Primary Market - A total of 25 offshore bonds were issued this week, including 9 offshore RMB bonds, 10 USD bonds, 4 HKD bonds, 1 SGD bond, and 1 JPY bond, with issuance scales of 18.638 billion RMB, 1.428 billion USD, 1.55 billion HKD, 0.35 billion SGD, and 10.46 billion JPY respectively [2] - The largest single issuance in the offshore RMB bond sector was 4 billion RMB by State Grid Corporation, while the highest coupon rate for RMB bonds was 7% issued by Zhongmu Xinglv Cultural Investment Development Group [2] - In the USD bond market, the largest single issuance was 500 million USD by the International Bank for Reconstruction and Development, with the highest coupon rate of 6.8% issued by Binzhou Smart City Operation Co., Ltd. [2] Secondary Market Overview - The yield on Chinese USD bonds rose across the board this week, with the Markit iBoxx Chinese USD Bond Composite Index increasing by 0.44% to 246.48 [3] - The investment-grade USD bond index rose by 0.45% to 239, while the high-yield USD bond index increased by 0.36% to 242 [3] - The real estate USD bond index rose by 0.51% to 182.94, and the city investment USD bond index increased by 0.18% to 150.58 [3] Benchmark Spread - The spread between 10-year US and Chinese government bonds widened to 255.67 basis points, an increase of 3.78 basis points from the previous week [4] Domestic News - State Grid completed the issuance of 10 billion RMB in offshore dim sum bonds, setting records for the first central enterprise offshore RMB bond exceeding 10 billion and the first 20-year term issuance [7] - In July, the total bond financing for the real estate sector reached 71.39 billion RMB, a year-on-year increase of 90.3%, with credit bond financing accounting for 64% [8] - The China Securities Association announced an increase in the upper limit of lead underwriters for large bond issuances to 8 [9][10] Overseas News - The US Treasury's auction of 30-year bonds faced weak demand, with a yield of 4.813%, indicating that investors are seeking higher returns [11] Offshore Bond Alerts - ZTE Corporation successfully issued 3.584 billion RMB (equivalent to 500 million USD) in zero-coupon convertible bonds, marking the largest offshore refinancing since its Hong Kong listing [12] - Ocean Capital reported a recovery of 655 million RMB in bad debt provisions through various means [13] - KWG Group announced that its offshore bond will be delisted after defaulting, as it seeks a comprehensive solution for its offshore debt situation [14] - Sunac China announced the resumption of trading for three bonds following debt restructuring operations [15]

Regulatory Actions - Three institutions received disciplinary actions from the China Interbank Market Dealers Association for various violations related to private fund management and non-market-based issuance [1] - Shanghai Huancai Private Fund Management Co., Ltd. was warned for assisting an issuer in self-financing issuance through nested asset management plans [1] - Shanghai Fuxi Asset Management Co., Ltd. and Jiangsu Yuning Private Fund Management Co., Ltd. received severe warnings for facilitating non-market-based issuance and charging large financial assistance fees [1] Macro Dynamics - The Ministry of Finance plans to issue 20 billion yuan of book-entry discount treasury bonds with a maturity of 28 days, starting interest accrual on August 12, 2025, and repayment on September 9, 2025 [4] - Hebei Province successfully issued the first batch of local bonds after the restoration of VAT, with a 10-year general bond yielding 1.87% and a total issuance of 30.07 billion yuan [4] Local Government Bonds - Shanxi Province plans to issue 17.73 billion yuan in special new bonds for government investment projects, with two bond series set to be issued on August 15, 2025 [5] Corporate Bonds - Henan Railway Construction Investment Group Co., Ltd. plans to issue 30 billion yuan in corporate bonds, with the project accepted by the Shanghai Stock Exchange [8] - Kaifeng State-owned Assets Investment and Operation Group Co., Ltd. intends to issue 15 billion yuan in corporate bonds, with feedback received from the Shenzhen Stock Exchange [9] - Puyang State-owned Capital Operation Group Co., Ltd. is set to issue 25 billion yuan in corporate bonds, with feedback from the Shanghai Stock Exchange [10] Innovation and Support Measures - The Henan Provincial Government introduced 20 measures to support enterprise technological innovation, focusing on financial services throughout the innovation lifecycle [6] Market Trends - The issuance of floating-rate bonds in Shanxi Province marks a significant development in financial tools, with a total issuance of 10.7 billion yuan by Shanxi Lu'an Mining Group [11][12] - Zhongyuan Environmental Protection completed the issuance of 5 billion yuan in technology innovation bonds with a 2.70% interest rate [13] - State Grid successfully issued 10 billion yuan in offshore dim sum bonds, with initial pricing indicators narrowing significantly [13] Corporate Governance - Foshan Construction Development Group announced the removal of Chairman Huang Guoxian from his position [16] Market Insights - The current structure of pending convertible bonds shows a high concentration, particularly in the banking sector, indicating strong refinancing demand [16]