Viewpoints of the Report - The long - end of secondary capital bonds and perpetual bonds showed significant strength last week, with the long - end yield decline more prominent than the short - end. The short - end yield of secondary and perpetual (二永) bonds has been at a historical low, making further decline difficult. Institutions started to bet on medium - and long - duration bonds, with the 7 - year bond being the most favored. The 7 - year spread quantile is still relatively high, indicating potential for further betting [2][9][10]. - The curves of general credit bonds and urban investment bonds have flattened. The general credit bond curve shows characteristics of "flattened short - end, steepened middle - section, and declined long - end", while the urban investment bond curve shows "flattened short - end, locally steepened middle - section, and differentiated long - end" [3][11][13]. - In terms of trading volume, short - end trading volume increased, while the trading volume of general credit bonds decreased slightly. High - yield urban investment bond trading was mainly concentrated in regions such as Beijing, Shandong, Hunan, and Guangdong [15][17][22]. - In primary issuance, the net financing of urban investment bonds in general credit bonds recovered significantly, while the net financing of financial bonds showed a significant outflow, and the net financing of science and technology innovation bonds was negative [23][26][29]. 3. Summary According to the Directory 3.1 Secondary Market: The Short - and Medium - end Remains Steep, and the Trading Volume is Generally Stable 3.1.1 Market Trends: The Long - end of Secondary and Perpetual Bonds Strengthened Significantly, and the General Credit Bond Curve Flattened - **Secondary Capital Bonds**: Yields across all tenors declined, with the long - end performing better. The 7 - year and 10 - year quantiles dropped significantly. Credit spreads across all tenors narrowed, with the long - end compression more significant. The short - and medium - end of the term spread flattened, while the long - end (10Y - 7Y) became steeper, and the curve's long - end structural bulge still exists [2][9]. - **Perpetual Bonds**: The yield trend was similar to that of secondary capital bonds. The 4 - 7 - year yield decline was greater, and the 7 - year spread decreased by 7.3bp. The 4Y - 3Y term spread decreased by over 3bp, and its quantile dropped by nearly 15 percentage points [10]. - **General Credit Bonds**: Yields across all tenors declined, with the long - end decline being the largest. Spreads generally compressed, with the short - end showing small fluctuations and the long - end quantiles dropping significantly. The curve showed differentiation, with the short - end flattening, the middle - section steepening slightly, and the long - end declining [11][12]. - **Urban Investment Bonds**: Yields across all tenors generally declined, with the long - end decline more prominent. Spreads mainly compressed, with the long - end compression more significant. The curve structure was differentiated, with the short - end flattening, the middle - section locally steepening, and the long - end slightly rising [13]. 3.1.2 Trading Volume: Short - end Trading Volume Increased, and General Credit Bond Trading Volume Declined Slightly - **Secondary and Perpetual Bonds**: The total trading volume of secondary and perpetual bonds decreased. For secondary capital bonds, the trading volume of the short - end (within 1 year) increased significantly, while that of some medium - and long - term tenors decreased. For perpetual bonds, the trading volume also decreased, with the short - end trading volume increasing [15][16]. - **General Credit Bonds**: The total trading volume of general credit bonds decreased slightly. Among them, the trading volume of industrial bonds increased, while that of urban investment bonds and quasi - urban investment bonds decreased. The trading volume of different tenors within each category showed different trends [17][18]. - **High - Yield Urban Investment Bonds**: Trading was mainly concentrated in regions such as Beijing, Shandong, Hunan, and Guangdong, with cities like Beijing, Zhangjiajie, Qingdao, Xiamen, Jinan, and Weifang having relatively high trading volumes [22]. 3.2 Primary Issuance: The Net Financing of Urban Investment Bonds Recovered Significantly, and the Net Outflow of Financial Bonds was Obvious - **General Credit Bonds**: The total issuance last week was about 441.9 billion yuan, a year - on - year increase of about 150 billion yuan. The net financing was about 120.7 billion yuan, a year - on - year increase of about 167.7 billion yuan. The net financing of urban investment bonds recovered significantly, while that of industrial bonds decreased significantly [23]. - **Financial Bonds**: The total issuance last week was about 20.3 billion yuan, a year - on - year decrease of about 131.3 billion yuan. The net financing was about - 101.7 billion yuan, a year - on - year decrease of about 202.4 billion yuan. The issuance of securities company bonds, perpetual bonds, and commercial financial bonds declined significantly [26]. - **Science and Technology Innovation Bonds**: The issuance last week was about 41.1 billion yuan, a year - on - year increase of about 27.4 billion yuan. The net financing was about - 19.3 billion yuan, a year - on - year decrease of about 27.3 billion yuan [29].

Report Industry Investment Rating - The report does not mention the industry investment rating [1] Core Viewpoints - Multiple regulatory indicators form the "fence" for banks' allocation behavior, and banks' "choices" within these fences determine their asset allocation structure [1][3][24] Summary by Relevant Catalog 1. Fence Within: How Regulatory Constraints Determine Banks' Bond Market Choices - **"Ballast Stone" Status of Bank Allocation in the Bond Market**: As the main bond allocators in the bond market, commercial banks' "ballast stone" status is rooted in three logics: scale dominance, counter - cyclical characteristics, and stability under regulatory constraints. As of the end of February 2026, commercial banks' bond allocation in the inter - bank market was 82.16 trillion yuan, ranking first among various institutions, mainly investing in interest - rate bonds. Their counter - cyclical allocation provides a buffer for the market, and regulatory constraints make them natural buyers of interest - rate bonds [2][17][18] - **Commercial Bank Regulation: Macro - Prudential + Micro - Constraints**: Understanding banks' bond allocation behavior requires understanding their regulatory constraints, including the Macro - Prudential Assessment System (MPA), interest - rate risk indicators (ΔEVE/NII), liquidity risk indicators (LCR/NSFR), and capital adequacy ratio. These indicators form the "fence" for banks' allocation behavior [3][24] 2. Central Bank MPA: From Broad Credit to Bond Allocation - **Overview of MPA Indicator System**: MPA reshapes banks' bond - allocation behavior in three dimensions: total amount, structure, and timing. In terms of total amount, the broad - credit growth constraint makes bond investment a "regulatory item" after loan issuance. Structurally, capital - adequacy pressure forces banks' self - operated funds to concentrate on interest - rate bonds with zero risk - weight. Temporally, liquidity assessment indicators create a rigid "quarter - end effect". Under these constraints, banks' self - operated bond - allocation behavior shows characteristics of "quota restricted by credit, concentration on interest - rate bonds, and rhythm restricted by quarter - ends" [4][29] - **Three Transmission Paths of MPA on Banks' Bond Allocation**: - **Broad - Credit Growth Constraint → Limited Bond Allocation Quota**: The upper limit of broad - credit growth locks the growth rate of bond investment, squeezing out bond allocation when loan growth is fast, especially at quarter - ends [32][33] - **Capital - Adequacy Constraint → Decreased Risk Appetite + Increased Supply of Capital Instruments**: To meet capital - adequacy requirements, banks issue secondary - capital bonds and perpetual bonds and increase the allocation of low - capital - occupancy interest - rate bonds while reducing high - capital - occupancy credit bonds. In a period of strict capital regulation, the spread between interest - rate bonds and credit bonds tends to widen [34] - **Liquidity Indicator Constraint → Quarter - End Fund Pulse + Solidified Maturity Preference**: LCR assessment tightens the quarter - end capital market and releases concentrated demand for interest - rate bonds. NSFR constraint restricts banks from lending to non - bank institutions at quarter - ends, inhibits excessive maturity mismatch, and solidifies banks' preference for short - term bonds or long - term interest - rate bonds [35] 3. Triple Constraints of the Banking Risk Supervision System under the Financial Regulatory System - **Capital - Adequacy Constraint: Risk Weights Guide Allocation**: Capital - adequacy ratio is the core regulatory indicator. Risk weights determine the capital occupancy of bonds, and banks prefer bonds with lower risk weights. The investment priority of bond types is: treasury bonds, policy - financial bonds > local - government bonds > general - credit bonds, commercial - financial bonds > secondary - capital bonds > perpetual bonds. When capital adequacy is under pressure, banks compress high - weight assets, and the regulatory rating affects business qualifications and asset structure. Capital - supplement pressure increases the supply of capital instruments [37][44][45] - **Liquidity Risk Indicators: LCR and NSFR's "Rigid Demand" for High - Liquidity Assets**: The core goal of liquidity - risk supervision is to guide banks to match the maturity structure of assets and liabilities. LCR and NSFR are the two pillars. Different bonds have different conversion rates in HQLA and RSF coefficients, which affect banks' bond - type preferences. The comprehensive impact includes a significant quarter - end effect, solidified maturity preference, and structural differentiation [47][51][57] - **Interest - Rate Risk Supervision Indicators: How ΔEVE and ΔNII Constrain Allocation Maturity**: ΔEVE measures the maximum loss of the net present value of banks' assets and liabilities under different interest - rate shocks, and ΔNII measures the impact of interest - rate changes on net interest income. These two indicators jointly restrict large domestic banks' long - bond allocation. Banks tend to "buy short and sell long" to control bond maturity [58][59][60]

Group 1 - The report emphasizes the importance of nominal growth, with expectations for a moderate increase in nominal GDP growth to around 5.3% in Q2, influenced by high oil prices and a stable inflation index [4][34][35] - Export performance is projected to show some short-term slowdown, but medium-term resilience is expected due to China's industrial chain advantages, which may help offset the impact of high oil prices on external demand [4][17][21] - The real estate market is characterized by a "small spring" effect, where volume increases are driven by price reductions, but the foundation for stabilization remains uncertain, particularly in April [4][22][27] Group 2 - Monetary conditions indicate limited probability for broad monetary easing, with banks potentially shifting their liability structures, leading to a stable funding environment [4][10][11] - The supply-demand dynamics in the bond market are improving, with manageable supply pressures and increased non-bank institutional participation, which is expected to enhance the overall market conditions [4][13][18] - The report suggests that Q2 typically presents a favorable environment for asset management products, indicating a good window for achieving higher portfolio returns [4][5][22] Group 3 - The bond market strategy focuses on maintaining a safety cushion in a "money-rich" environment, emphasizing small-scale trading opportunities and the exploration of excess yield spreads [4][6][7] - The report anticipates that the 10-year government bond yield will fluctuate between 1.75% and 1.85%, while the 30-year bond yield may see core fluctuations around 40-50 basis points [4][7][11] - Attention is drawn to the potential for yield compression and structural opportunities in the bond market, particularly with the expected increase in asset management product sizes in April [4][6][7]

Summary of Key Points from Conference Call Records Industry Overview - The discussion primarily revolves around the Chinese bond market and its dynamics leading into 2026, with a focus on interest rates, supply-demand relationships, and investment strategies. Core Insights and Arguments 1. **Long-term Interest Rate Trends**: It is anticipated that the long-term downward trend in interest rates will continue, with the 10-year government bond yield likely to fall below 1% by 2035 due to factors such as population aging and high leverage ratios [2][10]. 2. **Impact of Financing Costs on Corporate Profitability**: Despite a reduction in financing costs by approximately 200 basis points from 2021 to 2025, corporate profits have declined by 15%, indicating that lower interest rates have not significantly improved profitability [3][10]. 3. **Supply-Demand Dynamics in 2026**: The bond market is expected to shift from a state of oversupply to a phase of temporary undersupply, driven by a projected increase in bank self-operated bond investment demand by 16 trillion yuan [6][7]. 4. **Investment Strategy Recommendations**: The suggested strategy is to focus on long-duration bonds, particularly 30-year government bonds, as short-term bonds are becoming less attractive due to low yield and limited capital gain potential [4][9]. 5. **Monetary Policy Outlook**: The central bank is likely to maintain a loose monetary policy, focusing more on domestic demand rather than supply-side price fluctuations, with interest rate cuts expected to occur later but with a clear direction [5][9]. 6. **Changes in Bond Market Supply**: The total supply of bonds in 2026 is projected to remain stable at around 20 trillion yuan, with a potential decrease in the actual supply of long-term bonds due to local government debt issuance strategies [6][7]. 7. **Banking Sector Dynamics**: The demand for bonds from banks is expected to increase as their funding costs decrease, with some banks' costs dropping below 1.1%, enhancing their capacity to invest in long-duration assets [6][7]. 8. **Investment Opportunities in Long-term Bonds**: There is a favorable window for investing in 30-year government bonds, with expectations of a potential yield decline of about 20 basis points in the second half of the year [4][9]. Other Important but Possibly Overlooked Content 1. **Population and Leverage as Long-term Constraints**: The aging population and high leverage ratios are identified as critical long-term factors that will continue to exert downward pressure on interest rates [2][10]. 2. **Market Sentiment Shifts**: There is a noted shift in market sentiment, with a reduction in bearish views on the bond market, suggesting a potential recovery in bond investment interest [4][7]. 3. **Insurance Fund Investment Patterns**: The pace of insurance funds' bond investments is expected to stabilize, with a potential increase in demand for long-term bonds as market conditions evolve [8]. This comprehensive summary encapsulates the key points discussed in the conference call, providing insights into the future of the Chinese bond market and investment strategies.

1. Report Industry Investment Rating - No industry investment rating is provided in the report. 2. Core Viewpoints - This week (20260323 - 20260327), there were no new issuances of secondary capital bonds in the inter - bank and exchange markets [1]. - The weekly trading volume of secondary capital bonds this week was approximately 177.9 billion yuan, a decrease of 10.5 billion yuan compared to last week. The top three most - traded bonds were 25 Bank of China Secondary Capital Bond 02BC, 25 Bank of China Secondary Capital Bond 03A(BC), and 25 China Construction Bank Secondary Capital Bond 03BC [2]. - In terms of the regions of issuers, the top three regions in terms of trading volume were Guangdong Province, Guizhou Province, and Heilongjiang Province, with trading volumes of approximately 131.6 billion yuan, 13 billion yuan, and 8.1 billion yuan respectively [2]. - As of March 27, the changes in the yields to maturity of 5Y secondary capital bonds with ratings of AAA -, AA +, and AA compared to last week were - 3.21BP, - 3.87BP, and - 3.87BP respectively; for 7Y secondary capital bonds, the changes were - 6.06BP for all three ratings; for 10Y secondary capital bonds, the changes for ratings of AAA -, AA +, and AA were - 4.25BP, - 4.24BP, and - 4.24BP respectively [2]. - This week, the overall deviation of the weekly average trading price valuation of secondary capital bonds was not large. The proportion of discount transactions was greater than that of premium transactions, and the discount amplitude was larger than the premium amplitude [3]. 3. Summary by Directory 3.1 Primary Market Issuance - This week (20260323 - 20260327), there were no new issuances of secondary capital bonds in the inter - bank and exchange markets [1]. 3.2 Secondary Market Trading - **Trading Volume**: The weekly trading volume of secondary capital bonds this week was approximately 177.9 billion yuan, a decrease of 10.5 billion yuan compared to last week. The top three most - traded bonds were 25 Bank of China Secondary Capital Bond 02BC (13.259 billion yuan), 25 Bank of China Secondary Capital Bond 03A(BC) (10.928 billion yuan), and 25 China Construction Bank Secondary Capital Bond 03BC (7.651 billion yuan) [2]. - **Regional Trading Volume**: In terms of the regions of issuers, the top three regions in terms of trading volume were Guangdong Province, Guizhou Province, and Heilongjiang Province, with trading volumes of approximately 131.6 billion yuan, 13 billion yuan, and 8.1 billion yuan respectively [2]. - **Yield to Maturity**: As of March 27, the changes in the yields to maturity of 5Y secondary capital bonds with ratings of AAA -, AA +, and AA compared to last week were - 3.21BP, - 3.87BP, and - 3.87BP respectively; for 7Y secondary capital bonds, the changes were - 6.06BP for all three ratings; for 10Y secondary capital bonds, the changes for ratings of AAA -, AA +, and AA were - 4.25BP, - 4.24BP, and - 4.24BP respectively [2]. 3.3 Valuation Deviation of the Top 30 Individual Bonds - **Discount Bonds**: The top two bonds with the highest discount rates were 24 Mintai Commercial Bank Secondary Capital Bond 01 (- 0.6931%) and 25 Mintai Commercial Bank Secondary Capital Bond 01 (- 0.6400%), and the discount rates of the rest were within - 0.50%. The ChinaBond implicit ratings were mainly AAA -, AA +, and AA -, and the bonds were mainly distributed in Beijing, Shanghai, and Guangdong [3]. - **Premium Bonds**: The top three bonds with the highest premium rates were 23 Mintai Commercial Bank Secondary Capital Bond 01 (0.2287%), 22 Xiamen Rural Commercial Secondary 01 (0.0991%), and 22 Ningbo Bank Secondary Capital Bond 01 (0.0701%), and the premium rates of the rest were within 0.07%. The ChinaBond implicit ratings were mainly AAA -, AA +, and AA, and the bonds were mainly distributed in Beijing, Shanghai, and Zhejiang [3].

Report Summary 1. Report Industry Investment Rating No relevant information provided in the content. 2. Core Viewpoints The report focuses on the valuation price deviations of different types of bonds, including AA - rated urban investment bonds, the top 50 individual bonds with the largest net price declines, the top 50 individual bonds with the largest net price increases, and the top 50 Tier 2 and perpetual bonds with the largest net price increases. It identifies the bonds with the most significant valuation price deviations in each category [2]. 3. Summary by Related Catalogs 3.1 Discount - Ranked AA Urban Investment Bonds - Among AA - rated urban investment bonds, "25 Tengchong 01" has the largest valuation price deviation, with a deviation of - 0.18% and a remaining term of 4.26 years. Other bonds such as "21 Ruili Bond" and "25 Hechuan 02" also have relatively high discount rates [2][3]. 3.2 Top 50 Individual Bonds with the Largest Net Price Declines - In the list of the top 50 individual bonds with the largest net price declines, "24 Chanrong 02" has the largest valuation price deviation, with a deviation of - 1.39% and a remaining term of 2.79 years. Multiple bonds of the "Chanrong" series show significant price declines [2][5]. 3.3 Top 50 Individual Bonds with the Largest Net Price Increases - For the top 50 individual bonds with the largest net price increases, "19 Jintou 27" has the largest valuation price deviation, with a deviation of 0.47% and a remaining term of 0.02 years. Other bonds like "26 Minsheng V1" and "25 Zhangqiu Holdings MTN005" also have relatively large price increases [2][10]. 3.4 Top 50 Tier 2 and Perpetual Bonds with the Largest Net Price Increases - Among the top 50 Tier 2 and perpetual bonds with the largest net price increases, "24 ICBC Tier 2 Capital Bond 01B(BC)" has the largest valuation price deviation, with a deviation of 0.18% and a remaining term of 8.44 years [2][12].

Core Viewpoint - A small bank in China, Qinghai Huzhu Rural Commercial Bank, has announced it will not exercise the redemption option for its subordinated debt, marking the first such announcement in 2023 [2][3]. Group 1: Subordinated Debt Announcement - Qinghai Huzhu Rural Commercial Bank issued a subordinated debt of 60 million yuan in March 2021, with a maturity of 10 years and an interest rate of 5% [3]. - The bank has another subordinated debt of 40 million yuan that will face a redemption decision in July 2024 [3]. - The bank's credit rating remains stable, with a rating of A for the bank and A- for its subordinated debts according to a report from United Ratings [3]. Group 2: Financial Performance and Market Position - The bank has a strong competitive position in its region, holding the top market share in both deposits and loans [3]. - However, the bank's personal loan business has seen a decline due to reduced demand from individual borrowers and increased competition [3]. - The bank's loan concentration is high, and since 2024, some clients have faced operational difficulties, leading to a decline in asset quality and insufficient provisions [3][4]. Group 3: Industry Trends and Developments - The establishment of a unified municipal rural commercial bank in Haidong City is underway, which will consolidate five local banks, including Qinghai Huzhu Rural Commercial Bank [5][6]. - The project has made significant progress, with plans to complete the establishment by 2026 [5][6]. - The trend of banks not exercising redemption options for subordinated debt has decreased significantly in recent years, with only 3 cases expected in 2025 [7][8].

Group 1 - The bond market has shown a preference for high coupon credit and mid-term rates with riding value, while the yield curve has steepened significantly due to strong short-term interest rates and weak long-term performance [7][11] - Two strategic approaches are recommended: gradually focusing on a barbell strategy and maintaining a spread compression strategy, as the short-end interest rates have limited downward space [11][39] - The current 1-year deposit rate is around 1.52%, with a potential optimistic scenario suggesting it could drop to approximately 1.5%, indicating limited room for further declines [7][11] Group 2 - The report suggests monitoring three types of spreads: the spread between government bonds and policy bank bonds, the new and old bond spreads for 30-year government bonds, and the spreads between 30-10Y and 50-30Y [11][39] - The 10-year government bond is expected to fluctuate within a range of 1.8% to 1.85% in the short term, reflecting concerns over inflation and economic growth [12][40] - The report highlights six bond selection strategies, including focusing on high-frequency trading and specific long-term and mid-term bonds [15][39] Group 3 - The bond market has experienced a recent shift with mid-term bonds performing better due to a loose funding environment and expectations of lower interbank deposit rates [18] - The current yield for 30-year government bonds is approximately 2.39%, reflecting a slight increase from the previous week [19] - The report indicates that the valuation of bonds is not high compared to other asset classes, suggesting potential investment opportunities [29][30]

1. Report Industry Investment Rating - No information provided 2. Core Viewpoints - The central value of the trading duration of general credit bonds is stable around 2.2 years. As of March 20, the weighted trading durations of urban investment bonds and industrial bonds were 2.16 years and 2.29 years respectively, at the 90% and 74% historical quantiles since 2021. Among commercial bank bonds, the weighted average trading durations of secondary capital bonds, bank perpetual bonds, and general commercial financial bonds were 4.15 years, 3.41 years, and 1.73 years respectively. The duration quantile of secondary capital bonds was relatively high, while that of general commercial financial bonds remained at a relatively low historical level. For other financial bonds, the durations of securities company bonds, securities subordinated bonds, insurance company bonds, and leasing company bonds were 1.96 years, 2.87 years, 3.52 years, and 1.23 years respectively, all of which were longer than last week and at relatively high historical quantiles [2][9]. - The coupon duration congestion index has declined. After reaching its peak in March 2024, the index has fallen and is currently at the 48% level since March 2021 [12]. 3. Summary by Directory 3.1 Full - Variety Term Overview - The central value of the trading duration of general credit bonds is stable around 2.2 years. As of March 20, the weighted trading durations of urban investment bonds and industrial bonds were 2.16 years and 2.29 years respectively, at the 90% and 74% historical quantiles since 2021. Among commercial bank bonds, the weighted average trading durations of secondary capital bonds, bank perpetual bonds, and general commercial financial bonds were 4.15 years, 3.41 years, and 1.73 years respectively. For other financial bonds, the durations of securities company bonds, securities subordinated bonds, insurance company bonds, and leasing company bonds were 1.96 years, 2.87 years, 3.52 years, and 1.23 years respectively, all longer than last week and at relatively high historical quantiles [2][9]. - The coupon duration congestion index has declined. After reaching its peak in March 2024, the index has fallen and is currently at the 48% level since March 2021 [12]. 3.2 Variety Microscope 3.2.1 Urban Investment Bonds - The weighted average trading duration of urban investment bonds hovers around 2.37 years. The duration of Sichuan provincial urban investment bonds has extended to 4.05 years, while that of Henan provincial urban investment bonds has shortened to around 1.65 years. The historical quantiles of the durations of Jiangsu and Beijing district - level urban investment bonds have exceeded 90%, and the duration of Jiangsu prefecture - level urban investment bonds is approaching the highest level since 2021 [3][16]. 3.2.2 Industrial Bonds - The weighted average trading duration of industrial bonds has shortened compared to last week, generally around 1.94 years. The trading duration of the real estate industry has extended to 1.84 years, while that of the public utilities industry has shortened to 2.58 years. The trading duration of the building materials industry is at a relatively high historical quantile, while those of the transportation and coal industries are at relatively low historical quantiles [3][23]. 3.2.3 Commercial Bank Bonds - The duration of general commercial financial bonds has shortened to 1.73 years, at the 13.8% historical quantile, lower than the level of the same period last year. The duration of secondary capital bonds has shortened to 4.15 years, at the 86.4% historical quantile, higher than the level of the same period last year. The duration of bank perpetual bonds has extended to 3.41 years, at the 49% historical quantile, lower than the level of the same period last year [3][25]. 3.2.4 Other Financial Bonds - In terms of the weighted average trading duration, insurance company bonds > securities subordinated bonds > securities company bonds > leasing company bonds, at the 77.3%, 88.4%, 83.3%, and 66% historical quantiles respectively, all slightly higher than last week [3][28].

1. Report Industry Investment Rating No industry investment rating information is provided in the report. 2. Core Viewpoints of the Report - There was no new issuance of secondary capital bonds in the inter - bank market and the exchange market from March 16 to March 20, 2026 [1]. - From March 16 to March 20, 2026, the total weekly trading volume of secondary capital bonds was approximately 188.4 billion yuan, a decrease of 29.9 billion yuan compared to the previous week. The top three bonds in terms of trading volume were 25 Bank of China Secondary Capital Bond 02BC, 25 Agricultural Bank of China Secondary Capital Bond 02A(BC), and 25 Bank of China Secondary Capital Bond 03A(BC) [2]. - By the region of the issuer, the top three regions in terms of trading volume were Guangdong Province, Guizhou Province, and Heilongjiang Province, with approximately 141.4 billion yuan, 11.7 billion yuan, and 10.3 billion yuan respectively. - As of March 20, the changes in the yields to maturity of 5Y, 7Y, and 10Y secondary capital bonds with ratings of AAA -, AA +, and AA compared to the previous week were - 1.71BP, - 0.64BP, - 1.64BP; - 1.07BP, - 1.07BP, - 1.07BP; and - 1.89BP, - 2.79BP, - 2.79BP respectively [2]. - From March 16 to March 20, 2026, the overall deviation of the weekly average trading price valuation of secondary capital bonds was not large. The proportion and amplitude of discount transactions were greater than those of premium transactions. The top three discount - rate bonds were 24 Jining Bank Secondary Capital Bond 01, 25 Shanghai Pufa Bank Secondary Capital Bond 01B, and 22 Shengjing Bank Secondary Capital Bond 01. The top three premium - rate bonds were 21 Huishang Bank Secondary Bond 01, 22 Industrial and Commercial Bank of China Secondary Capital Bond 05B, and 24 Industrial and Commercial Bank of China Secondary Capital Bond 01B(BC) [3]. 3. Summary by Relevant Catalog 3.1 Primary Market Issuance - From March 16 to March 20, 2026, there was no new issuance of secondary capital bonds in the inter - bank market and the exchange market [1]. 3.2 Secondary Market Transactions - **Trading Volume**: The total weekly trading volume was approximately 188.4 billion yuan, a decrease of 29.9 billion yuan compared to the previous week. The top three bonds in terms of trading volume were 25 Bank of China Secondary Capital Bond 02BC (13.203 billion yuan), 25 Agricultural Bank of China Secondary Capital Bond 02A(BC) (11.921 billion yuan), and 25 Bank of China Secondary Capital Bond 03A(BC) (10.865 billion yuan) [2]. - **Regional Distribution**: By the region of the issuer, the top three regions in terms of trading volume were Guangdong Province (approximately 141.4 billion yuan), Guizhou Province (approximately 11.7 billion yuan), and Heilongjiang Province (approximately 10.3 billion yuan) [2]. - **Yield to Maturity**: As of March 20, the changes in the yields to maturity of 5Y secondary capital bonds with ratings of AAA -, AA +, and AA compared to the previous week were - 1.71BP, - 0.64BP, - 1.64BP respectively. For 7Y secondary capital bonds, the changes were - 1.07BP for all three ratings. For 10Y secondary capital bonds, the changes were - 1.89BP, - 2.79BP, - 2.79BP respectively [2][8]. 3.3 Top Thirty Bonds in Terms of Valuation Deviation - **Discount Bonds**: The top three discount - rate bonds were 24 Jining Bank Secondary Capital Bond 01 (- 1.3469%), 25 Shanghai Pufa Bank Secondary Capital Bond 01B (- 0.4665%), and 22 Shengjing Bank Secondary Capital Bond 01 (- 0.3742%). The Zhongzhai implicit ratings were mainly AAA -, AA -, and AA +, and the bonds were mostly distributed in Beijing, Shanghai, and Guangdong [3]. - **Premium Bonds**: The top three premium - rate bonds were 21 Huishang Bank Secondary Bond 01 (0.1403%), 22 Industrial and Commercial Bank of China Secondary Capital Bond 05B (0.1244%), and 24 Industrial and Commercial Bank of China Secondary Capital Bond 01B(BC) (0.1104%). The Zhongzhai implicit ratings were mainly AAA -, AA +, and AA, and the bonds were mostly distributed in Beijing, Fujian, and Shanghai [3].