Core Insights - Recent positive developments in the financial markets of Macau and Hong Kong, with Huaxia Bank successfully assisting Guangdong and Hainan provincial governments in issuing offshore RMB local government bonds [1][2] Group 1: Guangdong Provincial Bonds - Huaxia Bank acted as a joint bookrunner and lead underwriter for Guangdong's issuance of 2.5 billion RMB offshore local government bonds, marking the first issuance of blue bonds and green bonds in the province [1] - The bonds included a 500 million RMB 2-year blue bond with an interest rate of 1.63%, a 1.5 billion RMB 3-year special bond at 1.75%, and a 500 million RMB 5-year green bond at 1.85% [1] - The issuance attracted significant interest from financial institutions across Macau, Hong Kong, Singapore, Malaysia, Thailand, and Indonesia, with a peak order book of 11.8 billion RMB and a subscription multiple of 4.72 times, setting a record for Guangdong's bond issuance in Macau [1] Group 2: Hainan Provincial Bonds - Following Guangdong, Huaxia Bank facilitated Hainan's issuance of 5 billion RMB offshore local government bonds, which included 2.5 billion RMB in 3-year sustainable development bonds, 1.5 billion RMB in 5-year blue bonds, and 1 billion RMB in 10-year aerospace-themed bonds, the first of its kind in the country [2] - The funds raised will be directed towards marine protection, livelihood security, and aerospace research infrastructure projects, with the issuance achieving a peak order book of nearly 23 billion RMB and a subscription multiple of 4.6 times, reflecting international capital market confidence in Hainan's free trade port development [2] Group 3: Huaxia Bank's Role and Future Outlook - Huaxia Bank has successfully completed 162 offshore bond underwriting transactions in 2025, maintaining a strong position in Bloomberg's ranking of Chinese offshore bond underwriters [3] - The bank aims to leverage its cross-border financial service advantages to support national strategic initiatives, focusing on green finance and innovative industry development, contributing to high-quality economic growth in China [3]

Core Insights - The issuance of offshore RMB local government bonds has gained momentum since its debut in October 2021, with a total issuance scale reaching 12.5 billion RMB this year [1][2]. Group 1: Issuance Details - Shenzhen successfully issued 4 billion RMB of offshore RMB local government bonds in Hong Kong, marking the fifth consecutive year of such issuances [2]. - The bonds have varying maturities of 2, 5, and 10 years, with a declining interest rate trend [2]. - Other regions, including Guangdong and Hainan, have also issued offshore RMB local bonds, with Guangdong issuing 2.5 billion RMB and Hainan issuing 5 billion RMB [2][3]. Group 2: Investor Demand - The bonds have attracted significant investor interest, with Shenzhen's issuance in Hong Kong seeing a subscription multiple of 4.7 times and the issuance in Macau reaching a record high of 6.62 times [3]. - The strong demand reflects a growing recognition of the bonds in international capital markets, with participation from various countries [3]. Group 3: Fund Allocation - The funds raised from these bonds are increasingly diversified, with Shenzhen's recent issuance in Macau being a green bond aimed at climate change initiatives [4]. - Hainan's issuance includes sustainable development bonds, blue bonds, and a unique aerospace-themed bond, highlighting a focus on innovative sectors [4]. Group 4: Future Outlook - There are suggestions for local governments to explore new bond types, such as technology innovation bonds, to support local industry development [5]. - Future issuances may expand into international markets like Europe and ASEAN, enhancing global influence and attracting long-term capital [5].

Core Insights - The issuance of offshore RMB local government bonds has gained momentum since October 2021, with a total issuance scale reaching 12.5 billion RMB this year [1] - Multiple regions, including Shenzhen, Guangdong, and Hainan, have successfully issued offshore RMB bonds in Hong Kong and Macau, indicating a strong demand from international investors [2][3] Group 1: Issuance Details - Shenzhen successfully issued 4 billion RMB of offshore local government bonds in Hong Kong, marking the fifth consecutive year of such issuances [2] - The bonds have varying maturities of 2, 5, and 10 years, with a declining interest rate trend [2] - Guangdong issued 2.5 billion RMB in Macau, while Hainan issued 5 billion RMB in Hong Kong, showcasing a trend of regional participation [3] Group 2: Investor Interest - The bonds have attracted significant interest, with Shenzhen's issuance in Macau achieving a subscription multiple of 6.62 times, a record high for RMB bonds in Macau [3][4] - The issuance in Guangdong saw a bid multiple of 4.7 times, reflecting strong demand from banks and investment institutions across Southeast Asia [4] Group 3: Fund Utilization - The funds raised from these bonds are increasingly diversified, with Shenzhen's recent issuance in Macau being a green bond aimed at climate change initiatives [6] - Hainan's issuance includes various thematic bonds, such as sustainable development and aerospace, highlighting a focus on public value and policy direction [6] Group 4: Future Outlook - There is potential for local governments to expand their issuance regions to Europe and ASEAN markets, enhancing international influence [7] - Future bond categories may include technology innovation themes, aligning with local industry development strategies [6][7]

1. Report Industry Investment Rating - No information provided in the given content. 2. Core Viewpoints of the Report - The fiscal achievements during the 14th Five - Year Plan include enhanced financial strength, stable macro - regulation, improved people's livelihood, and effective risk prevention. Over 60% of financing platforms have exited, and in the 15th Five - Year Plan, debt reduction and development will go hand in hand to promote a positive cycle between economic development and debt management [5][8][11]. - Gansu issued the first provincial - level implementation plan for the construction and operation of PPP stock projects, aiming to solve related problems and promote the compliance and stable operation of projects [5][15]. 3. Summary According to Relevant Catalogs 3.1. News Reviews 3.1.1. Fiscal Achievements during the 14th Five - Year Plan - Fiscal macro - regulation has achieved new breakthroughs, with fiscal policies becoming more proactive, enhancing counter - cyclical and cross - cyclical adjustments, and emphasizing expectation management. The deficit rate has increased from 2.7% to 4%, and the total national general public budget expenditure is expected to exceed 136 trillion yuan, a 24% increase from the 13th Five - Year Plan [8]. - The expenditure structure has been further optimized, with a more prominent people - oriented focus. Fiscal investment in people's livelihood is nearly 100 trillion yuan, and in 2025, 100 billion yuan is allocated for child - rearing subsidies and 20 billion yuan for free pre - school education [10]. - Local debt risks have significantly converged, with over 60% of financing platforms exiting. The "6 + 4+2 debt - reduction combination" has achieved positive results, and the Ministry of Finance will advance the issuance of some new local government debt quotas in 2026 [11][12]. - Fiscal and tax reform and management have advanced in depth, forming a good pattern of more scientific budget management, more perfect tax systems, and more sound fiscal systems [13]. 3.1.2. Gansu's PPP Stock Project Plan - Gansu issued the "Implementation Plan for the Standardized Construction and Operation of Government - Social Capital Cooperation Stock Projects" on September 8, 2025. The plan has three - stage goals and proposes multiple measures to ensure the smooth construction of ongoing projects and the stable operation of operational projects [15]. 3.1.3. Early Repayment of Bonds by 29 Urban Investment Enterprises - 29 urban investment enterprises early - repaid the principal and interest of 29 bonds, with a total scale of 5.067 billion yuan, a decrease of 127 million yuan compared to the previous period. Most of the enterprises are in the eastern region, and the main rating is AA [17][18]. 3.1.4. Cancellation of Issuance of 4 Urban Investment Bonds - Four urban investment bonds with a planned issuance scale of 2.1 billion yuan were cancelled from September 10 - 12, 2025. As of September 12, 79 urban investment bonds have been postponed or cancelled this year, with a total scale of 50.264 billion yuan [19]. 3.2. Issuance of Local Government Bonds and Urban Investment Enterprise Bonds 3.2.1. Local Government Bonds - This week, 53 local government bonds were issued, with the issuance scale rising 223.02% to 301.672 billion yuan and the net financing rising 425.16% to 192.779 billion yuan. The weighted average issuance interest rate rose 13.59 BP to 2.17%, and the weighted average issuance spread narrowed 1.72 BP to 19.47 BP [20]. - Shenzhen issued 1 billion yuan of offshore RMB local government bonds in Macau on September 9, and Hainan issued 5 billion yuan of RMB local government bonds in Hong Kong on September 12 [20][21]. 3.2.2. Urban Investment Bonds - This week, 131 urban investment bonds were issued, with the issuance scale rising 26.02% to 94.766 billion yuan and the net financing rising 56.269 billion yuan to 21.563 billion yuan. The average issuance interest rate was 2.38%, a 0.56 BP increase, and the issuance spread was 80.48 BP, a 4.37 BP narrowing [25][27]. - Three overseas urban investment bonds were issued, with a total scale of 2.84 billion yuan, and the weighted average issuance interest rate was 4.11% [27]. 3.3. Trading of Local Government Bonds and Urban Investment Enterprise Bonds - The central bank conducted 1.2645 trillion yuan of reverse repurchase operations in the open market this week, with 1.0684 trillion yuan of reverse repurchases maturing, resulting in a net investment of 196.1 billion yuan [31]. - Short - term capital interest rates all increased. The trading volume of local government bond spot reached 434.793 billion yuan, a 15.64% increase, and most of the maturity yields increased, with an average increase of 4.67 BP [31]. - The trading volume of urban investment bonds was 253.397 billion yuan, a 0.57% increase, and all maturity yields increased, with an average increase of 5.63 BP. The spreads of 1 - year, 3 - year, and 5 - year AA+ urban investment bonds all widened [33]. - Ten urban investment entities had 14 abnormal transactions of 10 bonds, with the number of entities and abnormal transactions increasing compared to last week, while the number of bonds remained unchanged [33]. 3.4. Important Announcements of Urban Investment Enterprises - This week, 56 urban investment enterprises announced changes in senior management, legal representatives, directors, supervisors, etc., as well as changes in controlling shareholders, actual controllers, equity/asset transfers, cumulative new borrowings, name changes, business scope changes, and changes in the use of raised funds [36].

Core Viewpoint - Hainan Province plans to issue up to 5 billion RMB offshore local bonds in Hong Kong, focusing on sustainable development, blue economy, and aerospace themes [1] Group 1: Bond Issuance Details - The bond issuance will be conducted through a book-building process and will be listed on the Hong Kong Stock Exchange [1] - The bonds will have maturities of 3 years, 5 years, and 10 years, with the 3-year bond designated as a sustainable development bond, the 5-year bond as a blue bond, and the 10-year bond as an aerospace-themed bond [1] Group 2: Fund Utilization - The funds raised will be primarily allocated to marine protection, livelihood security, and key research and infrastructure projects in the aerospace sector [1] - The initiative aims to enhance Hainan's brand in sustainable development and the blue economy, aligning with the "Five Directions for Strengthening" strategy to create a new quality productivity practice area [1] Group 3: Future Announcements - Specific details regarding the issuance schedule will be announced in due course [1]