Group 1 - The company plans to launch an asset-backed special plan, with the issuance of asset-backed securities expected on the Shanghai Stock Exchange by November 2025 or a later date [1] - The purpose of the asset-backed securities issuance is to invest in and securitize the underlying assets held by its subsidiary, Beijing Energy Development, and to raise funds for the company's operations and business development [1] - The company will appoint a project manager for the asset-backed special plan, with Beijing Energy Development acting as the seller and original equity holder [1] Group 2 - The company intends to enter into equity transfer contracts for the sale of shares in three companies: Xinyou, Youyu, and Liu'an, with expected cash consideration of not less than RMB 137 million, RMB 344 million, and RMB 163 million respectively [1] - The board believes that the proposed issuance of asset-backed securities will enhance asset utilization, improve overall asset turnover, and increase the company's working capital [1] - This initiative is also expected to lower financial costs and enhance the company's investment and financing capabilities [1]

1. Report Industry Investment Rating There is no information about the industry investment rating in the report. 2. Core Views of the Report - Overall, most credit spreads of different industries and ratings narrowed to varying degrees this week, while a few industries' credit spreads widened. The credit spreads of urban investment bonds fluctuated slightly, the 3Y industrial bond credit spreads adjusted significantly, and the AA medium - long - end spreads decreased. The 3Y bank secondary perpetual bond credit spreads widened significantly, and the spreads of other maturities widened slightly [3][39]. - The report continues to expect the 10Y Treasury yield to be between 1.6% - 1.8% in the second half of the year. After the recent pull - back, the 10Y Treasury is close to 1.75%, with prominent cost - effectiveness. The report is bullish on the 10Y Treasury yield returning to around 1.65%, and the 5Y national and joint - stock secondary capital bonds falling below 1.9%. The growth of wealth management scale is beneficial to credit bonds. It is bullish on long - duration and credit - sinking urban investment and capital bonds, urban investment dim - sum bonds and US dollar bonds, strongly recommends perpetual bonds of Minsheng, Bohai, and Hengfeng Banks, and suggests paying attention to capital bond opportunities of Tianjin Bank, Beibu Gulf Bank, and China Property Insurance [3][40]. 3. Summary by Relevant Catalogs 3.1 Primary Market 3.1.1 Net Financing Scale - The net financing of credit bonds (excluding asset - backed securities) this week was 16.8 billion yuan, a decrease of 298 billion yuan compared with last week. The total issuance was 323.4 billion yuan, a decrease of 175 billion yuan, and the total repayment was 306.6 billion yuan, an increase of 122.9 billion yuan [7]. - The net financing of asset - backed securities this week was 27.8 billion yuan, an increase of 17 billion yuan compared with last week [7]. - By product type, the net financing of urban investment bonds was 35.4 billion yuan, a decrease of 40.2 billion yuan; the net financing of industrial bonds was 17.9 billion yuan, a decrease of 131.4 billion yuan; the net financing of financial bonds was - 36.5 billion yuan, a decrease of 126.4 billion yuan [7]. - In terms of issuance and redemption quantity, the issuance of urban investment bonds decreased by 21, and the redemption increased by 32; the issuance of industrial bonds decreased by 50, and the redemption increased by 39; the issuance of financial bonds decreased by 10, and the redemption increased by 14 [9]. 3.1.2 Issuance Cost - The weighted average issuance rate of AA industrial bonds increased significantly this week, while the issuance costs of other bond types were below 2.5%. The issuance rate of AA industrial bonds increased by 61BP compared with last week, mainly due to the "25 Xiangqiao Bond" [17]. 3.2 Secondary Market 3.2.1 Transaction Volume and Turnover - The trading volume of credit bonds (excluding asset - backed securities) decreased by 15.8 billion yuan compared with last week. The trading volume of urban investment bonds was 217 billion yuan, a decrease of 10.8 billion yuan; the trading volume of industrial bonds was 341 billion yuan, an increase of 9.4 billion yuan; the trading volume of financial bonds was 384.6 billion yuan, a decrease of 14.4 billion yuan. The trading volume of asset - backed securities was 18.3 billion yuan, an increase of 9.3 billion yuan [18]. - The turnover rate of credit bonds fluctuated slightly compared with last week. The turnover rate of urban investment bonds was 1.39%, a decrease of 0.07pct; the turnover rate of industrial bonds was 1.88%, an increase of 0.04pct; the turnover rate of financial bonds was 2.59%, a decrease of 0.09pct; the turnover rate of asset - backed securities was 0.5%, an increase of 0.24pct [18]. 3.2.2 Yield - The yields of credit bonds with different maturities increased to varying degrees this week, and the adjustment range of medium - long - term bonds was greater than that of short - term bonds. For example, the yields of AA, AAA -, and AAA + credit bonds within 1Y increased by 2BP, 2BP, and 1BP respectively; those of 3 - 5Y increased by 5BP; and those of over 10Y increased by 3 - 5BP [20][21]. - Taking AA + 5Y bonds of each type as an example, the yields of different types of bonds increased to varying degrees. For industrial bonds, the yields of privately - issued and perpetual industrial bonds increased by 6BP and 7BP respectively; for urban investment bonds, the yield of AA + 5Y urban investment bonds increased by 4BP; for financial bonds, the yields of commercial bank ordinary bonds and secondary capital bonds increased by 7BP and 8BP respectively; for asset - backed securities, the yield of AA + 5Y asset - backed securities increased by 6BP [22]. 3.2.3 Credit Spreads - Overall, most credit spreads of different industries and ratings narrowed to varying degrees this week, while a few industries' credit spreads widened. For example, the credit spread of AA non - bank finance widened by 6BP, and that of AA building materials narrowed by 6BP; the credit spreads of AA + electrical equipment and textile and apparel widened by 6BP and 17BP respectively, and that of AA + non - bank finance narrowed by 7BP. The fluctuations of other industries' and ratings' bond credit spreads did not exceed 5BP [2][24]. - **Urban Investment Bonds**: The credit spreads of urban investment bonds with different maturities fluctuated slightly. The 0.5 - 1Y credit spread compressed by less than 1BP, the 1 - 3Y spread widened by 1BP, the 3 - 5Y spread compressed by 1BP, the 5 - 10Y spread compressed by 1BP, and the over 10Y spread compressed by 2BP. Regionally, the fluctuations of urban investment credit spreads were within 5BP. For example, the AA credit spread in Shaanxi compressed by 5BP, and the AA + credit spread in Hebei compressed by 5BP [29][30]. - **Industrial Bonds**: The 3Y industrial bond credit spreads adjusted significantly this week, and the AA medium - long - end spreads decreased. The credit spreads of 3Y AAA -, AA +, and AA private and perpetual industrial bonds widened to varying degrees, while the 5Y and 10Y AA private and perpetual industrial bond credit spreads compressed [33]. - **Bank Capital Bonds**: The 3Y bank secondary perpetual bond credit spreads widened significantly this week, and the spreads of other maturities widened slightly [35]. 3.3 This Week's Bond Market Sentiment - 26 bond implicit ratings were downgraded this week, including 10 by Joy City Holdings Group Co., Ltd., 10 by Shanghai Waigaoqiao Group Co., Ltd., 4 by Chongqing Yerui Real Estate Development Co., Ltd., and 2 by Zhengxinglong Real Estate (Shenzhen) Co., Ltd. The "20 Huaxia EB" issued by China Fortune Land Development Holdings Co., Ltd. was extended [36]. 3.4 Investment Recommendations - The report continues to expect the 10Y Treasury yield to be between 1.6% - 1.8% in the second half of the year. After the recent pull - back, the 10Y Treasury is close to 1.75%, with prominent cost - effectiveness. It is bullish on the 10Y Treasury yield returning to around 1.65%, and the 5Y national and joint - stock secondary capital bonds falling below 1.9%. The growth of wealth management scale is beneficial to credit bonds [3][40]. - It is bullish on long - duration and credit - sinking urban investment and capital bonds, urban investment dim - sum bonds and US dollar bonds, strongly recommends perpetual bonds of Minsheng, Bohai, and Hengfeng Banks, and suggests paying attention to capital bond opportunities of Tianjin Bank, Beibu Gulf Bank, and China Property Insurance [40].

1. Report Industry Investment Rating - Not provided in the given content 2. Core Views of the Report - This week (from August 4th to August 8th), in the primary market, the issuance volume, repayment volume, and net financing of traditional credit bonds all increased compared to last week; the net financing of asset - backed securities increased by 20.9 billion yuan compared to last week. The weighted average issuance rate of AA+ financial bonds increased, while the issuance costs of other bond types decreased to varying degrees [1]. - In the secondary market, the trading volume of credit bonds decreased by 168.2 billion yuan compared to last week, and the turnover rate declined overall. The yields of credit bonds within 5 years performed well, with yields of different - rated credit bonds decreasing by 1 - 5 BP, while the long - end performance was average. Generally, the credit spreads of most industries and ratings narrowed to varying degrees, and only a few industries' credit spreads widened slightly [2]. - There were 46 bond implicit ratings downgraded this week. The "H22 Guohou 1" issued by Guohou Asset Management Co., Ltd. defaulted, and the "H6 Chuying 02" issued by Chuying Agriculture and Animal Husbandry Group Co., Ltd. was extended [2]. - The redemption of bond funds eased this week, and the new tax policy increased the cost - effectiveness of general credit bonds, which was a short - term positive for long - duration credit bonds. The compression of ultra - long - term credit bond spreads has not reached last year's low. Although the proportion of low - valuation transaction volumes and TKN transactions has increased this year, the bullish sentiment in the bond market has declined, indicating that there is room for the buying sentiment to recover. The market trend may further develop towards long - duration assets [3]. 3. Summary by Relevant Catalogs 3.1 Primary Market 3.1.1 Net Financing Scale - The net financing of credit bonds (excluding asset - backed securities) this week was 315.9 billion yuan, an increase of 215.7 billion yuan compared to last week. The total issuance volume was 499.6 billion yuan, an increase of 268.3 billion yuan, and the total repayment volume was 183.7 billion yuan, an increase of 52.6 billion yuan. The net financing of asset - backed securities was 8.1 billion yuan, an increase of 20.9 billion yuan [8]. - By product type, the net financing of urban investment bonds was 76.7 billion yuan, an increase of 65.7 billion yuan; that of industrial bonds was 149.3 billion yuan, an increase of 90.2 billion yuan; and that of financial bonds was 89.9 billion yuan, an increase of 59.8 billion yuan [8]. - In terms of the number of issuances and redemptions, the number of urban investment bond issuances increased by 69, and the number of redemptions decreased by 30; the number of industrial bond issuances increased by 124, and the number of redemptions increased by 9; the number of financial bond issuances increased by 28, and the number of redemptions increased by 3 [11]. 3.1.2 Issuance Cost - The weighted average issuance rate of AA+ financial bonds increased, while the issuance costs of other bond types decreased to varying degrees. The issuance rate of AA+ financial bonds increased by 37 BP, mainly due to the high - rate issuance of "25 Weifang Bank Perpetual Bond 01" and "25 Guorui 01". The issuance rate of AA industrial bonds decreased by 59 BP, mainly because the new bonds issued by AA industrial entities this week with a total scale of 2.238 billion yuan had an issuance rate of 2.2% or lower. The issuance rates of other different - rated and different - type bonds decreased by no more than 13 BP [17]. 3.2 Secondary Market 3.2.1 Trading Situation - In terms of trading volume, the trading volume of credit bonds (excluding asset - backed securities) decreased by 168.2 billion yuan compared to last week. The trading volume of urban investment bonds was 227.8 billion yuan, a decrease of 15.1 billion yuan; that of industrial bonds was 331.4 billion yuan, an increase of 400 million yuan; that of financial bonds was 398.7 billion yuan, a decrease of 153.4 billion yuan. The trading volume of asset - backed securities was 900 million yuan, a decrease of 770 million yuan [19]. - In terms of turnover rate, the turnover rate of credit bonds declined overall. The turnover rate of urban investment bonds was 1.46%, a decrease of 0.11 pct; that of industrial bonds was 1.84%, a decrease of 0.01 pct; that of financial bonds was 2.67%, a decrease of 1.04 pct; and that of asset - backed securities was 0.26%, a decrease of 0.23 pct [19]. 3.2.2 Yields - The yields of credit bonds within 5 years performed well, with yields of different - rated credit bonds decreasing by 1 - 5 BP, while the long - end performance was average. Specifically, the yields of AA, AAA -, and AAA+ credit bonds within 1 year decreased by 4 BP, 3 BP, and 4 BP respectively compared to last week; the yields of AA, AAA -, and AAA+ credit bonds between 3 - 5 years decreased by 3 BP, 1 BP, and 2 BP respectively; and the yields of AA, AAA -, and AAA+ credit bonds over 10 years fluctuated within 1 BP [24]. - Taking AA+ 5 - year bonds of each type as an example, the yields of different types of bonds decreased to varying degrees this week. The yields of non - publicly issued industrial bonds and perpetual industrial bonds decreased by 3 BP and 1 BP respectively; the yield of AA+ 5 - year urban investment bonds decreased by 3 BP; the yields of commercial bank ordinary bonds and secondary capital bonds decreased by 2 BP respectively; and the yield of AA+ 5 - year asset - backed securities decreased by 2 BP [25]. 3.2.3 Credit Spreads - Generally, the credit spreads of most industries and ratings narrowed to varying degrees, and only a few industries' credit spreads widened slightly. Specifically, the credit spreads of AA+ non - ferrous metals and household appliances compressed by 7 BP and 6 BP respectively compared to last week; the credit spreads of AA+ computer, AAA electrical equipment, and agriculture, forestry, animal husbandry, and fishery widened by no more than 2 BP; the credit spreads of other industries and ratings compressed by no more than 5 BP [26]. 3.2.3.1 Urban Investment Bonds - By term, the credit spreads of urban investment bonds within 1 year compressed slightly, while the spreads of other terms widened slightly. The 0.5 - 1 - year urban investment credit spread was 31 BP, a compression of 3 BP compared to last week; the 1 - 3 - year spread was 38 BP, a compression of 3 BP; the 3 - 5 - year spread was 57 BP, a compression of 2 BP; the 5 - 10 - year spread was 50 BP, a compression of 2 BP; and the spread over 10 years was 41 BP, a compression of 1 BP [30]. - By region, the credit spreads of most urban investment bonds widened, and only a few regions' credit spreads compressed slightly. The AA - rated credit spreads of Hebei and Yunnan compressed by 6 BP and 12 BP respectively, and the AA+ - rated credit spread of Liaoning compressed by 6 BP. The credit spreads of other regions fluctuated within 5 BP [31]. 3.2.3.2 Industrial Bonds - This week, the credit spreads of industrial bonds fluctuated slightly within 5 BP overall, and the long - end spreads were under pressure for adjustment. Specifically, the credit spreads of 1 - year AAA -, AA+, and AA private - placement industrial bonds compressed by 1 BP, 2 BP, and widened by 1 BP respectively compared to last week; the credit spreads of 10 - year AAA -, AA+, and AA private - placement industrial bonds widened by 3 BP each; the credit spreads of 1 - year AAA - and AA perpetual industrial bonds widened by less than 1 BP, and the AA+ perpetual industrial bond spread widened by 1 BP; the credit spreads of 10 - year AAA -, AA+, and AA perpetual industrial bonds widened by 4 BP each [34]. 3.2.3.3 Bank Capital Bonds - This week, the credit spreads of bank Tier 2 and perpetual bonds showed differentiation, but the overall fluctuation range was not large. Specifically, the credit spreads of 1 - year AAA -, AA+, and AA Tier 2 capital bonds compressed by less than 1 BP, 1 BP, and 2 BP respectively; the credit spreads of 10 - year AAA -, AA+, and AA Tier 2 capital bonds widened by 2 BP each; the credit spreads of 1 - year AAA -, AA+, and AA bank perpetual bonds compressed by 1 BP each; the credit spreads of 10 - year AAA -, AA+, and AA bank perpetual bonds compressed by 2 BP each [37]. 3.3 This Week's Bond Market Rumors - There were 46 bond implicit ratings downgraded this week, including 31 by China Railway Construction Real Estate Group Co., Ltd., 10 by Shanghai Jinmao Investment Management Group Co., Ltd., and 3 by Luneng Group Co., Ltd. The "H22 Guohou 1" issued by Guohou Asset Management Co., Ltd. defaulted, and the "H6 Chuying 02" issued by Chuying Agriculture and Animal Husbandry Group Co., Ltd. was extended [40]. 3.4 Investment Recommendations - This week, there were 1.6632 trillion yuan of reverse repurchases due in the open market, and the central bank conducted 1.1267 trillion yuan of reverse repurchase operations, resulting in a net withdrawal of 536.5 billion yuan for the whole week. The DR001 dropped from 1.34% at the Monday close to 1.29%. The active 10 - year Treasury bond showed no significant change from last Friday's close, fluctuating around 1.69%. Generally, the credit spreads of most industries and ratings narrowed to varying degrees, and only a few industries' credit spreads widened slightly. For urban investment bonds, the credit spreads of those within 1 year compressed slightly, while the spreads of other terms widened slightly. For industrial bonds, the credit spreads fluctuated slightly within 5 BP overall, and the long - end spreads were under pressure for adjustment. For bank capital bonds, the credit spreads of bank Tier 2 and perpetual bonds showed differentiation, but the overall fluctuation range was not large [42]. - The redemption of bond funds eased this week, and the new tax policy increased the cost - effectiveness of general credit bonds, which was a short - term positive for long - duration credit bonds. From the perspective of credit spread positions, the long - end risk - free interest rate has been in a downward channel since July 2024, and the yields of ultra - long - term credit bonds followed suit. The credit spreads reached an extreme in July last year, and currently, the compression of ultra - long - term credit bond spreads has not reached last year's low. From the perspective of secondary trading sentiment, the proportion of low - valuation transaction volumes and TKN transactions has increased this year. However, affected by the strong equity market in July and the sharp rise in commodity futures prices catalyzed by the "anti - involution" sentiment, the bullish sentiment in the bond market has declined, indicating that there is room for the buying sentiment to recover. In addition, with the concentrated listing of Sci - tech Innovation Bond ETFs on July 17th, the spreads of medium - and short - end component bonds have been compressed to an extreme. Driven by the "asset shortage" in the low - interest - rate environment this year, the market trend may further develop towards long - duration assets [43]. - From the timing signal of ultra - long - term credit bonds, using the spread between the yield to maturity of AAA+ ChinaBond Medium - and Short - Term Notes and the Treasury bond rate of the same term as the observation object and constructing a Bollinger Band with the 60 - day average spread ± 2 standard deviations, as of August 8th, the 10 - year spread touched the 60 - day moving average but did not form an effective breakthrough; the 15 - year and 20 - year spreads have effectively broken through the average and touched the upper limit of the channel since the adjustment in late July; the 30 - year spread is still hovering near the lower limit of the channel without an obvious trend. In terms of the term structure, the 15 - 20 - year ultra - long - term credit bonds have relatively high cost - effectiveness after the adjustment catalyzed by the "anti - involution" market. The ranking of the allocation value of ultra - long - term credit bonds from high to low is 15Y > 20Y > 10Y > 30Y [44]. - Specifically, issuers with relatively large outstanding volumes, more than 50 cumulative transactions from January 1st to August 5th, and a weighted average yield to call of over 2% in industrial bonds, urban investment bonds, and bank Tier 2 capital bonds are recommended. In industrial bonds, State Grid Corporation of China has the largest outstanding volume of ultra - long - term credit bonds and active trading, but its yield level is relatively low. China Chengtong Holdings Group Co., Ltd., Sinochem Group Co., Ltd., Aluminum Corporation of China Limited, and Guangzhou Yuexiu Group Co., Ltd. have both yield levels and activity, and are relatively more cost - effective. In urban investment bonds, most have better static coupon rates than industrial bonds, but the range of available outstanding bonds is relatively narrow. Attention can be paid to the further compression opportunities of the spreads of ultra - long - term bonds of issuers such as Shenzhen Metro Group Co., Ltd., Shaanxi Transportation Holding Group Co., Ltd., Yantai Guofeng Investment Holding Group Co., Ltd., and Sichuan Expressway Construction and Development Group Co., Ltd. In bank Tier 2 capital bonds, the outstanding ultra - long - term bonds are mainly concentrated in several large state - owned and joint - stock commercial banks, and their yield levels are relatively less cost - effective compared to industrial and urban investment bonds [49].

证券研究报告 固收定期报告 hyzqdatemark 2025 年 08 月 03 日 关注税收新规后的信用价值提升 ——信用分析周报（2025/7/28-2025/8/1） 证券分析师 廖志明 SAC：S1350524100002 liaozhiming@huayuanstock.com 赵孟田 SAC：S1350525070004 zhaomengtian@huayuanstock.com 投资要点： 本周（7/28-8/1）市场概览： 1）一级市场：本周传统信用债发行量、偿还量、净融资额环比上周均大幅减少；资 产支持证券净融资额环比上周减少 465 亿元；本周产业债、城投债加权平均发行利 率均有所上行，金融债发行成本有不同程度下降。 联系人 2）二级市场：本周信用债成交量环比上周减少 738 亿元；换手率方面，本周信用债 换手率较上周涨跌互现，资产支持证券换手率较上周有所回升。本周不同期限不同 评级的信用债收益率大多下行，10Y 以上 AAA+信用债收益率小幅上升。总体来看， 本周不同行业不同评级的信用利差有涨有跌，但波动幅度均不超过 5BP。具体来看， 本周 AA 银行、AA+采掘和非银金融、AAA ...

Market Overview - The bond market experienced accelerated adjustments with increased redemption pressure during the week of July 21-25, leading to a tightening of market funds initially, followed by a loosening towards the end of the week [1] - The 10-year government bond yield broke above 1.70% for the first time since late May, indicating significant adjustment pressure [1] - The stock market showed positive sentiment, with indices reaching new highs for the year, which diverted some funds from the bond market [1] Weekly Review - On July 21, the LPR remained unchanged as expected, with a generally loose funding environment, but bond yields continued to rise [2] - The 10-year government bond yield rose to 1.677% on July 21, up 1.3 basis points from the previous week, and continued to increase throughout the week, reaching 1.745% by July 24 [2] - By July 25, after a significant net injection of over 600 billion yuan by the central bank, the bond market showed signs of recovery, with the 10-year government bond yield closing at 1.73% [2] Bond Futures - The bond futures market also saw fluctuations, with the 10-year government bond contract T2509 closing at 108.18, down 0.07% for the week [4] - Other maturities, such as the 5-year and 30-year contracts, also experienced declines, with weekly drops of 0.04% and 0.48% respectively [4] Convertible Bonds - The China Convertible Bond Index closed at 463.57, up 0.11% on July 25, with a weekly increase of 2.14% [5] - The trading volume for convertible bonds increased significantly, with a total of 2,443 million hands traded, amounting to 403.4 billion yuan, a week-on-week increase of 253 million hands [5] Bond Issuance - A total of 84 bonds were issued in the market, with a total scale of 939.805 billion yuan, an increase of 283.312 billion yuan from the previous week [6] - The Ministry of Finance issued 5 government bonds, with a total issuance scale increasing by 49.9 billion yuan compared to the previous week [8] Monetary Policy - The central bank conducted a total of 17,268 billion yuan in 7-day reverse repos, with a net injection of 6,018 billion yuan on July 25 [15] - The weighted average rate for R001 fell to 1.55%, while R007 rose to 1.69% due to month-end funding effects [17] International Market - U.S. Treasury yields showed slight fluctuations, with the 10-year yield falling to 4.38% [19] - European bond markets reacted to the European Central Bank's decision to maintain interest rates, leading to increased yields in the German and Italian bonds [22] Industry Insights - Analysts suggest that the recent market adjustments are primarily driven by changes in risk appetite, funding fluctuations, and shifts in trading positions [32] - The "anti-involution" measures and their impact on demand are critical factors to monitor for the bond market's medium-term outlook [32]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - This week, most credit spreads in different industries widened, while a small number narrowed. Credit bond yields adjusted significantly, increasing the cost - performance of credit bonds from a static coupon perspective. With the rapid decline of black - series futures prices on Friday night, bond market sentiment may improve, and the space for further credit bond adjustment is relatively limited. It is recommended to continue to focus on long - duration sinking urban investment bonds, capital bonds, and insurance sub - debt, strongly recommend long - duration capital bonds of Minsheng, Bohai, and Hengfeng, and be bullish on urban investment dim sum bonds and US dollar bonds [3][4][56]. - Since July 2024, the long - end risk - free interest rate has been in a downward channel. The yield of ultra - long - term credit bonds has followed suit, and the current compression of credit spreads is not as extreme as last year. Buying sentiment may not have reached its end, and the market may further evolve towards long - duration assets [5][62]. 3. Summary by Relevant Catalogs 3.1 Primary Market 3.1.1 Net Financing Scale - This week, the net financing of traditional credit bonds (excluding asset - backed securities) was 390.6 billion yuan, a week - on - week increase of 220.3 billion yuan. The net financing of asset - backed securities was 3.09 billion yuan, a week - on - week increase of 910 million yuan. In terms of product types, the net financing of urban investment bonds was 3.31 billion yuan, an increase of 280 million yuan; that of industrial bonds was 11.06 billion yuan, an increase of 5 billion yuan; and that of financial bonds was 24.69 billion yuan, an increase of 16.74 billion yuan [16]. 3.1.2 Issuance Cost - The weighted average issuance rates of AA - rated industrial bonds and AA + - rated financial bonds increased significantly compared to last week, by 51BP and 41BP respectively. The fluctuations of other bond types and ratings did not exceed 10BP [23][24]. 3.2 Secondary Market 3.2.1 Trading Volume - This week, the trading volume of credit bonds (excluding asset - backed securities) increased by 178 billion yuan compared to last week. Among them, the trading volume of urban investment bonds was 227.2 billion yuan, an increase of 23.5 billion yuan; that of industrial bonds was 361.2 billion yuan, an increase of 3.3 billion yuan; and that of financial bonds was 611.6 billion yuan, an increase of 151.2 billion yuan. The trading volume of asset - backed securities was 1.45 billion yuan, a decrease of 220 million yuan [24]. 3.2.2 Yield - This week, the yields of credit bonds with different maturities and ratings increased significantly, ranging from 7 - 17BP. For example, the yields of AA, AAA -, and AAA + credit bonds within 1Y increased by 7BP, 8BP, and 8BP respectively compared to last week [31]. 3.2.3 Credit Spreads - Overall, most credit spreads in different industries widened, while a small number narrowed. Specifically, the credit spreads of AA + electronics and building materials narrowed by 17BP and 8BP respectively, and those of AA + light manufacturing and AAA leisure services narrowed slightly [34]. - **Urban Investment Bonds**: This week, the credit spreads of urban investment bonds widened overall, with the short - end widening more than the long - end. Regionally, most urban investment credit spreads widened, while a small number compressed slightly [40][41]. - **Industrial Bonds**: This week, the credit spreads of AA + and above industrial bonds widened to varying degrees, and the short - end of AA industrial bonds also widened [45]. - **Bank Capital Bonds**: This week, the credit spreads of bank Tier 2 and perpetual bonds widened overall, with the widening range of different maturities and ratings between 3 - 9BP [50]. 3.3 This Week's Bond Market Sentiment - This week, Shenzhen Longfor Holdings Co., Ltd. extended the maturity of 5 debt issues; Shanghai Lujiazui Finance & Trade Zone Development Co., Ltd. had the implied ratings of 12 debt issues downgraded; Inner Mongolia Oujing Technology Co., Ltd. was put on the watchlist, and its "Oujing Convertible Bond" was also included; Midea Real Estate Group Co., Ltd. had the implied ratings of 20 debt issues downgraded; and Aoyuan Group Co., Ltd. extended the maturity of 3 debt issues [2][51]. 3.4 Investment Recommendations - Pay attention to the allocation and trading opportunities of ultra - long - term credit bonds. For industrial bonds, China State Grid has the largest scale of ultra - long - term credit bonds, but the yield is relatively low. China Chengtong Holdings Group, Sinochem Group, Guangzhou Yuexiu Group, and Sichuan Energy Investment Group are more cost - effective. For urban investment bonds, although the static coupon rate is generally better, the selectable scope is relatively narrow. Pay attention to the spread compression opportunities of Shenzhen Metro, Shaanxi Communications Holdings, Yantai Guofeng, and Yizhuang Investment and Development. The cost - performance of bank Tier 2 capital bonds is limited [6][63].

Report Industry Investment Rating No relevant content provided Core Viewpoints of the Report - This week, the central bank achieved a net injection of 1.2611 trillion yuan. The Shanghai Composite Index closed at 3534 points, with equities showing strong performance, but the Treasury bond yields did not weaken significantly. The 10Y Treasury bond yield fluctuated narrowly around 1.66%, and the 1Y Treasury bond yield decreased slightly by about 2BP during the week. The end of the tax period did not bring obvious loosening of the capital side [3][41]. - Most credit spreads in different industries compressed to varying degrees this week, with only a small number of industries seeing a slight widening. The credit spreads of urban investment bonds, industrial bonds, and bank secondary and perpetual bonds all compressed slightly overall [3][4][41]. - The buying frenzy of science and technology innovation bond component securities has entered the second half. With the concentrated listing of science and technology innovation bond ETFs this week, the market's enthusiastic subscription has pushed the component securities market towards the end. It is recommended that funds that have participated in this round of the market may consider taking profits and exiting [4][42]. Summary According to Relevant Catalogs 1. Primary Market 1.1 Net Financing Scale - This week, the net financing of credit bonds (excluding asset - backed securities) was 173.5 billion yuan, a decrease of 54.4 billion yuan compared to last week. The total issuance was 400.9 billion yuan, a decrease of 59 billion yuan, and the total repayment was 227.4 billion yuan, a decrease of 4.6 billion yuan. The net financing of asset - backed securities was 18.4 billion yuan, a decrease of 2.2 billion yuan compared to last week [9]. - In terms of product types, the net financing of urban investment bonds was 32.1 billion yuan, an increase of 11.4 billion yuan; the net financing of industrial bonds was 61.9 billion yuan, a decrease of 51.2 billion yuan; and the net financing of financial bonds was 79.5 billion yuan, a decrease of 14.6 billion yuan [9]. 1.2 Issuance Cost - The weighted average issuance rates of AA and AA+ industrial and urban investment bonds this week were in the range of 2.2% - 2.5%, and the overall issuance rate of financial bonds was relatively low. The issuance rate of AA industrial bonds decreased by 37BP compared to last week, mainly due to the low issuance coupons of some bonds, while the fluctuations of other bonds were within 10BP [18]. 2. Secondary Market 2.1 Transaction Situation - The trading volume of credit bonds (excluding asset - backed securities) decreased by 32.1 billion yuan compared to last week. The trading volume of urban investment bonds was 203.8 billion yuan, a decrease of 24.3 billion yuan; the trading volume of industrial bonds was 357.8 billion yuan, a decrease of 14.2 billion yuan; the trading volume of financial bonds was 460.3 billion yuan, an increase of 6.4 billion yuan. The trading volume of asset - backed securities was 16.7 billion yuan, an increase of 5.1 billion yuan [19]. - The turnover rates of urban investment bonds and industrial bonds decreased compared to last week, while that of financial bonds increased slightly. The turnover rate of urban investment bonds was 1.32%, a decrease of 0.16pct; the turnover rate of industrial bonds was 2.05%, a decrease of 0.09pct; the turnover rate of financial bonds was 3.15%, an increase of 0.02pct; the turnover rate of asset - backed securities was 0.48%, an increase of 0.15pct [20]. 2.2 Yield - The yield of AA ultra - long - term credit bonds over 10Y decreased significantly by 11BP, and the yields of other credit bonds with different terms and ratings mostly compressed by no more than 3BP compared to last week [23]. - Taking AA+ 5Y bonds of each type as an example, the yields of most bonds decreased to varying degrees. The yields of private - placement industrial bonds and renewable industrial bonds decreased by 2BP and 3BP respectively; the yield of AA+ 5Y urban investment bonds decreased by 1BP; the yield of commercial bank ordinary bonds remained unchanged, and the yield of secondary capital bonds decreased by 2BP; the yield of AA+ 5Y asset - backed securities decreased by 2BP [25]. 2.3 Credit Spreads - Overall, most credit spreads in different industries compressed to varying degrees this week, with only a small number of industries seeing a slight widening. Specifically, the credit spreads of AA+ leisure services and machinery increased by 6BP each, the credit spread of AA+ pharmaceutical and biological decreased by 7BP, and the credit spread of AAA leisure services decreased by 7BP. The fluctuations of other bonds were within 5BP [4][25]. 2.3.1 Urban Investment Bonds - In terms of terms, the credit spreads of urban investment bonds compressed slightly overall this week. The credit spreads of 0.5 - 1Y, 1 - 3Y, 3 - 5Y, 5 - 10Y, and over 10Y urban investment bonds compressed by less than 1BP, 1BP, 1BP, 2BP, and less than 1BP respectively [30]. - In terms of regions, the credit spread of AA urban investment bonds in Liaoning compressed significantly, while the fluctuations in other regions were within 5BP. The top five regions with the highest AA - rated urban investment bond credit spreads were Guizhou, Jilin, Yunnan, Gansu, and Liaoning; the top five regions for AA+ were Guizhou, Qinghai, Shaanxi, Yunnan, and Liaoning; and the top five regions for AAA were Liaoning, Yunnan, Tianjin, Jilin, and Inner Mongolia [31][32]. 2.3.2 Industrial Bonds - The credit spreads of industrial bonds compressed overall this week, with only a small number of terms and ratings seeing a slight widening. The credit spreads of 1Y AAA - and AA+ private - placement industrial bonds compressed by 1BP each, and the credit spreads of 10Y AAA -, AA+, and AA private - placement industrial bonds compressed by 3BP, 3BP, and 5BP respectively. The credit spreads of 1Y AAA -, AA+, and AA renewable industrial bonds widened by no more than 2BP, and the credit spreads of 10Y AAA -, AA+, and AA renewable industrial bonds compressed by 3BP, 4BP, and 5BP respectively. The fluctuations of other industrial bonds were within 3BP [34]. 2.3.3 Bank Capital Bonds - The credit spreads of bank secondary and perpetual bonds compressed slightly overall this week, with the compression amplitude of different terms and ratings within 3BP. The 3Y and 5Y credit spreads of AA bank perpetual bonds compressed by 3BP each, and the compression amplitudes of other bonds were no more than 2BP [37]. 3. This Week's Bond Market Sentiment - This week, the implied ratings of "HPR Huayu A" and "H20 Huayu B" issued by Chongqing Yerui Real Estate Development Co., Ltd. were downgraded; the implied ratings of 5 bond issues by Chongqing State - owned Cultural Assets Management Co., Ltd. were downgraded; Jiangshan Oupai Door Industry Co., Ltd. was placed on the watchlist, and its "Jiangshan Convertible Bond" was also placed on the watchlist; the implied ratings of "20 Guohua Life 01" and "21 Guohua Life 01" issued by Guohua Life Insurance Co., Ltd. were downgraded; the entity rating of Changde Rural Commercial Bank Co., Ltd. was downgraded, and the rating of its "21 Changde Rural Commercial Secondary" bond was also downgraded [3][39]. 4. Investment Recommendations - Overall, most credit spreads in different industries compressed this week. Investment strategies suggest being bullish on long - duration urban investment and capital bonds, strongly recommending the perpetual bonds of Minsheng, Bohai, and Hengfeng Banks, and paying attention to the opportunities of insurance sub - bonds [41]. - For science and technology innovation bonds, it is recommended that funds that have participated in this round of the market may consider taking profits and exiting [42].

Group 1: Foreign Investment - In the first half of 2025, China attracted foreign investment amounting to 423.23 billion RMB, a year-on-year decrease of 15.2% [1] - A total of 30,014 new foreign-invested enterprises were established, representing a year-on-year increase of 11.7% [1] - The manufacturing sector attracted 109.06 billion RMB, while the service sector attracted 305.87 billion RMB [1] - High-tech industries received 127.87 billion RMB in foreign investment, with significant growth in e-commerce services (127.1%), chemical pharmaceuticals (53%), aerospace equipment (36.2%), and medical instruments (17.7%) [1] Group 2: Regulatory Developments - The People's Bank of China released a draft regulation to standardize interbank market brokerage activities, prohibiting brokerage institutions from participating in primary bond issuance and over-the-counter bond business [3] - The Shenzhen Stock Exchange announced a pilot program for the continuation of corporate bond issuance and the expansion of asset-backed securities, aimed at meeting reasonable financing needs and enhancing market liquidity [4] Group 3: Corporate Performance - Over 1,500 listed companies in A-shares have disclosed their half-year performance forecasts, with 676 companies expecting positive results, accounting for approximately 43% [5] - 26 companies anticipate a net profit increase exceeding 1,000% [5] - 193 companies are expected to turn losses into profits, with positive forecasts concentrated in hardware, chemicals, and machinery sectors [5] Group 4: Industry Meetings and Actions - A meeting was held by the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the State Administration for Market Regulation to discuss the regulation of the electric vehicle industry, with 17 major automotive companies in attendance [8] - The Ministry of Commerce organized a meeting to combat the smuggling of strategic minerals, emphasizing a "zero tolerance" policy and increased law enforcement efforts [2] Group 5: Mergers and Acquisitions - The China Securities Regulatory Commission approved the merger of China Shipbuilding Industry Corporation and China Shipbuilding Heavy Industry Corporation, allowing for the issuance of 3.053 billion new shares [10] Group 6: New Listings and IPOs - Hangzhou Yushu Technology Co., Ltd. has completed its listing counseling filing with the Zhejiang Securities Regulatory Bureau [11] - Bullish Company, involved in cryptocurrency trading and media, has submitted registration documents for an IPO on the New York Stock Exchange [12]

Core Insights - The central financial work conference in October 2023 highlighted "inclusive finance" as one of the "five major articles" for financial development in China, indicating a significant policy focus on this area [2][3] - The implementation of the "High-Quality Development Plan for Inclusive Finance" by the National Financial Supervision Administration and the People's Bank of China in June 2025 marks a shift from principles to detailed guidelines, accelerating the progress of inclusive finance [4][5] Financial Services - Inclusive finance has become a key driver for economic growth and social equity, with a focus on providing affordable financial services to various social groups, including small and micro enterprises, farmers, and low-income urban residents [3][7] - The People's Bank of China has increased the quota for re-lending to support agriculture and small enterprises, raising the total quota to 3 trillion yuan, with a current interest rate of 1.5% for re-lending [6][7] Insurance Sector - Inclusive insurance is expanding to cover health risks and support rural revitalization, with various projects like "Hui Min Bao" providing affordable health insurance to millions [8][10] - The government is promoting a diverse range of insurance products tailored to the needs of small enterprises and specific groups, enhancing the safety net for vulnerable populations [9][10] Capital Markets - The capital market is emerging as a new engine for inclusive finance, with initiatives to enhance its accessibility and effectiveness in serving small and micro enterprises [11][12] - By the end of 2025, regional equity markets are expected to support around 180,000 enterprises, primarily small businesses, indicating a growing role for capital markets in inclusive finance [11][12] Challenges and Future Directions - Despite progress, challenges remain in providing affordable financial services to various demographics, particularly in rural areas and for new employment forms [13][14] - The need for innovative financial products and services tailored to the unique needs of different groups is critical for the continued development of inclusive finance [14][15]

Group 1 - The core viewpoint of the news is the positive progress in the domestic debt restructuring of real estate companies, particularly Longguang Holdings and Xuhui Holdings, indicating a trend towards resolving debt issues in the industry [1][2][3] Group 2 - Longguang Holdings has seen a successful vote on its debt restructuring plan, with 8 ABS approved and 21 company bonds and ABS nearing completion of voting, involving a total principal amount exceeding 21.9 billion [1] - The restructuring options for Longguang include specific assets, asset swaps, cash buybacks, debt-to-equity swaps, and debt retention [1] - Xuhui Holdings has also optimized its debt restructuring plan, involving 7 domestic company bonds with a total principal balance of 10.06 billion [1][2] Group 3 - Xuhui's updated restructuring plan includes five options: cash buyback, stock economic rights, asset swaps, general debt, and full debt retention, with significant increases in buyback amounts and stock issuance [2][3] - The cash buyback amount has been raised to a maximum of 220 million, with the buyback price increased from 18% to 20% of face value [2] - The asset swap option now accepts a principal amount of approximately 5.2 billion, with improved terms for investors, including the removal of subordinate trust shares [2][3] Group 4 - The general debt option allows bondholders to convert their bonds into general debt with a reduced extension period and optimized interest payment terms [3] - The full debt retention option has a shortened extension period and adjusted interest rates, with provisions for early repayment based on asset disposal [3] - Xuhui has introduced a consent fee to encourage investor participation in the restructuring plan, offering a 0.2% fee for those who agree to all proposals [3]