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。 ...

Core Viewpoint - The recent notice from the China Interbank Market Dealers Association aims to regulate the bond underwriting market by addressing issues such as distorted pricing, non-market-based issuance, and interference in the underwriting process, emphasizing that underwriting fees must not be quoted below cost [1][4][5]. Group 1: Regulatory Measures - The notice reiterates that underwriters must not quote fees below cost, requiring main underwriters to establish internal management systems for pricing and to assess project costs comprehensively [5][6]. - This is the second notice issued within a month regarding low underwriting fees, indicating a growing concern over practices such as low-price underwriting and potential collusion among market participants [6][7]. - The association has initiated self-regulatory investigations into firms that engaged in low-cost bidding, highlighting the need for stricter compliance and accountability [6][9]. Group 2: Pricing Mechanism and Underwriter Selection - The notice mandates that issuers and main underwriters adhere to market principles when determining pricing ranges, ensuring that these ranges reflect comparable bond rates or fair market prices [8]. - It limits the number of underwriters based on the issuance scale, allowing a maximum of two underwriters for short-term and ultra-short-term notes, three for issues between 2 billion and 5 billion, and four for issues above 5 billion [8]. - The notice also emphasizes the importance of maintaining a balance between underwriting and investor participation, ensuring that underwriting does not crowd out legitimate market demand [8]. Group 3: Complaint and Integrity Mechanism - The association plans to establish a complaint and integrity public disclosure mechanism to address violations of laws and self-regulatory rules during the issuance process [9]. - Complaints regarding interference in pricing, low-cost bidding, and other unethical practices will be documented and made public, promoting transparency and accountability in the bond market [9].

Core Viewpoint - The recent regulatory notice from the China Interbank Market Dealers Association aims to address issues of distorted pricing, non-market-based issuance, and human intervention in the bond underwriting process, emphasizing the prohibition of below-cost bidding in bond underwriting [1][4]. Group 1: Regulatory Changes - The notice reiterates that underwriters must not quote fees below their costs when participating in bond project bidding, establishing a requirement for internal management systems to assess project costs and set reasonable quotes [3][4]. - This is the second notice issued within a month regarding low-price underwriting practices, highlighting ongoing concerns in the market [5]. Group 2: Market Practices - The notice specifies that issuers and underwriters should adhere to market principles when determining the pricing range for bond issuance, ensuring that the rates reflect comparable bond yields or fair market prices [7]. - It also limits the number of underwriters based on the issuance scale, with specific caps on the number of underwriters allowed for different bond types and issuance sizes [7]. Group 3: Compliance and Reporting - The association will establish a complaint and reporting mechanism to address violations of laws and self-regulatory rules during the underwriting process, including interference in pricing and below-cost quotes [8].

Core Viewpoint - The article discusses the ongoing efforts to regulate the underwriting and issuance processes in the interbank bond market, emphasizing the prohibition of underwriting fees below cost to combat unhealthy competition among underwriters [1][2]. Group 1: Regulatory Changes - On July 30, the China Interbank Market Dealers Association issued a notice to standardize the underwriting and issuance practices in the interbank bond market, specifically stating that "lead underwriters must not quote underwriting fees below cost" [1]. - This notice follows a previous directive in June aimed at strengthening the regulations on underwriting fees in the interbank bond market [2]. Group 2: Underwriting Fee Issues - A self-regulatory investigation was initiated against six lead underwriters for their low fee quotes in a bond project, with total underwriting service fees amounting to only 6,300 yuan [2]. - The reported fees for selected underwriters were alarmingly low, with some like China Galaxy Securities and Industrial Bank quoting estimated service fees as low as 700 yuan, raising concerns about the sustainability of such pricing practices [3]. Group 3: Market Practices - The article highlights ongoing issues in the interbank bond market, including low underwriting fees, bundled investments, and potential conflicts of interest, which have persisted despite previous regulations [4]. - The notice emphasizes the need for lead underwriters to comprehensively assess project costs and set reasonable quotes, while also encouraging early submission of subscription demands from investors [4]. Group 4: Pricing Mechanisms - The notice outlines that not only underwriting fees but also the pricing of book-building rates must be regulated, ensuring that the balance of underwriting does not crowd out effective investor subscriptions [5]. - It specifies that the interest rates should generally be determined at the upper limit of the book-building rate range [5]. Group 5: Disclosure and Distribution - The association has called for enhanced disclosure of information related to debt financing tools, particularly regarding lead underwriters' balance underwriting and self-investment, which must be disclosed in issuance announcements [6]. - There is a push to optimize the mechanism for lead underwriter syndicates during the registration and issuance phases of debt financing tools [6]. Group 6: Underwriter Selection Criteria - The notice imposes restrictions on the number of members in the underwriting syndicate based on the issuance scale, with specific limits set for different types of bonds [7]. - For short-term financing bonds, only up to two lead underwriters can be selected, while for larger issuances, the number can increase to a maximum of four [7]. Group 7: Future Regulations - The association has indicated that a dedicated management approach for underwriting quotes will be announced separately, signaling ongoing efforts to address competitive practices in the interbank bond market [8].