Report Title - ABS Supply and Demand are Booming — ABS Monthly Report (June 2025) [1] Core Viewpoint - In June 2025, the ABS market showed a prosperous situation with growth in both supply and demand. The primary issuance scale increased, the secondary trading volume and turnover rate significantly improved, the investor structure had certain changes, and the yields and spreads also presented corresponding trends [2][3][4][5] Specific Summaries by Section Primary Issuance - **Issuance Scale**: In June 2025, the ABS issuance scale increased by 36% month-on-month to 205.546 billion yuan. Among them, the issuance scales of credit ABS, enterprise ABS, and ABN were 24.719 billion yuan, 128.621 billion yuan, and 52.206 billion yuan respectively, with month-on-month growth rates of 3%, 55%, and 18% [2][8] - **Issuance Term and Interest Rate**: Newly issued ABS in June mostly had a term of 1 - 2 years, and the weighted average coupon rate continued to decline. The weighted average coupon rate was 1.93%, a decrease of 7.82bp compared to May. By ABS type, the weighted term of newly issued credit ABS was 2.80 years with a weighted interest rate of 1.63%; for enterprise ABS, the weighted term was 3.38 years and the weighted interest rate was 2.05%; for ABN, the weighted term was 2.56 years and the weighted interest rate was 1.93% [2][10] Secondary Trading - In June 2025, the ABS trading volume and turnover rate significantly increased. The monthly trading volume was 163.716 billion yuan, a 38.01% increase from May. The monthly turnover rate was 5.0%, a 1.3 percentage point increase from May. Among them, ABN was the most actively traded ABS product type, with a monthly turnover rate of 7.0% in June, a 1.1 percentage point increase from the previous month [3][16] Investor Structure - **Credit ABS**: Commercial banks and non - legal person products were the main holders, accounting for 69% and 15% respectively. The holding proportions of commercial banks and non - legal person products decreased by 0.55 and 0.04 percentage points respectively compared to the previous month, while the holding proportion of securities companies increased by 0.37 percentage points [4][19] - **ABN**: Non - legal person products and commercial banks held the most, accounting for 62% and 28% respectively, remaining the same as the previous month [4][19] - **Enterprise ABS**: For Shanghai Stock Exchange enterprise ABS, trust institutions and bank self - operations were the main investors, with holding proportions of 31% and 26% respectively as of June, with the trust institution's proportion decreasing by 0.2 percentage points and the bank self - operation's increasing by 0.1 percentage point compared to the previous month. For Shenzhen Stock Exchange enterprise ABS, trust institutions and general institutions were the main investors, with holding proportions of 32% and 27% respectively as of June, with the trust institution's proportion decreasing by 0.3 percentage points and the general institution's remaining unchanged [4][24] Yields and Spreads - In June, the yields to maturity of ABS at various terms continued to decline. The changes in the yields to maturity of 1 - year, 3 - year, 5 - year, and 10 - year AAA - rated asset - backed securities compared to May 30, 2025, were - 1.6bp, - 3.1bp, - 6.7bp, and - 7.0bp respectively. The spreads between ABS and medium - and short - term notes mostly decreased. The spreads between 1 - year, 3 - year, 5 - year, and 10 - year AAA - rated asset - backed securities and medium - and short - term notes of the same term and rating changed to 5.7bp, - 12.1bp, - 2.5bp, and - 3.5bp respectively, with changes of 0.3bp, - 2.0bp, - 2.5bp, and - 2.1bp respectively [5][26]

Market Overview - In the first half of 2025, the ABS market saw 1,090 new issuance projects with a total issuance scale of 974.9 billion yuan, representing a year-on-year increase of 27% from 766.5 billion yuan [1][8]. - The cumulative market size reached approximately 3,278.3 billion yuan, with credit ABS at 398.9 billion yuan, enterprise ABS at 2,062.7 billion yuan, ABN at 633.6 billion yuan, and public REITs at 183.1 billion yuan [6]. Credit ABS - A total of 102 new credit ABS projects were issued, amounting to 95.9 billion yuan, which is a decrease of 23% year-on-year [2][10]. - The largest issuance came from non-performing loans, with 80 projects totaling 36.2 billion yuan, followed by personal auto loans with 10 projects totaling 34.3 billion yuan [2][10]. Enterprise ABS - The enterprise ABS market saw 696 new issuances with a total amount of 604.4 billion yuan, marking a 36% increase year-on-year [3][11]. - The largest segment was financing lease receivables, with 138 projects totaling 147.8 billion yuan, followed by general small loan receivables with 105 projects totaling 92.8 billion yuan [3][11]. ABN - The ABN market had 281 new issuances, totaling 259.3 billion yuan, which is a 49% increase year-on-year [4][13]. - The largest issuance was in bank/internet consumer loans, with 101 projects totaling 89.9 billion yuan, followed by general small loans with 38 projects totaling 35.4 billion yuan [4][13]. Underwriting Rankings - In the first half of 2025, CITIC Securities led the underwriting rankings with 231 projects and a total underwriting amount of 105.18 billion yuan [17][18]. - Guotai Junan ranked second with 197 projects totaling 96.58 billion yuan, while Ping An Securities ranked third with 127 projects totaling 78.71 billion yuan [17][18]. Detailed Underwriting by Market Segment - In the credit ABS market, CITIC Securities topped the rankings with 48 projects totaling 14.4 billion yuan, followed by China Merchants Securities with the same number of projects but a total of 12.73 billion yuan [24][25]. - For enterprise ABS, Guotai Junan led with 136 projects totaling 79.47 billion yuan, followed by Ping An Securities with 108 projects totaling 74.68 billion yuan [27][28]. - In the ABN market, China Merchants Securities ranked first with 47 projects totaling 24.03 billion yuan, followed closely by Bank of China with 56 projects totaling 23.65 billion yuan [30][31]. Asset Class Rankings - The top three asset classes by issuance scale were financing lease, bank/internet consumer loans, and general small loans [34]. - In the financing lease ABS segment, Ping An Securities led with 30.67 billion yuan, followed by Guotai Junan with 24.04 billion yuan [34][35]. - For bank/internet consumer loans, China Merchants Securities ranked first with 24.96 billion yuan, followed by CICC and Huatai Securities [37][39]. - In the general small loan category, CITIC Securities led with 19.38 billion yuan, followed by Guotai Junan and Guolian Minsheng [40]. Issuer Rankings - In the credit ABS market, Zhejiang Merchants Bank led with 6.7 billion yuan, followed by BinYin Auto Finance and Industrial and Commercial Bank of China [43][44]. - For enterprise ABS, CITIC Trust topped the issuer rankings with 36 billion yuan, followed by Shenghe Factoring and Ping An Leasing [46][50]. - In the ABN market, Guotai Junan Trust led with 31.14 billion yuan, followed by JD Trade and other institutions [54][56]. Public REITs - The public REITs market relies on ABS as a channel, with Shenzhen Jiafeng Industrial Park Management leading the original rights holder rankings with 3.29 billion yuan [59][60]. - The plan management rankings were topped by Southern Capital Management with 3.29 billion yuan, followed by CICC and Huitianfu Capital Management [61][62].

Investment Rating - The report suggests a positive outlook on the real estate sector, particularly focusing on the potential of asset-backed securities and public REITs as investment opportunities [3][4]. Core Insights - The asset-backed securities (ABS) market in China has surpassed 3 trillion yuan, indicating its significance in the capital market. The growth in public REITs is expected to provide better exit channels for real estate companies, especially those with substantial real estate holdings [2][3][27]. - The report emphasizes the advantages of real estate as a suitable asset for securitization due to its inherent rental properties that generate stable cash flows and potential for appreciation [13][14]. Summary by Sections 1. Asset Securitization Overview - Asset securitization has evolved into a crucial financing tool in China's capital market, with a focus on transforming illiquid assets into liquid securities [13][14]. - The report categorizes standardized asset securitization products into credit ABS, corporate ABS, and asset-backed notes (ABN), highlighting the differences in regulatory oversight and asset types [25][26]. 2. Market Scale and Growth - As of May 2025, the total scale of asset securitization products in China reached 3.09 trillion yuan, accounting for 6.2% of the total bond market [27][29]. - The issuance of asset securitization products saw a significant increase in 2024, with 2,085 products issued, totaling 1.98 trillion yuan, marking a year-on-year growth of 6.7% [36][38]. 3. REITs Development - The report outlines the development of REITs in China, noting the transition from initial trials to a more structured and regular issuance process, with a total of 66 public REITs issued by May 2025, amounting to approximately 1744 billion yuan [19][21][22]. - The expansion of REITs into various sectors, including rental housing and commercial real estate, is highlighted as a significant opportunity for real estate companies to optimize their asset management and liquidity [3][19]. 4. Investment Recommendations - The report recommends focusing on companies with stable and mature asset portfolios in the long-term rental apartment and commercial real estate sectors, such as China Resources Land, China Overseas Development, and Longfor Group [3][4].

1. Report Industry Investment Rating No industry investment rating information is provided in the report. 2. Core Viewpoints of the Report - **Macroeconomic Outlook**: China's economy shows a mixed trend with some indicators stable and others indicating weak recovery. Global economic growth is expected to slow, and trade disputes and policy uncertainties remain challenges. [21] - **Commodity Market**: The casting aluminum alloy futures had a positive debut. Metal production and inventory levels vary, and energy - related policies and supply - demand dynamics affect the energy market. Agricultural products have different supply - demand situations. [2][4] - **Financial Market**: The bond market is expected to have a volatile trend, with potential opportunities in credit bonds. The stock market shows different trends in A - shares and Hong Kong stocks, and institutional investors have different stances. The foreign exchange market has fluctuations in exchange rates. [23][34] 3. Summary by Directory 3.1 Macroeconomic Data - GDP in Q1 2025 grew at a 5.4% year - on - year rate, the same as the previous quarter and slightly higher than the same period last year. The manufacturing PMI in May 2025 was 49.5%, up from the previous month but the same as the same period last year. The non - manufacturing PMI was 50.3%, down from the previous month and the same period last year. [1] - In April 2025, social financing scale increment decreased significantly compared to the previous month and the same period last year. M0, M1, and M2 showed different growth rates year - on - year. [1] - In May 2025, CPI was - 0.1% year - on - year, the same as the previous month but lower than the same period last year. PPI was - 3.3% year - on - year, lower than the previous month and the same period last year. [1] 3.2 Commodity Investment Reference 3.2.1 Comprehensive - On June 10, all contracts of casting aluminum alloy futures closed higher, with the main AD2511 contract rising 4.49% to 19,190 yuan/ton. [2] - The first - day meeting of the China - US economic and trade consultation mechanism continued on June 10. [2] - On June 10, 43 domestic commodity varieties had positive basis, and 18 had negative basis. [2] - Policies were introduced to promote the high - quality development of the real economy in Shenzhen and improve people's livelihood. [2][3] 3.2.2 Metal - In April, Chile's copper production increased 20.5% year - on - year to 114,600 tons. [4] - On June 9, copper, tin, zinc, lead, aluminum, and nickel inventories decreased, while cobalt and aluminum alloy inventories remained stable. [4][5] - As of June 10, the gold持仓 of the world's largest gold ETF decreased by 0.03% from the previous trading day. [5] 3.2.3 Coal, Coke, Steel, and Minerals - The China Iron and Steel Association called on the steel and automotive industries to break the "involution". [6] - Zimbabwe plans to ban the export of lithium concentrate from 2027. [7] 3.2.4 Energy and Chemicals - The National Energy Administration will carry out hydrogen energy pilot projects. [8] - Saudi Arabia's crude oil supply to China in July will decrease slightly but remain strong. [8] - The EU plans to impose new sanctions on Russia regarding the Nord Stream pipeline and oil price cap. [8] - Russia extended the ban on selling oil to buyers who comply with the price cap. [9] - EIA adjusted the average price forecasts of WTI and Brent crude oil for this year and next year. [9] 3.2.5 Agricultural Products - On June 11, 10,000 tons of central reserve frozen pork will be purchased through bidding. [12] - India is expected to increase sugar exports in the 2025/26 season. [12] - South Korea's egg prices reached a four - year high in May, and prices are expected to rise in June and August. [12] 3.3 Financial News Compilation 3.3.1 Open Market - On June 10, the central bank conducted 198.6 billion yuan of 7 - day reverse repurchase operations, with a net withdrawal of 255.9 billion yuan. [13] 3.3.2 Important News - The China - US economic and trade consultation mechanism meeting continued on June 10. [15] - Policies were introduced to deepen reforms in Shenzhen and improve people's livelihood. [15] - The National Development and Reform Commission held a symposium with science - and - technology - based private enterprises. [16] - New policy - based financial instruments are expected to drive trillions of yuan in investment. [16] - As of June 10, the new issuance scale of land reserve special bonds this year reached 108.348 billion yuan. [16] - Many bond funds are "restricting purchases". [17] - The asset - securitization market has developed significantly this year. [17] - Newly issued savings bonds on June 10 had lower interest rates but were still popular. [18] - As of June 10, the issuance scale of commercial banks' "Tier 2 and Perpetual Bonds" this year reached 770.16 billion yuan. [18] - The restructuring plan of Red Star Macalline was approved. [18] - New green and innovative medium - term notes and science - and - technology innovation bonds were successfully issued. [19][20] - Some local governments are strengthening debt and financial supervision. [20][21] - The World Bank and Fitch adjusted their global economic and sovereign rating outlooks. [21] - Japan may adjust its government bond purchase policy. [21] - Some bond - related companies had negative events, and some companies' credit ratings were adjusted. [22] 3.3.3 Bond Market Summary - The bond market showed slight fluctuations, with an optimistic atmosphere. [23] - Some bonds had price increases and decreases in the exchange - traded bond market. [23] - The convertible bond market had mixed performance. [24] - Most money market interest rates showed different trends. [25] - European and US bond yields had different trends due to various factors. [26][27] 3.3.4 Foreign Exchange Market - The on - shore and offshore RMB exchange rates against the US dollar had different changes. [29] - The US dollar index rose slightly, and non - US currencies had mixed performance. [29] 3.3.5 Research Report Highlights - Different investment institutions have different views on the bond market, including the continuation of volatility, potential for interest rate decline, and the attractiveness of credit bonds. [30] - Regarding the stock market, some institutions are optimistic about Chinese stocks, especially technology stocks. [36] 3.4 Stock Market News - A - share indices declined in the afternoon, with TMT sectors adjusting and some sectors rising. [34] - Hong Kong stock indices also declined, with different sector performances. [35] - Hundred - billion private equity funds have increased their positions in A - shares, indicating an optimistic outlook. [35] - UBS maintains a "neutral" stance on Chinese stocks and an "attractive" rating on Chinese technology stocks. [36] - More than 60% of active equity funds have recovered from losses, and there may be opportunities in technology stocks. [36]

Core Insights - The asset securitization market has significantly accelerated this year, with a total of 583 corporate ABS issued, amounting to a scale of 508.501 billion yuan, representing over 30% growth in both quantity and scale year-on-year [1] Group 1 - The number of corporate ABS issued has reached 583 [1] - The total issuance scale has reached 508.501 billion yuan [1] - Both the quantity and scale of ABS issuance have increased by over 30% compared to the previous year [1] Group 2 - The types of underlying assets for ABS are continuously expanding [1] - This expansion provides diverse financing options for companies across different industries [1]

Core Viewpoint - The asset securitization market in China is experiencing significant growth, with a notable increase in the issuance of asset-backed securities (ABS), particularly in the renewable energy sector, driven by favorable policies and market demand [1][2][3]. Group 1: Market Growth and Trends - As of June 10, 2023, there have been 583 ABS issued, totaling 508.501 billion yuan, representing year-on-year growth of 33.18% in quantity and 31.81% in scale [2]. - The first ABS product backed by photovoltaic assets has been accepted for filing, indicating a diversification of underlying asset types in the market [1][2]. - The original rights holders of ABS are becoming increasingly diverse, including large enterprises, financial institutions, and small to medium-sized enterprises, which enhances market vitality [2][3]. Group 2: Policy and Demand Drivers - The growth in the ABS market is attributed to dual support from policy guidance and market demand, with regulatory bodies optimizing approval processes and lowering market entry barriers [3][4]. - Companies are actively seeking to optimize their financial structures and enhance asset liquidity, leading to a sustained demand for asset securitization tools [3][4]. Group 3: Innovations in ABS - The design of holding-type real estate ABS incorporates six major mechanisms to promote investment and financing exchanges, enhancing liquidity and market participation [4]. - The introduction of liquidity support mechanisms allows for partial investor exit under specific conditions, improving product liquidity [4]. Group 4: Future Outlook - Recent policy announcements have further supported the development of holding-type real estate ABS, positioning them as effective financial tools for revitalizing existing assets [5]. - Recommendations for future growth include broadening the types of underlying assets eligible for ABS, optimizing secondary market trading mechanisms, and improving foundational policies related to valuation and information disclosure [5].

Group 1 - The current structured financing market for urban investment ABS is primarily dominated by enterprise ABS, with a small scale of ABN, reflecting significant structural differentiation and regional concentration [1][2] - As of April 2025, the outstanding balance of enterprise ABS is 30.744 billion yuan, accounting for 91%, while ABN accounts for only 9% [1][2] - The weighted average interest rate of urban investment ABS is 3.25%, which is 42 basis points lower than urban investment bonds, indicating a "low coupon rate dominates scale, high coupon rate dominates quantity" characteristic [1][3] Group 2 - The distribution of remaining maturities shows a significant long-term characteristic, with 37.79% of ABS having a remaining maturity of over 10 years, aligning with the long return cycle of underlying assets [1][3] - The rating structure is highly concentrated in AAA (77.87%) and AA+ (17.73%) ratings, with low-rated products accounting for less than 2%, indicating high credit quality of issuers [1][3][33] Group 3 - The main types of underlying assets are fee income rights (56%) and debt rights (40%), with real estate accounting for only 4% [2][3] - The eastern coastal regions dominate the market, with Jiangsu, Zhejiang, and Shandong provinces accounting for over 60% of the outstanding balance, reflecting strong economic strength and low debt ratios [2][3] Group 4 - In 2024, the total issuance of ABS reached 2.04 trillion yuan, a year-on-year increase of 8.87%, with urban investment issuance only 13.082 billion yuan, accounting for less than 1% [3][4] - The market activity is recovering in 2025, with transaction volume exceeding that of the same period in 2024, and turnover rate rebounding to 16.91% [3][4]

Report Title - ABS Investor Structure Changes - ABS Monthly Report (May 2025) [1] Report Industry Investment Rating - Not provided Core Viewpoints - In May 2025, the ABS issuance scale decreased, with the largest month - on - month decline in enterprise ABS. The trading volume and turnover rate of ABS decreased significantly, but the trading amount and turnover rate of credit ABS continued to grow. The holding proportions of major investors in different types of ABS changed, and the yields of ABS at all maturities declined while the spreads with medium - and short - term notes mostly continued to rise [2][3][4][5] Summary by Directory 1. Primary Issuance 1.1 Issuance Scale - In May 2025, the ABS issuance scale decreased by 28% month - on - month to 15.1533 billion yuan. Credit ABS, enterprise ABS, and ABN issuance scales were 2.3905 billion yuan, 8.321 billion yuan, and 4.4418 billion yuan respectively, with month - on - month declines of 2%, 35%, and 23% [2][9]. - Among credit ABS, the issuance scale of micro - enterprise loan ABS increased the most, and the issuance scale of non - performing loan ABS had a fast growth rate of 761%. In enterprise ABS, the issuance scales of shantytown renovation/affordable housing ABS and CMBS/CMBN increased the most, while the issuance scale of quasi - REITs decreased the most. In ABN, the issuance scale of general small - loan creditor's rights ABS increased more, and the issuance scale of preferred limited partnership shares ABS decreased the most [9] 1.2 Issuance Term and Interest Rate - In May 2025, the terms of newly issued ABS were mostly 9M - 1 year and 1 - 2 years, and the weighted coupon rate continued to decline. The weighted average coupon rate was 2.01%, a decrease of 6.68bp compared to April [11]. - For different types of ABS, the weighted terms of newly issued credit ABS, enterprise ABS, and ABN all increased compared to the previous month, and their weighted interest rates all decreased [11] 2. Secondary Trading - In May 2025, the trading volume and turnover rate of ABS decreased significantly, but the trading amount and turnover rate of credit ABS continued to grow. The monthly trading amount of ABS was 11.8623 billion yuan, a decrease of 27.09% compared to April. The monthly turnover rate of ABS was 3.6%, a decrease of 1.4 percentage points compared to April. ABN was the most actively traded ABS product type [3][17] 3. Investor Structure - In credit ABS, commercial banks and non - legal person products were the main holders, with holding proportions of 69% and 15% respectively. The holding proportions of commercial banks and non - legal person products decreased, while those of securities companies and overseas institutions increased [4][20] - In ABN, non - legal person products and commercial banks held the most, with holding proportions of 62% and 28% respectively, both decreasing compared to the previous month [4][20] - For enterprise ABS, trust institutions and bank self - operations were the main investors in Shanghai Stock Exchange enterprise ABS, with holding proportions of 31% and 26% respectively, both decreasing. In Shenzhen Stock Exchange enterprise ABS, general institutions and trust institutions were the main investors, with the holding proportion of general institutions increasing and that of trust institutions slightly decreasing [4][25] 4. Yield and Spread - In May, the yields to maturity of ABS at all maturities declined. The yields to maturity of 1 - year, 3 - year, 5 - year, and 10 - year AAA - rated asset - backed securities decreased by 7.6bp, 6.1bp, 4.9bp, and 4.4bp respectively compared to April 30, 2025 [5][27] - The spreads between ABS yields to maturity and medium - and short - term notes mostly continued to rise. The spreads of 1 - year, 3 - year, 5 - year, and 10 - year AAA - rated asset - backed securities with the same - maturity and same - rating medium - and short - term notes changed to 5.4bp, - 10.1bp, 0.0bp, and - 1.3bp respectively [5][27]

Group 1 - The construction of major projects in China is accelerating, with increased funding support expected to positively impact infrastructure investment in the second quarter [1] - A-share market experienced a strong start in May, driven by robust domestic consumption and a stronger RMB, with private equity firms optimistic about structural opportunities [2][5] - The A-share semiconductor industry is showing signs of recovery, with total revenue reaching approximately 602.2 billion yuan, and North China Huaneng becoming the new "profit king" in the sector [7] Group 2 - The Beijing Stock Exchange (BSE) reported that over 85% of its listed companies achieved profitability in 2024, with total revenue reaching 180.845 billion yuan [4] - The launch of the Hong Kong Stock Exchange's (HKEX) dedicated line for tech companies aims to provide tailored guidance for listing applications, enhancing the efficiency of the listing process [9][12] - The enterprise asset-backed securities (ABS) market is expanding, with 472 ABS issued in 2024, totaling 403.485 billion yuan, reflecting a significant year-on-year increase [10]