According to the CITIC Securities Research Report, several urban investment platforms have recently issued announcements stating that they will suspend short-term financing issuance, and we believe there is a possibility that changes in financing policies will unfold. The market is concerned that changes in relevant policies mean that regulation has changed the direction of this round of debt. We believe that regulation encourages platforms to issue medium- and long-term bonds does not mean that the end of this round of bonds will be extended. Instead, platforms are encouraged to optimize the debt maturity structure to avoid large fluctuations in public opinion and valuation caused by concentrated maturity of bonds after the end of the bonds. On the other hand, the extension of the bond issuance period often means an increase in interest rates. In particular, for middle- and lower-tier entities, there is a possibility that debt financing costs will increase. Regulatory changes in short-term loan issuance policies may accelerate the market-based transformation of such platforms and improve their own ability to operate and repay debts.

According to the CITIC Securities Research Report, several urban investment platforms have recently issued announcements stating that they will suspend short-term financing issuance, and we believe there is a possibility that changes in financing policies will unfold. The market is concerned that changes in relevant policies mean that regulation has changed the direction of this round of debt. We believe that regulation encourages platforms to issue medium- and long-term bonds does not mean that the end of this round of bonds will be extended. Instead, platforms are encouraged to optimize the debt maturity structure to avoid large fluctuations in public opinion and valuation caused by concentrated maturity of bonds after the end of the bonds. On the other hand, the extension of the bond issuance period often means an increase in interest rates. In particular, for middle- and lower-tier entities, there is a possibility that debt financing costs will increase. Regulatory changes in short-term loan issuance policies may accelerate the market-based transformation of such platforms and improve their own ability to operate and repay debts.