Core Viewpoint - The Shanghai Financial Court ruled on a case involving false statements in bond issuance documents by Shanghai Huaxin International Group, marking the first securities false statement liability dispute in the interbank bond market [1][4]. Group 1: Case Background - The case originated from a rural commercial bank suing various intermediary institutions, including underwriters and rating agencies, for compensation due to false statements in bond issuance [1]. - The total amount of bonds issued by Shanghai Huaxin from 2014 to 2017 exceeded 40 billion yuan [1]. - The plaintiff, a rural commercial bank, invested over 200 million yuan, and multiple investment institutions have sued Shanghai Huaxin due to bond defaults [1]. Group 2: Court Ruling - The court determined that five intermediary institutions must bear joint liability for the losses incurred by the plaintiff, amounting to approximately 128 million yuan [4]. - Postal Savings Bank and China International Capital Corporation are each responsible for 5% of the losses, equating to about 6.39 million yuan [2]. - Other intermediaries, including accounting firms and credit rating agencies, are liable for smaller percentages of the losses, totaling approximately 2.1 million yuan [2]. Group 3: Loss Assessment - The court acknowledged the complexity of factors leading to investment losses, including macroeconomic conditions and the investigation of the actual controller of the issuing company [3]. - A third-party professional institution was commissioned to assess the losses, employing methods aligned with bond pricing principles and market characteristics [3]. - The assessment distinguished losses across three phases: from issuance to disclosure, from disclosure to default, and from default to bankruptcy ruling [3].

Core Viewpoint - The Shanghai Financial Court ruled on a case involving false statements in bond issuance by Shanghai Huaxin International Group, marking a significant precedent in the interbank bond market regarding securities fraud liability [1][2][4] Group 1: Case Background - The case involves a rural commercial bank suing various intermediary institutions for compensation due to false statements in bond issuance documents by Shanghai Huaxin, which issued over 40 billion yuan in bonds from 2014 to 2017 [1][2] - The plaintiff, a rural commercial bank, invested over 200 million yuan in the bonds, which subsequently defaulted [2][3] Group 2: Court Ruling - The court determined that five intermediary institutions, including Postal Savings Bank and CICC, are liable for a total loss of approximately 128 million yuan, with specific percentages of liability assigned to each [2][4] - The ruling specified that the defendants must bear joint liability for the losses, with Postal Savings Bank and CICC responsible for 5% each, while other intermediaries have lower percentages [2][4] Group 3: Loss Assessment Methodology - The court commissioned a third-party professional agency to assess the losses caused by non-fraudulent statements, utilizing the "bond value comparison method" and considering various factors such as macroeconomic conditions and the issuer's operational status [3][4] - The assessment was divided into three phases: from issuance to disclosure, from disclosure to default, and from default to bankruptcy ruling, ensuring a comprehensive evaluation of the losses [3]

Core Insights - The People's Bank of China (PBOC) reported that as of September 2025, foreign institutions held 3.78 trillion yuan in the interbank bond market, accounting for 2.2% of the total custody volume [1] - The report indicates a significant increase in the number of foreign institutions entering the market, with 11 new entities in September alone, contributing to a total of 1,176 foreign institutions [3] - The introduction of a new bond repurchase mechanism for foreign investors is expected to enhance market liquidity and attract more foreign capital into the domestic bond market [6][7] Group 1: Foreign Investment in Bond Market - As of September 2025, foreign institutions held 2.00 trillion yuan in government bonds, 0.77 trillion yuan in policy financial bonds, and 0.86 trillion yuan in interbank certificates of deposit [1][3] - The number of foreign institutions participating in the bond market has increased, with 11 out of 15 new entrants in the third quarter joining in September [3] - The trading volume of foreign institutions in the interbank bond market was approximately 0.96 trillion yuan in September, with an average daily trading volume of about 41.7 billion yuan [1] Group 2: Market Dynamics and Trends - The trading volume of foreign institutions in September showed a slight decline to 0.83 trillion yuan from 0.87 trillion yuan in August, indicating a limited contraction in overall trading activity [3] - Commercial banks maintained a dominant position in the bond market, with a trading volume of 24.46 trillion yuan in September, while securities companies saw a decrease in trading volume [4] - The new bond repurchase policy allows foreign institutions to engage in repurchase transactions, enhancing the liquidity management tools available to them [6][7] Group 3: Impact of New Regulations - The new regulations are expected to diversify the types of investors in the bond market, including foreign central banks, international financial organizations, and various financial institutions [6] - The introduction of the repurchase mechanism is anticipated to reduce transaction friction and enhance the willingness of foreign institutions to hold bonds [7] - The repurchase business is expected to improve the pricing efficiency of the domestic bond market by reflecting overseas capital market expectations [8]

Group 1 - As of July 2025, foreign institutions hold 3.93 trillion yuan in the interbank bond market, accounting for approximately 2.3% of the total custody amount [1] - Among the types of bonds held by foreign institutions, government bonds amount to 2.02 trillion yuan, representing 51.4%, while interbank certificates of deposit are 0.98 trillion yuan, or 24.9%, and policy financial bonds are 0.76 trillion yuan, making up 19.3% [1] - In July, three new foreign institutional entities entered the interbank bond market, bringing the total to 1,171 foreign institutions, with 608 entering through direct investment channels and 834 through the "Bond Connect" channel [1] Group 2 - In July, the trading volume of foreign institutions in the interbank bond market was approximately 1.44 trillion yuan, with an average daily trading volume of about 628 billion yuan [1]

Core Viewpoint - The series of events held in Zhengzhou aims to enhance the direct financing function of the interbank bond market, supporting the transformation and upgrading of enterprises in Henan Province, as well as promoting technological innovation [1][2]. Group 1: Event Overview - The interbank bond market financing promotion event took place from August 7 to 8, 2025, organized by the China Interbank Market Dealers Association and the People's Bank of China Henan Branch [1]. - The event included a promotional exchange meeting and a seminar focused on how the interbank bond market can support technological innovation in Henan [1][4]. - Over 200 participants attended the event, including representatives from more than 100 local enterprises and 15 financial institutions, with additional remote participation from over 200 other enterprises and government departments [2]. Group 2: Key Presentations and Discussions - Presentations covered the latest registration and issuance policies, innovative products, and the advantages of financing through the interbank bond market [2]. - As a leading underwriter in the national interbank market, CITIC Bank has provided comprehensive financing exceeding 100 billion yuan annually for various enterprises in Henan over the past 27 years [2]. - The seminar on technological innovation featured discussions from five enterprise representatives regarding their operational status, financing plans, and challenges, fostering a deeper understanding of the interbank bond market among participants [4]. Group 3: Future Initiatives - CITIC Bank Zhengzhou Branch plans to continue its "Ten Thousand Enterprises - Trust and Benefit Enterprises" initiative, focusing on serving mature bond-issuing enterprises and identifying potential issuers [4]. - The bank aims to accelerate the launch of innovative bond products in key areas such as technological innovation and green development, contributing to the enhancement of bond financing in Henan Province [4].

Core Viewpoint - The recent announcement by the China Interbank Market Dealers Association regarding the self-regulation of underwriting quotes in the interbank bond market aims to enhance the quality and stability of the bond market, addressing issues such as price wars and promoting a market-oriented pricing mechanism [1][2]. Group 1: Impact on Bond Market - The new regulations are expected to end the "price war" phenomenon in the bond market, encouraging a return to market-based pricing mechanisms [1][2]. - As of June, the interbank market accounted for 88.4% of the total bond market custody balance, highlighting its significance in China's bond market [1]. Group 2: Changes for Underwriting Institutions - The regulations will push underwriting institutions to restructure their profit models, promoting long-term and stable development [3]. - The current low underwriting fees have led to concerns about the quality of due diligence and compliance, potentially increasing default risks in the bond market [2][3]. Group 3: Financing for the Real Economy - By regulating underwriting quotes, the new rules are expected to broaden financing channels for the real economy, directing funds towards weaker sectors and key areas [4]. - The regulations aim to enhance the willingness of underwriting institutions to serve small and micro enterprises, as well as technology innovation companies, thereby improving market transparency and investor decision-making quality [4].

Core Viewpoint - The China Interbank Market Dealers Association issued a notice on June 16 to strengthen the norms for issuance and underwriting in the interbank bond market, emphasizing market-oriented principles and fair treatment of all investors [1][2]. Group 1: Issuance and Underwriting Regulations - Issuers and underwriting institutions must conduct issuance and underwriting according to market principles, ensuring fair treatment of all investors and prohibiting pre-agreed bond issuance rates [1]. - Underwriting institutions are prohibited from distorting market prices through "rebates" and must not engage in improper benefits through practices like holding bonds on behalf of others [1]. - Lead underwriters must protect investors' legitimate rights and cannot use underwriting as a means to attract clients [1]. Group 2: Balance Underwriting and Pricing - Balance underwriting must be conducted with fair pricing and compliance with procedures, adhering to the interest rates disclosed in issuance documents [1]. - Balance underwriting should not crowd out effective subscription sizes from investors, and the balance underwriting rate must not be lower than the upper limit of effective subscription rates [1]. Group 3: Compliance and Monitoring - Underwriting institutions are not allowed to quote below cost for underwriting fees when participating in bond project bidding [1]. - Issuers and underwriting institutions must fulfill payment obligations as per commercial agreements and cannot refuse or delay payments [1]. - Investors are prohibited from assisting issuers in "self-financing" and must not engage in insider trading, market manipulation, or other illegal activities [1]. Group 4: Self-Regulation and Enforcement - The Dealers Association will implement self-regulation in the interbank bond market, regularly monitoring issuance and underwriting activities and conducting market evaluations [2]. - Violations of self-regulatory rules and the notice will result in self-regulatory measures or penalties, and serious violations will be referred to relevant authorities for further action [2].

Group 1 - The announcement by the trading association aims to strengthen self-discipline management of underwriting quotes in the interbank bond market and promote high-quality development of the market [1][2] - Main underwriters are required to establish and improve internal management systems for bond underwriting quotes, ensuring that quotes do not fall below cost [1][2] - Underwriters must accurately and reasonably calculate underwriting costs, covering all business process inputs and necessary expenses, based on the previous year's actual expenditures [1][2] Group 2 - Main underwriters are required to report their underwriting costs within 10 working days after the annual financial report disclosure, with specific deadlines for 2024 data [2] - The trading association will conduct key inspections and interviews for any underwriting costs reported that are deemed significantly unobjective or unfair [2] - Issuers must maintain fair competition in the market by setting reasonable selection criteria for main underwriters, considering their professional level and market reputation [2] Group 3 - The trading association encourages market participants to report any violations, such as underwriters quoting below cost or issuers interfering with underwriting quotes [2]

Core Viewpoint - The China Interbank Market Dealers Association has issued a notice to strengthen self-discipline in underwriting pricing management in the interbank bond market, aiming to promote high-quality development in this sector [1][2]. Group 1: Strengthening Internal Management - Main underwriters are required to establish and improve internal management systems for bond underwriting pricing, ensuring that bids do not fall below cost [1]. - Underwriters must accurately and reasonably calculate underwriting costs, covering all business process inputs and necessary expenses, including personnel, travel, operational, and system development costs [1]. Group 2: Cost Reporting and Compliance - Main underwriters must report their underwriting costs to the association within 10 working days after the annual financial report disclosure, with specific requirements for different types of bonds [1]. - The association will conduct key inspections and discussions if the reported underwriting costs appear to be subjective or unfair [2]. Group 3: Fair Competition and Reporting Violations - Issuers are encouraged to maintain fair competition by setting reasonable selection criteria for main underwriters, considering their professional level and market reputation [2]. - The association will handle complaints regarding underwriters quoting below cost or issuers interfering with pricing decisions, with potential self-discipline measures for violations [2].

中国银行间市场交易商协会发布关于加强银行间债券市场承销报价自律管理的通知。 (本文来自第一财经) 其中提出，强化承销报价内部管理。主承销商应根据《关于规范银行间债券市场簿记建档发行及承销有 关工作的通知》（中市协发〔2025〕146号）等制度要求，建立、健全债券承销报价内部管理制度，不 得以低于成本的承销费报价参与债券项目竞标。合理测算承销成本。各主承销商应当真实、合理测算承 销成本，覆盖全业务流程的投入与所有应当计提的摊销，包括但不限于人力成本、差旅费、运营成本、 系统建设成本及其他必要业务支出等。成本计算范围应涵盖总分支机构及业务前中后台，并依据上一年 度实际支出进行测算。 ...