Core Viewpoint - The article emphasizes the importance of enhancing the multi-tiered bond market system in China to support high-quality economic development, particularly through increasing the proportion of industrial bonds financing [1][3]. Group 1: Bond Market Development - The bond market in China has developed a unified multi-tiered system, including interbank, exchange, and commercial bank counter markets, which plays a crucial role in direct financing [2]. - As of the end of 2024, the bond market's custody balance reached 177 trillion yuan, a year-on-year increase of 12.1%, with interbank bonds accounting for 155.8 trillion yuan [2]. Group 2: Industrial Bonds - The issuance scale of industrial bonds is currently low, accounting for less than 10% of the exchange bond market, with an issuance scale of 177.5 billion yuan, representing 7.85% of the total [5]. - The concentration of industrial bond issuance has increased, with state-owned enterprises accounting for 97.37% of the total issuance in 2024 [5]. Group 3: Policy Recommendations - To increase the financing scale and proportion of industrial bonds, it is suggested to attract more long-term funds, enhance information disclosure, and provide policy incentives such as tax reductions [6]. - Future goals include raising the industrial bond financing ratio to about 50% of credit bonds and increasing its market share to 15-20%, which would meet the financing needs of the real economy while maintaining market stability [6].

1. Report Industry Investment Rating No information provided in the document. 2. Core View of the Report In the critical period of China's economic transformation towards high - quality development and accelerated industrial restructuring, the capital market's support for technological innovation has entered a new stage. The launch of the "Technology Board" in the bond market in early May and the subsequent deployment at the Lujiazui Forum have further enriched the multi - level capital market system. Although the sci - tech innovation bond market is still in the cultivation stage and faces some structural problems, overseas mature markets have accumulated useful experience in supporting technological innovation financing, which can provide important references for China. In the future, efforts should be made to build a long - term mechanism for the bond market to serve technological innovation, deepen the function of the "Technology Board" in the bond market, and provide strong financial support for China's high - level technological self - reliance and strength [2][4]. 3. Summary According to Relevant Catalogs Policy Evolution - China's sci - tech innovation bond development can be divided into three stages: the pilot exploration period (2015 - 2020), the rapid growth period (2021 - 2024), and the multi - level development period (2025 to date). In the pilot exploration period,双创孵化债 and双创债 were piloted to broaden direct financing channels. In the rapid growth period, products like sci - tech corporate bonds and sci - tech notes were launched, and the market scale expanded rapidly. In the multi - level development period, the "Technology Board" was launched, and a series of measures were taken to improve the market [2][4][5]. Development Status - The sci - tech innovation bond market has expanded rapidly to a trillion - level scale. As of June 17, 2025, the cumulative issuance scale this year is close to 90 billion yuan, and the stock scale is about 230 billion yuan, accounting for over 70% of the total issuance scale of innovative varieties. - The issuance is mainly short - to medium - term, with a further short - term tendency, which has a certain mismatch with long - term capital needs. - There is a cost advantage, with an average issuance cost lower than that of bonds of the same term and type. - The issuer structure is mainly central and local state - owned enterprises, accounting for about 90%, and the issuers' credit ratings are mainly above AA +, with AAA - rated entities issuing the most bonds. - Traditional industries have a relatively high scale, and emerging industries are actively exploring issuance. After the new regulations in May, financial institutions issued a large number of sci - tech innovation bonds. - Regional performance is differentiated, with Beijing, Shanghai, Shandong, and Guangdong having larger issuance scales, and the issuance in the eastern coastal areas is relatively more active [2][10][11]. Contradiction Analysis - The sci - tech innovation bond market is in the cultivation stage and has structural problems. The issuer structure is differentiated, with insufficient support for small and medium - sized enterprises. - Investors have a low risk preference, and their lack of willingness to buy low - quality sci - tech innovation bonds affects the bond structure. - The trading activity is average, and the market liquidity needs to be improved. - The application of credit enhancement tools is insufficient, and the risk - sharing function remains to be realized [2][23][25]. International Experience - Developed countries support technological innovation financing through multiple means, including building a multi - level capital market system, developing high - yield bond and ABS markets, optimizing the stock - bond - loan linkage model, introducing patient capital, and using funds, index products, and derivatives markets to balance risks [28][30][32]. Policy Recommendations - Anchor the direction of technological innovation, combine the enterprise life cycle to open up diversified financing channels, and deepen the construction of the "Technology Board" in the bond market. - Optimize the investment - side ecosystem, introduce diversified funds, and improve market liquidity. - Further improve the risk - sharing and credit - enhancement mechanism to strengthen risk sharing. - Guide the market to objectively view and correctly understand risks, and give full play to the role of credit ratings in risk disclosure [34][36][38].

Summary of Key Points from the Conference Call on the Sci-Tech Bond Market Industry Overview - The conference call discusses the **Sci-Tech Bond Market**, which includes various types of bonds such as **Innovation and Entrepreneurship Bonds**, **Sci-Tech Notes**, and **Technology Innovation Company Bonds**. The funds raised are aimed at supporting innovation incubation, the development of technology enterprises, and the construction of infrastructure for industrial parks [1][2]. Core Insights and Arguments - **Policy Development**: From 2022 to 2025, policies regarding Sci-Tech Bonds have been continuously refined, transitioning from supporting state-owned enterprises to promoting high-quality development, with new regulations introduced by the central bank and the securities regulatory commission to facilitate explosive growth in the market [1][8]. - **Market Size**: As of now, the issuance scale of Sci-Tech Bonds exceeds **30 trillion yuan**, with an outstanding balance of approximately **23 trillion yuan**. State-owned enterprises account for about **90%** of this market, with a significant concentration in traditional industries such as construction and urban investment [1][12]. - **Investment Characteristics**: The average coupon rate of Sci-Tech Bonds is lower than that of non-Sci-Tech Bonds, indicating a strong policy support direction. However, bonds with lower implicit ratings may yield higher returns compared to non-Sci-Tech Bonds [3][15]. - **Market Pain Points**: Key challenges include low participation from weakly rated enterprises and private companies, short issuance terms that do not align with the long R&D cycles of tech firms, and insufficient market liquidity and information disclosure [13][14]. Important but Overlooked Content - **Future Policy Directions**: The 2025 policy changes broaden the range of issuers and the use of raised funds, allowing financial institutions and equity investment firms to issue bonds, which is expected to enhance market recognition [9][10]. - **Liquidity Issues**: The current monthly turnover rate for Sci-Tech Bonds is between **6% and 9%**, which is lower than that of medium-term notes. However, recent policy changes have led to a slight increase in turnover rates [17]. - **ETF Impact**: The introduction of Sci-Tech Bond ETFs is anticipated to significantly improve market liquidity, particularly for the underlying bonds included in these ETFs, potentially leading to a decline in yields and compression of spreads [18]. Conclusion - The Sci-Tech Bond Market is evolving with strong policy support and significant growth potential. However, it faces challenges related to issuer quality, market liquidity, and alignment with the unique financial characteristics of technology enterprises. Future developments, particularly the introduction of ETFs and expanded issuer categories, may enhance market dynamics and investment opportunities.

Report Industry Investment Rating No information provided. Core Viewpoints of the Report - The bond market's "Tech Board" has been launched, with policies encouraging, improving issuance mechanisms, and providing financing support, which is expected to gradually expand the science and technology innovation bond (Sci - tech Bond) market [1][5][9][10][50]. - The proportion of long - term Sci - tech Bonds may increase as issuers are encouraged to issue long - term bonds and risk - sharing tools are created [5][10][50]. - The issuers of Sci - tech Bonds will become more diverse, including financial institutions, technology - based enterprises, and equity investment institutions [9][10][50]. - The participation of institutional investors in Sci - tech Bonds is expected to increase, and the overall market valuation may be compressed [5][50][51]. Summary According to the Table of Contents 1. Bond Market "Tech Board" Launched - On May 7, 2025, the People's Bank of China (PBOC) and the China Securities Regulatory Commission (CSRC) announced support for three types of market entities (financial institutions, technology - based enterprises, and equity investment institutions) to issue Sci - tech Bonds. Nearly 100 market institutions plan to issue over 300 billion yuan of Sci - tech Bonds [9]. - On May 8, the PBOC and CSRC jointly issued an announcement with measures to support the issuance of Sci - tech Bonds, including enriching product systems, improving support mechanisms, and creating risk - sharing tools [10][11]. 2. Development History of Sci - tech Thematic Bonds - In 2016, the CSRC promoted the pilot issuance of dual - innovation bonds (Dual - innovation Bonds). In 2017, Dual - innovation Bonds entered the regular issuance stage [2][12]. - In 2021, the exchange piloted the issuance of Sci - tech Bonds, which became regular after 2022. In 2022, the Shanghai and Shenzhen Stock Exchanges issued guidelines for the issuance and listing review of Sci - tech Bonds [2][13]. - In 2021, the National Association of Financial Market Institutional Investors (NAFMII) launched high - growth enterprise debt financing instruments, which were upgraded to Sci - tech Notes in 2022 [2][14]. 3. Overview of Sci - tech Bond Issuance and Outstanding Amounts 3.1 Sci - tech Bond Issuance - As of May 5, 2025, the cumulative issuance of Sci - tech Corporate Bonds and Sci - tech Notes reached 2.67 trillion yuan, with 1.29 trillion yuan for Sci - tech Corporate Bonds and 1.38 trillion yuan for Sci - tech Notes [3][18]. - From 2021 - 2024, the issuance of Sci - tech Corporate Bonds increased annually. As of May 5, 2025, the issuance in 2025 was 193.293 billion yuan. The issuance terms were mainly 3 - 10 years, and the proportion of long - term bonds increased in 2024 [19]. - The issuers of Sci - tech Corporate Bonds are mainly AAA - rated central and local state - owned enterprises. The industries with large issuance scales are construction decoration, comprehensive, and public utilities [23][25]. - From 2022 - 2024, the supply of Sci - tech Notes increased annually. As of May 5, 2025, the issuance in 2025 was 207.971 billion yuan. Sci - tech Notes include various bond types, mainly medium - term notes and short - term financing bills, with relatively short issuance terms [27][29]. - The issuers of Sci - tech Notes are also mainly AAA - rated central and local state - owned enterprises, and the proportion of private enterprises is higher than that of Sci - tech Corporate Bonds. The industries with large issuance scales are construction decoration, non - ferrous metals, and coal [31][33]. 3.2 Sci - tech Bond Outstanding Market - As of May 5, 2025, the outstanding amounts of Sci - tech Corporate Bonds and Sci - tech Notes were 1.2086 trillion yuan and 688.5 billion yuan respectively. The outstanding bonds have the following characteristics: strong issuer qualifications (87% of external ratings are AAA), remaining terms concentrated within 5 years, mainly issued by central and local state - owned enterprises, and issuer industries concentrated in traditional industries [3][37]. - There is room to explore the yield of outstanding Sci - tech Bonds. The proportion of outstanding bonds with a valuation of over 2.1% is 49% for both Sci - tech Corporate Bonds and Sci - tech Notes. It is recommended to focus on AA - rated Sci - tech Corporate Bonds and Sci - tech Notes within 1 year [4][45][47]. 4. Impact of the Bond Market's "Tech Board" Launch - The Sci - tech Bond market is expected to expand gradually due to policy encouragement, improved issuance mechanisms, and financing support [5][50]. - The proportion of long - term Sci - tech Bonds may increase as issuers are encouraged to set flexible bond terms and risk - sharing tools are created [5][10][50]. - The issuers of Sci - tech Bonds will become more diverse, including financial institutions, technology - based enterprises, and equity investment institutions [9][10][50]. - The participation of institutional investors in Sci - tech Bonds is expected to increase, and the overall financing cost of Sci - tech Bonds may improve, leading to a potential compression of the overall market valuation [5][50][51].

Core Viewpoint - The introduction of the Science and Technology Innovation Bonds (科创债) is seen as a positive development, primarily benefiting state-owned enterprises and leading companies, with limited immediate impact on the primary market [1][3]. Group 1: Historical Context and Comparison - The concept of innovation bonds was previously tested during the "mass entrepreneurship and innovation" period in 2016, but the issuance was limited, with only 1,117.3 billion yuan issued from 2017 to 2024, and little market activity since 2023 [1][3]. - Science and Technology Innovation Bonds, launched in 2021, have seen a significant increase in issuance, totaling 1.19 trillion yuan, which is over ten times that of the previous innovation bonds [2][3]. Group 2: Issuance and Beneficiaries - The eligible issuers of Science and Technology Innovation Bonds include major commercial banks, securities firms, large private equity investment institutions (including state-owned and leading private firms), and mature technology companies [2][3]. - The majority of the bonds issued are unsecured, with a high reliance on the credit quality of the issuing entities, predominantly benefiting state-owned enterprises [4][6]. Group 3: Market Dynamics and Trends - The issuance of long-term bonds has increased significantly in 2024, with bonds of 10 years or more now accounting for 20% of the total issuance [2][3]. - The financial sector remains the primary issuer, with banks and securities firms expected to issue nearly 700 billion yuan, significantly outpacing the expected issuance from venture capital institutions [9]. Group 4: Interest Rates and Cost of Capital - The interest rates for Science and Technology Innovation Bonds are generally lower than those for ordinary corporate bonds, with rates around 2% for high-quality issuers [13][14]. - The cost of capital for non-guaranteed loans to entrepreneurial companies has decreased significantly, now around 3%, compared to 8% in 2021, making equity financing less attractive for stable, mature companies [18]. Group 5: Recommendations for Startups and Investment Institutions - Startups without innovation attributes are advised to focus on profitability and self-sustainability, as access to funding may be limited [18]. - Investment institutions closely collaborating with local governments are encouraged to explore this new funding channel to enhance their capital-raising capabilities [18].

中共中央政治局 4 月 2 5 日召开会议，分析研究当前经济形势和经济工作。中共中央总书记习 近平主持会议。 会议强调，要多措并举帮扶困难企业。 加强融资支持 。加快推动内外贸一体化。培育壮大新 质生产力，打造一批新兴支柱产业。持续用力推进关键核心技术攻关， 创新推出债券市场的 " 科技板 " ，加快实施 " 人工智能 +" 行动。大力推进重点产业提质升级，坚持标准引领，规范 竞争秩序。 我们认为，对母基金和 VC/PE 而言，发债是一条募资新路。 据我们统计，近期各方"发债"为基金募资的好消息接二连三，包括上海国投公司、广州金控基 金管理有限公司、中国诚通控股集团有限公司、南京市创新投资集团有限责任公司、无锡产业 集团、浙江产兴股权投资、成都高科集团、西安高新技术产业风险投资有限责任公司等。 发债模式业内早有探索，首先，双创债模式的实施，要追溯到 2 0 1 7 年，当年 4 月 2 8 日，证 监会发布了双创债征求意见稿，正式打开了双创债融资的大门。传统上私募基金的资金来源分 为两个部分，一是股东（ GP ）的资本金投入（或自有资本）；二是投资人（ LP ）投入的募 集资金。双创债政策的开放，引入了私募基 ...