1. Report Industry Investment Rating No information provided in the content. 2. Core Viewpoints of the Report - The report aims to outline the group portrait of urban investment enterprises with market - based financing capabilities through analyzing the new bond issuance and subject characteristics of sample enterprises, and summarize the differentiated transformation logic and practical experience of urban investment enterprises by studying typical cases in different - level cities [1][3]. - Future transformation work should abandon the "one - size - fits - all" model and build a differentiated development path deeply integrated with urban strategies. Different - level cities' urban investment platforms should have different transformation directions [2][47]. - The new bond - issuing sample enterprises are mainly distributed in areas with good economic foundation and high urban development levels. Their business has extended to diversified fields, and the financial structure has been optimized, but the market - based profitability is still being cultivated [1][47]. 3. Summary According to the Directory 3.1 Introduction - With the strengthening of local government debt risk prevention and control and the tightening of financing supervision of urban investment platforms, urban investment enterprises are accelerating their market - based transformation. Whether they can obtain new bond financing has become a perspective to observe their transformation progress [3]. 3.2 New Bond Issuance and Related Subject Situations 3.2.1 New Bond Issuance - From 2024, 188 sample enterprises issued 312 new bonds with a total issuance scale of about 182.888 billion yuan. The new bond financing shows the characteristics of "dominated by exchanges, mainly private placement, led by municipal - level entities, and regional differentiation" [4]. - Over 90% of first - time bond - issuing entities issued new bonds on exchanges. Private placement corporate bonds are the main issuance variety. Labeled bonds account for about 33% of the issuance scale, and popular varieties include science and technology innovation bonds, rural revitalization bonds, and green bonds [4]. - The new bonds' terms are concentrated in 3 - 5 years. Some high - level entities in certain provinces issued 10 - year long - term bonds, and a provincial entity in Beijing issued ultra - long - term bonds over 20 years [4]. - The new bond issuance interest rate in each province ranges from 2.17% to 3.03%. The overall financing cost is at a low level. Shandong has a relatively high coupon rate, while Shanghai, Chongqing, Anhui, Beijing, Fujian, and Guangdong have lower rates [4]. - About 40% of the raised funds are used for debt roll - over, and the incremental funds of about 11 billion yuan are mainly used for business or strategic purposes such as supplementing working capital, project construction, and investment in the science and technology innovation field [4]. 3.2.2 Characteristics of New Bond - Issuing Subjects - **Regional Distribution**: New bond - issuing subjects are mainly concentrated in areas with good economic foundation and high urban development levels. The enterprise - level distribution shows regional differentiation. Coastal developed areas have more district - county - level new bond - issuing subjects, while central and western provinces have more municipal - level ones [7]. - **Business Characteristics**: The business of new bond - issuing subjects presents a structure of "asset operation as the mainstay and supporting services as the supplement". The core depends on heavy - asset businesses such as real estate development, asset leasing, and public utility operation. Some service fields are becoming important directions for enriching business composition and cultivating market - based hematopoietic ability [10]. - **Financial Characteristics**: With the deepening of market - based transformation, the proportion of operating assets of new bond - issuing subjects has been increasing. However, the overall profitability is still weak, the return on net assets is low, and financial subsidies are still the core source of book profit. First - time bond - issuing subjects have a more market - based investment layout and are less dependent on financial subsidies [15]. 3.3 Transformation Path Analysis - The report divides Chinese cities into four echelons according to key dimensions such as development positioning, economy, industry, population, and transportation, and elaborates on the transformation paths of urban investment platforms serving different - echelon cities through typical cases [21]. - **Case of Hangzhou Urban Construction Investment Group Co., Ltd.**: Through strategic restructuring and resource integration, it has established an "integrated" investment and operation system; through industry - city integration, it has transformed into a "urban investment + industrial investment" model; it has actively explored the value - mining and capital - conversion paths of stock assets; and it has applied artificial intelligence to urban governance. The transformation has improved its asset structure and business performance [25][32]. - **Case of Hefei Construction Investment Holding (Group) Co., Ltd.**: It takes industrial investment as the core engine, reconstructs the business structure in a diversified way, and innovates the government - enterprise cooperation mechanism. The transformation has led to a significant increase in asset scale and a diversified business structure [34][39]. - **Case of Pingdu City Assets Operation Co., Ltd.**: Through asset restructuring and business integration, it has built six business sectors; it drives transformation through operation services; and it conducts characteristic bond financing. After the transformation, its asset structure has been optimized, and the proportion of operating business income has increased [41][43]. 3.4 Summary - The new bond - issuing sample enterprises are mainly in developed areas, with a transition form of "heavy - asset support and light - asset expansion" in business and an optimized financial structure, but the market - based profitability is still being cultivated [47]. - Future urban investment transformation should implement a differentiated development path: - **Function Positioning Remodeling**: High - level city platforms can evolve into state - owned capital investment and operation and smart city comprehensive service providers; medium - level city platforms should play the roles of "industry enablers" and "value amplifiers"; low - level city platforms should shift from "investment - expansion - driven" to "operation - service - driven" [47]. - **Transformation Principles**: Ensure strategic, endowment, and ability fit [48]. - **System and Mechanism Reform**: Accelerate the establishment of a modern enterprise system to promote the transformation from a "financing tool" to a "market subject" [49].

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].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In late Q1, institutional behavior in the bond market has changed. The allocation disk has strong buying power, while funds and wealth management products are relatively weak. The "fixed - income +" products are facing significant redemption pressure, and the bond market strategy focuses on short - term 3 - 5y term spread compression and long - term opportunities after over - decline [1][3][4]. 3. Summary by Directory 3.1 First Quarter: Characteristics of Bond Buying by Various Institutions 3.1.1 Overall Bond Buying by Institutions in Q1: Strong Allocation Disk, Weak Funds and Wealth Management - **Allocation Disk**: Large banks significantly increased net purchases of government bonds over 5y. Small and medium - sized banks increased net purchases of 30y government bonds and 20y local bonds. Insurance companies, driven by dividend - paying insurance, included 3 - 5y Tier 2 and perpetual bonds in their top five holdings [13]. - **Trading Disk**: Securities firms' net purchases were in line with seasonality, with a significant reduction in duration, more allocation to 1y interest rates and Tier 2 and perpetual bonds, and reduction of ultra - long bonds. Funds still focused on credit coupons, increasing the proportion of 1 - 5y credit and Tier 2 and perpetual bonds [13]. - **Bank Wealth Management**: In Q1, due to the priority of "deposit rush" tasks in the banking system, the scale growth of bank wealth management was weak, and the net purchases of direct investment and entrusted investment in the secondary market both increased less. In terms of structure, direct investment shortened the term, and entrusted investment increased the exploration of spreads in policy - financial bonds [14]. 3.1.2 By Institution: Insurance Enters the Allocation Window at the End of the Quarter, and Wealth Management Will Follow in Q2 - **Banks**: They have a strong demand for long - term bonds. At the end of the quarter, the pressure to realize profits is not large, and there is still a need for bond allocation in the future [18]. - **Insurance**: The "good start" funds entered the allocation window in March, and the bond - allocation progress is slower than last year, with potential for further allocation. Attention should be paid to the spread compression opportunities of ultra - long local bonds in Q2 [23]. - **Funds**: From the end of Q1 to Q2, there is usually a seasonal recovery in bond - buying power. In Q2, it is conducive to the spread compression of policy - financial bonds [25][28]. - **Wealth Management**: It is expected to see scale growth and a peak season for bond allocation in Q2. Attention can be paid to the spread compression opportunities of Tier 2 and perpetual bonds [29]. - **Securities Firms**: They continue to short - sell 30y government bonds and start to buy 50y government bonds [30]. 3.2 "Fixed - Income +" Redemption: How Big Is the Pressure? 3.2.1 Recent "Fixed - Income +" Redemption: Greater Pressure than in November 2025 and January 2026, Close to the Russia - Ukraine Conflict Period - In March, the equity market declined, and the Shanghai Composite Index fell below 4000 points, leading to a significant increase in the redemption pressure of "fixed - income +" funds. The redemption pressure is stronger than in the previous two rounds and is close to that during the Russia - Ukraine conflict [34][41]. 3.2.2 When Will the Redemption Ease? Pay Attention to the Policy - making Layer's Expectations for Market Stability and the Use of Tools - The central bank recently held a party committee meeting, showing an earlier demand to maintain the stable operation of the stock market. Looking back at the situation after the Russia - Ukraine conflict in 2022, relevant meetings and policies helped stabilize the market. The central bank has innovated a series of financial policies to support the stable operation of the capital market. In the future, attention should be paid to the changes in the "claims on other financial corporations" item [43][44][47]. 3.3 Bond Market Strategy: Focus on 3 - 5y Term Spread Compression in the Short - Term and Seize Opportunities after Over - Decline in the Long - Term 3.3.1 This Week: α Spread Compression for Bonds within 5y - This week, the short - term bonds performed well. The certificate of deposit (CD) yield dropped close to 1.5%, driving the α spread compression of bonds within 5y [48]. 3.3.2 Short - Term: Limited Downward Space for 1y Bonds, Potential for Continuous Compression of 3 - 5y Spreads - The space for 1y short - term leverage to capture interest rate spreads has been extremely compressed, and the focus of bond selection may shift to 3 - 5y bonds. CDs may fluctuate at a low level of 1.5 - 1.55% in the short term, and attention should be paid to the marginal changes in funds at the end of the quarter [51][56]. 3.3.3 Long - Term: 10y Government Bonds to Fluctuate between 1.8% - 1.85%, 30y Government Bonds' Sentiment to Stabilize, Pay Attention to Over - Decline Recovery - **10y Government Bonds**: It is expected to fluctuate in a narrow range of 1.8% - 1.85%. It is recommended to hold existing assets and gradually increase positions for incremental funds if the yield continues to rise. - **30y Government Bonds**: The core fluctuation range of the 30 - 10y active bond spread may be 40 - 50bp. Traders can pay attention to trading opportunities when the spread widens to over 50bp, and allocators can gradually enter the market when the 30y government bond yield rises above 2.3%. Attention can also be paid to the spread - mining value of 4 - 5y China Development Bank bonds, 10y China Development Bank bonds, and 20y local bonds [57][60][61]. 3.4 Interest - Rate Bond Market Review: CDs Hit a New Low, and the Yield Curve Steepened - **Funding**: The central bank's open - market operations (OMO) had a net injection, and the funding situation was balanced and loose [76]. - **Primary Issuance**: The net financing of government bonds and local bonds increased, while that of policy - financial bonds and inter - bank CDs decreased [80]. - **Benchmark Changes**: The term spreads of government bonds and China Development Bank bonds both widened [86].

1. Report Industry Investment Rating - Not provided in the report 2. Core View of the Report - Amid the "asset shortage" of credit bonds, with interest rates continuously fluctuating at low levels and increasing difficulty in capital gain speculation, it is recommended to focus on the stable income value of high - coupon assets[4][43] 3. Summary by Directory 3.1 This Week's Credit Hot Events - Some member banks participated in the market interest rate pricing self - regulatory mechanism meeting and were required to strengthen self - management. The proportion of inter - bank current deposits with an interest rate higher than the 7 - day reverse repurchase OMO policy rate (1.4%) at the end of the quarter should not exceed 10% - 20%. It is expected that the interest rate of over 10 trillion inter - bank deposits may be lowered, which is directly beneficial to short - term bonds. As of March 13, 2026, the 3M/6M inter - bank certificate of deposit rates were 1.50%/1.525%, approaching the lowest point since 2020, driving down the short - term credit bond yields this week[9] 3.2 Primary Market - The net financing of credit bonds (excluding asset - backed securities) this week was 11.91 billion yuan, an increase of 6.9 billion yuan compared with last week. The total issuance volume was 41.95 billion yuan, an increase of 15.18 billion yuan, and the total repayment volume was 30.04 billion yuan, an increase of 8.28 billion yuan. The net financing of asset - backed securities was - 0.44 billion yuan, a decrease of 0.06 billion yuan compared with last week. By product type, the net financing of urban investment bonds was 1.85 billion yuan, an increase of 0.75 billion yuan; that of industrial bonds was 7.86 billion yuan, an increase of 3.88 billion yuan; and that of financial bonds was 2.20 billion yuan, an increase of 2.27 billion yuan. In terms of issuance and redemption quantity, the issuance and redemption quantities of urban investment bonds, industrial bonds, and financial bonds all increased compared with last week[13][15] 3.3 Secondary Market 3.3.1 Transaction Situation - The trading volume of credit bonds (excluding asset - backed securities) decreased by 1.82 billion yuan compared with last week. Among them, the trading volume of urban investment bonds decreased by 2.61 billion yuan, that of industrial bonds decreased by 1.51 billion yuan, that of financial bonds increased by 2.30 billion yuan, and that of asset - backed securities decreased by 0.54 billion yuan. In terms of turnover rate, the turnover rates of different types of credit bonds increased or decreased compared with last week. The turnover rate of urban investment bonds was 1.47%, a decrease of 0.17 pct; that of industrial bonds was 1.76%, a decrease of 0.08 pct; that of financial bonds was 3.16%, an increase of 0.14 pct; and that of asset - backed securities was 0.3%, a decrease of 0.13 pct[18] 3.3.2 Yield - The yield fluctuations of credit bonds with different ratings and maturities this week did not exceed 3BP compared with last week. Specifically, the yields of 1Y AA, AAA -, and AAA + credit bonds decreased by 2BP, 3BP, and 1BP respectively; the yields of 5Y AA, AAA -, and AAA + credit bonds increased by 1BP, 1BP, and 2BP respectively; and the yields of 10Y AA, AAA -, and AAA + credit bonds increased by <1BP, <1BP, and 2BP respectively. Taking AA + - rated 5Y bonds of each type as an example, the yields of different types of bonds all increased to varying degrees this week[22][24] 3.3.3 Credit Spreads - Overall, the credit spreads of AA + communication and non - bank financial industries widened significantly compared with last week, and the credit spread of AA + machinery and equipment industry widened slightly. The fluctuations of credit spreads of other industries and ratings did not exceed 10BP. Specifically, the credit spreads of AA + communication and non - bank financial industries widened by 29BP and 13BP respectively, the credit spread of AA + machinery and equipment industry widened by 6BP, and the credit spread of AA + pharmaceutical and biological industry compressed by 6BP. The fluctuations of credit spreads of other industries and ratings did not exceed 5BP[28] - **Urban Investment Bonds**: The credit spreads of urban investment bonds with different maturities fluctuated slightly within 3BP this week. By region, except for a slight compression of credit spreads in a few regions, the credit spreads of most regions widened by no more than 5BP[30][33] - **Industrial Bonds**: Except for the slight widening of the spreads of 1Y AAA, AA, and 3Y AAA renewable industrial bonds, the credit spreads of industrial bonds with other maturities compressed to varying degrees compared with last week[35] - **Bank Capital Bonds**: The credit spreads of bank Tier 2 and perpetual bonds within 3Y mostly compressed slightly compared with last week, while the long - term credit spreads of 5Y and above mostly widened slightly[37] 3.4 This Week's Bond Market Public Opinions - The implied ratings of 27 bond issues issued by Guangzhou Urban Construction and Development Co., Ltd. were downgraded; the implied ratings of 4 bond issues issued by Shenzhen Qianhai Lianyirong Commercial Factoring Co., Ltd. were downgraded; and the entity rating of Zhongnengtiehan Ecological Environment Co., Ltd. was downgraded[39] 3.5 Investment Recommendations - This week, the central bank had a net withdrawal of 25.11 billion yuan. Overall, the credit spreads of AA + communication and non - bank financial industries widened significantly, and the credit spread of AA + machinery and equipment industry widened slightly. The credit spreads of other industries and ratings fluctuated within 10BP. The credit spreads of urban investment bonds with different maturities fluctuated slightly within 3BP. Except for the slight widening of the spreads of 1Y AAA, AA, and 3Y AAA renewable industrial bonds, the credit spreads of industrial bonds with other maturities compressed. The credit spreads of bank Tier 2 and perpetual bonds within 3Y mostly compressed slightly, while the long - term credit spreads of 5Y and above mostly widened slightly. It is recommended to focus on the stable income value of high - coupon assets[42][43]

1. Report Industry Investment Rating - Not provided in the report 2. Core Viewpoints of the Report - Amid the "asset shortage" of credit bonds, with interest rates continuously fluctuating at low levels and increasing difficulty in capital gain speculation, it is advisable to focus on the stable income value of high - coupon assets [4][48] - The optimization of the science and innovation bond mechanism by the Dealer Association marks the transition of inter - bank market science and innovation bonds from pilot exploration to mature development, facilitating the precise flow of market funds into hard - tech sectors and promoting the in - depth integration of technology, capital, and industry [13] 3. Summary by Relevant Catalog 3.1 This Week's Credit Hot Events - On March 2, 2026, the National Association of Financial Market Institutional Investors issued the "Notice on Further Optimizing the Mechanism of Science and Technology Innovation Bonds", which expands the scope of supported science and technology innovation - related titles, clarifies the standards for issuing science and technology innovation bonds based on the number of patents, manages the use of raised funds by science - and - technology enterprises in a hierarchical and classified manner, guides enterprises to issue medium - and long - term science and technology innovation bonds, enhances the convenience for equity investment institutions to issue such bonds, controls the risk of local government implicit debt, supports the development of "hard - tech" enterprises, encourages the improvement of the rating method system for the science and technology innovation industry, explores the introduction of information disclosure and liability agreement clauses based on agreements, and promotes the improvement of the investment - end mechanism [9][10][11] 3.2 Primary Market - This week, the net financing of traditional credit bonds (excluding asset - backed securities) was 124.3 billion yuan, a 165.8 billion - yuan increase from last week. The net financing of asset - backed securities was - 3.7 billion yuan, a 46.9 billion - yuan increase from last week [14] - By product type, the net financing of urban investment bonds was 54.7 billion yuan, an increase of 78 billion yuan; that of industrial bonds was 63.8 billion yuan, an increase of 63.9 billion yuan; and that of financial bonds was 5.9 billion yuan, an increase of 23.9 billion yuan [14] - In terms of issuance and redemption quantity, the issuance quantity of urban investment bonds increased by 117, and the redemption quantity increased by 9; the issuance quantity of industrial bonds increased by 99, and the redemption quantity increased by 17; the issuance quantity of financial bonds increased by 14, and the redemption quantity increased by 1 [17] 3.3 Secondary Market 3.3.1 Transaction Situation - The trading volume of credit bonds (excluding asset - backed securities) increased by 511.6 billion yuan compared with last week. Among them, the trading volume of urban investment bonds was 256.8 billion yuan, an increase of 116 billion yuan; that of industrial bonds was 364.9 billion yuan, an increase of 175.2 billion yuan; and that of financial bonds was 474.9 billion yuan, an increase of 220.4 billion yuan. The trading volume of asset - backed securities was 16.2 billion yuan, an increase of 8.7 billion yuan [19] - The turnover rate of credit bonds increased overall compared with last week. The turnover rate of urban investment bonds was 1.64%, a 0.74 - percentage - point increase; that of industrial bonds was 1.84%, a 0.88 - percentage - point increase; that of financial bonds was 3.03%, a 1.41 - percentage - point increase; and that of asset - backed securities was 0.43%, a 0.23 - percentage - point increase [19] 3.3.2 Yield - The yields of credit bonds with different ratings and maturities decreased to varying degrees compared with last week, with the 10 - year yield showing a larger decline. For example, the 1 - year AA, AAA -, and AAA + credit bond yields decreased by 3BP each; the 5 - year AA, AAA -, and AAA + credit bond yields decreased by 4BP, 3BP, and 3BP respectively; and the 10 - year AA, AAA -, and AAA + credit bond yields decreased by 6BP, 6BP, and 5BP respectively [24] - Taking the 5 - year AA + of each product type as an example, the yields of different products decreased to varying degrees. The yields of privately - issued industrial bonds and perpetual industrial bonds decreased by 3BP each; the yield of 5 - year AA + urban investment bonds decreased by 4BP; the yields of commercial bank ordinary bonds and secondary capital bonds decreased by 2BP and 1BP respectively; and the yield of 5 - year AA + asset - backed securities decreased by 3BP [26] 3.3.3 Credit Spreads - Overall, the credit spreads of the AA + electronics and textile and apparel industries widened significantly compared with last week, while the credit spreads of other industries and ratings fluctuated within 5BP. Specifically, the credit spreads of the AA + electronics and textile and apparel industries widened by 20BP and 13BP respectively [31] - For urban investment bonds, the short - term credit spreads within 3 years widened slightly, while the medium - and long - term credit spreads over 3 years compressed slightly. Regionally, most regions' urban investment spreads widened by no more than 6BP, with a few regions showing slight compression [35][37] - For industrial bonds, the long - term credit spreads compressed significantly, while the credit spreads of other maturities fluctuated within 3BP compared with last week [41] - For bank capital bonds, the credit spreads of bank Tier 2 and perpetual bonds with different maturities fluctuated within 3BP compared with last week [44] 3.4 This Week's Bond Market Public Opinions - The implied ratings of "Xiaojingkaiyou" issued by Hangzhou Xiaoshan Economic and Technological Development Zone State - owned Assets Management Co., Ltd. and "25 Jingkaiyou" issued by Zhejiang Hangzhou Bay Information Port High - tech Construction and Development Co., Ltd. were downgraded [45] 3.5 Investment Suggestions - In the context of the "asset shortage" of credit bonds, it is recommended to focus on the stable income value of high - coupon assets. For urban investment bonds, pay attention to entities such as Tianjin Urban Construction, Hubei Lianfa, etc. For industrial bonds, consider entities like Jinneng Electric Power and Yunnan Energy. For bank secondary capital bonds, focus on banks such as China Guangfa Bank and China Minsheng Bank. For other financial bonds, pay attention to entities such as Ping An Life Insurance and Cinda Asset Management [48]

1. Report Industry Investment Rating - Not provided in the report 2. Core Viewpoints of the Report - The joint issuance of policies by four departments including the People's Bank of China is expected to benefit the cash - flow and credit quality of rural revitalization - related platforms and entities, and may lead to a reduction in the spread of rural revitalization special bonds. The measures proposed by the Hong Kong Special Administrative Region Government's Financial Secretary to improve the offshore RMB bond market are expected to lower the yield of short - term offshore RMB bonds and narrow the term spread of medium - and long - term bonds. In the bond market, there are opportunities for compression of structural spreads, such as long - term urban investment bonds, 3 - 5Y AA+ industrial bonds, and 3 - 5Y AA+ secondary perpetual bonds[11][13][51] 3. Summary by Directory 3.1 This Week's Credit Hot Events - **Four - department joint policy for rural revitalization**: On February 14, 2026, four departments issued an opinion to encourage financial institutions to issue special financial bonds and support eligible enterprises to issue bonds for rural revitalization. On February 24, they issued a notice to adjust the support target and loan amount of small - scale credit for assistance. These policies are expected to improve the financing and credit environment in rural areas and benefit relevant entities[10] - **Hong Kong's measures to improve the offshore RMB bond market**: On February 25, 2026, the Hong Kong Special Administrative Region Government's Financial Secretary proposed measures such as doubling the RMB business fund quota, promoting RMB foreign exchange trading, and regularly issuing RMB bonds. It is expected to improve the offshore RMB bond yield curve and lower short - term yields and narrow medium - and long - term term spreads[12][13] 3.2 Primary Market - **Net financing**: The net financing of traditional credit bonds decreased compared with last week, with a net financing of - 415 billion yuan, a decrease of 1515 billion yuan. The net financing of asset - backed securities was - 513 billion yuan, a decrease of 708 billion yuan. By product type, the net financing of urban investment bonds, industrial bonds, and financial bonds all decreased[14] - **Issuance and redemption quantity**: The issuance quantity of urban investment bonds, industrial bonds, and financial bonds decreased compared with last week, while the redemption quantity of urban investment bonds increased, and that of industrial and financial bonds decreased[16] 3.3 Secondary Market 3.3.1 Transaction Situation - **Trading volume**: The trading volume of credit bonds decreased by 480.1 billion yuan compared with last week. By product type, the trading volume of urban investment bonds, industrial bonds, financial bonds, and asset - backed securities all decreased[22] - **Turnover rate**: The turnover rate of credit bonds decreased overall compared with last week. The turnover rates of urban investment bonds, industrial bonds, financial bonds, and asset - backed securities all declined[22] 3.3.2 Yield - The yield of credit bonds with different ratings and maturities fluctuated by no more than 5BP compared with last week. Taking AA+ 5Y bonds of each type as an example, the yields of various bonds increased to varying degrees[26][28] 3.3.3 Credit Spread - **Overall situation**: The credit spread of the AA+ leisure service industry widened significantly, while the credit spreads of the AA mining, AA+ commercial trade, and textile and clothing industries compressed significantly. The credit spreads of other industries and ratings fluctuated by no more than 5BP[31] - **Urban investment bonds**: The credit spreads of urban investment bonds with different maturities compressed slightly compared with last week. Most regions' urban investment spreads compressed by no more than 7BP, while a few regions' spreads widened slightly[37][39] - **Industrial bonds**: The credit spreads of industrial bonds with different maturities fluctuated by no more than 5BP compared with last week[41] - **Bank capital bonds**: The credit spreads of bank secondary perpetual bonds with different maturities widened by 0 - 5BP compared with last week[43] 3.4 This Week's Bond Market Public Opinion - The "20 Huabi A1" issued by Country Garden Real Estate Group Co., Ltd. announced an extension[47] 3.5 Investment Suggestions - The central bank had a large - scale net withdrawal of 577.4 billion yuan this week. The credit spreads of the AA+ leisure service industry widened, while those of the AA mining, AA+ commercial trade, and textile and clothing industries compressed. The credit spreads of urban investment bonds compressed slightly, those of industrial bonds fluctuated slightly, and those of bank secondary perpetual bonds widened. There are opportunities for compression of structural spreads in long - term urban investment bonds, 3 - 5Y AA+ industrial bonds, and 3 - 5Y AA+ secondary perpetual bonds[49][51]

1. Report Industry Investment Rating No information provided on the industry investment rating. 2. Core Viewpoints of the Report - In 2025, under the deployment of the central government to "actively and orderly resolve local government debt risks," the urban investment bond market entered a critical period of transformation. The number and scale of first - time bond - issuing entities among local state - owned enterprises, represented by urban investment companies, increased compared to 2024, indicating a positive signal in the financing environment of local state - owned enterprises. Future bonds issued by local state - owned enterprises and transformed urban investment platforms may become an increment in the credit bond market, helping to relieve the pressure of the current significant narrowing of spreads. However, regional differences and the differentiation of issuer qualifications may reshape the original pricing logic of urban investment bonds, leading to differentiation and re - pricing of bonds of local state - owned enterprises represented by urban investment companies [3]. - The urban investment bond market is in a stage of stock game, with the issuance of urban investment bonds continuously shrinking. The "exit from the platform" of urban investment shows a "high at first and then stable" trend, and the scale of debt - resolution funds is expanding, providing support for the stable contraction of the urban investment bond market [8]. - The new bonds of local state - owned enterprises show characteristics of "prudent expansion, structural optimization, and regional differentiation." The exchange has become the main issuance venue for new bonds, and medium - to high - rated entities play a core role. Some entities achieve credit enhancement through AAA - rated guarantees and obtain opportunities to issue new bonds. New bond issuances are highly concentrated in comprehensive entities and economically developed eastern provinces [10]. - In the future, due to regional differences and issuer qualification differentiation, the pricing logic of urban investment - related bonds may be reshaped, and these bonds may face a new round of differentiation and re - pricing. If the scale of bond issuance by transformed urban investment platforms and new local state - owned enterprises continues to expand, relevant bonds will become an important increment in the credit bond market, marginally relieving the narrowing pressure of urban investment bond spreads and the "asset shortage" [11]. 3. Summary by Directory 3.1. Urban Investment Financing under Debt - Resolution Policies: Controlling Increment and Resolving Stock Remains the Main Line - **Continuous Contraction of Urban Investment Bond Issuance**: Since 2023, with the implementation of debt - resolution policies, the net financing of urban investment bonds has gradually declined. In 2023, after the implementation of important debt - resolution policies in July, the net financing of urban investment bonds turned negative in the fourth quarter. In 2024, the issuance scale of urban investment bonds remained at a low level, and the net financing was continuously negative. In 2025, the contraction trend continued, with the net financing further decreasing to - 5,793.34 billion yuan, the total issuance volume dropping to 32,672.44 billion yuan, and the number of issuances shrinking to 5,500 [20][21]. - **"Exit from the Platform" of Urban Investment with a "High at First and then Stable" Trend**: After the "debt - resolution plan" was proposed at the end of July 2023, the number of urban investment platforms exiting the list reached a peak in the third quarter of that year. In 2024, the total number of exits decreased, and in 2025, the exit rhythm further slowed down. Regionally, the number of exits is higher in traditional bond - issuing provinces such as Jiangsu, Zhejiang, and Shandong. In terms of administrative levels, district - and county - level platforms are the main force [26][28]. - **Continuous Increase in Debt - Resolution Funds**: From 2023 to 2025, the scale of debt - resolution funds increased from 1.70 trillion yuan to 3.68 trillion yuan, and its proportion in local bond issuance rose from 18.21% to 35.73%. Through the replacement of high - cost and short - term debts with "special refinancing + special bonds," local governments have effectively reduced debt risks [32]. - **High Proportion of Borrowing New to Repay Old in Raised Funds**: From 2023 to 2025, the scale of urban investment bonds decreased from 6.43 trillion yuan to 5.19 trillion yuan, and the proportion of borrowing new to repay old in raised funds increased from 71.05% to 81.80%. In 2025 Q4, the proportion and scale of borrowing new to repay old both declined, indicating a more flexible use of raised funds in some regions [36][38]. 3.2. Characteristics of First - Time Bond Issuance by Local State - Owned Enterprises - **High Proportion of Private Placement Bonds**: In 2025, private placement bonds (non - public corporate bonds + private placement notes PPN) accounted for 69% of the first - time bond issuances by local state - owned enterprises, mainly due to their flexible issuance process and high success rate. In 2024, the types of first - time bond issuances were relatively more diverse [46][47]. - **Difficulty in Issuing Bonds over 1 billion yuan**: In 2025, small - and medium - sized bonds were the mainstream, with bonds below 300 million yuan and between 300 - 500 million yuan accounting for 68.47% in total. The proportion of bonds over 1 billion yuan was only 5.05%, indicating strict review standards for large - scale new financing [49]. - **Larger Proportion of Medium - and Low - Interest Rate Intervals in 2025**: In 2025, the proportion of bonds with a coupon rate in the 1.5 - 2.0% interval was 16.55%, and the 2.0 - 3.0% interval accounted for 69.34%. The coupon rate of first - time bond issuances in 2025 decreased significantly compared to 2024 [52]. - **Peak Issuance at the End of Quarters and Years**: In 2025, the monthly issuance scale of first - time bond issuances by local state - owned enterprises showed certain fluctuations, with peaks in April, June - July, and October - December. In 2024, the issuance scale was generally lower, with peaks in March and December [54]. - **Concentration in Medium - to High - Rated Entities**: In 2025, most first - time bond - issuing entities were medium - to high - rated. There were 266 AA+ entities with a issuance scale of 134.075 billion yuan, and 93 AAA entities with a scale of 65.342 billion yuan. In 2024, the rating structure was also concentrated, with AA+ entities being the main ones [58]. - **3 - Year and Shorter - Term Bonds as the Main Choice**: In terms of non - callable bonds, in 2025, 1 - 3 - year and 3 - 5 - year bonds dominated. In terms of callable bonds, the "3+N" structure was the most popular. Compared with 2024, the duration of first - time bond issuances in 2025 was generally longer, indicating an improved financing environment [61][64]. - **Exchanges as the Main Source of New Issuances**: In 2025, exchanges were the main issuance venues for first - time bond issuances by local state - owned enterprises, with 483 bonds issued and a scale of 261.941 billion yuan. In 2024, the distribution of issuance venues was more diverse [68]. - **Dominance of the Comprehensive Industry**: In 2025, "comprehensive" entities accounted for nearly half of the first - time bond issuances in terms of both quantity and scale. Traditional industries such as non - bank finance, construction decoration, public utilities, transportation, and real estate also had a relatively high concentration. In 2024, the industry distribution was more dispersed [72][74]. - **Economic Powerhouses Taking the Lead in Regional Distribution**: In 2025, first - time bond - issuing entities were highly concentrated in eastern coastal and some economically developed provinces. Shandong, Zhejiang, and Jiangsu led in terms of the number and scale of issuances, accounting for about 40%. Guangdong, Henan, Sichuan, and Hubei formed the second - tier group, accounting for about 25%. In 2024, the regional distribution was also concentrated, with lower participation from the central and western regions [75][79]. - **AAA - Rated Guarantees May Increase the Likelihood of First - Time Issuance**: In 2025, 338 first - time bond - issuing entities had no guarantee, but 236 entities achieved first - time issuance through guarantee - based credit enhancement. Most of the guarantors were AAA - rated, indicating that seeking strong - credit - quality guarantors is a feasible way to obtain new bond quotas [80]. 3.3. Future Outlook: Urban Investment - Related Bonds May Face Differentiation and Re - Pricing - **Structural Adjustment: From Contraction of Urban Investment to Expansion of Industries**: In 2026, regulatory authorities will support issuers with real industrial foundations, clear business models, and sustainable cash flows. Urban investment bonds will continue to decline, while bonds of local state - owned enterprises and industrial bonds will be the market increment. High - grade industrial bonds with high - quality assets, high credit quality, profitability, and industrial support will be an important direction for institutional allocation. "High - growth" and "innovative" bonds such as science and technology innovation bonds and green bonds will have greater development opportunities [86]. - **Possible New Round of Differentiation and Re - Pricing**: With the continuous advancement of debt - resolution policies, more traditional urban investment platforms will achieve "exit from the platform" and market - oriented transformation. If these entities can obtain new debt issuance quotas, relevant bonds will become an important increment in the credit bond market. However, due to regional differences and issuer qualification differentiation, urban investment - related bonds may face a new round of differentiation and re - pricing. Investors are advised to focus on regional entities with relatively complete industrial systems, mature industrial layouts, characteristic advantageous industries, or national key industrial projects [93][94].

Core Insights - The total trading volume of the Mongolian securities market in 2025 is approximately 1.1 trillion tugrik (around 3.1 million USD), representing a 23.3% decrease from the previous year [1] Market Structure - The primary market accounted for 474.2 billion tugrik (approximately 1.3 million USD), which is 41.8% of the total trading volume [1] - The secondary market had a trading volume of 659 billion tugrik (approximately 1.9 million USD), making up 58.2% of the total [1] - The composition of the market includes asset-backed securities (32.8%), corporate bonds (28.6%), corporate stocks (25.3%), government bonds (12.8%), and securities investment fund shares (0.5%) [1] Monthly Performance - In December, the trading volume of the securities market was 253.8 billion tugrik (approximately 0.7 million USD), which is a 4.7% decrease compared to the same month last year [1]

1. Report's Industry Investment Rating No information provided in the content. 2. Core Viewpoints of the Report - In 2025, the central bank implemented a moderately loose monetary policy, keeping liquidity abundant. The yields of interest - rate bonds showed an overall fluctuating upward trend, while the issuance rates of credit bonds decreased. The total issuance of interest - rate and credit bonds increased steadily year - on - year. Credit risks were converging. Looking forward to 2026, bond market yields are expected to remain volatile at low levels, credit spreads may show structural differentiation, the bond market issuance scale is expected to grow steadily, and bond market credit risks will continue to converge with the default rate possibly at a historical low [2]. 3. Summary by Relevant Catalogs 3.1 Bond Market Overall Situation - In 2025, China's bond market issued a total of 88.52 trillion yuan of various bonds, a year - on - year increase of 12.35%. Excluding inter - bank certificates of deposit, the total issuance of various bonds was 54.70 trillion yuan, a year - on - year increase of 15.40%. By the end of 2025, the stock of various bonds in China reached 196.17 trillion yuan, a growth of 11.45% compared with the end of 2024 [4]. 3.1.1 Interest - rate Bonds - **Yield Trend**: The yield of China's treasury bonds showed an overall fluctuating upward trend in 2025. The 10 - year treasury bond yield fluctuated in five different stages throughout the year, affected by factors such as economic data, policy expectations, and market sentiment [5]. - **Issuance Scale**: The bond market issued 32.39 trillion yuan of interest - rate bonds in 2025, a year - on - year increase of 20.63%. The issuance scale of each type of bond increased. By the end of 2025, the stock of interest - rate bond varieties in China's bond market was 123.51 trillion yuan, a growth of 14.75% compared with the previous year - end [8][9]. 3.1.2 Credit Bonds - **Issuance Interest Rate**: In 2025, the issuance rates of major credit bonds showed a downward trend. Taking the credit bonds issued by AAA - rated entities as an example, the average issuance rates of major bond types with various maturities decreased [10]. - **Issuance Volume**: The issuance scale of credit bonds reached 22.06 trillion yuan in 2025, a year - on - year increase of 8.14%. By the end of 2025, the stock of credit bonds was 51.35 trillion yuan, a year - on - year increase of 8.61%. Different sub - categories of credit bonds had different issuance trends [13]. - **Non - financial Enterprise Bonds**: In 2025, non - financial enterprises issued 15,790 issues of bonds with a total issuance scale of 13.94 trillion yuan. The issuance period and scale increased by 2.87% and 1.70% year - on - year respectively. By the end of 2025, the stock of non - financial enterprise bonds was 31.29 trillion yuan, a growth of 10.00% compared with the previous year - end [14]. - **Non - policy Financial Bonds**: Financial institutions issued 1,488 issues of non - policy financial bonds in 2025, with a total issuance scale of 5.66 trillion yuan. The issuance period and scale increased by 34.54% and 24.74% year - on - year respectively. By the end of 2025, the stock of non - policy financial bonds was 15.66 trillion yuan, a growth of 11.35% compared with the previous year - end [18]. - **Asset - backed Securities**: In 2025, the issuance period, number, and scale of asset - backed securities all increased by about 15%. By the end of 2025, the stock of asset - backed securities was 3.61 trillion yuan, an increase of 9.16% compared with the previous year - end [22]. - **Other Credit Bonds**: In 2025, the issuance period and scale of other credit bonds increased year - on - year. By the end of 2025, the stock of other credit bonds was 1.07 trillion yuan, a decrease of 14.81% compared with the previous year - end [24]. 3.2 Bond Market Operation Characteristics - **Issuance of Urban Investment Bonds and Industrial Bonds**: In 2025, the issuance of urban investment bonds decreased, while the issuance of industrial bonds increased. The net financing of urban investment bonds decreased, and that of industrial bonds increased [27]. - **Rating and Credit - grade Distribution**: The proportion of bonds without debt ratings continued to increase, and the proportion of bonds issued by AAA - rated entities continued to rise. The credit grades of non - financial enterprise credit bond issuers were mainly distributed between AAA and AA [29][34]. - **Enterprise Nature of Issuers**: In 2025, state - owned enterprises were still the main issuers of non - financial enterprise bonds. The proportion of bonds issued by central state - owned enterprises and private enterprises increased, while that of local state - owned enterprises decreased [36]. - **Regional and Industry Differentiation**: The regions and industries involved in non - financial enterprise bond issuers remained differentiated. In terms of regions, the issuance scale of non - financial enterprise bonds in some regions increased, while in some others it decreased. In terms of industries, the issuance scale of some industries increased, while in some others it decreased [41]. - **Innovative Bond Issuance**: In 2025, the issuance of innovative bonds maintained a good momentum. The issuance period and scale of science and technology innovation bonds increased by about 80%, and the issuance of other innovative bonds also increased significantly [43]. - **Credit Risk Convergence**: In 2025, the number of new default issuers, the number of defaulted bonds, and the default amount in China's bond market all decreased year - on - year. The number of new extended - maturity issuers decreased, but the number of extended - maturity bonds and the extended - maturity scale increased. Overall, the bond market credit risk showed a converging trend [47]. 3.3 Bond Market Outlook - **Yield and Credit Spread**: Interest - rate bond yields are expected to remain volatile at low levels, with limited upside and downside space. Credit bond yields are expected to follow interest - rate bonds and maintain a low - level volatile trend. Credit spreads are expected to remain low, but market disturbances may increase [48][49]. - **Issuance Scale**: In 2026, the issuance scale of interest - rate bonds is expected to increase due to a more active fiscal policy. The issuance scale of financial institution bonds in the credit bond market is expected to grow steadily, while the issuance of urban investment bonds may shrink slightly, and the issuance of industrial bonds is expected to grow continuously [50]. - **Credit Risk**: In 2026, the bond market credit risk is expected to continue to converge, and the default rate may be at a historical low. Different types of bonds, such as urban investment bonds, real estate enterprise bonds, financial bonds, and convertible bonds, have different credit risk characteristics and need to be monitored [51][52].

Group 1 - The company held its fifth board meeting on February 11, 2026, with all 11 directors participating and voting [2][4] - The board approved a general authorization for domestic debt financing instruments, which will be submitted to the shareholders' meeting for approval [3][4] - The company plans to manage the issuance of debt financing instruments with a repayment balance not exceeding 20 billion yuan [5] Group 2 - The types of debt financing instruments include financial bonds, corporate bonds, subordinated bonds, short-term corporate bonds, and asset-backed securities [6] - The maturity of the debt financing instruments will not exceed 10 years, with specific terms determined based on market conditions [8] - The funds raised will be used for business operations, debt repayment, and capital structure adjustments [12] Group 3 - The board approved revisions to the performance assessment management measures for the management team [19][20] - The board also approved revisions to compliance management and anti-money laundering policies [23][24] - The board determined the risk appetite and tolerance for compliance management and anti-money laundering for 2026 [25][26] Group 4 - The company will hold its first extraordinary shareholders' meeting on February 27, 2026, to discuss the approved proposals [38][39] - The meeting will be conducted through a combination of on-site voting and online voting [46] - The registration date for shareholders to attend the meeting is February 24, 2026 [47]