Report Industry Investment Rating - Not provided in the report Core Viewpoints - The 2026 government work report sets the tone for a moderately loose monetary policy, with an overall optimistic expectation for the capital market. The "asset shortage" pattern in the current credit bond market remains unchanged, and institutional allocation demand still has inertia. However, considering that March is the end of the quarter, wealth management funds may face the pressure of returning to the balance sheet, and the allocation demand for credit bonds by wealth management may decrease marginally or even create a certain selling pressure. Given that the credit spreads of different varieties are at historically low levels, the odds and cost - effectiveness of extending the duration to obtain capital gains at this stage are relatively limited. It is recommended to focus on the stable returns of high - coupon assets or conduct moderate credit sinking within the medium - short duration to increase returns [4][43] Summary by Directory 1. This Week's Credit Hot Events - Tianneng Holdings issued the first "technology + green" dual - labeled corporate bond by a private enterprise in the inter - bank market. On March 16, 2026, "Tianneng Holdings Group Co., Ltd. 2026 First - Phase Private Placement Green Technology Innovation Bond" was successfully issued, with a scale of 500 million yuan and a term of 1 year, providing direct financial support for the company's technological innovation and green transformation [9] - Sunac Group was ruled to bear joint and several liability in a financial non - performing creditor's rights dispute case. On March 18, 2026, Sunac Real Estate Group Co., Ltd. announced that it would bear joint and several liability for a debt of 1.031 billion yuan, which would have a certain adverse impact on its production, operation, and solvency [10] - Jianye Real Estate forecast a loss of 2.8 - 3.2 billion yuan in 2025. Affected by the economic situation and the continuous downturn of the real estate market, the company estimated inventory and accounts receivable impairment provisions, and the decrease in real estate revenue recognition and gross profit margin failed to cover the company's cost and expense expenditures [11] 2. Primary Market - Credit bonds (excluding asset - backed securities) had a net financing of 84.2 billion yuan this week, a decrease of 33.7 billion yuan compared with last week. The total issuance volume was 443.7 billion yuan, an increase of 25 billion yuan compared with last week, and the total repayment volume was 359.5 billion yuan, an increase of 58.7 billion yuan compared with last week. The net financing of asset - backed securities was 23.2 billion yuan, an increase of 27.6 billion yuan compared with last week [12] - By product type, the net financing of urban investment bonds was - 3.8 billion yuan, a decrease of 21.5 billion yuan compared with last week; the net financing of industrial bonds was 92.7 billion yuan, an increase of 14.4 billion yuan compared with last week; the net financing of financial bonds was - 4.7 billion yuan, a decrease of 26.7 billion yuan compared with last week [12] - In terms of the number of issuances and redemptions, the number of urban investment bond issuances decreased by 2, and the number of redemptions increased by 12; the number of industrial bond issuances increased by 45, and the number of redemptions increased by 33; the number of financial bond issuances decreased by 1, and the number of redemptions decreased by 1 [15] 3. Secondary Market 3.1. Trading Situation - The trading volume of credit bonds (excluding asset - backed securities) increased by 64.5 billion yuan compared with last week. Among them, the trading volume of urban investment bonds was 269.6 billion yuan, an increase of 38.9 billion yuan compared with last week; the trading volume of industrial bonds was 395.9 billion yuan, an increase of 46 billion yuan compared with last week; the trading volume of financial bonds was 477.5 billion yuan, a decrease of 20.4 billion yuan compared with last week. The trading volume of asset - backed securities was 1.93 billion yuan, an increase of 0.84 billion yuan compared with last week [17] - In terms of turnover rate, the turnover rates of urban investment bonds and industrial bonds increased compared with last week, while the turnover rate of financial bonds decreased slightly. The turnover rate of urban investment bonds was 1.73%, an increase of 0.26 percentage points compared with last week; the turnover rate of industrial bonds was 1.99%, an increase of 0.22 percentage points compared with last week; the turnover rate of financial bonds was 3.03%, a decrease of 0.13 percentage points compared with last week. The turnover rate of asset - backed securities was 0.53%, an increase of 0.23 percentage points compared with last week [17] 3.2. Yield - Short - term credit bonds continued to perform well this week, with yields continuing to decline. Specifically, the yields of 1Y AA, AAA -, and AAA + credit bonds decreased by 3BP, 2BP, and 3BP respectively compared with last week; the yields of 5Y AA and AAA + credit bonds decreased by <1BP and 1BP respectively compared with last week, while the yield of 5Y AAA - credit bonds increased by 1BP; the yields of 10Y AA, AAA -, and AAA + credit bonds increased by 1BP compared with last week [20] - Taking AA + - rated 5Y bonds of each variety as an example, the yields of different varieties fluctuated slightly this week. Among them, the yields of privately - issued industrial bonds and perpetual industrial bonds decreased by <1BP compared with last week; the yield of AA + - rated 5Y urban investment bonds decreased by 1BP compared with last week; the yields of commercial bank ordinary bonds and secondary capital bonds decreased by 3BP and 1BP respectively compared with last week; the yield of AA + - rated 5Y asset - backed securities increased by <1BP compared with last week [22] 3.3. Credit Spreads - Overall, the credit spreads of AA + steel and media industries compressed significantly compared with last week, while the credit spread of the AAA national defense and military industry widened compared with last week. Specifically, the credit spreads of AA + steel and media industries compressed by 12BP and 7BP respectively compared with last week, and the credit spread of the AAA national defense and military industry widened by 6BP compared with last week. The fluctuations of credit spreads of other industries and ratings compared with last week did not exceed 5BP [26] 3.3.1. Urban Investment Bonds - By term, the credit spreads of urban investment bonds of different terms fluctuated slightly within 2BP this week. Among them, the credit spread of 0.5 - 1Y urban investment bonds was 24BP, a compression of 1BP compared with last week; the credit spread of 1 - 3Y urban investment bonds was 33BP, a compression of 1BP compared with last week; the credit spread of 3 - 5Y urban investment bonds was 51BP, a compression of 1BP compared with last week; the credit spread of 5 - 10Y urban investment bonds was 54BP, a widening of 2BP compared with last week; the credit spread of urban investment bonds over 10Y was 35BP, a widening of <1BP compared with last week [28] - By region, except for a slight widening of credit spreads in a few regions, the credit spreads of urban investment bonds in most regions compressed. The top five regions with the highest AA - rated urban investment bond credit spreads were Guizhou, Yunnan, Jilin, Shandong, and Guangxi, with credit spreads of 199BP, 138BP, 110BP, 96BP, and 84BP respectively; the top five regions with the highest AA + - rated urban investment bond credit spreads were Guizhou, Shaanxi, Gansu, Inner Mongolia, and Yunnan, with credit spreads of 158BP, 95BP, 89BP, 79BP, and 76BP respectively; the top five regions with the highest AAA - rated urban investment bond credit spreads were Liaoning, Yunnan, Shaanxi, Jilin, and Guizhou, with credit spreads of 68BP, 52BP, 47BP, 46BP, and 41BP respectively [29][30] 3.3.2. Industrial Bonds - The short - term credit spreads of industrial bonds fluctuated narrowly at a low level this week, and the medium - and long - term spreads compressed slightly. Specifically, the credit spreads of 1Y AAA - and AA + privately - issued industrial bonds widened by <1BP compared with last week, the credit spread of 1Y AA privately - issued industrial bonds compressed by 2BP compared with last week, and the credit spreads of 10Y AAA -, AA +, and AA privately - issued industrial bonds compressed by <1BP compared with last week; the credit spreads of 1Y AAA - and AA + perpetual industrial bonds compressed by 1BP compared with last week, the credit spread of 1Y AA perpetual industrial bonds widened by <1BP compared with last week, and the credit spreads of 10Y AAA -, AA +, and AA perpetual industrial bonds compressed by <1BP compared with last week [34] 3.3.3. Bank Capital Bonds - The credit spreads of bank Tier 2 and perpetual bonds fluctuated narrowly within 5BP compared with last week. Specifically, the credit spreads of 1Y AAA -, AA +, and AA secondary capital bonds widened by 1BP, 1BP, and <1BP respectively compared with last week, and the credit spreads of 10Y AAA -, AA +, and AA secondary capital bonds compressed by 3BP, 4BP, and 4BP respectively compared with last week; the credit spreads of 1Y AAA -, AA +, and AA bank perpetual bonds widened by <1BP compared with last week, and the credit spreads of 10Y AAA -, AA +, and AA bank perpetual bonds compressed by 3BP, 3BP, and 3BP respectively compared with last week [37] 4. This Week's Bond Market Public Opinions - The credit rating of Dongfang Fashion Driving School Co., Ltd. was downgraded, and the rating of its "Dongshi Convertible Bond" was also downgraded; the implied rating of "GC Huanglong A" issued by Hangzhou Haifeng Western Restaurant Co., Ltd. was downgraded; the implied rating of "25 Nanshi 01" issued by Nanping Industrial Group Co., Ltd. was downgraded [40] 5. Investment Suggestions - This week, there were 176.5 billion yuan of reverse repurchases due in the open market. The central bank carried out a total of 242.3 billion yuan of reverse repurchase operations, and issued 180 billion yuan of treasury cash fixed - term deposits, with a net investment of 245.8 billion yuan for the whole week. Overall, the credit spreads of AA + steel and media industries compressed significantly compared with last week, while the credit spread of the AAA national defense and military industry widened compared with last week. For urban investment bonds, the credit spreads of different terms fluctuated slightly within 2BP this week. For industrial bonds, the short - term credit spreads fluctuated narrowly at a low level, and the medium - and long - term spreads compressed slightly. For bank capital bonds, the credit spreads of bank Tier 2 and perpetual bonds fluctuated narrowly within 5BP compared with last week [42]