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 information about the report industry investment rating is provided in the given content. 2. Core Viewpoints of the Report - To better understand banks' asset - liability allocation behavior and analyze its impact on the bond market, it is necessary to systematically sort out and split bank regulatory indicators. This report focuses on the regulatory requirements in the field of bank liquidity, including the development history of the domestic bank liquidity regulatory system, in - depth analysis of the composition of five regulatory indicators, and a comprehensive introduction of multiple liquidity monitoring indicators [3][19]. 3. Summary According to the Directory 3.1 Liquidity Regulatory Indicators' Introduction and Evolution - After the 2007 - 2009 global financial crisis, Basel III proposed the Liquidity Coverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR) in 2010 to strengthen short - term and medium - long - term liquidity constraints on banks. China's liquidity regulatory system has followed a path of "first monitoring, then regulation, and then systematic improvement". In 2006, liquidity monitoring indicators were proposed; in 2014, regulatory and monitoring indicators were implemented in parallel; in 2015, the content of regulatory indicators was adjusted and monitoring indicators were expanded; in 2018, the "Five regulatory indicators + multiple monitoring indicators" framework was established, and the monthly/quarterly reporting mechanism was clarified [8][21][22]. 3.2 Liquidity Coverage Ratio (LCR) - **Calculation Formula**: LCR = Qualified High - Quality Liquid Assets (HQLA) / Net cash outflow in the next 30 days. The regulatory requirement is that the LCR level should not be less than 100% [9][27]. - **Composition and Calculation of the Numerator**: HQLA is divided into Level 1 assets and Level 2 (2A/2B) assets, calculated by asset × discount coefficient. There are restrictions on the proportion of Level 2 assets, and some special assets such as ordinary financial bonds and inter - bank certificates of deposit are not included [29][30][31]. - **Composition and Calculation of the Denominator**: The denominator is calculated as ∑ expected cash outflows in the next 30 days × conversion rate - ∑ expected cash inflows in the next 30 days × conversion rate. There are also some calculation rules and special considerations [32][33]. 3.3 Net Stable Funding Ratio (NSFR) - **Calculation Formula**: NSFR = Available stable funds / Required stable funds. The regulatory requirement is that the NSFR level should not be less than 100% [10][37]. - **Composition and Calculation of the Numerator**: Available stable funds are obtained by multiplying different types of liabilities and capital by corresponding conversion coefficients. Longer - term, more stable funds have higher coefficients [40]. - **Composition and Calculation of the Denominator**: Required stable funds reflect the occupation of stable funds by assets and off - balance - sheet items. Assets with shorter terms, better liquidity, and higher credit quality have lower coefficients [41]. - **Difference from LCR**: In terms of calculation methods, LCR can be simplified as asset/liability, while NSFR is liability/asset. In terms of regulatory logic, LCR focuses on short - term liquidity, and NSFR focuses on medium - long - term term structure [11][46][48]. 3.4 Other Three Liquidity Regulatory Indicators - **High - Quality Liquid Assets Adequacy Ratio (HQLAAR)**: Designed for small and medium - sized banks with total assets below 200 billion yuan, with a minimum regulatory standard of not less than 100%. It is similar to LCR but has simpler calculation rules [50]. - **Liquidity Matching Ratio (LMR)**: A structural indicator with Chinese characteristics, measuring the term configuration structure of banks' main assets and liabilities, with a minimum regulatory standard of not less than 100%. It is more sensitive to term structure changes compared to NSFR [53]. - **Liquidity Ratio (LR)**: One of the earliest and most common liquidity regulatory indicators, applicable to all commercial banks. It reflects the basic liquidity status under normal conditions, with a minimum regulatory standard of not less than 25% [54][56]. 3.5 Current Situation of Bank Liquidity Regulatory Indicators - **Overall Banking Industry**: The overall LR, LCR, and NSFR of the banking industry show a fluctuating upward trend. LCR generally declines quarter - on - quarter in the third quarter and rebounds in the fourth quarter. The disclosure of the overall NSFR of the banking industry started in the first quarter of 2024, and it has been improving since then [57]. - **By Bank Type**: All four types of banks meet the LCR requirements, but the buffer space of state - owned and joint - stock banks is significantly lower than that of city and rural commercial banks. The NSFR of joint - stock banks is under continuous pressure, and they are more motivated to adjust their asset - liability behavior to improve the NSFR at the end of the quarter [63][68]. 3.6 Liquidity Monitoring Indicators - These indicators are used for continuous observation, cross - verification, and forward - looking identification of banks' liquidity risk status. They do not have a unified hard - line standard but are important for auxiliary judgment. For example, the banking industry's overall loan - to - deposit ratio has been fluctuating upward and stabilized around 80% in 2024 and 2025, and the overall excess reserve ratio has a large fluctuation range, reaching 1.64% at the end of 2025 [73][76].

1. Report Industry Investment Rating - No relevant information provided. 2. Core View of the Report - The overall duration of credit bonds has shortened. As of March 6, the weighted average transaction terms of urban investment bonds and industrial bonds were 2.09 years and 2.27 years respectively. Among commercial bank bonds, the weighted average transaction terms of secondary capital bonds, bank perpetual bonds, and general commercial financial bonds were 3.88 years, 3.47 years, and 1.74 years respectively, with the general commercial financial bonds 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 1.87 years, 2.21 years, 3.12 years, and 1.26 years respectively. The durations of securities subordinated bonds and leasing company bonds have shortened compared to last week, and the historical quantile of the duration of securities company bonds is at a relatively high historical level [2][9]. 3. Summary by Directory 3.1 Full Variety Term Overview - The overall duration of credit bonds has shortened. As of March 6, the weighted average transaction terms of urban investment bonds and industrial bonds were 2.09 years and 2.27 years respectively. Among commercial bank bonds, the weighted average transaction terms of secondary capital bonds, bank perpetual bonds, and general commercial financial bonds were 3.88 years, 3.47 years, and 1.74 years respectively, with the general commercial financial bonds 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 1.87 years, 2.21 years, 3.12 years, and 1.26 years respectively. The durations of securities subordinated bonds and leasing company bonds have shortened compared to last week, and the historical quantile of the duration of securities company bonds is at a relatively high historical level [2][9]. - The coupon duration congestion index is relatively stable. After reaching its highest value in March 2024, the coupon duration congestion index has declined. This week, it is the same as last week and is currently at the 64.5% level since March 2021 [12]. 3.2 Variety Microscope 3.2.1 Urban Investment Bonds - The weighted average transaction term of urban investment bonds hovers around 2.09 years. Among them, the duration of Sichuan provincial urban investment bonds has extended to 4.48 years, and the transaction duration of Guangxi provincial urban investment bonds has shortened to around 0.95 years. At the same time, the historical quantiles of the durations of Zhejiang district - level and Henan prefecture - level urban investment bonds have exceeded 90%, and the duration of Fujian district - level urban investment bonds is approaching the highest level since 2021 [3][16]. 3.2.2 Industrial Bonds - The weighted average transaction term of industrial bonds has shortened compared to last week and is generally around 2.27 years. The transaction duration of the food and beverage industry has extended to 1.27 years, and the transaction duration of the non - ferrous metal industry has shortened to 1.61 years. In addition, the transaction duration of the coal industry is at a relatively low historical quantile, while the construction materials and public utilities industries are at relatively high historical quantiles [3][23]. 3.2.3 Commercial Bank Bonds - The duration of general commercial financial bonds has extended to 1.74 years, at the 14% historical quantile, higher than the level of the same period last year. The duration of secondary capital bonds has shortened to 3.88 years, at the 69.6% historical quantile, lower than the level of the same period last year; the duration of bank perpetual bonds has extended to 3.47 years, at the 55.2% historical quantile, higher than the level of the same period last year [3][26]. 3.2.4 Other Financial Bonds - In terms of the weighted average transaction term, insurance company bonds > securities subordinated bonds > securities company bonds > leasing company bonds, which are at the 59.6%, 55.2%, 77.8%, and 67.7% historical quantiles respectively. The durations of securities subordinated bonds and leasing company bonds have both slightly shortened compared to last week [3][29].

Primary Market - In the week from February 2 to February 6, 2026, a total of 432 credit bonds were issued, with a total issuance scale of 399.33 billion yuan, a decrease of 15.10% week-on-week [4] - Among the issuances, industrial bonds accounted for 184 bonds with an issuance scale of 166.02 billion yuan, down 30.88%, representing 41.57% of the total issuance [4] - Local government bonds issued 210 bonds with an issuance scale of 141.50 billion yuan, an increase of 19.61%, making up 35.43% of the total [4] - Financial bonds totaled 38 bonds with an issuance scale of 91.82 billion yuan, down 17.94%, accounting for 22.99% of the total [4] - The average issuance term for credit bonds was 2.82 years, with industrial bonds at 2.29 years, local government bonds at 3.49 years, and financial bonds at 2.19 years [4] - The average coupon rate for credit bonds was 2.13%, with industrial bonds at 2.03%, local government bonds at 2.25%, and financial bonds at 1.91% [4] - Four credit bonds were canceled during the week [4] Secondary Market - In terms of credit spreads, the largest increase for AAA-rated industries was in food and beverage, up 2.2 basis points, while the largest decrease was in light industry, down 1.2 basis points [5] - For AA+ rated industries, the largest increase was in non-ferrous metals, up 5.6 basis points, and the largest decrease was in agriculture, down 2.4 basis points [5] - The largest increase for AA-rated industries was in non-bank financials, up 1.8 basis points, while the largest decrease was in computers, down 6.3 basis points [5] - Regionally, the largest increase in AAA-rated local government bonds was in Jilin, up 5.9 basis points, and the largest decrease was in Inner Mongolia, down 2.1 basis points [5] - For AA+ rated local government bonds, the largest increase was in Beijing, up 5.8 basis points, and the largest decrease was in Fujian, down 2.7 basis points [5] - The largest increase for AA-rated local government bonds was in Guangxi, up 1.5 basis points, while the largest decrease was in Yunnan, down 6.7 basis points [5] Trading Volume - The total trading volume of credit bonds was 1,470.41 billion yuan, a decrease of 8.17% week-on-week [6] - The top three categories by trading volume were commercial bank bonds, corporate bonds, and medium-term notes [6] - Commercial bank bonds had a trading volume of 497.06 billion yuan, down 8.95%, accounting for 33.80% of the total trading volume [6] - Corporate bonds had a trading volume of 413.42 billion yuan, down 9.23%, representing 28.12% of the total [6] - Medium-term notes had a trading volume of 312.07 billion yuan, down 7.75%, making up 21.22% of the total [6]

1. Report Industry Investment Rating - Not provided in the report 2. Core View of the Report - The overall issuance volume of credit bonds decreased month - on - month, and the credit spreads of various industries showed mixed trends [1] 3. Summary by Relevant Catalogs 3.1 Primary Market 3.1.1 Issuance Statistics - From February 2nd to February 6th, 2026, a total of 432 credit bonds were issued, with a total issuance scale of 399.332 billion yuan, a month - on - month decrease of 15.10% [11] - Industrial bonds: 184 were issued, with a scale of 166.015 billion yuan, a month - on - month decrease of 30.88%, accounting for 41.57% of the total credit bond issuance [11] - Urban investment bonds: 210 were issued, with a scale of 141.497 billion yuan, a month - on - month increase of 19.61%, accounting for 35.43% of the total [11] - Financial bonds: 38 were issued, with a scale of 91.820 billion yuan, a month - on - month decrease of 17.94%, accounting for 22.99% of the total [11] - The average issuance term of credit bonds was 2.82 years, with industrial bonds at 2.29 years, urban investment bonds at 3.49 years, and financial bonds at 2.19 years [13] - The average issuance coupon rate of credit bonds was 2.13%, with industrial bonds at 2.03%, urban investment bonds at 2.25%, and financial bonds at 1.91% [17] 3.1.2 Cancellation of Issuance Statistics - Four credit bonds cancelled their issuance this week [22] 3.2 Secondary Market 3.2.1 Credit Spread Tracking - In Shenwan's first - level industries, the largest upward movement in AAA - rated industry credit spreads was in the food and beverage industry (2.2BP), and the largest downward movement was in the light manufacturing industry (1.2BP). For AA + - rated industries, the largest upward movement was in non - ferrous metals (5.6BP), and the largest downward movement was in agriculture, forestry, animal husbandry and fishery (2.4BP). For AA - rated industries, the largest upward movement was in non - bank finance (1.8BP), and the largest downward movement was in the computer industry (6.3BP) [24] - In terms of urban investment bonds by region, for AAA - rated bonds, the largest upward movement was in Jilin (5.9BP), and the largest downward movement was in Inner Mongolia (2.1BP). For AA + - rated bonds, the largest upward movement was in Beijing (5.8BP), and the largest downward movement was in Fujian (2.7BP). For AA - rated bonds, the largest upward movement was in Guangxi (1.5BP), and the largest downward movement was in Yunnan (6.7BP) [26] - Coal credit spreads showed mixed trends, and steel credit spreads generally increased. For coal, AAA, AA +, and AA - rated credit spreads increased by 1.5BP, decreased by 0.9BP, and increased by 1.1BP respectively. For steel, AAA and AA + - rated credit spreads increased by 1.5BP and 5BP respectively [24] - Urban investment credit spreads of various levels showed mixed trends, and non - urban investment credit spreads generally increased. The three - level urban investment credit spreads increased by 0.1BP, decreased by 0.6BP, and decreased by 0.8BP respectively; the three - level non - urban investment credit spreads increased by 0.6BP, increased by 0.8BP, and remained flat respectively [24] - State - owned enterprise credit spreads showed mixed trends, and private enterprise credit spreads generally decreased. For central state - owned enterprises, the three - level credit spreads increased by 1.5BP, decreased by 0.7BP, and decreased by 0.9BP respectively; for local state - owned enterprises, the three - level credit spreads increased by 0.2BP, decreased by 0.2BP, and decreased by 1.4BP respectively; for AAA and AA + - rated private enterprises, credit spreads decreased by 0.4BP and 1BP respectively [25] 3.2.2 Trading Volume Statistics - The total trading volume of credit bonds was 147.0414 billion yuan, a month - on - month decrease of 8.17%. The top three in terms of trading volume were commercial bank bonds, corporate bonds, and medium - term notes. Commercial bank bonds had a trading volume of 49.7061 billion yuan, a month - on - month decrease of 8.95%, accounting for 33.80% of the total. Corporate bonds had a trading volume of 41.3421 billion yuan, a month - on - month decrease of 9.23%, accounting for 28.12% of the total. Medium - term notes had a trading volume of 31.2069 billion yuan, a month - on - month decrease of 7.75%, accounting for 21.22% of the total [27] 3.2.3 Actively Traded Bonds This Week - The report selects the top 20 urban investment bonds, industrial bonds, and financial bonds in terms of trading volume this week for investors' reference [29]

Group 1 - The core viewpoint of the article highlights a significant increase in credit bond issuance in the primary market, with a total of 332 bonds issued, amounting to 312.27 billion yuan, representing a 306.00% increase compared to the previous period [4][5] - In terms of issuance scale, industrial bonds accounted for 135.37 billion yuan, a 295.92% increase, while urban investment bonds reached 138.91 billion yuan, a 409.86% increase, together making up 43.35% and 44.48% of the total issuance respectively [4][5] - The average issuance term for credit bonds was 2.73 years, with industrial bonds averaging 1.88 years and urban investment bonds averaging 3.24 years [4] Group 2 - The average coupon rate for credit bonds was 2.22%, with industrial bonds at 2.06%, urban investment bonds at 2.32%, and financial bonds at 1.71% [5] - In the secondary market, credit spreads varied by industry, with the largest increase in AAA-rated food and beverage sector by 2.1 basis points, while the largest decrease was in the communication sector by 8.3 basis points [6] - The total trading volume of credit bonds reached 1,403.85 billion yuan, a 121.26% increase, with commercial bank bonds, corporate bonds, and medium-term notes being the top three in trading volume [7]

Group 1: Primary Market - In the week from December 22 to December 26, 2025, a total of 267 credit bonds were issued, with a total issuance scale of 427.70 billion, representing a week-on-week increase of 15.42% [4] - Among the issued bonds, industrial bonds accounted for 117 issues with a scale of 219.26 billion, a week-on-week increase of 34.26%, making up 51.26% of the total issuance [4] - City investment bonds totaled 110 issues with a scale of 71.36 billion, a week-on-week decrease of 18.87%, representing 16.69% of the total issuance [4] - Financial bonds had 40 issues with a scale of 137.08 billion, a week-on-week increase of 14.92%, accounting for 32.05% of the total issuance [4] - The average issuance term for credit bonds was 2.74 years, with industrial bonds averaging 2.36 years, city investment bonds 3.25 years, and financial bonds 2.35 years [4] - The overall average coupon rate for credit bonds was 2.26%, with industrial bonds at 2.12%, city investment bonds at 2.41%, and financial bonds at 2.23% [4] Group 2: Secondary Market - The total trading volume of credit bonds was 1782.75 billion, reflecting a week-on-week increase of 28.47% [7] - The top three categories by trading volume were commercial bank bonds, corporate bonds, and medium-term notes, with commercial bank bonds at 630.89 billion (up 38.88%), corporate bonds at 521.31 billion (up 15.93%), and medium-term notes at 347.64 billion (up 40.63%) [7] - In terms of credit spreads, the largest increase for AAA-rated industries was in pharmaceuticals, up 5.1 basis points, while the largest decrease was in real estate, down 1.3 basis points [6] - For AA+ rated industries, the largest increase was in household appliances, up 6.4 basis points, and the largest decrease was in textiles and apparel, down 9.8 basis points [6] - The AAA-rated credit spread increased the most in Gansu, up 8.7 basis points, while the largest decrease was in Jilin, down 2.9 basis points [6]

1. Report Industry Investment Rating No information about the industry investment rating is provided in the given content. 2. Core Viewpoints of the Report - In November 2025, the overall bond market weakened, especially the ultra - long end, and the decline in the willingness of trading desks to increase interest - rate bonds may be the core factor for the market adjustment. The adjustment of ultra - long bonds in November may be more affected by the sentiment of trading desks, with relatively limited relation to issues such as bank book interest - rate risks. [3][12] - The bond leverage ratio decreased slightly in November, with the securities company's leverage ratio rising but the product account leverage ratio falling. [4][53] 3. Summary by Related Catalogs 3.1 11 - month Interest - rate Bond Custody Increased Significantly but Certificates of Deposit Had Net Repayment, and the Bond Custody Scale Rose Slightly - In November, the total bond custody scale increased by 147.98 billion yuan month - on - month, an increase of 16.75 billion yuan compared with October. Interest - rate bond custody increments increased by nearly one trillion yuan compared with the previous month, and the custody increments of treasury bonds, local bonds, and policy - financial bonds all increased significantly. Due to the increase in the issuance scale of medium - term notes, the credit - bond custody increment also increased, and the custody scale of commercial bank bonds turned from a decline to an increase. However, the custody volume of inter - bank certificates of deposit changed from an increase of 721.4 billion yuan last month to a decrease of 385.7 billion yuan, significantly dragging down the overall bond custody scale. [3][10] 3.2 The Decline in the Willingness of Trading Desks to Increase Interest - rate Bonds May Be the Core Factor for the Market Adjustment in November 3.2.1 Generalized Funds - In November, the bond custody scale of generalized funds increased by 22.16 billion yuan month - on - month, a decrease of 82.29 billion yuan compared with the previous month. They mainly changed from increasing 77.12 billion yuan of inter - bank certificates of deposit last month to reducing 950 million yuan. In addition, they increased their holdings of financial bonds, local bonds, and medium - term notes on the Clearstream, but also increased their reduction of commercial bank bonds, policy - financial bonds, and enterprise bonds, and changed to reducing treasury bonds and inter - bank certificates of deposit. [18] 3.2.2 Securities Companies - In November, the bond custody volume of securities companies changed from an increase of 13.48 billion yuan last month to a decrease of 14.21 billion yuan, mainly due to the reduction of treasury bonds, policy - financial bonds, and financial bonds on the Clearstream, a decrease in the increase of local bonds, and an increase in the reduction of inter - bank certificates of deposit and commercial bank bonds. However, they increased their holdings of medium - term notes and credit - asset - backed securities and increased their holdings of short - term commercial paper. [26] 3.2.3 Insurance Companies - In November, the bond custody volume of insurance companies changed from a decrease of 450 million yuan last month to an increase of 2.85 billion yuan. They slightly increased their holdings of treasury bonds and inter - bank certificates of deposit and increased their holdings of financial bonds and medium - term notes on the Clearstream, but the increase in local bonds decreased, and the reduction of commercial bank bonds increased. [30] 3.2.4 Overseas Institutions - In November, the bond custody scale of overseas institutions decreased by 11.67 billion yuan month - on - month, and the decline was 6.26 billion yuan larger than the previous month. They mainly changed to reducing treasury bonds, increased their reduction of inter - bank certificates of deposit, but slightly increased their holdings of policy - financial bonds. [32] 3.2.5 Other Institutions - In November, the bond custody volume of other institutions including the central bank increased by 57.46 billion yuan month - on - month, and the increase was 21.9 billion yuan larger than the previous month. They increased their holdings of treasury bonds, changed to increasing policy - financial bonds, but the increase in local bonds decreased and changed to reducing inter - bank certificates of deposit. The structural changes in the custody data may be due to the fact that the proportion of treasury bonds in the repurchase of reverse repurchase targets increased. [37] 3.2.6 Commercial Banks - In November, the bond custody scale of commercial banks changed from a decrease of 25.14 billion yuan last month to an increase of 78.3 billion yuan. They mainly increased their holdings of local bonds and financial bonds on the Clearstream, increased their holdings of treasury bonds, policy - financial bonds, and medium - term notes, but increased their reduction of inter - bank certificates of deposit and changed to reducing short - term commercial paper and credit - asset - backed securities. If the impact of outright repurchase is considered, the banks' increase in holdings of treasury bonds and local bonds further increased. [44] 3.2.7 Credit Unions - In November, the bond custody scale of credit unions changed from a decrease of 2.06 billion yuan last month to an increase of 980 million yuan. They mainly increased their holdings of treasury bonds, increased their holdings of local bonds and financial bonds on the Clearstream, decreased their reduction of policy - financial bonds, but decreased their increase of inter - bank certificates of deposit. [46] 3.3 The Bond Leverage Ratio Decreased Slightly in November, with the Securities Company's Leverage Ratio Rising but the Product Account Leverage Ratio Falling - Affected by the increase in the bond custody scale and the decrease in the scale of institutional funds borrowed, the bond market leverage ratio decreased by 0.2 percentage points month - on - month to 107.2% in November, still at a relatively low level. [4][53] - Among them, the commercial bank's leverage ratio decreased by 0.2 percentage points month - on - month to 103.3%, and the non - bank institution's leverage ratio decreased by 0.3 percentage points month - on - month to 117.0%. In non - bank institutions, the securities company's leverage ratio increased by 11.5 percentage points month - on - month to 231.4%, reaching a new high since 2020, while the leverage ratio of insurance and non - legal person products decreased by 0.3 percentage points month - on - month to 113.7%, still at a relatively low level in the past three years. [4][53]

Summary of Key Points from Conference Call Records Industry Overview - The records primarily discuss the fixed income market, particularly focusing on the bond market dynamics and the implications for various financial institutions, including banks and insurance companies [1][2][5]. Core Insights and Arguments 1. **Supply and Demand Pressure**: The supply-demand structure for bonds is under pressure, with local government bond issuance at historical highs and major banks nearing their issuance limits. This situation raises concerns about potential supply-demand gaps [1][2][5]. 2. **Long-term Bond Selling**: Funds have been continuously selling long-term bonds, with a net sell-off of approximately 60 billion, bringing the duration of medium to long-term interest rate bonds back to levels seen in early April [1][3][4]. 3. **Projected Financing Needs**: For the upcoming year, the net financing volume is expected to increase to between 6.76 trillion and 6.8 trillion, indicating a significant rise in overall financing needs [1][5]. 4. **Insurance Sector Adjustments**: The insurance sector is expected to see a decrease in demand for ultra-long-term bonds by about 200 billion due to a shift towards higher dividend insurance products in a low-interest-rate environment [1][6][7]. 5. **Banking Sector Trends**: If banks maintain their current bond purchase ratios, their share in the market may decrease by approximately 100 billion [1][7]. Additional Important Insights 1. **Market Volatility**: The bond market is anticipated to experience volatility, particularly in the long-term segment, as the demand from funds and insurance companies is expected to weaken [1][3][6]. 2. **Credit Bond Market Performance**: The credit bond market has shown a lackluster performance, with credit spreads widening as funds continue to favor short-term credit bonds [3][12][13]. 3. **Investment Strategies**: Recommendations for investment strategies include waiting for favorable conditions before making significant investments in long-term bonds and focusing on short to medium-term bonds for better liquidity and stability [11][16]. 4. **Impact of Regulatory Changes**: Regulatory adjustments, such as changes in fund sales fees and customized fund regulations, are expected to influence demand for bonds with maturities of 4-5 years, potentially increasing volatility [15][16]. 5. **Market Sentiment and Future Outlook**: The sentiment in the market is cautious, with expectations that the supply-demand gap could reach approximately 700 billion, necessitating measures such as relaxing central bank liquidity indicators to alleviate pressure [8][10]. This summary encapsulates the critical points discussed in the conference call records, providing a comprehensive overview of the current state and future outlook of the fixed income market and its participants.

1. Report Industry Investment Rating - Not provided in the report 2. Core Viewpoints of the Report - From December 8 to December 12, 2025, the issuance volume of credit bonds increased month - on - month, and the credit spreads of various industries showed mixed changes. The primary market issuance was active, and the secondary market trading volume increased significantly [1][24][3] 3. Summary by Relevant Catalogs 3.1 Primary Market 3.1.1 Issuance Statistics - During the week, 369 credit bonds were issued, with a total issuance scale of 459.512 billion yuan, a month - on - month increase of 35.34%. Among them, 174 industrial bonds were issued, amounting to 186.503 billion yuan (a 62.28% month - on - month increase, accounting for 40.59%); 149 urban investment bonds were issued, totaling 88.809 billion yuan (a 7.82% month - on - month decrease, accounting for 19.33%); and 46 financial bonds were issued, reaching 184.2 billion yuan (a 43.60% month - on - month increase, accounting for 40.09%) [11] - The average issuance term of credit bonds was 2.80 years. The average issuance terms of industrial bonds, urban investment bonds, and financial bonds were 2.36 years, 3.34 years, and 2.48 years respectively [12] - The average issuance coupon rate of credit bonds was 2.24%. The average issuance coupon rates of industrial bonds, urban investment bonds, and financial bonds were 2.19%, 2.39%, and 1.96% respectively [17] 3.1.2 Cancellation of Issuance Statistics - Four credit bonds were cancelled for issuance during the week [22] 3.2 Secondary Market 3.2.1 Credit Spread Tracking - In the Shenwan primary industries, for AAA - rated industries, the largest upward movement in credit spread was in agriculture, forestry, animal husbandry, and fishery (up 3.1BP), and the largest downward movement was in medicine and biology (down 4.2BP). For AA + - rated industries, the largest upward movement was in electrical equipment (up 2.7BP), and the largest downward movement was in building materials (down 12.7BP). For AA - rated industries, the largest upward movement was in machinery (up 4.9BP), and the largest downward movement was in public utilities (down 2.8BP) [3] - For urban investment bonds by region, among AAA - rated bonds, the largest upward movement in credit spread was in Yunnan (up 4.7BP), and the largest downward movement was in Guangdong (down 3.7BP). Among AA + - rated bonds, the largest upward movement was in Beijing (up 13BP), and the largest downward movement was in Shaanxi (down 4.8BP). Among AA - rated bonds, the largest upward movement was in Yunnan (up 4.9BP), and the largest downward movement was in Shaanxi (down 9.8BP) [26] 3.2.2 Trading Volume Statistics - The total trading volume of credit bonds was 1625.428 billion yuan, a month - on - month increase of 36.58%. The top three in terms of trading volume were commercial bank bonds, corporate bonds, and medium - term notes. Specifically, commercial bank bonds had a trading volume of 628.038 billion yuan (a 60.23% month - on - month increase, accounting for 38.64%); corporate bonds had a trading volume of 402.758 billion yuan (a 10.55% month - on - month increase, accounting for 24.78%); and medium - term notes had a trading volume of 294.033 billion yuan (a 23.12% month - on - month increase, accounting for 18.09%) [4] 3.2.3 Actively Traded Bonds This Week - The report selected the top 20 urban investment bonds, industrial bonds, and financial bonds in terms of trading volume this week for investors' reference, including details such as security code, security abbreviation, trading volume, average trading yield, ChinaBond valuation yield, ChinaBond implied rating, remaining term, and issuer [30][32][33]