Primary Market - A total of 28 offshore bonds were issued this week, including 4 offshore RMB bonds, 17 USD bonds, 3 HKD bonds, and 4 EUR bonds, with issuance scales of 30 billion RMB, 5.525 billion USD, 839.9 billion HKD, and 825 million EUR respectively [2] - The largest single issuance in the offshore RMB bond market was 2 billion RMB by Wuhan Optics Valley Financial Holdings Group Co., Ltd., while the highest coupon rate was 5.5% issued by Taizhou Chemical New Materials Industry Development Group Co., Ltd. [2] - In the USD bond market, the largest single issuance was 2 billion USD by the International Finance Corporation, with the highest coupon rate of 6.8% issued by Binzhou Smart City Operation Co., Ltd. [2] Secondary Market - The yield of Chinese offshore USD bonds decreased across the board this week, with the Markit iBoxx Chinese USD Bond Composite Index rising by 0.47% to 244.11 [3] - The investment-grade USD bond index increased by 0.17% to 142.21, while the high-yield USD bond index rose by 0.44% to 238.27 [3] - The real estate USD bond index increased by 0.64% to 181, and the city investment USD bond index rose by 0.18% to 149.41 [3] Price Changes - The largest weekly price increase in Chinese offshore bonds was for the CAPG 0% 9/30/28 bond issued by China Aoyuan Group Co., Ltd., which rose by 188.89% to 6.50 [4] - The largest weekly price decrease was for the GRNLHK PERP bond issued by Greenland Holdings Group Co., Ltd., which fell by 39.74% to 7.05 [6] Benchmark Spread - As of June 27, the spread between the 10-year benchmark government bonds of China and the US widened to 260.11 basis points, a decrease of 13.94 basis points from the previous week [7] Credit Rating Changes - Fitch announced plans to withdraw the "A-" long-term issuer rating for Guangzhou Urban Investment Group around July 18 for commercial reasons [10] - China Chengxin International downgraded the credit rating of Mengzi New Urbanization Development Investment Co., Ltd. from AA to AA- on June 26 [10] Domestic News - In May, the Ministry of Finance reported that 443.2 billion RMB of new special bonds were issued nationwide, with a total of 779.5 billion RMB in local government bonds issued [12] - The Macau Stock Exchange announced the launch of Macau Science and Technology Innovation Bonds to support the financing needs of enterprises in the technology innovation sector [13] Overseas News - The probability of the Federal Reserve maintaining interest rates in July is 79.3%, with a 20.7% chance of a 25 basis point cut [15] - Zhongjun Group announced significant progress in its offshore debt restructuring plan, proposing to restructure 2.271 billion USD of debt [15] - Sunac China reported that approximately 75% of its existing debt holders have joined the offshore debt restructuring support agreement [16]

Group 1 - The core viewpoint emphasizes the importance of the bond market as a breakthrough for the moderate diversification of Macau's economy, with clear policy directions supporting its rapid growth [1][7] - The launch of the Macau Technology Innovation Bond (referred to as "Macau Sci-Tech Bond") and the introduction of the first "Certification Standards" for these bonds signify a proactive approach to enhance cross-border financing for technology innovation [1][2] - The establishment of the Macau Sci-Tech Bond Certification Committee, comprising experts from various fields, aims to streamline the approval process and attract more tech entities to issue bonds in Macau [1][2] Group 2 - The "Certification Standards" set strict criteria for issuers, requiring them to be certified technology enterprises and to have been operating in Macau for at least one year, focusing on high-tech sectors [3][4] - The standards mandate that 100% of the raised funds must be used for technology research and development or results transformation, ensuring transparency and preventing fund misappropriation [4][5] - The standards also highlight the unique role of "Sci-Tech Incubation Support Enterprises," which are crucial for bridging the gap in technology transfer and supporting early-stage projects [5][6] Group 3 - The Macau bond market has seen significant growth, with a total issuance of 952.5 billion MOP (approximately 118.5 billion USD) as of June 25, 2025, with nearly 40% being RMB-denominated bonds [7][8] - The Macau government aims to develop a diversified offshore bond market, enhancing its infrastructure and regulatory environment to attract international investors [7][9] - The focus on creating a unique bond market in Macau, leveraging its geographical and institutional advantages, is part of a broader strategy to position Macau as a key financial hub [9][10]