1. Report Industry Investment Rating No information provided in the content. 2. Core Viewpoints of the Report - In 2025, most prefecture - level cities saw an increase in GDP, with higher growth rates in the western region. Nearly 90% of cities had an increase in fiscal revenue, with higher growth in the central and western regions. The growth rate of interest - bearing debt of urban investment companies slowed down, and more than half of the cities saw a decline in the urban investment debt ratio. The default risk of urban investment bonds is still relatively small, and some profitable varieties can be explored [1][2][3]. 3. Summary According to the Directory 3.1 Most Cities See an Increase in General Public Budget Revenue and an Improvement in Fiscal Self - Sufficiency 3.1.1 Most Cities' GDP Grows, with Higher Growth in the Western Region - As of March 29, 2026, 254 and 257 prefecture - level administrative units had disclosed their 2025 GDP scale and GDP year - on - year growth rate respectively. Economically strong cities in Jiangsu, Shandong, Fujian, and Zhejiang accounted for over 70% with a GDP of over 300 billion yuan. The number of cities with a GDP of over one trillion yuan increased to 25, including Wenzhou and Dalian which exceeded one trillion yuan for the first time in 2025. Nearly 70% of the 257 cities with disclosed data had a GDP growth rate above the national level (5.0%), and 6 cities had a growth rate of 7% or more, mainly in the western provinces [9][15]. 3.1.2 Nearly 90% of Cities See Fiscal Revenue Growth, with Higher Growth in the Central and Western Regions - As of March 29, 2025, 255 cities had disclosed their 2025 general public budget revenue. Nearly 90% of cities saw an increase in general public budget revenue, with higher growth in the central and western regions. 24 cities had a comparable growth rate of over 10%, mainly in the central and western provinces. Most cities in the eastern provinces had a growth rate of less than 5%. 31 cities had a negative growth rate, mainly in Shanxi, Yunnan, Guangdong, and Hunan [23][24]. 3.1.3 The Growth Rate of Interest - Bearing Debt of Urban Investment Companies Slows Down, and More than Half of the Cities See a Decline in the Urban Investment Debt Ratio - In 2025, most prefecture - level cities still saw an increase in the interest - bearing debt of urban investment companies, but the growth rate slowed down. The average growth rate of the interest - bearing debt of urban investment companies in each city from Q3 2025 compared to the end of 2024 was 3.7%, down from 4.2% in the first three quarters of 2024. More than half of the cities saw a decline in the urban investment debt ratio, mainly in Guangdong, Henan, Hubei, and Anhui. Nearly 90% of cities saw an increase in the government debt ratio [37]. 3.2 How to Explore Urban Investment Bonds in Each City - Since the debt - resolving cycle is ongoing and the central and provincial governments are starting to pay attention to the resolution of operating debt risks, the default risk of urban investment bonds is still small. Two investment strategies are recommended: focus on cities with relatively stable fundamentals and pull the duration appropriately to earn returns; pay attention to cities with significantly improved fundamentals and obtain returns through short - duration sinking [3][54]. - For cities with stable fundamentals, 88 cities were selected according to the criteria of positive growth in general public budget revenue and GDP in the past three years and a general public budget revenue of over 20 billion yuan in 2025. As of March 27, 2026, the average valuation of 2 - 3 - year AA urban investment bonds in cities such as Qingyuan in Guangdong, Xiangyang in Hubei, Zhuzhou in Hunan, and Shangrao in Jiangxi was over 2.1%; the average valuation of 2 - 3 - year AA urban investment bonds in cities such as Anqing in Anhui, Xiamen in Fujian, Huizhou, Zhaoqing, and Zhanjiang in Guangdong was between 2.0% - 2.1% [56]. - For cities with significantly improved fundamentals, 30 cities were selected according to the criteria of a GDP growth rate of over 5%, a growth rate of general public budget revenue of over 5%, and a decline in the urban investment debt ratio in 2025. After excluding 8 cities that also belonged to the group with stable fundamentals, 22 cities remained. The average valuation of AA urban investment bonds within 1 year in Shangqiu, Henan, AA urban investment bonds from 1 - 2 years in Jiaozuo, Henan, and AA - urban investment bonds within 1 year in Bazhong, Guangyuan, and Mianyang, Sichuan was over 2.1%. The average valuation of AA(2) urban investment bonds within 1 year in Bayingolin Mongol Autonomous Prefecture, Xinjiang, and AA - urban investment bonds within 1 year in Huangshi and Jingzhou, Hubei was over 2.0% [58][59].

1. Report Industry Investment Rating - Not provided in the document 2. Core Views of the Report - In Q4 2025, the bond market valuation recovered, and the net asset value of the bond funds in the whole market stopped falling and rebounded. However, the "asset shortage" pattern continued, the yield of credit bonds declined again, and the supply of desirable medium - to - high - yield assets shrank. Against this background, bond funds actively explored returns in terms of variety and duration in Q4, while remaining relatively cautious about credit downgrading [5]. - From the overall situation of bond fund heavy - holdings, the return range was further compressed, and institutions tended to adopt conservative strategies. The yields of the heavy - holding bond issuers were highly concentrated in the low - return range below 1.8%, and the scale of high - yield assets above 2.5% continued to shrink [5]. - For heavy - holding of urban investment bonds, the regional level showed a downward trend, with a preference for short - term durations. Zhejiang and Jiangsu were still the core heavy - holding regions, but the allocation intensity decreased. Institutions' preference for regions such as Sichuan, Shanghai, and Hunan increased. In terms of term distribution, the scale of each province was mainly concentrated around 1 - year, and as the term lengthened, the holding preference converged significantly towards strong provinces [5]. - For heavy - holding of financial bonds, bank Tier 2 and perpetual bonds dominated the allocation, and there was an obvious trend of variety downgrading. Financial bonds accounted for 72% of all heavy - holding credit bonds, with bank Tier 2 and perpetual bonds as the core varieties, and the allocation was relatively concentrated in the medium - to - high - yield range of 2.0% - 2.5%. In terms of term, a dumbbell - shaped allocation was preferred [5]. - For heavy - holding of industrial bonds, the allocation was concentrated in core industries, and institutions were more cautious about real - estate bonds. Non - bank finance and public utilities were the top two industries in terms of total market value of holdings, and were significantly increased in holdings compared with the previous period. Industries such as real estate, transportation, and coal were significantly reduced in holdings [5]. 3. Summary According to Relevant Catalogs 3.1 Bond Fund Heavy - Holding Overview 3.1.1 Overall Situation - As of the end of Q4 2025, there were 3,993 bond - type funds in the whole market, with a total scale of 11.10 trillion yuan, an increase of 0.36 trillion yuan compared with the end of the previous quarter. Bond - type funds were mainly medium - and long - term pure - bond funds, presenting a structure characterized by "dominated by medium - and long - term pure - bond funds and supplemented by hybrid bond funds" [11]. 3.1.2 Credit Bond Heavy - Holding from a Return Perspective - Most bond funds had a stable investment style and tended to adopt relatively conservative investment strategies. The yields of heavy - holding bond issuers were highly concentrated in the range below 1.8%. The supply of high - yield assets continued to shrink, and the high - yield assets above 2.5% further contracted compared with Q3 2025 [19]. - In Q4, the "asset shortage" continued, and the yields of credit bonds declined again. The concentration range of heavy - holding bond yields shifted downward. Compared with Q3, the balance of heavy - holding bonds with issuer yields below 1.8% increased significantly, while the holding balances of heavy - holding bonds in the ranges of 1.8 - 2.0%, 2.0 - 2.5%, and above 2.5% decreased to varying degrees [19]. 3.1.3 Types of Bond Fund Heavy - Holding Bonds and Their Performance in Different Dimensions - In Q4 2025, bond fund heavy - holding bonds generally showed a configuration trend of low - return concentration and high - return contraction. Financial bonds dominated with over 540 billion yuan, with bank Tier 2 and perpetual bonds as the core configuration. Industrial bonds tended to have medium - to - low returns, and urban investment bonds were concentrated in the 1.8% - 2.0% range [29]. - In terms of implicit rating distribution, financial and industrial bonds preferred high - rating issuers, while urban investment bonds showed an obvious downward trend. In Q4, incremental allocation was concentrated in high - rating bonds, and institutions were relatively cautious about credit downgrading [32]. 3.2 Characteristics of Urban Investment Bond Heavy - Holding 3.2.1 Regional and Hierarchical Characteristics of Heavy - Holding Urban Investment Bonds - In Q4 2025, the heavy - holding regions of urban investment bonds showed a certain downward trend, including prefecture - level cities in key provinces, district - level cities in non - key provinces, and park - level areas in municipalities. Zhejiang and Jiangsu were still the core heavy - holding regions, but the allocation intensity decreased. Institutions' preference for regions such as Sichuan, Shanghai, and Hunan increased [38]. 3.2.2 Term Characteristics of Heavy - Holding Urban Investment Bonds - Urban investment bonds generally preferred short - term durations. As the term lengthened, the holding preference converged significantly towards strong provinces. In Q4 2025, the term distribution of urban investment bond heavy - holdings was significantly differentiated, with the scale of each province mainly concentrated around 1 - year. The overall heavy - holding duration lengthened, but institutions were still cautious about ultra - long - term urban investment bonds [43]. 3.2.3 Analysis of the Top 20 Heavy - Holding Urban Investment Bond Issuers - The top 20 heavy - holding urban investment bond issuers in Q4 2025 were mainly medium - level prefecture - level platforms, with less obvious head - concentration characteristics. In Q4, the number of provincial - level platforms increased, and the degree of credit downgrading decreased. Some platforms were significantly reduced in holdings, while some provincial - level transportation platforms were increased in holdings [48]. 3.3 Overview of Financial Bond Heavy - Holding 3.3.1 Analysis of the Duration of Heavy - Holding Financial Bonds - Bank Tier 2 and perpetual bonds were mainly heavy - held by national and joint - stock banks, with a dumbbell - shaped term configuration preference. Compared with Q3, institutions' preference for state - owned banks and 3 - year terms increased significantly. The heavy - holding scale of Tier 2 and perpetual bonds increased, with state - owned banks showing obvious increases in holdings. Non - Tier 2 and perpetual bonds focused on 1 - year commercial financial bonds, and secondary - type bonds focused on 4 - year insurance bonds and 2 - 3 - year TLAC bonds [52]. 3.3.2 Analysis of the Top 20 Heavy - Holding Financial Bond Issuers - The top 20 heavy - holding bank Tier 2 and perpetual bond issuers were mainly state - owned banks, joint - stock banks, and relatively leading city commercial banks. State - owned banks generally increased their holdings, while joint - stock banks showed obvious differentiation. The yields of heavy - holding bonds generally declined rapidly, and there was significant differentiation in the remaining terms among issuers [61]. 3.4 Situation of Industrial Bond Heavy - Holding 3.4.1 Analysis of Heavy - Holding Industrial Bond Industries - Industrial bond allocation was still centered on industries with strong quasi - public attributes and industries with high financial relevance. Non - bank finance, public utilities, and transportation were the top three industries in terms of total market value of holdings. Non - bank finance and public utilities were significantly increased in holdings, while industries such as real estate, transportation, and coal were significantly reduced in holdings [71]. - Short - term duration varieties were still the main allocation. Most industries had a proportion of 0 - 2 - year terms exceeding 50%. Non - bank finance significantly lengthened the heavy - holding duration, while public utilities further increased the allocation of short - term duration bonds [72]. 3.4.2 Analysis of the Top 20 Heavy - Holding Industrial Bond Issuers - The top 20 heavy - holding industrial bond issuers were all central and local state - owned enterprises, mainly distributed in industries such as non - bank finance, public utilities, transportation, and coal. The allocation of industrial bond issuers was relatively concentrated. The average valuation yields of the top 20 heavy - holding industrial bond issuers generally declined, and there was significant differentiation in term changes among issuers [76]. 3.4.3 Analysis of the Top 10 Heavy - Holding Real - Estate Bond Issuers - State - owned and central - enterprise - affiliated real - estate bond issuers still occupied a core position. Some issuers were significantly increased in holdings, while some were significantly reduced in holdings. The real - estate bond allocation showed the characteristics of "medium - to - short - term duration + concentration on strong - credit issuers", and there was obvious differentiation in the return and duration strategies [79].

Group 1: Market Overview - The issuance guidance rates for credit bonds have decreased across all categories, with a change range of -11 BP to -3 BP compared to the end of Q4 2025 [1][14] - As of March 29, 2026, the total issuance amount for credit bonds in Q1 2026 was 32,724.08 billion, a decrease of 7.39% quarter-on-quarter [12][13] - The net financing amount for credit bonds increased to 10,067.65 billion, up by 1,910.91 billion from the previous quarter [12] Group 2: Secondary Market Dynamics - The total transaction volume for credit bonds in Q1 2026 was 97,361.22 billion, reflecting an 11.30% decrease quarter-on-quarter [21] - Credit bond yields have generally declined, with credit spreads showing differentiation, narrowing in the short to medium term while widening in the long term [22][32] - The AAA-rated 7-year credit bond spread is currently at a historically low percentile, indicating a preference for shorter-duration bonds due to their stability [22][32] Group 3: Investment Strategy - The investment strategy for Q2 2026 should focus on the characteristics of short-term and long-term bonds, emphasizing a coupon strategy while remaining flexible to capitalize on long-term bond trading opportunities [1] - The report suggests that the overall conditions for a bear market in credit bonds are insufficient, with a long-term downward trend in yields expected [1] - Investors are advised to pay attention to the effectiveness of growth-stabilizing policies and market sentiment influenced by supply and demand dynamics [1]

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].

1. Report Industry Investment Rating No information provided in the document. 2. Core Viewpoints of the Report - The Ministry of Finance emphasizes expanding domestic demand, investing in people, and open sharing in fiscal policies during the 14th Five - Year Plan period, aiming to promote high - quality economic development [8]. - Hunan Xiangxi Prefecture has achieved zero implicit debt at the prefecture - level, with 77 out of 97 financing platforms exiting, indicating significant progress in debt resolution [12]. - The issuance scale and net financing scale of local government bonds have increased, and the progress of new bonds has exceeded 20%, accelerating compared to the same period last year. The issuance scale of urban investment bonds has risen, and the net financing scale has turned to zero [19][22]. 3. Summary According to Relevant Catalogs 3.1. News Comments - **China Development Forum Emphasizes Fiscal Policy Focus**: The forum emphasizes that fiscal policies in the 14th Five - Year Plan period will focus on expanding domestic demand, investing in people, and open sharing. To expand domestic demand, efforts will be made to boost consumption and expand effective investment. To invest in people, support will be increased, implementation entry - points will be identified, and relevant policies will be improved [8][11]. - **Hunan Xiangxi Prefecture's Debt Resolution**: The state - level implicit debt in Hunan Xiangxi Prefecture has been cleared, and 77 out of 97 financing platforms have exited. In 2025, interest expenses were reduced by 2.8 billion yuan, 42 financing platforms were reduced and exited, and the task of repaying overdue enterprise accounts was over - fulfilled. The state - owned enterprises' "three capitals" were effectively revitalized, with an income of 3.45 billion yuan [12][13]. - **Tracking of Urban Investment Enterprises' "Exit from Platform"**: This week, 14 urban investment enterprises declared to become market - oriented business entities or exit the financing platform list. Since October 2023, a total of 1,084 enterprises have made such declarations, mainly in eastern provinces, with AA + level as the main body rating and district - county level as the main administrative level [15]. - **Early Redemption of Bonds by Urban Investment Enterprises**: This week, 26 urban investment enterprises redeemed bond principal and interest in advance, involving 27 bonds with a total scale of 4.705 billion yuan, a decrease of 1.295 billion yuan compared to the previous value [17]. - **Cancellation of Bond Issuance**: The issuance of the urban investment bond "26 Liujian 03" was cancelled this week, with a scale of 899 million yuan [18]. 3.2. Issuance of Local Government Bonds and Urban Investment Enterprise Bonds - **Local Government Bonds**: This week, 73 local government bonds were issued, with a total issuance scale of 342.234 billion yuan, a 152.49% increase from the previous value, and a net financing of 213.822 billion yuan, a 230.80% increase. As of March 22, the outstanding local government bond scale was 56.91 trillion yuan. The issuance of new bonds has completed 24.67% of the annual quota, and 45.07% of the 2 - trillion - yuan replacement quota has been issued [19]. - **Urban Investment Bonds**: This week, 210 urban investment bonds were issued, with a total issuance scale of 150.265 billion yuan, an 8.27% increase from the previous value, and a net financing of 0 yuan. As of March 22, the outstanding urban investment bond scale was 14.20 trillion yuan. The overall issuance interest rate of urban investment bonds was 2.06%, a 3.77 - BP decrease from the previous value, and the issuance spread was 60.91 BP, a 4.77 - BP decrease [22]. 3.3. Trading of Local Government Bonds and Urban Investment Enterprise Bonds - **Central Bank's Open - Market Operations and Fund Prices**: The central bank conducted 242.3 billion yuan of reverse repurchase operations this week, with 176.5 billion yuan of reverse repurchases maturing. After considering the 250 - billion - yuan treasury cash fixed - term deposit, the net investment was 315.8 billion yuan. Short - term fund interest rates fluctuated, with overnight and one - week SHIBOR decreasing by 0.20 BP and 4.00 BP respectively, and two - week SHIBOR increasing by 2.80 BP [28]. - **Urban Investment Enterprise Credit Rating Adjustment**: On March 16, Zhongchengxin International upgraded the credit rating of Zhangjiagang Economic Development Zone Holding Group Co., Ltd. from AA + to AAA, with the bond rating unchanged and the outlook remaining stable [28]. - **Local Government Bonds**: This week, the spot trading volume of local government bonds was 468.086 billion yuan, an 8.58% decrease from the previous value. The maturity yields of local government bonds fluctuated, with an average increase of 1.33 BP [28]. - **Urban Investment Bonds**: This week, the trading volume of urban investment bonds was 302.805 billion yuan, a 10.26% increase from the previous value. The maturity yields of urban investment bonds mostly decreased, with an average decrease of 2.03 BP. The spreads of 1 - year and 5 - year AA + urban investment bonds narrowed by 0.29 BP and 0.88 BP respectively, while the spread of 3 - year AA + urban investment bonds widened by 0.64 BP [29]. - **Abnormal Trading of Urban Investment Bonds**: This week, 7 bonds of 6 urban investment entities had 10 abnormal trades, with a decrease in the number of entities, bonds, and abnormal trades compared to the previous value [29]. 3.4. Important Announcements of Urban Investment Enterprises This week, 34 urban investment enterprises issued announcements regarding changes in senior management, legal representatives, directors, supervisors, etc., changes in controlling shareholders and actual controllers, equity/asset transfers, changes in the use of raised funds, and name changes [32].

1. Report Industry Investment Rating The provided text does not mention the industry investment rating. 2. Core Viewpoints of the Report - The central bank had a net withdrawal of 281.9 billion yuan in the open - market operations this week [5]. - The yield of medium - and long - term credit bonds decreased significantly, while the short - term yield mostly decreased slightly [2][22]. - The credit spread of the AA+ non - bank financial industry widened significantly, and the fluctuations of credit spreads of other industries and ratings were within 5BP [2][24]. - After the end of the quarter, the scale of wealth management products in April 2026 is expected to resume positive monthly growth, which will support the allocation of credit bonds [3]. - The current credit spreads of different varieties are at a relatively low historical level, and the credit spreads of 4 - 5Y credit bonds may still have some room to decline [3]. 3. Summary by Directory 3.1 Primary Market - The net financing of traditional credit bonds increased, and the net financing of asset - backed securities decreased by 36.2 billion yuan compared with last week [1][8]. - The net financing of urban investment bonds increased by 69.1 billion yuan, and that of industrial bonds increased by 55.8 billion yuan, while the net financing of financial bonds decreased by 64.2 billion yuan [8]. - The issuance volume of urban investment bonds increased by 47, and the redemption volume decreased by 49; the issuance volume of industrial bonds decreased by 21, and the redemption volume decreased by 36; the issuance volume of financial bonds decreased by 3, and the redemption volume remained unchanged [10]. 3.2 Secondary Market 3.2.1 Trading Volume - The trading volume of credit bonds decreased by 60.5 billion yuan compared with last week. The trading volume of urban investment bonds decreased by 6.7 billion yuan, that of industrial bonds decreased by 0.5 billion yuan, and that of financial bonds decreased by 53.4 billion yuan. The trading volume of asset - backed securities increased by 3.1 billion yuan [17]. - The turnover rate of traditional credit bonds decreased, while that of asset - backed securities increased slightly [17]. 3.2.2 Yield - The yields of 1Y AA, AAA -, and AAA+ credit bonds decreased by no more than 1BP; the yields of 5Y AA, AAA -, and AAA+ credit bonds decreased by 4BP, 3BP, and 2BP respectively; the yields of 10Y AA, AAA -, and AAA+ credit bonds decreased by 4BP [22]. - Taking AA+ 5Y bonds of various varieties as an example, the yields of different varieties decreased to varying degrees [23]. 3.2.3 Credit Spread - The credit spread of the AA+ non - bank financial industry widened by 10BP, and the fluctuations of credit spreads of other industries and ratings were within 5BP [24]. - For urban investment bonds, the credit spreads of different maturities fluctuated slightly within 2BP. The credit spreads of most regions decreased, except for Hainan AA+ and Xinjiang AAA [30][32]. - For industrial bonds, the short - term credit spreads continued to narrow, and the 10Y long - term spreads decreased slightly [35]. - For bank capital bonds, the credit spreads of medium - and long - term bank Tier 2 and perpetual bonds decreased slightly [38]. 3.3 Bond Market舆情 - The implied ratings of 15 debt issues issued by AVIC Industry Finance Holdings Co., Ltd. were downgraded, and the implied rating of "Gucanal A" issued by Wuxi Chengnan Construction Investment and Development Co., Ltd. was downgraded [40]. 3.4 Investment Suggestions - Overall, the credit spread of the AA+ non - bank financial industry widened significantly, and the fluctuations of credit spreads of other industries and ratings were within 5BP. - For urban investment bonds, the credit spreads of different maturities fluctuated slightly within 2BP. - For industrial bonds, the short - term credit spreads continued to narrow, and the 10Y long - term spreads decreased slightly. - For bank capital bonds, the credit spreads of medium - and long - term bank Tier 2 and perpetual bonds decreased slightly [5][42].

Group 1 - The central bank conducted a reverse repurchase operation of 146.2 billion yuan for 7 days at a fixed rate of 1.40%, resulting in a net injection of 125.7 billion yuan after accounting for 20.5 billion yuan maturing that day [1][3] - The interbank market remains loose, with the weighted average rate of DR001 slightly declining to around 1.31%, indicating ample liquidity [3] - The yield on major interbank bonds has decreased across the board, with the latest transaction for one-year interbank certificates of deposit at approximately 1.531% [8][10] Group 2 - The People's Bank of China emphasized the need to enhance the systemic financial risk prevention and resolution framework, focusing on technology empowerment and financial risk monitoring [14] - The Ministry of Commerce announced investigations into trade barriers imposed by the U.S. regarding global supply chains and green product trade, aiming to protect China's legitimate rights [14] - Recent bond market events include Sunshine City having overdue debt principal totaling 65.336 billion yuan, while other companies like Jinju Jidong and Hejing Group reported changes in their financial statuses [19]

1. Report's Industry Investment Rating No information provided in the content. 2. Core Viewpoints of the Report - The bond market continued its volatile recovery, with medium - to long - term credit bonds performing strongly, and credit spreads showed different trends across various bond types [2][3] - Credit bond yields declined following interest rates, and medium - and long - term credit spreads compressed [3][10] - Most urban investment bond spreads decreased by 1 - 2BP, while spreads of private and mixed - ownership real - estate industrial bonds continued to widen [4][15] - Most yields of secondary and perpetual bonds declined, and medium - to long - term varieties performed strongly [4][33] - The excess spreads of industrial perpetual bonds increased slightly, while those of urban investment perpetual bonds remained generally stable [5][35] 3. Summary by Relevant Catalog 3.1 Credit Bond Yields Follow Interest Rates Down, and Medium - and Long - Term Credit Spreads Compress - From March 23 to March 27, bond interest rates declined slightly overall. The yields of 1Y, 3Y, 5Y, and 10Y China Development Bank bonds decreased by 1BP, while the 7Y yield increased by 1BP [10] - Credit bond yields generally declined following interest rates. Bonds with a term of over 3Y performed strongly. For 1Y bonds, yields of AA and above grades decreased by 0 - 1BP, while the AA - grade yield increased by 3BP. Similar trends were observed for other terms [10] - Medium - and long - term credit spreads compressed, with different trends for different grades and terms. Rating spreads and term spreads also showed various changes [10] 3.2 Most Urban Investment Bond Spreads Decrease by 1 - 2BP - For external ratings, spreads of AAA and AA + grade urban investment platforms were mostly flat or decreased by 1 - 2BP compared to last week. Some regions had specific changes, such as a 3BP decrease in Liaoning and Inner Mongolia for AAA platforms [15] - AA - grade platform spreads mostly decreased by 1 - 3BP, with specific regional differences [15] - By administrative level, spreads of provincial, prefecture - level, and district - level platforms generally decreased by 1 - 2BP, with some regions showing larger changes [19] 3.3 Most Industrial Bond Spreads Decrease, while Spreads of Private and Mixed - Ownership Real - Estate Bonds Continue to Widen - Central and state - owned enterprise real - estate bond spreads decreased by 1 - 3BP, private real - estate bond spreads increased by 3BP, and mixed - ownership real - estate bond spreads increased by 51BP [25] - Spreads of coal bonds of AAA, AA +, and AA grades decreased by 2BP, 1BP, and 5BP respectively. Spreads of AAA - grade steel bonds decreased by 1BP, and AA + remained flat. Spreads of AAA and AA + grade chemical bonds both decreased by 1BP [25] 3.4 Most Yields of Secondary and Perpetual Bonds Decline, and Medium - to Long - Term Varieties Perform Strongly - For 1Y secondary and perpetual bonds, yields decreased by 0 - 1BP, and spreads were mostly flat or increased by 1BP. For other terms, yields and spreads showed different trends, with medium - to long - term yields generally decreasing and spreads compressing [33] 3.5 Excess Spreads of Industrial Perpetual Bonds Increase Slightly, while Those of Urban Investment Perpetual Bonds Remain Generally Stable - The excess spread of industrial AAA - grade 3Y perpetual bonds increased by 0.52BP to 9.48BP, reaching the 15.55% quantile since 2015. The excess spread of industrial 5Y perpetual bonds increased by 0.01BP to 13.21BP, reaching the 36.24% quantile [35] - The excess spread of urban investment AAA - grade 3Y perpetual bonds decreased by 0.05BP to 7.01BP, reaching the 15.77% quantile. The excess spread of urban investment 5Y perpetual bonds increased by 0.29BP to 10.93BP, reaching the 21.64% quantile [35] 3.6 Credit Spread Database Compilation Instructions - Market - wide credit spreads, commercial bank secondary and perpetual spreads, and urban investment/industrial perpetual bond credit spreads are calculated based on ChinaBond medium - and short - term note and ChinaBond perpetual bond data, with historical quantiles starting from the beginning of 2015 [37] - Urban investment and industrial bond - related credit spreads are compiled and statistically analyzed by the Huafu Securities Research Institute, with historical quantiles starting from the beginning of 2015 [37] - The calculation methods for individual bond credit spreads, bank secondary capital bond/perpetual bond excess spreads, and industrial/urban investment perpetual bond excess spreads are provided, along with sample screening criteria [39]

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].

1. Report Industry Investment Rating No information provided in the report. 2. Core Viewpoints of the Report - In 2025, all provincial - level regions had positive GDP growth, with 18 provinces outperforming the national average. Most provinces saw an increase in general public budget revenue and an improvement in fiscal self - sufficiency. However, most provinces also had a significant increase in local government debt balances and an upward trend in government debt ratios. Only five provinces managed to reduce their urban investment interest - bearing debts [1][11]. - In 2026, both the central and local governments emphasize "taking multiple measures to resolve the operational debt risks of local government financing platforms". The central government has entered a new stage of "unified management" for debt resolution, and local governments have achieved positive results in resolving implicit debts and reducing the number of financing platforms in 2025, and have set clear goals for 2026 [3][32]. - Given the ongoing debt - resolution cycle and the attention paid to resolving operational debt risks, the default risk of urban investment bonds remains low. There are still some provinces' urban investment bonds with certain cost - effectiveness, but currently, the overall yield of urban investment bonds is low, and trading is needed to increase returns [4][42]. 3. Summary According to the Directory 3.1 Ten Strong Provinces Contribute Over 60% of GDP, Only Five Provinces Achieve a Reduction in Urban Investment Interest - Bearing Debts - **Economic Aspect**: The top ten provinces' GDP totaled 85.5 trillion yuan, accounting for 61% of the national economic aggregate. All provincial - level regions had positive GDP growth, with 18 provinces having a higher GDP growth rate than the national average of 5.0%. Tibet ranked first in GDP growth for three consecutive years. Chongqing's GDP exceeded Liaoning's in 2025 [11][12]. - **Fiscal Aspect**: Most provinces' general public budget revenues increased, and the revenue growth of major economic provinces rebounded. The growth rate of general public budget expenditures slowed down significantly, and the fiscal self - sufficiency rate of most provinces increased. The tax revenue ratio of half of the provinces increased [11][17][21]. - **Debt Aspect**: With the continuous implementation of the debt - resolution policy supported by "6 + 4" trillion yuan of local government bonds, the local government debt balances of most provinces increased significantly. All provincial - level regions' government debt ratios increased. Most provinces' urban investment interest - bearing debts (mainly operational debts) still increased to varying degrees, and only five provinces achieved a reduction [11][28][29]. 3.2 How Does the Central Government and Each Province View Debt Resolution in 2026? - **Central Government**: The central government emphasizes "taking multiple measures to resolve the operational debt risks of local government financing platforms", enters a new stage of "unified management" for debt resolution, continues to regard "resolving existing debts, curbing new debts, and promoting the transformation of financing platforms" as important tasks, and emphasizes the real transformation of financing platforms [3][32][36]. - **Local Governments**: In 2025, local governments achieved positive results in resolving implicit debts and reducing the number of financing platforms. In 2026, many provinces follow the central government's instructions and mention taking multiple measures to resolve operational debt risks. Some provinces also set goals for resolving implicit debts, debt management, and financing platform exit [3][40][41]. 3.3 Which Provinces' Urban Investment Bonds Still Have Cost - Effectiveness? - Short - term urban investment bonds (within 1 year) can be downgraded to an implied rating of AA -. Provinces such as Guizhou, Shanxi, Zhejiang, Gansu, Shaanxi, Guangxi, Shandong, and Yunnan have an average yield of over 2.1% and can be focused on. - For 1 - 3 - year urban investment bonds, they can be downgraded to implied ratings of AA and AA(2). Provinces such as Guangdong, Hubei, Anhui, Hunan, Jiangxi, Henan, Sichuan, and Chongqing have an average yield of over 2% and a large bond scale. - For urban investment bonds over 3 years, it is recommended to focus on AAA and AA + implied ratings in developed regions. Currently, the overall yield of urban investment bonds is low, and trading is needed to increase returns. If it is predicted that the yield will decline, high - elasticity entities can be preferentially invested in to earn more excess returns [4][42][45]. 3.4 Appendix: Debt - Resolution - Related Content in Government Work Reports and Fiscal Budget Execution Reports - **2025 Work Summary**: Each province has achieved certain results in resolving implicit debts, reducing the number of financing platforms, and clearing arrears to enterprises [52]. - **2026 Work Outlook**: Each province has set clear goals for debt resolution in 2026, including resolving implicit debts, managing debts, and promoting the transformation and exit of financing platforms [54][55][60].